Earnings Outlook
Ashoka Buildcon net profit seen up despite fall in net sales
This story was originally published at 20:14 IST on 8 August 2025
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By Shravani Chandiwade
Mumbai - Ashoka Buildcon Ltd. is expected to report a significant year-on-year growth in its net profit for the June quarter despite a decline in net sales. The company's bottom line is expected to improve sharply due to a low base in the same quarter of the previous financial year.
The company is expected to report a net profit of INR 685 million, up 68% on year and 15% higher on quarter, according to the average of estimates from five brokerages. This is due to a low base, as the company's net profit for the year-ago quarter was INR 408 million on the back of high input costs and increased working capital loans. The highest estimate for the company's net profit is INR 859 million from JM Financial Institutional Securities Pvt. Ltd. and the lowest estimate is INR 590 million from Antique Stock Broking Ltd.
The company's top line for the June quarter is expected to be INR 18.40 billion, marginally down on year and down 7% on quarter, according to the average of estimates by five brokerages. The highest estimate for the company's net sales is INR 20.08 billion from JM Financial and the lowest estimate is INR 17.37 billion from Anand Rathi Share and Stock Brokers Ltd.
Ashoka Buildcon Ltd. is a construction and infrastructure company which operates in five verticals i.e. highways and bridges, power (transmission and distribution), railway, building, and water (sewage treatment plants). The company's highway and bridges vertical, which constituted 60% of its order book at end-March, is expected to see low order inflow because of the early onset of the monsoon. This is the main reason for the likely decline in the company's revenue in the reporting quarter.
The company is expected to report an earnings before interest, tax, depreciation, and amortisation of INR 1.62 billion. The highest estimate for the company's EBITDA is INR 1.92 million from JM Financial and the lowest estimate is INR 1.42 billion from Antique Stock. The company's EBITDA margin is also expected to decline.
Friday, shares of Ashoka Buildcon ended at INR 192.05 on the National Stock Exchange, down marginally. The stock is down more than 10% since the company announced its March quarter earnings.
Of the eight brokerage reports available on the company with Informist, four have a "buy" recommendation on the company's stock at an average target price of INR 273. Three brokerages have a "hold" recommendation and one brokerage has a "sell" recommendation on the stock. The company is scheduled to report its earnings Monday.
Following are the Apr-Jun earnings estimates for Ashoka Buildcon Ltd. based on reports from five brokerage firms in the descending order of the estimate of net profit:
Brokerage | Net sales (in mln rupees) | Net profit (in mln rupees) | EBITDA (in mln rupees) |
JM Financial Institutional Securities Pvt. Ltd. | 20,084.00 | 859.00 | 1,918.00 |
Nirmal Bang Equities Pvt. Ltd. | 18,827.00 | 706.00 | 1,541.00 |
Nuvama Wealth Management Ltd | 17,893.00 | 637.00 | 1,611.00 |
Anand Rathi Share and Stock Brokers Ltd. | 17,379.00 | 634.00 | - |
Antique Stock Broking Ltd. | 17,832.00 | 590.00 | 1,427.00 |
Average | 18,403.00 | 685.20 | 1,624.25 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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