💰 Financial Performance

Revenue Growth by Segment

The order book of INR 14,888 Cr as of September 2025 is dominated by Road EPC at 82%, followed by Power T&D at 12%, and Railways at 6%. Standalone revenue for FY25 was INR 7,061.43 Cr, representing an 8.7% decline from INR 7,726.7 Cr in FY24. H1 FY26 standalone revenue saw a further 21% YoY degrowth to INR 2,642 Cr due to execution delays.

Geographic Revenue Split

Not specifically disclosed in available documents, though operations are spread across India with major projects in Maharashtra (BMC projects) and various highway SPVs in states like West Bengal, Chhattisgarh, and Karnataka.

Profitability Margins

Consolidated Net Profit Margin improved significantly to 17.28% in FY25 from 5.32% in FY24, largely due to exceptional gains from asset sales. However, standalone PAT margin compressed to 2.8% in FY25 from 5.7% in FY24 due to higher provisioning and labor cess outflows.

EBITDA Margin

Standalone EBITDA margin for H1 FY26 was 11.8%, an improvement of 270 bps YoY from 9.1% in H1 FY25. FY25 standalone EBITDA margin was 7.7%, slightly up from 7.5% in FY24 despite lower absolute revenue.

Capital Expenditure

The company expects yearly cash accruals of INR 400-500 Cr to cover its capex, investment plans, and maturing debt of INR 60-90 Cr per annum over the medium term.

Credit Rating & Borrowing

The company maintains an [ICRA]A1+ rating for its INR 100 Cr Commercial Paper and an Acuite AA/Stable rating for long-term debt. Standalone interest coverage ratio moderated to 1.85x in FY25 from 2.53x in FY24, but is expected to improve to over 4x following debt reduction from asset sales.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, cement, and bitumen. Cost of materials consumed in FY25 was INR 2,978.69 Cr, representing 29.7% of consolidated revenue, a decrease from 36.6% in FY24.

Import Sources

Not specifically disclosed, but typically sourced domestically within India for large-scale infrastructure projects.

Capacity Expansion

Current execution capacity is reflected in the construction of 14,000 lane kms of highways and the illumination of 30,000 villages. The order book expanded to INR 14,888 Cr by Sept 2025, up 27% from INR 11,700 Cr in March 2024.

Raw Material Costs

Consolidated material costs decreased by 17% YoY to INR 2,978.69 Cr in FY25. Procurement strategies involve centralized SAP-based ERP monitoring to manage costs across various SPVs.

Manufacturing Efficiency

Efficiency is tracked through the 5-year CAGR of 17% in revenue and 16% in EBITDA as of March 2025, indicating consistent operational scaling.

Logistics & Distribution

Not disclosed as a specific percentage, but distribution of resources is managed across multiple highway and power project sites nationwide.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

The strategy focuses on a 'full cycle' model: develop, construct, operate, and monetize. Growth will be achieved by recycling capital through the sale of 11 SPVs (INR 2,324 Cr deal) and 5 HAM assets (INR 1,146 Cr received), and acquiring the remaining stake in Ashoka Concessions Limited (ACL) for INR 1,550 Cr to gain full control of the project pipeline.

Products & Services

EPC services for highways, bridges, power transmission and distribution lines, and railway infrastructure. Final outputs include toll roads, annuity roads, and illuminated rural households.

Brand Portfolio

Ashoka Buildcon, Ashoka Concessions Limited (ACL), Viva Highways.

New Products/Services

Expansion into municipal infrastructure with the Brihanmumbai Municipal Corporation (BMC) project and diversification into Airport EPC projects (INR 7,417.57 Cr worth of new road and airport projects won in FY25).

Market Expansion

Targeting large-scale urban infrastructure projects (BMC) and continuing to bid for National and State Highway Authority projects (HAM, BOT, and EPC).

Market Share & Ranking

One of the leading highway developers in India with 14,000 lane kms constructed.

Strategic Alliances

Partnerships with Edelweiss Group (Infrastructure Yield Trust) and Epic Concesiones for asset monetization. Previously partnered with SBI Macquarie in ACL.

🌍 External Factors

Industry Trends

The industry is shifting toward asset-light models for developers through monetization (HAM/BOT sales). There is a growing trend in Power T&D and urban infrastructure (Smart Cities/Municipal projects) where ABL is actively diversifying.

Competitive Landscape

Competes with other major Indian infra players like L&T, KNR Constructions, and Dilip Buildcon in the highway and EPC segments.

Competitive Moat

Moat is built on a 30-year track record, large-scale execution capability (14,000 lane kms), and an integrated business model (EPC + BOT). Sustainability is supported by a strong order book of INR 14,888 Cr.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (projected at 6.2%) and government infrastructure spending. Inflation in steel and cement prices directly impacts construction margins.

Consumer Behavior

Not applicable for B2B/B2G infrastructure, but demand is driven by government policy and national logistics requirements.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global commodity price fluctuations (crude oil/bitumen) affect input costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, NHAI guidelines, and SEBI (LODR) Regulations. Compliance is managed through an internal Audit Committee and Risk Management Committee.

Environmental Compliance

Not specifically disclosed in INR Cr, but the company maintains a Corporate Social Responsibility (CSR) Committee and adheres to applicable environmental laws for project execution.

Taxation Policy Impact

Consolidated current tax was INR 282.94 Cr in FY25. The company saw a significant deferred tax reversal of INR 461.73 Cr in FY25 due to accounting for SPV losses and carrying value differences.

Legal Contingencies

Profitability in FY25 was impacted by additional cash outflows related to a labor cess assessment. The company also manages provisioning for Expected Credit Loss (ECL) on its receivables.

⚠️ Risk Analysis

Key Uncertainties

Execution risk due to weather (monsoon) and land acquisition delays. Financial risk associated with the timely completion of the remaining asset monetization deals (6 HAM assets expected by early FY27).

Geographic Concentration Risk

Primarily concentrated in India, with significant project clusters in Maharashtra and other major states.

Third Party Dependencies

Dependent on government authorities (NHAI/BMC) for project awards and timely payments, and on financial investors for asset exits.

Technology Obsolescence Risk

Low risk in construction, but the company is digitizing through SAP ERP to improve operational monitoring and internal controls.

Credit & Counterparty Risk

Exposure to government entities is generally low risk, but the company closely monitors ECL and receivables quality, which impacted FY25 standalone profits.