Ashoka Buildcon posts Rs 118.963 crore loss on exceptional charges

Ashoka Buildcon Limited reported a consolidated loss of Rs 118.963 crore for the quarter ended September 30, 2026, as Rs 318.5716 crore of exceptional charges exceeded its Rs 190.8083 crore profit before exceptional items and tax. The charges included a Rs 236.5392 crore impairment of held-for-sale Hybrid Annuity Model entities and Rs 82.0324 crore of revised maintenance obligations.

Why did Ashoka Buildcon report a quarterly loss?

Ashoka Buildcon reported a loss because its Rs 318.5716 crore exceptional charge was larger than its Rs 190.8083 crore profit before exceptional items and tax in the September 2026 quarter. The group consequently recorded a loss before tax of Rs 127.7633 crore, compared with profit before tax of Rs 172.7967 crore in the June 2026 quarter and Rs 64.2414 crore in the September 2025 quarter.

The largest exceptional item was a Rs 236.5392 crore impairment on certain Hybrid Annuity Model, or HAM, entities classified as held for sale. Ashoka Buildcon wrote their carrying values down to fair value less costs to sell under Indian Accounting Standard 105. It also recognised a Rs 82.0324 crore modification loss after revising estimates of major maintenance and overlay obligations in Build-Operate-Transfer, or BOT, and HAM entities because of a significant increase in bitumen prices.

A tax credit of Rs 8.8003 crore, including a deferred-tax credit of Rs 46.8835 crore, reduced the post-tax effect but did not prevent the loss. Profit after tax was Rs 127.1724 crore in the June 2026 quarter and Rs 90.6967 crore in the September 2025 quarter, while basic and diluted earnings per share with exceptional items changed to negative Rs 4.23 from positive Rs 4.55 in the preceding quarter.

How did Ashoka Buildcon perform before exceptional items?

Ashoka Buildcon remained profitable before exceptional items, although profit before exceptional items and tax fell to Rs 190.8083 crore from Rs 283.534 crore a year earlier. Revenue from operations was broadly unchanged from Rs 1,499.6051 crore in the June quarter but declined from Rs 1,851.1802 crore in the September 2025 quarter.

Total income, which includes other income, was Rs 1,609.2135 crore, compared with Rs 1,907.8813 crore a year earlier, while total expenses declined to Rs 1,418.1462 crore from Rs 1,624.3983 crore. Finance costs fell to Rs 81.5454 crore from Rs 317.9848 crore, but material costs increased to Rs 443.54 crore from Rs 409.1529 crore and construction expenses were Rs 673.9794 crore.

The filing's operating-margin measure was 13.94% for the September 2026 quarter, against 17.19% in June 2026 and 31.60% a year earlier. This measure is calculated using profit before exceptional items and tax, finance costs, depreciation, amortisation and other income. The reported net loss margin was negative 7.91%, compared with positive 8.48% in the preceding quarter.

For the half year ended September 30, 2026, revenue from operations was Rs 3,004.2267 crore, down from Rs 3,738.2474 crore in the prior-year half. Profit after tax was Rs 8.2094 crore, compared with Rs 317.5882 crore, while exceptional items were Rs 318.5716 crore against Rs 219.2926 crore in the comparable period.

Which Ashoka Buildcon segments changed most?

Ashoka Buildcon's Construction & Contract segment remained its largest revenue contributor, reporting Rs 1,177.9696 crore in the September 2026 quarter. Revenue was higher than Rs 1,114.1073 crore in June 2026 but below Rs 1,195.1736 crore a year earlier, while the segment result was Rs 66.8061 crore.

BOT and annuity projects recorded the largest year-on-year revenue decline, falling to Rs 264.2942 crore from Rs 604.7633 crore in the September 2025 quarter. Its segment result declined to Rs 104.8025 crore from Rs 226.5326 crore. The segment includes toll collection and HAM road projects, while the held-for-sale HAM impairment was reported separately as an exceptional item.

Sale of Goods generated Rs 62.3578 crore of revenue, compared with Rs 51.2433 crore a year earlier and Rs 65.5347 crore in the June 2026 quarter. The segment, which primarily includes ready-mix concrete and real estate, reported a Rs 7.0281 crore profit after a Rs 3.4347 crore loss in the September 2025 quarter.

What do held-for-sale assets and cash flow show?

Ashoka Buildcon reported Rs 3,198.9499 crore of assets held for sale at September 30, 2026, down from Rs 3,493.9032 crore at March 31, 2026. The classification covers five HAM subsidiaries where Ashoka Buildcon and its subsidiary Ashoka Concessions Limited have executed transaction documents to divest their entire stakes in completed road projects awarded by the National Highways Authority of India, or NHAI.

Ashoka Buildcon is also pursuing the divestment of its 100% stake in GVR Ashoka Chennai ORR Limited, which is classified as held for sale. The filing says the sale transactions have a high probability of completion. Held-for-sale liabilities were Rs 1,420.2207 crore at September 30, 2026, compared with Rs 1,489.3084 crore at March 31, 2026.

Net cash flow from operating activities for the half year was Rs 199.4986 crore, down from Rs 648.3989 crore in the prior-year half. Investing activities used Rs 437.158 crore, compared with an inflow of Rs 1,017.3033 crore a year earlier, and financing activities used Rs 164.5698 crore. Cash and cash equivalents in the cash-flow statement ended at Rs 409.2981 crore after an opening-balance adjustment of Rs 73.0139 crore under amendments to Indian Accounting Standard 109 concerning transactions in transit.

Conclusion

The September 2026 loss resulted principally from exceptional accounting and maintenance charges rather than from a pre-exceptional operating loss. Ashoka Buildcon generated Rs 190.8083 crore of profit before exceptional items and tax, but the Rs 236.5392 crore impairment and Rs 82.0324 crore modification loss led to a Rs 118.963 crore consolidated loss. Revenue also declined year on year, with BOT and annuity revenue falling by Rs 340.4691 crore.

The next disclosed development to watch is the planned divestment of five HAM subsidiaries and GVR Ashoka Chennai ORR Limited, which supports the Rs 3,198.9499 crore held-for-sale asset balance at September 30, 2026. Future results will also show the effect of Ashoka Buildcon's revised estimates for bitumen-linked maintenance and overlay obligations after the Rs 82.0324 crore September-quarter modification loss.