Ashoka Buildcon Ltd Q1 FY27 Earnings Analysis

- Ashoka Buildcon targets 20% revenue growth for FY27. - Order inflow guidance for FY27 is INR 8,000 to 10,000 crores, spanning roads, railways, power T&D, domestic, and international projects. - Execution volume is expected to improve by 20% in FY27 compared to FY26. - The company expects order book-driven growth from diverse sectors like roads, railways, power transmission and distribution, and urban infrastructure. - There is focus on quality-led, capital-efficient corridors in highways, aiming at 9,000 to 9,500 km of road construction in FY27. - EBITDA margin guidance for FY27 ranges from 9.5% to 10.5%, reaching double-digit margins. - Monetization of HAM assets is expected to improve capital efficiency and cash flows contributing to growth.

- FY27 revenue growth targeted at ~20% driven by healthy order inflows and execution. - Order inflow guidance for FY27 is INR 8,000 crores to INR 10,000 crores across roads, railways, and power T&D sectors. - EBITDA margin guidance for FY27 is 9.5% to 10.5%, aiming to achieve double-digit margins. - Q4 FY26 EBITDA margin was 6.9%, impacted by geopolitical price escalations and ECL provisions; margins are expected to improve in FY27. - Expected execution improvement of approximately 20% in FY27. - ECL provisions factored into margin guidance with potential reversals as payments are realized. - Asset monetization, especially of HAM assets, will improve capital efficiency and reduce debt, supporting profitability. - Overall, the company is optimistic about earnings growth supported by operational improvements and strategic order wins.

- Total capex for FY '26 was INR67 crores, with INR16 crores in Q4. - Planned capex for FY '27 is approximately INR100 crores, including international projects. - Balance investment pending in HAM projects is around INR325 crores. - Significant expenditure of INR225 crores on the Bowaichandi HAM project expected in FY '27. - Investment timeline for HAM projects: INR175 crores in FY '27, INR75 crores each in FY '28 and FY '29. - Ongoing strategic asset monetization of HAM and BOT projects to improve capital efficiency. - Pursuit of sales for Chennai ORR and Jaora-Nayagaon assets within 12-18 months to optimize capital.

- No explicit mention of any immediate or planned new fundraising through debt or equity in the transcript. - Current debt situation: consolidated debt is INR2,778 crores as of March 31, 2026, expected to reduce by INR1,300 crores by March 2027 due to asset sales. - Target debt levels by March 2027 are INR500-600 crores, similar to current levels. - Capex plans of around INR100 crores for FY27, partly funded through internal accruals and proceeds from asset monetization. - No discussion on fresh equity issuance during the call. - Management focuses on asset monetization (selling remaining HAM SPVs) to improve capital efficiency, reduce debt, and strengthen the balance sheet rather than raising fresh funds.

- As of March 31, 2026, Ashoka Buildcon's balance order book stands at INR 15,312 crores (excluding post-March orders like INR 681 crores from Angola). - Breakdown: Roads and railway projects total INR 10,123 crores (66% of total), with HAM projects at INR 1,619 crores and EPC roads at INR 7,084 crores; Railway orders at INR 1,420 crores. - Power T&D segment accounts for INR 4,627 crores (~30% of order book). - Building segment order book is INR 562 crores (~3.7%). - Additional significant SPV orders include the Saudi Arabia Diriyah-I hotel project (INR 1,800 crores; Ashoka's share INR 900 crores) and Mumbai Intelligence and Traffic Management, executed at SPV level, not included in standalone books. - The company expects order inflow guidance for FY '27 in the range of INR 8,000 to 10,000 crores, across roads, railways, and power T&D sectors, domestic and international. - Monetization of 6 HAM assets expected by June and December 2026, generating about INR 1,150 crores.