Ashoka Buildcon (ASHOKA) Q3 24/25 earnings summary

Executive summary

• Major asset divestments completed, including sale of stakes in five subsidiaries (INR 5,718 crore enterprise value) and 11 subsidiaries (INR 2,324 crore), with proceeds to reduce debt and fund growth.

• Acquired 34% of Ashoka Concessions Limited from Macquarie SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust for INR 1,526 crore, making ACL a wholly owned subsidiary.

• Transitioning to a full-range EPC player, bidding across roads, railways, power, buildings, and water segments.

• Secured significant new orders and project wins across road, bridge, airport, and power transmission sectors, with a robust order book of INR 16,457 crore as of December 31, 2024.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Standalone Q3 FY25 revenue at INR 1,792 crore, down 16% year-over-year; EBITDA at INR 187 crore (10.3% margin); PAT at INR 61 crore.

• Consolidated Q3 FY25 revenue at INR 2,388 crore, down 10% year-over-year; EBITDA up 6% year-over-year to INR 677 crore (27.9% margin); PAT surged to INR 662 crore due to deferred tax asset recognition.

• Nine months FY25 consolidated revenue at INR 7,450 crore, up 8% year-over-year; EBITDA up 30%; PBT up 137%.

• Segment revenue Q3 FY25: Road EPC 57.9%, Road HAM 12.4%, Power EPC 23.7%, Railways 2.5%, Others 3.4%.

• Standalone and consolidated debt at INR 1,466 crore and INR 6,847 crore, respectively, as of Dec 31, 2024.

Outlook and guidance

• FY26 revenue expected to grow 10-15% over FY25, with margins of 10-11%.

• FY25 revenue likely to be flat or slightly down (2-3% below FY24); Q4 EBITDA margin guidance at 8.5-9%.

• Order inflow guidance for FY26: INR 12,000-14,000 crore.

• High probability of completion for announced asset sales, with assets and liabilities classified as held for sale.

• Ongoing focus on asset monetization and restructuring to improve capital structure.