Hello, everyone. On behalf of Anand Rathi Institutional Equities, I extend a warm welcome to the Ashoka Buildcon Limited Q4 FY26 Earnings Conference Call.

We are pleased to have with us today Mr. Satish Parakh, MD, and Mr.

Paresh Mehta, CFO. Without further delay, I invite Mr.

Satish sir to share his opening remarks, following which we will open the floor for Q&A session. Over to you, sir.

Thank you, Bhavin. Good afternoon, everyone, and a very warm welcome to all of you joining us for Ashoka Buildcon Limited's earnings conference call for the quarter and financial year ended 31st March 2026.

I appreciate your continued time, interest, and engagement—

Voice is breaking? Okay.

I appreciate your continued time, interest, and engagement with the company. Joining me on today's call is our Paresh Mehta, CFO, along with our Investor Relations Advisor from SGA.

FY26 has been a transition year for infrastructure sector. Over the past few years, the industry witnessed aggressive expansion, record awarding activity, and rapid order book growth.

However, FY26 marked a shift in focus towards execution quality, financial discipline, monetization, and sustainable growth. Awarding activity was slower than anticipated.

Several projects faced delays in clearances and land availability, and execution momentum across the industry was impacted. In addition, Q4 '26 has characterized by challenging global macroeconomic environment, including geopolitical tensions, inflationary pressures, supply chain uncertainties, and elevated input cost.

Rising prices of key materials such as cement, bitumen, steel, fuel, along with labor shortages in certain regions, further impacted the execution pace across the projects. The Indian railways and infrastructure sector continues to undergo a structural transition with an increasing focus on quality-led, capital-efficient, and corridor-wise development rather than volume-led expansion.

The Ministry of Road Transport and Highways and NHAI are steadily aligning the project pipeline towards expressway, access-controlled corridors, and logistic efficiency movements rather than kilometer-based awarding. The sector is broadly targeting 11,000 kilometers of highways by FY27 and 15,000 by FY32.

Looking ahead at FY27, the outlook for the highway sector remains constructive despite some moderation in physical execution pace. Road construction is expected to be in the range of 9,000 to 9,500 kilometers during the year.

The government is also targeting approximately ₹75,000 crores of projects under the BOT toll model in FY27, reflecting a renewed push towards private capital participation in road infrastructure. In railways, the government has outlined a long-term capital expenditure plan nearly ₹12 to 13 lakh crores by 2030, focused on dedicated freight corridor, electrification, safety systems, station modernization, and high-speed rail projects.

In power transmission segment, significant investment towards renewable energy integration and green energy corridors are expected to create a large long-duration EPC opportunity pipeline. Overall capital expenditure in road sector is budgeted at approximately ₹2.93 trillion for FY27, representing an increase of 8% year-on-year.

Let me now highlight some key business developments during the quarter. During Q4, we secured several important project wins across geographies and sectors, which continue to reinforce our execution capability and client confidence in Ashoka Buildcon.

One of the most significant development was the receipt of letter of award in Kingdom of Saudi Arabia through our wholly owned subsidiary in a joint venture. The project pertains to construction works for Diriyah 1 hotel package with a total value of ₹1,800 crores, in which our share of the project is ₹900 crores.

This marks an important milestone in strengthening our international EPC footprint, particularly in the Middle East. We also received a contract acceptance from the Ministry of Energy and Water, Angola, for rehabilitation of distribution networks valued at USD $72 million, which is approximately INR ₹620 crores, further expanding our international T&D portfolio.

Additionally, we secured a road upgradation project in Liberia valued at around ₹430 crores, which is $45 million USD, continuing our growing presence in international road infrastructure, particularly across African markets. In India, we received a letter of award from Bihar Rajya Pul Nirman Nigam for construction of a major bridge across river Gandak on EPC basis.

The total project value approximately is ₹474 crores with Ashoka's share as ₹242 crores. In our Tumkur-Shivamogga HAM portfolio in Karnataka, where provisional CODs were achieved across multiple stages, improving annuity visibility and strengthen medium-term cash flows.

Another notable development was the reaffirmation of our credit ratings from Acuité Ratings. The company's long-term rating is reaffirmed at AA- stable, while short-term rating were reaffirmed at A1+.

On the asset monetization front, we continued progress on the sale of remaining six HAM SPVs. The expected completion timeline has now been extended to June 2026, subject to fulfillment of condition precedent.

Coming to order book status, the company has received four new projects order and LOA as discussed above: Diriyah Company, Kingdom of Saudi Arabia; Bihar Rajya Pul Nirman; Public Works Department, Liberia; Ministry of Energy and Water, the Republic of Angola; and an LOA from IJR, Pune. As on 31st March 2026, our balance order book stands at ₹15,312 crores.

