Thank you so much. Good afternoon, everybody.

On behalf of IIFL Capital, I welcome you all to first quarter FY27 earning conference call of Ashoka Buildcon Limited. From the management, we have Mr.

Satish Parakh, Managing Director, and Mr. Paresh Mehta, Chief Financial Officer.

With this, I would request Satish sir to start with his opening comments, and then we can open the floor for question-and-answers. Thank you, and over to you, sir.

Thank you, Mudit. Good afternoon, everyone.

A very warm welcome to all of you joining us for Ashoka Buildcon earnings conference call for the quarter ended 30th June 2026. Joining me on today's call are our CFO Mr.

Paresh Mehta, along with our investor relations advisor from SGA. I hope everyone has had the opportunity to review our financial results and investor presentation, which have been uploaded on the stock exchanges and the company's website.

Let me begin by giving a brief perspective on industry environment, and then take you to some of the key development of Ashoka during the quarter. Q1 FY27 has started on a mixed note for infrastructure sector.

On one hand, the domestic highway awarding environment continues to remain subdued. On the other hand, we are seeing encouraging opportunities emerging in the areas of railways, power transmission, distribution, and international infrastructure.

In the highway segment, the pace of fresh awarding continues to be below the levels we have seen historically. NHAI awarded only around 5 km of projects in June, compared with 102 km in May, while construction activity in June declined 22% year-on-year to around 274 km.

For the first 2 months of FY27, construction stood at approximately 638 km, which is around 34% lower year-on-year. While we remain positive on the long-term fundamental of India's road infrastructure, we believe the sector is currently going through a period where the focus is shifting from simply awarding more kilometers to ensuring that projects are properly appraised, land is made available, and execution can proceed efficiently.

For us, this makes diversification particularly important. At the same time, the medium to long-term opportunity in Indian infrastructure remains strong.

Union budget has provided a significant push to the railway sector with a record capital expenditure allocation of approximately 2.93 lakh crores. The government has also announced 7 new high-speed rail corridors, covering around 4,000 km with an estimated investment potential of 16 lakhs crores, along with 2,052 km dedicated freight corridor between Dankuni and Surat.

This is important because the opportunity in railways is no longer limited to traditional track construction. It is increasingly spans over electrification, signalling, safety systems, freight infrastructure, station development, and other specialized EPC requirements.

For Ashoka, this creates an opportunity to leverage our existing execution capabilities and participate in infrastructure spending beyond the traditional road segment. The power transmission and distribution segment is another area where we see long structural growth.

India is adding renewable energy capacity at a rapid pace, but the success of this transition depends equally on ability to evacuate and transmit that power to consumption centers. This is driving significant investment in interstate transmission systems and energy corridors.

Let me now highlight key business developments for Q4 FY26 FY2 Q1 FY27 was marked by international and non-road wins, while domestic road awarding stayed muted. We believe this is an important development because it demonstrates that our diversification strategy is beginning to provide us with alternative avenues for growth, while the domestic highway cycle remains subdued.

In Guyana, we received a letter of award from Central Housing & Planning Authority for the 4-laning of Versailles-Parika highway in Region 3. The project is valued at 35.42 US dollars 35.42 million US dollars, around 328 crores.

This award is particularly encouraging because it further strengthens our international road infrastructure portfolio in the South America. In Chhattisgarh, our joint venture received a letter of award from Chhattisgarh State Industrial Development Corporation for the development of Gems & Jewellery Park in Raipur under the PPP mode.

The project involves a premium approximately 112.4 crores, with Ashoka holding 51% stake in the joint venture. The project has a 5-year construction period and a 30-year lease extendable to 90 years.

What makes this project strategically relevant is that it represents our entry into industrial park development and therefore adds another vertical to our infrastructure portfolio. As a part of a portfolio streamlining, we diluted our stake in Ashoka PureStudy Technologies Private Limited from 59% to 39.33%, pursuant to a preferential allotment resulting in a classification from subsidiary to an associate company.

