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Ashoka Buildcon Reports Q4 FY26 Results and FY27 Outlook
Ashoka Buildcon announced its fourth-quarter results for FY26, showing a consolidated total income of ₹1,992 crore. On a standalone basis, total income reached ₹1,819 crore, marking a 10% decrease compared to ₹2,012 crore in the same period last year. The company's standalone Profit After Tax (PAT) for the quarter was ₹49 crore, down from ₹60 crore in Q4 FY25. The EBITDA margin for the quarter stood at 9.2%, impacted by geopolitical issues, rising input costs, and an ₹28 crore provision for Expected Credit Loss (ECL).
Strong Order Book Fuels FY27 Growth Hopes
Despite the challenging Q4 performance, Ashoka Buildcon is projecting significant growth for FY27. The company has set a target of 20% revenue growth for the upcoming fiscal year. This optimism is supported by a substantial consolidated order book totaling ₹15,312 crore, which provides good visibility for future revenue.
Asset Monetization and Working Capital Focus
To strengthen its financial position, Ashoka Buildcon is actively pursuing asset monetization, particularly its Hybrid Annuity Model (HAM) Special Purpose Vehicles (SPVs). The company expects to generate approximately ₹750 crore from these sales by June 2026 and an additional ₹400 crore by December 2026. Management is also focused on improving the working capital cycle, which had doubled in FY26, aiming to normalize it to 110-120 days by the end of September 2026.
Key Risks and Future Monitoring
Investors are advised to watch for potential margin pressures that could arise from further cost increases or additional ECL provisions. The extended working capital cycle remains a key concern for liquidity. A recent circular from NHAI regarding bidder disqualification based on project casualties also presents a regulatory risk that is currently being discussed with the Road Federation. The company expects order inflows between ₹8,000 crore and ₹10,000 crore in FY27, and aims for an improved EBITDA margin of 9.5% to 10.5% for the fiscal year.