Afcons Infrastructure Limited September profit falls 61%

Afcons Infrastructure Limited reported Rs 41.25 crore of profit attributable to owners for the quarter ended 30 September 2026, down 61% from Rs 105.41 crore a year earlier. Revenue from operations fell 12% to Rs 2,635.25 crore, while Rs 271.03 crore of other income included Rs 183.33 crore of arbitration-award interest.

What were Afcons’ September-quarter earnings?

Afcons reported Rs 41.25 crore of profit attributable to owners in the September 2026 quarter, compared with Rs 105.41 crore in the September 2025 quarter and Rs 30.60 crore in the June 2026 quarter. Consolidated profit after tax was Rs 41.09 crore, after a Rs 16 lakh loss attributable to non-controlling interests, versus a Rs 33 lakh loss a year earlier.

Revenue from operations was Rs 2,635.25 crore, down from Rs 2,988.39 crore a year earlier and Rs 2,671.00 crore in the preceding quarter. Total income declined to Rs 2,906.28 crore from Rs 3,100.93 crore year on year, but increased from Rs 2,726.68 crore in June because other income rose to Rs 271.03 crore from Rs 55.68 crore.

Afcons recorded basic and diluted earnings per share of Rs 1.12 for the September quarter, against Rs 2.85 a year earlier and Rs 0.82 in June. Total comprehensive income attributable to owners was Rs 52.36 crore, compared with Rs 75.51 crore a year earlier, reflecting Rs 11.11 crore of other comprehensive income against a Rs 29.90 crore loss in that line in the prior-year quarter.

Why did Afcons’ September-quarter profit fall?

Afcons’ profit before tax fell to Rs 82.38 crore from Rs 149.24 crore because the Rs 353.14 crore decline in revenue from operations outweighed the Rs 158.49 crore increase in other income. The other-income line included Rs 183.33 crore of interest on an arbitration award in the company’s favour for the quarter and half year ended 30 September 2026.

Total expenses declined to Rs 2,823.90 crore from Rs 2,951.69 crore, a smaller reduction than the fall in operating revenue. Material consumption fell to Rs 772.20 crore from Rs 915.17 crore, construction cost decreased to Rs 1,017.05 crore from Rs 1,044.86 crore, and employee benefit expense declined to Rs 298.18 crore from Rs 348.71 crore.

Other expenses increased to Rs 456.14 crore from Rs 351.03 crore, while finance costs rose to Rs 182.34 crore from Rs 169.78 crore. Depreciation and amortisation declined to Rs 97.99 crore from Rs 122.14 crore. Afcons operates in a single engineering, procurement and construction, or EPC, segment, and management says quarterly margins can vary with the nature, type and volume of work executed.

The filing does not separately disclose an operating-margin measure. Total tax expense was Rs 41.29 crore, compared with Rs 44.16 crore a year earlier, despite the lower pre-tax profit, as the September 2026 quarter included a Rs 29.79 crore deferred-tax charge versus a Rs 25.37 crore deferred-tax credit in the prior-year quarter.

How did Afcons perform in the first half of fiscal 2027?

Afcons’ profit attributable to owners fell to Rs 71.85 crore for the half year ended 30 September 2026 from Rs 242.81 crore in the corresponding prior-year period. Revenue from operations declined to Rs 5,306.25 crore from Rs 6,358.77 crore, while profit before tax fell to Rs 132.97 crore from Rs 332.62 crore.

Total income decreased to Rs 5,632.96 crore from Rs 6,519.98 crore, even as other income rose to Rs 326.71 crore from Rs 161.21 crore. Total expenses declined to Rs 5,499.99 crore from Rs 6,187.36 crore, while finance costs increased to Rs 355.39 crore from Rs 331.55 crore and total tax expense fell to Rs 61.58 crore from Rs 90.14 crore.

Basic and diluted earnings per share were Rs 1.94 for the half year, against Rs 6.59 in the comparable prior-year period. Afcons states that EPC project execution can differ by quarter, meaning quarterly results may vary and may not be indicative of annual results.

Afcons used Rs 340.33 crore in operating activities in the first half, compared with Rs 668.64 crore used a year earlier. A Rs 682.22 crore increase in contract assets was an operating cash outflow, partly offset by Rs 216.60 crore generated from a decrease in trade receivables; investing activities used Rs 373.61 crore and financing activities generated Rs 833.73 crore.

What do Afcons’ balance sheet and claim disclosures show?

Afcons had total assets of Rs 19,420.49 crore at 30 September 2026, compared with Rs 19,130.88 crore at 31 March 2026. Non-current contract assets rose to Rs 2,045.56 crore from Rs 1,497.04 crore, while current contract assets edged down to Rs 6,209.35 crore from Rs 6,234.46 crore.

Total equity was Rs 5,465.24 crore at 30 September, compared with Rs 5,450.58 crore at the March year end. Current borrowings increased to Rs 3,497.45 crore from Rs 2,618.67 crore and non-current borrowings rose to Rs 1,267.58 crore from Rs 919.60 crore, while cash and cash equivalents increased to Rs 504.18 crore from Rs 385.70 crore.

Afcons disclosed claims that management considers recoverable, although their timing and outcome remain uncertain because arbitration and court proceedings are continuing. For the Transtonnelstroy Afcons Joint Venture’s Chennai Metro matters, the filing includes Rs 659.87 crore of contract assets, Rs 120.81 crore of non-current trade receivables, Rs 30.63 crore of interest on an arbitration award and Rs 25.77 crore related to a bank guarantee encashed by the client.

For the Dahej Standby Jetty Project Undertaking, management considers Rs 79.28 crore of other non-current financial assets and Rs 11.10 crore of non-current contract assets recoverable while Delhi High Court proceedings continue. Afcons also recorded Rs 115 crore of non-current contract assets at 30 September 2026 for claims related to the Konkan Railway steel-arch bridge project, where arbitration and High Court proceedings remain ongoing.

Conclusion

Afcons’ September-quarter result combined a 12% reduction in revenue from operations with a much sharper 61% fall in profit attributable to owners. Other income of Rs 271.03 crore, including Rs 183.33 crore of arbitration-award interest, lifted total income sequentially but did not offset lower operating revenue, higher other expenses and increased finance costs.

The next execution periods will be relevant because management says EPC project mix, type and volume can change quarterly results. Investors can also watch the continuing arbitration and court proceedings tied to the Rs 659.87 crore Transtonnelstroy Afcons Joint Venture contract assets and the Rs 115 crore Konkan Railway claim, whose duration and outcome Afcons says are uncertain.