Coming to the order book status, the company received two new project orders, as discussed, from Central Housing & Planning Authority, Republic of Guyana, ₹328 crores, and Chhattisgarh State Development Corporation, Gems & Jewellery Park, of ₹450 crores. As on 30th June, our order book stands at 15,251 crores, excluding order received after 30th June, that is 450 crores.

The breakup of the order book is: road and railway comprise of around 9,648 crores, which is 63.3% of the order book. Among the road order book, HAM projects are to the tune of 1,500 crores, and EPC is worth around 6,780 crores, and railway is around 1,346 crores.

Power T&D accounts for around 5,066 crores, which is approximately 33.2% of the total order book. The building EPC segment is INR 536 crores, which is 3.5% of the total order book.

With this, I would now request Mr. Paresh Mehta, CFO, to present the financial performance.

Thank you.

Thank you, sir. Good afternoon, everybody.

Starting with the standalone numbers, for Q1 FY27, total income stood at INR 1,320 crores, as compared to INR 1,339 crores in Q1 FY26, flat year-on-year. EBITDA for the quarter stood at 126 crores, down to 17% Y-on-Y, with EBITDA margin of 9.5 crores 9.5 percentage.

Profit after tax stood at INR 31.5 crores against INR 30.6 crores during FY26 Q1, up 3% Y-on-Y. Our revenue contribution for each segment for Q1 FY27 is as follows: road EPC contributed 49.3%, road HAM contributed 10.2%, power T&D contributed 18.4%, railway stood at 11.5%, and other segments like building EPC and others contributed to 10.7%.

Coming to the consolidated numbers, total income for Q1 FY27 stood at 1,534 crores, as compared to INR 1,937 crores in Q1 FY26, that is staying a 21% de-growth, largely contributed by monetization of BOT and HAM projects in the last Q3 FY26. EBITDA for the quarter stood at INR 292 crores, down 55% year-on-year, with EBITDA margin at 19%, again due to monetization of HAM and BOT assets.

Profit after tax stood at INR 127 crores during Q1 FY27. In Q1 FY27, the company recorded a gross total toll collection from Jaora-Nayagaon toll road project of INR 75 crores, up by 8% year-on-year.

With this, we now open the floor for question-answers. Thank you.

Hi, sir. Thanks a lot for the opportunity.

I had a few queries and data points if you can help me with. This is pertaining to the bid pipeline.

What would be the bid pipeline that we have right now? If you can throw some light that where are we sort of bidding the projects considering that road awarding has been next to nothing.

If you can throw some light on which sectors and what is the amount of the bid pipeline?

Yeah. If we see the bid pipeline, NHAI and MoRTH alone is throwing up around 1 lakh crores of bids are to be coming in.

If we see states, then another 25,000 crores bids are on the pipeline. Other than this, railways is there, which is throwing around 50,000 crores of bids which are already now under pipeline.

Other than this, power T&D and renewable energy sector are there, where we are also bidding for EPC.

Okay. What would be the value of projects that is bidded for right now as on date, if you can help me with that?

Could you just repeat your question?

The value of projects that we would have bidded as on date.

Wherever we have bid and bids are not yet opened, is around 8,000 crores.

Okay. Understood, sir.

In terms of the revenue, EBITDA, and the order inflow guidance, if you can provide that?

Guidance, we have lowering down from 20% to it'll be between 10% to 15%, because this quarter has been flat due to various reasons and various uncertainties, particularly supply chain. This year's overall performance will be able to touch between 10% to 15% growth.

Order book, why we

From the top line only, 20% I think because you had mentioned that 20% earlier,

right. Okay.

That will be protected by another 5%, yeah.

Okay. On the EBITDA margin front and the order inflow?

Order inflow will be to the tune of 6 to 8,000 crores. We have already got 800 crores in Q1.

Right.

We are L1 in around 1,800 crores.

Okay.

That will materialize in Q2. Further, we should be able to bag around 6 to 8,000 crores in balance three quarters.