This is excluding orders received post 31st March of INR ₹681 crores of Angola. The breakup of order book is: roads and railway projects comprise around ₹10,123 crores, which is 66% of the total order book.

Among the road project order book, HAM projects are to the tune of INR ₹1,619 crores, and EPC road projects are ₹7,084 crores, and railway is around ₹1,420 crores. Power T&D accounts for around ₹4,627 crores, which is approximately 30% of the total order book.

The total building segment order book is INR ₹562 crores, which is 3.7% of the entire order book. The order book continues to remain diversified across key segments, including roads, highways, railways, power transmission, distribution, and urban infrastructure projects domestic and globally.

I would now request Paresh Mehta, CFO, to present the financial performance. Thank you.

Thank you very much. Good afternoon, everyone.

Starting off with the standalone numbers for Q4 FY26, total income stood at ₹1,819 crores as compared to ₹2,012 crores in Q4 FY25, a degrowth of 10%. EBITDA for the quarter stood at ₹168 crores, down by 7% YoY, with EBITDA margins of 9.2%, an improvement by 20 bps year-on-year.

Profit before tax before exceptional items stood at ₹75 crores. PAT stood at ₹49 crores against INR ₹60 crores for Q4 FY25.

Our revenue contribution for each segment of Q4 FY26 is as follows: road EPC contributed to 50%, road HAM contributed to 10%, power T&D contributed 18%, railways stood at 8%, and other segments like building, EPC, and others contributed to 13%. Now for the whole year FY26, total income for the year stood at ₹5,952 crores as compared to ₹7,188 crores for FY25, a degrowth of 17%.

EBITDA for FY26 stood at ₹636 crores, down by 6% YoY, with EBITDA margins of 10.7 crores and an improvement of 1.3% year-on-year. Profit before tax before exceptional items stood at INR ₹226 crores, and PAT stood at ₹320 crores.

Coming to the consolidated figures, total income for Q4 FY26 stood at ₹1,992 crores as compared to ₹2,755 crores in Q4 FY25. EBITDA for the quarter stood at ₹302 crores with EBITDA margins of 15.1%.

Profit before tax before exceptional items stood at ₹172 crores, and PAT stood at ₹147 crores during Q4 FY26. For FY26, the FY26 has been a year of transition, execution focus, and strategic consolidation.

Revenues were impacted by project mix, monetization activities, and completion of certain projects. However, we strengthened our balance sheet, diversified ordering flows, and expanded our presence across domestic and international markets.

During FY26, the company successfully monetized 10 HAM and BOT projects, generating value and improving capital efficiency. Total consolidated debt as on 31st March 2026 stood at ₹2,778 crores, and the standalone debt is at ₹1,127 crores, which comprises of ₹70 crores of equipment loan, INR ₹300 crores of NCDs, and ₹757 crores of working capital.

In Q4 FY26, in our BOT division, the company recorded a gross total gross toll collection of ₹76.9 crores from Jaora-Nayagaon road company as against ₹66.4 crores in Q4 FY25, recording a growth of 16% year-on-year. With this, we now open the floor for question answers.

Thank you.

Firstly, clarification. This hotel order of Saudi and the Mumbai intelligence in traffic management system order, where have we recorded that in the order book slide that we're provided?

The breakup one, slide number 18.

Hello, this being executed in the SPVs. There is not part of direct ABL order.

This will be over and above the ₹15,312 crores.

Both the orders?

Both the orders. They will be executed at SPV level.

At the consol, they will be captured, but at standalone ABL level, they're not direct orders executed by ABL directly.

We won't be doing the EPC work, it won't be in the standalone books?

SPV EPC will be done by our subsidiary.

It won't reflect in the

standalone. Exactly.

In the consol, it will be added. Okay.

Secondly, we have seen quite weak execution in FY26. How do you see execution and margins in FY27?

In 4Q, what was the reason for such weak margin at EBITDA level?

Execution-wise, next year we should improve by 20%. Order book-wise also, we expect to get around 8 to 10,000 this year.

There has been pressure on margin due to prolonged in works and overall dip in turnover has also affected due to fixed cost.

There is some disturbance in the sound, if I got it correctly, revenue are guiding for 20% growth in next year and order inflows of 8 to ₹10,000 crores?

Right.

Okay. Secondly, on the margin side, what are you guiding for FY27?

For FY27, as we have said in the past, EPC [unclear]—

One second. Is it all right?

Can you hear me now? Hello?

