Ashoka Buildcon Ltd Q1 FY27 Earnings Analysis

- Ashoka Buildcon is targeting 20% revenue growth in FY '27. - Order inflow guidance for FY '27 is between INR 8,000 crores to INR 10,000 crores across sectors like roads, railways, power T&D (transmission & distribution), both domestic and international. - Revenue growth will be driven by the existing balance order book of INR 15,300 crores plus new orders received during the year. - The company expects around 8% to 10% execution growth in FY '27. - The road construction sector outlook remains positive with an expected 9,000 to 9,500 kilometers construction during FY '27, supporting overall infrastructure demand. - Ashoka Buildcon aims to achieve double-digit EBITDA margins (9.5% to 10.5%) in FY '27, improving profitability alongside revenue growth.

- Ashoka Buildcon targets a **20% revenue growth** for FY27, supported by order inflows of INR 8,000 to 10,000 crores across roads, railways, and power T&D sectors. - EBITDA margins for FY27 are guided at **9.5% to 10.5%**, aiming to achieve a double-digit margin in the near future. - Despite FY26 challenges with geopolitical pressures and ECL provisions, margins are expected to improve due to better execution and order inflow quality. - Execution is projected to improve by **20% in FY27**, supporting profit growth. - Capital efficiency is expected to improve from monetization of HAM assets, reducing consolidated debt and contributing positively to earnings. - Overall, the company expects steady profit growth aligned with revenue and margin improvements driven by execution focus and diversified order book.

- Total capex for FY '26 was INR67 crores, with INR16 crores in Q4. - Planned capex for FY '27 is approximately INR100 crores, including investments in international projects. - Balance investment in HAM projects is around INR325 crores. - Significant pending expenditure of INR225 crores for the Bowaichandi HAM project expected in FY '27. - Additional investments for HAM assets planned as INR175 crores in FY '26-'27, INR75 crores in FY '27-'28, and INR75 crores in FY '28-'29. - Strategic focus includes international expansion (Saudi Arabia, Angola, Liberia) and monetization of HAM/BOT assets to improve capital efficiency.

- No explicit mention of new fundraising through debt or equity during the call. - The company plans to reduce consolidated debt from INR2,778 crores as of March 31, 2026, by about INR1,300 crores by March 2027 through asset sales (especially of HAM assets). - Targeted consolidated debt by March 2027 is planned to be around INR500-600 crores. - No mention of issuing new equity. - Capex plans of about INR100 crores for FY27, including international projects, are likely to be funded through internal accruals and asset monetization. - Focus seems on improving capital efficiency by monetizing HAM and BOT assets rather than raising fresh capital. In summary, Ashoka Buildcon is focusing on deleveraging via asset sales with no stated plans for fresh debt or equity fundraising in the near term.

- As of March 31, 2026, the balance order book stands at INR 15,312 crores (excluding INR 681 crores of Angola orders received post 31st March). - Roads and railway projects constitute around INR 10,123 crores (66% of total), including INR 1,619 crores HAM projects and INR 7,084 crores EPC road projects; railway orders total INR 1,420 crores. - Power T&D accounts for approximately INR 4,627 crores (30% of order book). - Building segment order book is INR 562 crores (3.7% of total). - Additional significant international projects include: - Saudi Arabia hotel project (INR 1,800 crores, INR 900 crores share) executed via SPVs, not in standalone books. - Mumbai Intelligence and Traffic Management System orders also executed at SPV level. - Order inflow guidance for FY '27 is INR 8,000-10,000 crores across road, railways, power T&D, domestic and international sectors. - Total bid pipeline identified for National Highway projects is around INR 40,000 crores.