Oh,

okay, 6 to 8,000 crores

Q1 has been good that way. Mhm.

Q1 has been good, 780 plus L1 in 1,800.

Okay.

Yeah. Then

the margin guidance stands at what's the same levels, 9.5% to 10.5%, roughly, that we were targeting?

For the year, around probably we will touch that once we ramp up our revenues in the H2, rather. H1 will continue to remain subdued, but H2 will definitely ramp up, and there we'll catch up with 9.5% of EBITDA, based on whatever we are spending for the new projects which are taking off, where initial establishment expenses is now being incurred, mobilization.

That will get ramped up in the H2, and margins will also be look better.

Understood, sir. On the HAM equity requirement, what would be the investment amount that we have done till date, and how much would be the pending contribution on a year-on-year basis?

For the coming years, for 26-27, we will have 179 of outlay on the HAM projects, including the Bowaichandi project. For 27-28 and 28-29, 72 crores each.

Investment up to March or rather June in all the HAM projects is to the tune of almost 1,280 crores, of which we have already sold 5. That will get reduced by almost 600 crores.

Okay. Understood, sir.

We did have the, I mean earlier we were targeting on the the the, sale of the 6 SPVs. Our initial plan was, I understand that, this was 4 assets by by the June quarter and 2 assets by 2 assets by the December quarter.

Now I think that we have revised that. All the assets are being sold by September 26?

Is that how the revised timeline looks like? Why the, revision in the timeline from June to September?

As we said, 4 assets we expect to clear by Q2, revised from Q1, largely because certain compliances to be done for handing over the project to the investor. From that perspective, there is some delay in handing over, some compliances which they require.

It is on track, and we expect that by September end or first part of October, definitely we should be able to get the money in. Sir,

that is for all 6 assets you're referring to?

For the 4 assets, the other 2

assets

will take some time, because there are certain COD and other compliances to be done at those projects, which will happen by December and maybe Q3 or Q4 we will be able to demonstrate the sale.

Understood, sir. The realization, how much are we realizing from these assets, the 4 assets and the 2 assets, respectively, if you can help those numbers with?

Total price which was offered by them when we disclosed was approximately 1,100 crores. We expect to realize approximately that over the period of time.

Okay. Pardon if you could repeat the number.

1,100.

1,100 would be for the 4 assets or the

For the 6 assets.

For 6 assets, okay. Then for the 4 assets that we are planning to sell by September?

Approximately 780.

Understood. Thank you so much, and thanks a lot.

Sir, you mentioned that EBITDA margins would be 9% to 9.5% for the entire year?

Yeah.

We are lowering the guidance?

By 0.5%, because we lost something in this quarter, which will then will not totally recover for the last balance 3 quarters. We were in the range of around 2 digit at the start of the year.

We will be probably 0.5% short of that.

Okay. Secondly, margins without other income was 7.2% in first quarter.

Any one-offs in the margin, any provisions or something?

No, nothing very significant vis-a-vis as compared to previous years, but largely because we have mobilized a lot of new administrative and employees and other costs for the new verticals, where it is the initial phase and so those costs have been loaded in this quarter, they'll get rationalized over the coming quarters.

Okay. Sir, on the debt side, we have roughly 2,100 crore of debt.

Partly it is from the subsidiaries. Can you give the breakup of that subsidiary debt and breakup of interest cost, third-party and what we are paying to subsidiary in 1Q?

Interest cost paid to the subsidiaries is 17 crores for this quarter, 1-7. The balance is all third-party interest paid, including NCD, working capital, term loans, and equipment loans, and also mobilization interest on mobilization advance, which is to the employers.

Okay. Sir, once the assets are monetized, then what could be the debt number, at least the third-party debt?

Third-party debt would be approximately in the range of, as we have guided, around 5 to 500 to 600 crores.

What is the amount right? We won't be reducing the debt from subsidiaries in future?