Hello.

Can you hear? Yeah.

For FY27—

I don't hear [unclear] noise. Can you hear now?

Hello, can you hear me?

For FY26, our EBITDA margins for the whole year stood at around 8.5% plus. Our estimation for FY27 based on the order book which we have, we will be in the range of 9.5 to 10.5 for next year.

We will definitely reach a 10 a two-digit figure for next year.

What was the reason for miss in 4Q at 6.9%?

Largely, as we have indicated in our opening remarks also, the geopolitical situation has brought some pressure on the price escalation. We have considered in our balance budget increase of around 0.5 to 1% of price escalations.

Certain ECL provisions done at the year-end are contributors to a lower percentage. Otherwise, we continue to maintain 8.5 to 9% EBITDA margin for '26.

That's the take.

What was the ECL provision in 4Q?

₹28 crores.

Okay. Sir, lastly, on the working capital side, we have seen quite a bit of stretch in the year-end.

How do you see it going ahead? Last year we were at around 110 days or this year it has increased almost doubled.

How do you see it going forward?

Because these are milestone-based projects and couple of projects where we are awaiting appointed date and RODW clearances, we believe that we should go back to the old norms of 110 to 120 days of this is more of a transitory. As in the last call also we had said that there was some built-up of receivables in our power division, which probably by June to end of June and September quarter, most of things would get cleared.

We believe that we would go back to normalcy by post September.

Okay. Thank you.

Those were my questions.

Hi, sir. Sir, can you provide us the guidance with respect to what is the targeted order inflow, revenue growth, margins?

What is our bid pipeline looking like, how much amount we have placed the bids and what are the segments that we are looking for?

Order book guidance, as I said, it is 8 to ₹10,000 crores. This will be across the sectors: roads, railways, power T&D mainly.

This is domestic as well as international. In domestic, we are working for NHAI, MoRTH, NHIDCL, and various states.

Today, now the company is working in almost segments like railways, water, buildings. We are very much hopeful of targeting 8 to ₹10,000 crores.

Okay. Sir, what about the revenue growth in EBITDA margins [unclear]?

As we have said, we are targeting 20% of revenue growth we are looking at.

Okay. Sir, where do you see this revenue growth coming from?

Because if I remove the one HAM project where the appointed date is still pending, we just have only ₹500 crore of backlog, right? There are only EPCs, I think, or T&D, right, from where we expect the growth to be coming in?

Entire balance order book of 15,300, out of that whatever portion is targeted for this year plus whatever new orders we get, this all will contribute to our good revenue growth.

Okay. Sir, if I see the order backlog, right, apart only from the two or three orders, all the order backlog are less than ₹1,000 crore.

Because all the places the mobilization must have been done, and so do you see some amount of diseconomies of scale as the order backlog starts shrinking?

Why order book backlog should start shrinking?

No,

no, already that less than 1,000— Why it should come down? If you can elaborate, it will be better, yeah.

No,

my only point is, sir, now the backlog, right, all the individual order backlog, most of them

are less than 1,000— That is because of individual projects, yeah.

Individual project, and they are less than ₹1,000 crore, now most of the orders. Can that have any impact on the margins?

No, it doesn't have any impact on the margin because margins are completely distributed throughout the project.

Got it. Sir, can you give us the timelines with respect to the six HAM assets, what are the timelines and what are the expected consideration?

June is what we are targeting. Out of six, at least four assets we will monetize by June end.

We will receive four to [unclear] 57.

To continue on that, out of the six projects, four we are definitely targeting by June end, which will typically bring in cash of around 750-plus crores. The balance we expect by December, which should bring in another ₹400 crores.

Got it, sir. Thanks.

That's from my side.

Hi, sir. Thanks a lot for the opportunity.

In terms of the order inflow guidance you have provided, 8 to ₹10,000 crores of order inflow in FY26 sorry, '27. However, if you could help me with what would be our bid pipeline as of today?

If you look at NHAI projects bid pipeline, we have around ₹40,000 crores, 95 projects to be bid. In addition to this, there are new projects which will be announced in next quarters.

Understood.

States also throwing up a lot of opportunities like Bihar, UP. Right,

right. As and when they come for bidding, that would eventually be added to our bid pipeline.

Understood, sir. On these five assets each that we have monetized, what sort of inflows have we had on the books in terms of the cash inflows for the HAM and BOT assets combinedly?

If you could help me with that number.

In the HAM projects, we had an inflow of around ₹1,150 crores, and on the BOT assets, we had an inflow of around ₹1,800 crores.

