More Stories

Informist, Wednesday, Aug. 12, 2026

 

--Ashoka Buildcon: EBITDA margin guidance lowered for FY27 to 9-9.5% 
--CONTEXT: Comments by Ashoka Buildcon's mgmt in post-earnings analyst call 
--Ashoka Buildcon: Third party debt seen at INR 5 bln-INR 6 bln for FY27 
--Ashoka Buildcon: Will take around 2 months to start work on Angola project 
--Ashoka Buildcon: Plan to enter 2-3 more countries to expand global ops 

 

By Avishek Rakshit and Shruti Nair

 

KOLKATA/MUMBAI – After a 180-basis-point on-year decline in its earnings before interest, tax, depreciation, and amortisation margin for the June quarter, Ashoka Buildcon Ltd. Wednesday lowered its EBITDA margin guidance for the current financial year by 0.5% to 9-9.5%. It also lowered its top line growth guidance to 10-15% from 20%.

 

This is despite the company having a substantially strong order book and expectations of strong order inflows and execution in the second half of the ongoing financial year. 

 

"This quarter (June quarter) has been flat due to various reasons and various uncertainties, particularly supply chain. So, this year's overall performance will be able to touch between 10% to 15% growth," Managing Director Satish Parakh told sector analysts on Wednesday in a post-earnings conference call.

 

 

As on Jun. 30, the engineering, procurement, and construction company had an order book of nearly INR 153 billion and expects opportunities to open up in the next quarters. 

 

"If we see the bid pipeline, NHAI (National Highways Authority of India), MRTH (Ministry of Road Transport & Highways) alone is throwing up around 1 lakh crores (INR 1 trillion) of bids. And if we see states, then about 25,000 crores (INR 250 billion) bids are in the pipeline," Parakh said. "Other than this, railways is there, which is throwing around 50,000 crores (INR 500 billion) of bids which are already now under pipeline. Other than this, power, T&D (transmission and distribution) and renewable energy sector are there, where we are also bidding for EPC (engineering, procurement, and constructions)."

 

Ashoka Buildcon is also eyeing opportunities in seven new high-speed rail corridors covering around 4,000 kilometres which the government announced recently. The opportunity from these projects, Parakh said, is no longer limited to traditional track construction, but spans over electrification, signalling, safety systems, freight infrastructure, station development and other specialised EPC requirements.

 

Parakh said that in the June quarter, road construction activity in the country declined 32% on year to around 274 kilometres. "So, while we remain positive on the long-term fundamentals of India's road infrastructure, we believe the sector is currently going through a period where the focus is shifting from simply awarding more kilometres to ensuring that projects are properly appraised, land is made available and execution can proceed efficiently," he said.

 

The company, which is already working on various projects in seven-eight countries currently, plans to enter another two-three countries by bidding on projects there to expand its global reach. The company is expected to start work on its power and transmission project in Angola in the next two months. 

 

The company currently has around INR 28 billion of consolidated debt on its books and sees third-party debt at INR 5–6 billion for the current financial year. 

 

On Wednesday, shares of Ashoka Buildcon closed 2.6% lower at INR 113.90 on the National Stock Exchange. For the June quarter, the company reported a net profit of INR 315.37 million on revenues of INR 12.88 billion.  End

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.