These debts may not be reduced because they are typically free cash flows of subsidiaries and they are typically 100% subsidiaries of Ashoka Buildcon, they may continue to be part of the resources for Ashoka Buildcon. On the consol level, they will get knocked off, but otherwise it's not a third-party outflow for the consol.

On a standalone level, it will hit the interest cost.

It's a standalone cost. It doesn't have a third-party cost.

If we include the third-party debt and the debt from subsidiaries, maybe post-monetization, the debt could be around 1,000 crores, including that debt from subsidiary?

Around say 1,100 crores. Around approximately 700 crores would be third-party debt.

Around say 1,200 top crores.

Okay. Sir, on interest cost side, we have seen reduction to 60 crores in this quarter.

Incrementally, it could further come down to maybe end the year by around 50-odd crores?

Definitely we expect on two counts. One is realization of our working capital receivables and WIP in our power sector, which is due to be collected in the next two quarters, as well as monetization of assets will typically also reduce debt.

Should go below

Okay. Sir, when are we expecting the AD for Bowaichandi HAM?

October first week we should expect appointed date.

Maybe 15%-20% work only would happen in this year?

This year will be around 15%.

Okay. Sir, when will work start for the newer projects, Mithi River, Guyana, and Angola?

Mithi has also started now, and Guyana, we are already present, work is ongoing. Angola will take some time to start, maybe another 2 months.

Okay. Sir, lastly, you mentioned that the total cash flows from monetization would be roughly 1,100 crores.

Earlier it was 1,150. Is there a lowering down of the number, or?

No. It's similar, 1,150, just a rounding off number.

Okay. Sir, the assets which we have already monetized, of that, part amount was pending, some 50 crores for BOT and 90 crores for HAM.

Has that been received now?

No. We are in the process of receiving.

We have almost received around 30% of it, and balance we are in the process of getting received. It is in process.

There are certain compliances which needs to be done to get it done,

we're waiting for that. Of this 1,150, entire would be received this year, or part would be stuck?

As I said, maybe by December the 4 by Q3 the 4 assets, and by Q4 Q2 and Q4 the balance 2 assets, that's what our target would be.

Sir, would there be any holdback amount of the 1,150?

Didn't get that.

In the previous two deals for 5 BOT and 5 HAM, part amount roughly 150 crores was holdback, which you were expecting to receive the balance portion now. Of 1,150, would there be any holdbacks, or the entire money would be received in this year?

There could be holdbacks, small holdbacks in the range of 30, 40 crores. That will define once we get to very close to the transaction.

It's more of compliance which will be there, I really cannot pinpoint a number at this moment.

Okay. Sir, lastly, what would be the capex for 1Q and the target for FY27?

Capex for this quarter was approximately 25 crores, of which 7 crores was for our international projects and balance was for domestic. A target, as we said, was approximately 125 crores for the whole year.

While margins would be weaker for this year, next year, could it be in 10%-10.5% range for FY28?

We should expect because the projects which are there typically should throw a margin of 10.5%, 11%, we should definitely expect margins to improve over a period of time.

Okay. Thank you, sir.

Those were my questions.

Yeah. Thank you, sir.

Most of the questions are answered. I just want to know where are we on monetization of Chennai ORR and Jaora-Nayagaon?

Any thoughts on that?

On both the projects, we have potential investors who have shown interest. They are working on one of the projects, they're also working on the diligence part of it.

We expect Chennai ORR could happen by the year end. We still need to freeze on the investor.

Jaora-Nayagaon, either by March end or by next year first half. It has more of a process to be driven at the compliance angle from the authority, but we expect that by Q1 we should be able to aggressively monetize.

Sure, sir. Sir, that's it from my side.

Thank you.

Hello, am I audible?

Hi, am I audible now?

Yeah. Sir, I just have one question.

We diluted our stake in Ashoka PureStudy Technologies from 59% to 39%. Could you please shine some light on what was the rationale behind this decision?

On PureStudy, we have diluted and we have brought in a strategic partner who will help us in execution of projects which we have taken at PureStudy level. The intent is to create more value at the SPV level for our stake.