₹1,800 crores. These are the combined inflows that we have for the five HAM and

five BOT. 5 plus 5 projects, yeah.

Right, sir. Understood.

I had missed out on the four assets that you had mentioned, four assets to be monetized by June and two by December. If you could repeat the number, the inflow that we're expecting on the four assets and the two in December and the balance, sorry, three in December?

The four assets, we expect around 750-plus crores,

and

the two assets which will happen by December, around ₹400 crores.

Okay. Understood, sir.

Just one thing, because I think last time we was sort of planning to get the assets monetized, our initial plan was four assets by March '26 and two assets by June '26, which are sort of postponed. What is the hold-up over here and if you could help me with that?

This is largely dependent on the CODs, PCODs being received by us from NHAI. Based on the PCOD, we are targeted when it will be handed over to the buyer.

Understood, sir. Understood.

The HAM investment, I think our current we have invested about, I think, 6 billion roughly in the HAM. What would be the balance amount that we are planning to invest in HAM assets and the timeline, if you can help me with, on a yearly basis, if that should be helpful?

On the equity side, the balance investment to be made in the HAM projects is around

₹325 crores,

of which the last HAM project, Bavichende, which is yet to receive start date, appointed date, there is an expenditure of 225 ₹225 crores, which will happen in '26-'27 ₹75 crores and '27-'28, '28-'29, 73, 73. Overall, ₹75 crores for 3 years starting '26-'27.

Balance approximately ₹100 crores is for the last two assets of HAM where certain investment is still pending of around 95 ₹95 crores.

Okay.

For '26-'27, total investment would be around ₹175 crores. For '27-'28, 75, '28-'29, 75.

Okay. So ₹175 crores in '27 and '28, ₹75 crores.

Yeah.

Understood, sir.

Understood. '26-'27, 175.

Okay.

'27-'28, 75.

Okay.

'28-'29,

75. 75.

So 175, 75, 75. Right, right,

right.

Understood, sir. Understood.

I think just one last question over here. Because the working capital has sort of seen that increase over here.

What sort of debtor days are we seeing in the sectors that we are operating? For example, in the power T&D, roughly debtor days that you are seeing or in the road EPC business, that should be helpful.

As I said, we are bidding around ₹40,000 crores in road EPC for central level, another 40,000 for the various states, and then other various sectors will be combined together will be 30 to 40,000. More than ₹1 lakh crores of bidding is going to happen, out of which mix we are expecting is 8 to 10,000.

Understood. Sir, I was actually referring to the debtor days, because the working capital has sort of increased over here.

Any flavor on that, what are you seeing on power T&D, what are you seeing on road EPC?

As we said, all these payments are milestone-based. General experience on the power sector is that the billing cycle is almost 5 to 7 months by the time which we get all money.

Out of part money of 30 to 40% received in advance, but balance is received after 5 to 7 months. This is in the power, where we have an order book of around ₹4,600 crores.

On the road sector, largely depend on milestone based on completion of various stages. There is monthly billing at state level, the cycle is around three three to 3.5 months.

Understood, sir. Understood.

That's all. I do not have any more questions.

Thanks a lot.

Thank you for the opportunity. My first question is, what would be our target debt levels by the end of the financial year?

By the end of financial year, today as of March '26, our working capital debt is ₹1,126 less cash of around ₹580 crores. It's approximately ₹600 crores.

We believe that the debt level would be in the range of 5 to ₹600 crores by March '27 also, keeping almost similar kind of turnover with a 20% jump. Should not be a problem of maintaining a ₹600 crore debt.

Of course, we'll have additional cash inflows of the monetization, which may impact the working capital cycle and reduce it further. On the debt side, we have around 2,778 of total consolidated debt, of which almost ₹1,600 crores would ₹1,300 crores would not be there as of March '27 because we would have sold those HAM assets.

The project loans would be in the range of, as of time, around 5 to ₹600 crores.

My second question is, what would be the tax on the gain from asset sales?

The rate of it would capital gains, 12.5%. Effective tax which we have paid at ACL level, which has monetized, is almost nil.

At ABL level, approximately 20 20 ₹25 crores, 22 ₹22 crores rather, yeah.

The last question, sir, of the completed deals of five HAM and five BOT assets, when will we get the remainder of the cash?

There are holdbacks which we expect to receive by between June and July total amounts.

What would be the total amount around?

Approximately ₹130 crores.

Okay. Thank you, sir.

Those were my questions.

There are certain deferred consideration, which is based on toll extension, which is approximately ₹550 crores, which will come in the next 1 or 2 years' time. This is dependent on NHAI's decisions on extension of toll for couple of our BOT projects.

