Ashoka Buildcon FY26: Lower revenue, cleaner balance sheet, and FY27 growth guidance

Ashoka Buildcon closed FY26 with weaker execution in its standalone EPC business, but with a sharply improved balance sheet after a year of asset monetization. Standalone total revenue fell to 5,952.2 crore in FY26 from 7,187.8 crore in FY25, while EBITDA declined modestly to 636.1 crore from 673.2 crore. The striking feature was margin improvement. Standalone EBITDA margin expanded to 10.7 percent from 9.4 percent, reflecting a mix shift and cost control even as industry execution momentum softened.

In Q4 FY26, standalone revenue was 1,818.6 crore, down 10 percent YoY, and EBITDA was 168.2 crore, down 7 percent YoY. Profit before tax before exceptional items was 75.3 crore. The quarter also reflected pressures that management discussed on the call, including escalation effects and an expected credit loss provision of 28 crore booked at year end.

FY26 in context: transition year for the sector and the company

Management described FY26 as a transition year for the infrastructure sector, with slower awarding activity, delays in clearances and land availability, and a tougher global macro environment. The commentary pointed to inflationary pressures and supply chain uncertainty, alongside higher input prices in cement, bitumen, steel and fuel. These factors affected execution pace across projects and pulled down reported revenues.

While execution slowed, Ashoka Buildcon continued to add projects across geographies. The investor presentation highlighted several awards and letters of acceptance during Q4 FY26, including a Saudi Arabia hotel construction package through a subsidiary JV, a major bridge EPC award in Bihar through a JV, road upgradation works in Liberia, and a distribution network rehabilitation contract acceptance in Angola.

The company also disclosed a managed services modernization project under the Inspector General of Registration and Controller of Stamps, Maharashtra, with an expected consideration of about 1,136 crore over 60 months. On the earnings call, management clarified that the Saudi hotel package and the IGR modernization order will be executed by subsidiaries or SPVs and therefore sit outside the standalone Ashoka Buildcon order book, though they will be captured at the consolidated level.

Order book remains diversified, with Power T&D meaningful in the mix

As on March 31, 2026, the order book stood at 15,312 crore, excluding orders received post March 31, 2026 of 681 crore. The order book is diversified across roads, railways, power transmission and distribution, and buildings, with a meaningful share in Power T&D.

On the call, the CFO also shared the standalone revenue mix for Q4 FY26, which provides a useful lens into current execution drivers.

This mix matters because it shapes working capital and cash flow behavior. Management noted that power projects typically have a 5 to 7 month billing cycle for full collection, while road projects tend to have a 3 to 3.5 month cycle depending on milestones and monthly billing.

Monetization and leverage: the biggest FY26 headline

FY26 was also a year of monetization. The presentation notes successful monetization of parts of the HAM portfolio and the BOT portfolio in FY26, and management reiterated that monetization has improved capital efficiency.

The clearest outcome is visible in consolidated leverage. Consolidated debt reduced from 6,671 crore in March 2025 to 2,778 crore in March 2026. Standalone debt stood at 1,127 crore as of March 2026, comprising equipment loan of 70 crore, working capital loans of 757 crore, and NCDs of 300 crore. Cash and bank balance was reported at 1,216 crore on the debt profile slide as of March 2026.

Cash flow, however, remained mixed. Standalone net cash from operating activities was negative at minus 291.6 crore in FY26, while consolidated operating cash flow was positive at 654.6 crore. Management attributed the standalone working capital build up to milestone based projects and delays linked to appointed dates and right of way clearances. They indicated that working capital should revert toward historical norms of 110 to 120 days after September, supported by expected clearing of receivables in the power division by June and September.

The remaining key monetization event is the sale of 6 HAM SPVs. The company extended the indicative date to June 30, 2026 for completion of the sale of the remaining 6 HAM SPVs, subject to conditions precedent. On the call, management guided that 4 assets are targeted for monetization by June end 2026 with expected cash inflow of about 750 plus crore, and the balance by December with about 400 crore. They also explained that timing depends on receipt of provisional CODs from NHAI.

FY27 outlook: growth guidance with margin recovery aspirations

Management guidance for FY27 was explicit on three variables: revenue growth, order inflow, and margins.

The company guided for about 20 percent revenue growth in FY27, supported by execution from the existing order book and expected wins. Order inflow guidance for FY27 was 8,000 crore to 10,000 crore across roads, railways and power T&D, spanning domestic and international opportunities.

On profitability, management guided for EBITDA margins of 9.5 percent to 10.5 percent in FY27, indicating an expectation to reach double digit margins. The CFO also clarified that margin calculations consider both provisions and potential reversals over time, given the nature of expected credit loss accounting.

Capex guidance was also shared. The company stated that FY26 capex was 67 crore, with Q4 capex of 16 crore. For FY27, it plans around 100 crore of capex, including requirements for international projects.

Takeaways

Ashoka Buildcon’s FY26 story is best read as a year of consolidation. Standalone revenues fell meaningfully, reflecting execution softness and project mix changes. Yet margins improved for the full year, the company continued to add diversified project wins, and asset monetization sharply reduced consolidated debt.

FY27 will test whether execution rebounds as guided. Management has committed to 20 percent revenue growth, 8,000 to 10,000 crore of order inflows, and 9.5 to 10.5 percent EBITDA margins. The timing of HAM SPV monetization, normalization of working capital, and ramp up of international orders will be central milestones to track through the year.