All right, sir. Thank you.

That'll be it.

Hello, sir. Thank you for the opportunity.

Sir, I wanted to know, sir, what is the order book that is lying at the SPV level? I believe some few of our order books are at SPV levels.

Can you just help us with the number?

At the SPV level, presently a couple of orders are lying. Probably we have not put the number exactly.

Maybe it can come offline on that, or maybe by end of this call, I can give that.

Okay. Second is, sir, we have been recently seeing the share of the international book has been increasing.

What is the strategy behind that? Is it because the awarding is slower happening in the road side, or is it because the margins are better in the international side?

Just how are the international orders different from the domestic orders?

Basically international we are just increasing our presence in various countries. We have an independent vertical for international.

Margins and competition will vary from country to country. Presently we are working in 7 countries.

We plan going ahead to work around in 10 countries.

Okay. Sir, any specific geographies that you're targeting to enter?

Not to enter. Geographies are not yet that way listed, but what we have been working in these 7, 8 geographies, and we may add another 2, 3 geographies.

It's all we evaluate when the opportunity is seen.

Right. Sir, lastly, how are you seeing the road awarding happening this year?

Obviously till date, there hasn't been very remarkable awarding that has happened. The NHAI has just come up with a list of 113 highways.

How are we seeing in terms of the competition and in terms of the awarding happening by the end of this year?

Q3, Q4 we expect good awarding to happen. Of late, NHAI is also going for bigger-sized packages, so that has definitely rationalized the competition also.

We'll

have only competition amongst good players. Size of the projects are going for the larger-size projects.

Right. Just lastly, on NHAI Yeah.

The lastly is, NHAI is coming with a big-ticket BOT orders. There are few BOT orders which are even of 5,000 crore-plus.

Are we looking to participate in the bids of such orders?

We have been evaluating these BOT orders also. Project by project we need to take a call.

Wherever we are comfortable and we are sure about traffic and execution, we may participate.

Got it. Got it.

Thank you, sir.

Right.

Hi, sir. We have roughly around 150 to 153 billion order book across road, power, and building.

You mentioned some delays in collection from power T&D side. How is this across the segment or across the client let's say for 1Q or 4Q?

How is the working capital being?

Sorry, what was the first part? I got the second part, which is on impact on working capital.

Could you repeat the first part of the question?

In terms of collection, how it is across the sector or across the clients, anything particularly hurting the execution?

Execution is not hurt by collection, but collection was getting increased in the power T&D sector, which will now get realized in the next couple of quarters. We expect that that should rationalize by this year end totally, and most of the payments should be in, which is today locked up in working capital and debtors, that is unbilled revenue and debtors.

The roads and others, they are almost in sync in what is planned and as per milestone.

Got it, sir. Any QoQ impact on working capital from March to June?

Any?

Working capital differential from March to June?

Approximately 250-odd crores has been infused in the March for the new projects which have taken off, where billing is yet to start. The investments have happened in those sectors, advances paid to contracts for new contracts.

That way it has increased, but it is all under as planned.

Got it, sir. When we say our bid pipeline across states, railways, and power T&D, as well as real renewable, any particular projects that you are aiming for or in particular let's say segment, whether it is more concentrated towards let's say within states let's say roads or so basically trying to identify some focus areas among where we will be bidding?

We have strategic focus areas, which definitely cannot disclose.

Got it, sir. Any big projects that you want to highlight that are coming up for bidding?

There are large projects coming up. NHAI is coming up in UP, very 6-4 projects.

There's a pipeline in NHIDCL in Northeast. There are projects coming up in Hyderabad.

These all are completely like 1 lakh crore when I say order book, it's all part of that.

Got it, sir. Got it.

Thank you so much.

Sir. On this Gems & Jewellery Park, what is the revenue that we can expect on per annum basis from here?

From the?

The Gems & Jewellery Park project which we got, what kind of revenues can we expect from this project?

This is, as we said, it's a contract of 450 crores to be executed in the next 5 years. Probably can take almost around 100 crores per year.

