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Informist, Monday, Aug. 10, 2026

 

By Rosalin Lenka

 

MUMBAI - Ashoka Buildcon Ltd. is expected to report higher revenue and net profit for the June quarter, supported by execution of non-road projects and lower interest costs, according to brokerages tracking the company. However, margins are expected to remain under pressure due to supply chain challenges and higher raw material costs.

 

The company is expected to report a consolidated net profit of INR 345.29 million for the June quarter, according to the average of estimates from seven brokerages. The estimate is 13% higher than INR 306.22 million reported in the year-ago quarter, but 29% lower than INR 488.56 million reported in the March quarter. The highest estimate for the company's net profit is INR 443 million from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 187 million from Elara Securities (India) Pvt. Ltd.

 

Ashoka Buildcon's net sales are seen at INR 13.98 billion, according to the estimates. This is 7% higher than INR 13.11 billion reported in the year-ago quarter, but 21% lower than the INR 17.72 billion reported in the March quarter. The highest estimate for net sales is INR 14.6 billion from Nuvama Wealth Management Ltd. and the lowest estimate is INR 13.2 billion from HDFC Securities Ltd.

 

The company's performance is expected to be supported by orders from the non-road segment and execution, while road activity remains muted, Anand Rathi Share and Stock Brokers Ltd. said. Margins are likely to remain under pressure due to supply chain disruptions and higher raw material costs, which could only be partly passed, the brokerage added.

Execution is expected to be weak to moderate for companies in the sector due to lower availability of labour, supply chain challenges, and the war in West Asia, JM Financial said. General engineering, procurement, and construction players benefited from non-road orders during the quarter, while road activity remained muted after a strong ramp-up in March, Anand Rathi said.

 

Engineering and construction order inflows rose around 17% on year to INR 1.08 trillion in the June quarter, though order additions remained uneven across companies, Elara Securities said. Ashoka Buildcon, along with KNR Constructions and National Buildings Construction Corp. India, reported weaker order additions, mainly due to deferred project awards, execution-led priorities and the lumpy nature of order conversion, Elara Securities said.

 

Industry order inflow improved in the June quarter, with road players leading the gains. Ashoka Buildcon achieved around 12% of its FY27 order inflow guidance in the June quarter, while the broader road engineering, procurement, and construction segment saw a slow start to FY27, Prabhudas Lilladher said.
 

The company's earnings before interest, tax, depreciation, and amortisation are seen at INR 1.17 billion, according to the average of six estimates. The EBITDA was INR 1.28 billion in the year-ago quarter. The highest EBITDA estimate is INR 1.28 billion from Prabhudas Lilladher and the lowest is INR 1.03 billion from Elara Securities. The EBITDA margin is expected to decline to 8.9% from 9.3% in the year-ago quarter, Prabhudas Lilladher said.

Ashoka Buildcon is an infrastructure company that builds large-scale public projects like national highways, bridges, railways, and power grids, rather than making everyday consumer goods. Its main industrial products are high-quality construction materials, including ready-mix concrete, pre-cast concrete blocks, and asphalt mixes used for paving roads.

 

The company is scheduled to detail its earnings on Tuesday. On Monday, shares of the company closed at INR 117.98 apiece on the National Stock Exchange, marginally lower from Friday. The stock is down 8% since the company reported its results for the March quarter on May 21.

Of the six research reports on the company available with Informist, four have a "buy" recommendation on the stock with an average target price of INR 173.75 per share, which is 32% higher than the closing price Monday. One brokerage has a "hold" recommendation on the stock with a target price of INR 152 and one brokerage has a "sell" call on the stock with an average target price of INR 116.

 

Following are the Apr-Jun earnings estimates, in INR million, for Ashoka Buildcon from seven brokerages, in descending order by the net profit estimate:

 

Brokerage firm	Net sales	Net profit	EBITDA
Prabhudas Lilladher Pvt. Ltd.	14,417	443	1,283
Anand Rathi Share and Stock Brokers Ltd.	14,335	409	--
HDFC Securities Ltd.	13,200	400	1,200
JM Financial Institutional Securities Pvt. Ltd.	13,237	392	1,194
Nuvama Wealth Management Ltd.	14,602	318	1,201
PhillipCapital (India) Pvt. Ltd.	13,500	268	1,080
Elara Securities (India) Pvt. Ltd.	14,568	187	1,032
Average	13,979	345	1,165

 

End

 

Edited by Pankaj Aher and Shubhayan Bhattacharya

 

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