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Informist, Friday, Aug. 7, 2026

 

By Vidhi Thacker

 

MUMBAI – Afcons Infrastructure Ltd. is expected to post a decline in its net profit and revenue for the June quarter due to lower orders from National Highway Authority of India and high raw material costs that were only partly passed through, according to brokerages tracking the company.

 

Afcons Infra is expected to report a net profit of INR 863 million, down 37% on year, but a turnaround from a loss of INR 884 million reported in the trailing quarter, according to the average of estimates from five brokerages. The company reported a net profit of INR 1.4 billion in the year-ago quarter. The highest estimate for the company's net profit is INR 1.2 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 507 million from Nomura Equity Research.

 

The engineering and construction company's revenue is expected to fall 13% on year to INR 29.35 billion for the June quarter, according to the estimates. The company had reported a revenue of INR 33.70 billion in the year-ago quarter. The highest estimate for the June quarter revenue is INR 32.38 billion from Nuvama Wealth Management Ltd. and the lowest is INR 26.50 billion from Nomura.

 

Supply chain disruptions and weak margins due to an increase in the cost of raw materials will negatively affect the company's earnings, brokerages said. Increased competition and low project execution will add to it, PhilipCapital (India) Pvt. Ltd. said.

 

The company is expected to have order inflows of INR 132 billion during the quarter, Nomora said. Afcons received an order worth INR 53 billion in June from Vadhvan Port Project to build a breakwater at their upcoming port. Despite this, lower orders from the government will put pressure on the company as these make up 79% of the company's total order book, the company said.

 

Afcons is expected to report earnings before interest, tax, depreciation, and amortisation of INR 2.9 billion for the June quarter, according to the average of estimates from four brokerages, down 34% on year. The highest estimate for the company's EBITDA is INR 3.4 billion from Nuvama and the lowest is INR 2.4 billion from Nomura.

 

The company's EBITDA margin is expected to fall 365 basis points on year to 9.2% in the June quarter due to lower project execution, Nomura said.

Afcons is an engineering and infrastructure company with diversified portfolio in both domestic and international markets. Investors will monitor the management commentary on margin expansion and prospects for tenders. The company will announce its June quarter earnings on Friday.

 

At 1153 IST, shares of the company traded at INR 278.65 on the National Stock Exchange, down marginally from Thursday. The stock is down 12% since the company reported its March quarter earnings on May 18.

 

Out of the five brokerage reports on the company available with Informist, two have a "buy recommendation, one has a "hold" recommendation, and two have a "sell" recommendation. The average target price for the "buy" recommendations is INR 408, which is 46% higher than the current price. The average target price for the "sell" recommendations is INR 300.

 

Following are the Apr-Jun earnings estimates for Afcons Infra from five brokerages in a descending order of net profit, in INR million:

 

Brokerages	Revenue	Net Profit	EBITDA
Anand Rathi Share and Stock Brokers Ltd.	31,639	1,179	--
Nuvama Wealth Management Ltd.	32,384	1,105	3,386
Elara Securities (India) Pvt. Ltd.	29,246	882	3,169
PhillipCapital (India) Pvt. Ltd.	26,963	643	2,561
Nomura Equity Research	26,500	507	2,445
Averages	29,346	863	2,890

 

End

 

Edited by Pankaj Aher

 

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