Okay. We also got this order from the Guyana about

Pardon? On Guyana, what did you say?

Hello.

Am I audible?

The construction of 4-lane highway order that we got, what is the value of this order, in rupee terms?

For the Guyana one?

338 crores. 338 crores is the value.

338. Okay.

Got it, sir.

Hi, sir. Thanks a lot for the follow-up.

Just one question over here. I see that because our order book is increasing on the overseas front, related to that, I wanted to understand from a revenue standpoint, how is our revenue sort of bifurcated geographically, if you can help me with that, how much is from India, how much is from other countries, if you can provide that bifurcation?

At least for the Q1 part.

In Q1, it is around 260 crores from out of India.

Pardon, sir, how much?

260 crores.

260. From the 260 crores, do we have the geographical bifurcation from where are we getting this?

So

80% of it is from Guyana only.

Okay. 80% is from Guyana only.

Yeah.

Understood, sir. Thanks a lot.

Sir. Thanks for the opportunity.

Sir, with respect to the Chhattisgarh Industrial Development Corporation, in terms of JV as a partner we are working with a 51% stake. Can you give some highlight in terms of what exactly is the business model out there?

Will it be on a sale or a lease? Second, what are the investment that we are planning for this particular railway?

This is largely a industrial park, a kind of a Gems & Jewellery Park development, where approximately 9 acres has been given to us for development, of which 30% has to be used for use of gems and jewellery. It's a, as we said, it's a develop and it's a lease for 30 plus another 60 years, total 90 years lease would be available on this project.

Intent is to develop the project and sell the project on a long-lease basis, all the assets created over the next 5 years. Okay.

What do we are planned to invest in this from our side as a 51% stake?

Presuming everything sold off, it's typically a project to the size of around say 1,000-odd crores, which will be spent over the 5 years and recovered in that similar time. Okay.

Remaining stake is with the state government in this?

Pardon?

The rest of the 49% stake is with the state government?

No, it's with private party, not the government.

Okay. Sure, sir.

I think, probably I'll come back in the queue.

Sure.

Hi, sir. How much equity have we invested in Jaora-Nayagaon and Chennai ORR?

In

Jaora, we invested total 278 crores as equity at the start of the project when the project was developed. The invested value of ours after acquiring stakes are approximately 350-odd crores.

On Chennai ORR, we invested 200 crores jointly by both the partners. The effective cost of us today is 300 crores on our books for the 100% stake.

Got it, sir. Thank you so much.

Hello?

Hello, sir. Thank you for taking my question.

Could you please guide us on how much revenue will be booked from the Bowaichandi to Guskara, Gaighat to Payagao, Kundalika Creek Bridge, and Flyover Sion-Panvel Highway in FY27? If possible, if you could quantify how much revenue booking will happen in FY27?

We

have to take this a bit offline, it's quite a granular number. We do have it, but not offhand.

Okay. Thank you.

Sir. Thanks for the follow-up.

Sir, just wanted to confirm, in Q1 we received three orders. The Guyana one is 338 crores, Gems & Jewellery Park is 450 crores, and Angola is 684.

That's right, sir, right?

Angola was declared last year.

Okay.

Other two are in this quarter.

Okay. Got it, sir.

That's it from my side. Thank you.

Yeah.

Standalone level, our interest cost was roughly 313 crores for FY26. For FY27, it should be closer to 200-odd crores?

Close to what number?

200 200-210 crores?

It should be in the range of around 225-odd, 225 to 240 crores.

For 28, it should go below 200?

Sure. Exactly.

Should go

below 200. What could be the range?

It will all depend on how much business is executed, turnovers. It would be in the range of approximately 200, 210, presuming there's a increase in turnover the next 2 years.

Okay.

Okay. Got it.

Thank you, sir.

We hope that all queries have been answered for. Any further information or query left out, you could approach us or our investor relationship agency, SGA.

Thanks everybody for attending the call. Thank you.

Thank you. Thank you, everyone.