That would come in the next 24 months?

We expect by 24 months to 36 months it should happen once NHAI gives a decision. Then the buyer will pay us the amount for the extended period.

Okay. Thank you, sir.

Those were my questions. And

Thank you for the opportunity. Sir, for the balance six HAM assets, can you give me what is the equity that we've invested in these HAM assets?

Probably we'll take it offline.

Sure, sir. Do we have any plans on Chennai ORR, Jaora-Nayagaon sales?

We do pursue the sale of these two assets in the coming 12 to 18 months. Both assets are good assets to be sold, and good interest is there from buyers.

We have launched a small process of monetization. As soon as we come to certain stages, we'll keep everybody informed.

Sure, sir. Lastly, sir, what is the CapEx that we did in Q4 and our target for next year?

Q4, total, yeah, CapEx for the year was ₹56 crores, of which, sorry, ₹67 crores, of which Q4 was ₹16 crores.

Okay. For FY27, how much CapEx are we planning?

That's planning approximately around ₹100 crores of CapEx, which includes certain CapEx on the international projects also.

Sure, sir. That's it from my side.

Thank you.

Sir. Thanks for the opportunity.

Sir, on this ECL provision that we have created, it is particularly coming from the delay in payment from which segment for us?

It's a mix of ECL on inventory as well as debtors. For say a project like Bavichende where we have started certain mobilization and other expenses, we are waiting for appointed date.

Then other projects where payments are delayed and we are in discussion with NHAI and other parties for finalization. It's a mix of inventory and debtors.

Sure. That's all from my side.

Thank you.

Thanks for the follow-up. Sir, what would be our order inflow number for FY26 ex of the two projects which you are not taking in the standalone books?

6,600.

Is this the EPC value ex of GST?

This is ex of GST.

Okay. Sir, secondly, when you guide for a double-digit kind of margin for FY27, there could be ECL provisions, or you have factored in some provisions, and then you're guiding for 10% margins?

Because this year also we were looking for a good margin, but there were sizable ECL provisions during the year.

It's an estimated amount. ECL is included in this for the working of this 10%.

Because

there will be stages as payments do come, there could be reversals of ECLs also over a period of time. It's a mix of provisions as well as reversals.

Okay. Sir, lastly, for the six remaining HAM assets, you mentioned that the amount is roughly ₹1,150 crores.

If I understand correctly, the investment was roughly around ₹540 crores in those six assets, gain comes around ₹600 crores. What could be the tax on that at the ABL level standalone?

These would typically be in the range of 12.5% capital gains tax, because there's no set-off here. We can consider 12.5.

In ACL, there are three assets where probably we'll have carryforward losses. Effective tax on all the put together would be in the range of 6 to 7%.

Okay. Got it.

Okay. Thank you, sir.

Sir, once again for the confirmation. Sir, which are the order book which is considered in the SPV?

The traffic management, right, IGR stands, Saudi Arabia, and Mithi river, these four are considered in the SPV level, right?

No, Mithi river is not considered outside. It is part of our order book because ABL will execute it directly, though the order has been received by the SPV, but it will be on back-to-back contract.

In the Saudi Arabia project and the IGR, the SPV itself will execute the works. That is out.

Saudi Arabia ₹900 crores and IGR ₹1,100 crores are both outside the books of ABL for consolidation. Then it will be part of consolidation.

The traffic management and the Mithi river, right, it's in the order book, right? Sir, where it is actually clubbed?

Is it clubbed in the power T&D and others?

Others,

others. ITMS,

right.

Second, sir, with respect to Bangladesh order, the order book stands at ₹370 crore, ₹374 crore, which was same as the last year. There is no progress there happening, right?

Work is on, though it at a slow pace. Work is on, and we expect to complete the whole order book in the course of time.

Got it. Understood.

Sir, last question. There is a one circular from NHAI where they have mentioned that the companies, now bidders, they have now to disclose if there is any casualty in any of their project in the last 2 years, and they become disqualified.

Do we have to really read this provision as strictly, or there is some submissions going from the road federation companies with respect to this provision?

Road Federation is discussing with them. They are coming out with a guideline how they will define now casualties for debarment and all.

Okay. Got it, sir.

Thanks. That is all from my side.

Unless it's a catastrophic kind of failure where the failure is due to structural defect, then only they will take such harsh situations.

They have not clearly defined, right, what is catastrophic or so?

That is what is being getting discussed with NHAI authorities here.

Understood. Understood, sir.

That's it from my side, sir. Thanks.

Okay.

Thank you, everyone, for joining this call. Would update as we have been updating on regular basis.

Thank you very much.