Ashoka Buildcon says Bihar case needs no financial adjustment

Ashoka Buildcon Limited made no adjustment to its September 30, 2026 financial results for the pending Bihar CBI matter, saying the project was completed and had received a completion certificate from the National Highway Authority of India (NHAI). The auditor highlighted the sub judice case but did not modify its limited-review conclusion.

What is the Bihar CBI matter involving Ashoka Buildcon?

Ashoka Buildcon faces a chargesheet concerning alleged bribery of certain NHAI officials and alleged project-work irregularities in Bihar during April 2021 to August 2022. The filing says the first information report was lodged in an earlier year and alleges that company personnel provided undue advantage to certain officials and to Ashoka Buildcon in connection with the project.

Ashoka Buildcon said it received the final chargesheet on February 28, 2025, although it describes the chargesheet as dated February 15, 2024. The Court of Special Judge, CBI, Bihar arraigned Ashoka Buildcon primarily over alleged non-completion or deviation in executed work and minor irregularities in work quality, according to the note accompanying the September 2026 standalone results.

The disclosure does not quantify a potential penalty, claim, provision or contingent liability for the matter as of September 30, 2026. It therefore sets out the allegations and the procedural position, but does not give a rupee estimate of a possible adverse outcome or a date for a court decision.

Why has Ashoka Buildcon made no financial adjustment?

Ashoka Buildcon made no adjustment because the matter was sub judice before the Court of Special Judge, CBI, Bihar as of September 30, 2026. Management said it believes Ashoka Buildcon complied with its contractual obligations and does not expect a material effect on the financial results from the matter.

The company also said the Bihar project had been completed by September 30, 2026 and that NHAI had issued a completion certificate. The filing does not state that the certificate resolves the chargesheet or ends the proceedings before the CBI court, which remain pending.

Ashoka Buildcon filed a writ petition with the High Court of Judicature at Patna on May 11, 2026 seeking to quash the chargesheet allegations. The company said its petition argues that there is no evidence linking Ashoka Buildcon to bribery and that the case is based on unreliable evidence; these are the company’s stated grounds rather than findings by the court.

What did Ashoka Buildcon’s auditor say about the case?

S R B C & CO LLP drew attention to the Bihar matter in its limited-review report dated November 5, 2026, noting that no adjustments had been made pending its final outcome. The auditor identified Note 3 of the standalone September 2026 results as an ongoing regulatory matter involving, among others, Ashoka Buildcon.

The auditor did not modify its conclusion in respect of the matter. It said nothing had come to its attention that caused it to believe the September 30, 2026 standalone statement failed to disclose information required under listing regulations or contained a material misstatement.

The report was a limited review under Standard on Review Engagements 2410, rather than an audit opinion. The auditor said the review provides moderate assurance through inquiries and analytical procedures and is narrower in scope than an audit conducted under Standards on Auditing.

How do Ashoka Buildcon’s September results frame the uncertainty?

Ashoka Buildcon reported standalone revenue from operations of Rs 1,315.48 crore for the quarter ended September 30, 2026, up from Rs 1,266.10 crore a year earlier. Profit after tax, however, declined to Rs 37.96 crore from Rs 139.18 crore because the September 2025 quarter included an exceptional gain of Rs 112.05 crore and the latest quarter had no exceptional item.

Profit before tax fell by Rs 117.81 crore year on year, while revenue increased by Rs 49.38 crore. The prior-year exceptional item was a gain on sale of stakes in build-operate-transfer and hybrid-annuity-model subsidiaries; Ashoka Buildcon did not attribute the latest profit movement to the Bihar matter and said no adjustment was made for that case.

For the half year ended September 30, 2026, standalone profit after tax was Rs 69.50 crore against Rs 169.80 crore in the corresponding 2025 period. Half-year revenue from operations rose to Rs 2,603.36 crore from Rs 2,576.73 crore, while finance costs declined to Rs 117.12 crore from Rs 162.21 crore.

What other disclosed financial actions should readers note?

Ashoka Buildcon’s board approved a private-placement capacity for unsecured, listed and rated non-convertible debentures of up to Rs 500 crore on November 5, 2026. The proposed instruments may run for up to 60 months, subject to a minimum tenure of 18 months, with a coupon set between the State Bank of India overnight rate and its prime lending rate on the deemed allotment date.

The board also approved a postal-ballot notice seeking shareholder approval for divestment of the entire stake held through wholly owned subsidiaries in Jaora-Nayagaon Toll Road Company Private Limited. Separately, Ashoka Buildcon classified investments, loans and related assets and liabilities of five hybrid-annuity-model subsidiaries as held for sale because the relevant transactions were considered highly probable of completion.

Ashoka Buildcon’s standalone debt-equity ratio was 0.48 at September 30, 2026, compared with 0.56 a year earlier and 0.49 at March 31, 2026. Total equity rose to Rs 4,405.13 crore at September 30, 2026 from Rs 4,179.04 crore at September 30, 2025.

Conclusion

Ashoka Buildcon’s disclosure shows that the Bihar CBI case remained unresolved at September 30, 2026 despite project completion and the NHAI certificate. Management’s no-adjustment position rests on its assessment of contractual compliance and the pending judicial process, while the auditor highlighted the uncertainty without changing its November 5, 2026 limited-review conclusion.

The next events to watch are the outcome of the May 11, 2026 Patna High Court writ petition and proceedings before the Court of Special Judge, CBI, Bihar. Ashoka Buildcon has also disclosed a Rs 500 crore unsecured debenture capacity and a proposed Jaora-Nayagaon Toll Road Company divestment requiring shareholder approval.