Ladies and gentlemen, good day and welcome to Ashoka Buildcon Q2 FY 2027 earnings call hosted by Anand Rathi Share and Stock Brokers Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand this conference over to Bhavin Modi from Anand Rathi Share and Stock Brokers Limited. Thank you, and over to you, sir.
Thank you. Hello, everyone. On behalf of Anand Rathi Institutional Equities, I extend a warm welcome to the Ashoka Buildcon Limited Q2 and H1 FY 2027 earnings conference call. We are pleased to have with us today Mr. Satish Parakh, Managing Director, and Mr. Paresh Mehta, Chief Financial Officer. Without further delay, I invite Mr. Satish sir to share his opening remarks, following which we will open the floor for a Q&A session. Over to you, sir.
Thank you, Bhavin. Good afternoon, everyone. A very warm welcome to all for joining this call for Ashoka Buildcon for earnings conference call for the quarter ended 30th September 2026. Joining me on today's call is our CFO, Mr. Paresh Mehta. I hope everyone had an opportunity to review financial results, investors presentation, which have been uploaded on the stock exchanges and company's website. Let me begin by giving you a perspective on the industry environment and then take you through the key highlights of the company. Industry environment. Q2 FY 2027 has commenced a positive note for infrastructure sector, supported by an increase in domestic highway project awards. Additionally, encouraging opportunities are emerging across other key segments, including railways, power transmission, power distribution, international infrastructure projects, providing further impetus to the sectoral growth. As far as fresh project awarding is concerned, there is a significant improvement.
In July 2026, NHAI awarded approximately 127 km of highway. In August, NHAI awarded around 95 km of highways. Cumulatively, NHAI's awards reached 329 km by August end. More importantly, ministry reported that national highway project awards reached 2,236.3 km during April to September FY 2027, up by 62.9%. NHAI plans to award 5,200 km in FY 2027, which is up by 66% compared to last year. If you look at construction progress, we still see a weakness. Despite the improvement in awarding, construction activity remained under pressure. August 2026, construction declined by 12% and 21% month-on-month to approximately 182 km. Cumulative construction during April-September stood at approximately 2,069 km, down by 18%. NHAI targeted to construct 4,950 km of road in FY 2027, down 7% year-on-year.
While we remain positive on long-term fundamentals of road infrastructure, we believe the sector is currently undergoing a period where the focus is shifting from simply awarding more kilometers to ensuring these 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 very strong. The Union Budget has provided a significant push to the railway sector, which is our focus now, with a record capital expenditure allocation of approximately INR 2.93 lakh crore. The government has also announced seven new high-speed rail corridors covering around 4,000 km, with an estimated investment potential of nearly INR 16 lakh crore, along with 2,052 km of dedicated freight corridors between Dankuni and Surat. This is important because the opportunity in railways is no longer limited to traditional track construction.
It necessarily spans over electrification, signaling, safety systems, freight infrastructure, station development, and other specialized EPC requirements. For Ashoka, this creates an opportunity to leverage its existing execution capabilities and participate in infrastructure spending beyond the traditional road segment. The Power T&D segment is another area where we see strong structural growth. India is adding renewable generation capacity at a rapid pace, but the success of this transition depends equally on the 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 some key business developments post Q1 FY 2027 earnings call. During Q2 FY 2020, the company received LOA from RVNL, Rail Vikas Nigam Limited, for the project of new BG rail line in the state of Uttarakhand. The project cost is INR 602 crore, including GST.
During Q2 FY 2027, LOA received from REC Power Development and Consultancy Limited for the project establishment for establishment of 400, 220, and 132 KV lines at Sakoli district Bhandara on TBCB, that is Tariff-Based Competitive Bidding, with completion period of 24 months and operation and maintenance period of 35 years. This is first-ever Tariff-Based Competitive Bidding, which is popularly known as TBCB project by the company, and this project is in the state of Maharashtra. What makes this project strategically relevant is that it represents our entry into TBCB framework in transmission sector, thereby adding another vertical to our infrastructure portfolio. Updates post Q2 FY 2027 till date. Recently, we have received a letter of acceptance from North Eastern Railway, NER, for the project at a value of INR 290 crore, including GST.
Received commercial operation COD, Commercial Operation Date, COD, for NHAI project for four-laning of Tumkur-Shivamogga of HAM project in Karnataka for balance 45.05 km. Thus, now SPV is eligible to receive the first annuity. During Q2 FY 2027, third provisional COD was received for NHAI project for its four-laning from Tumkur to Shivamogga in package three for 4.22 km after de-scoping by NHAI. Thus, now SPV is eligible for receipt of full annuity. As a part of portfolio streamlining, no development in this quarter. Coming to the order book status, as on September 30, 2026, order book stands at INR 15,964 crore, excluding orders received post September 30, which are almost INR 1,257 crore, totaling to INR 17,222 crore. Breakup is roads and railway project comprise around INR 9,274 crore, which is 58% of our total order book.
Among the road projects of order book, HAM projects are to the tune of INR 1,436 crore and EPC of INR 6,172 crore. PT&D accounts for INR 3,820 crore, which is 23.93%, approximately 24%. The building EPC amounts for around INR 940 crore, which is 5.9%. Orders in our subsidiaries and associate companies are INR 1,928 crore, which is 12.08% of our total order book. New order received after 1st October 2026, INR 391 crore, and we are L1 bidder for Vadodara-Mumbai Expressway package nine for INR 865 crore. This makes our total balance order book as on date as INR 17,222 crore. With this, I request Mr. Paresh Mehta, CFO, to present the financial performance. Thank you very much.
Thank you. Good afternoon, everyone. Starting with the standalone numbers for Q2 FY 2027. Total income stood at INR 1,357.56 crore as compared to INR 1,302.62 crore in Q2 FY 2026, flat on year-on-year basis. EBITDA for the quarter stood at INR 133.94 crore with a margin of 9.88%. Profit after tax stood at INR 37.96 crore against INR 139.18 crore for Q2 FY 2026, which included exceptional items of INR 112 crore. Our revenue contribution for each segment for Q2 FY 2027 is as follows: Road EPC contribution was 51.2%, Road HAM contribution was 8.6%, Power T&D contribution was 22.94%. Railways stood at 13.57%, and other segments like building EPC and others contributed 3.69%. For H1 FY 2027, total income for H1 stood at INR 2,676.68 crore as compared to INR 2,641.73 crore in H1 FY 2026.
EBITDA for H1 FY 2027 stood at INR 259.47 crore with an EBITDA margin of 9.69%. Profit before tax stood at INR 94.46 crore and PAT stood at INR 69.52 crore as compared to INR 169.8 crore in H1 FY 2026. Coming to consolidated numbers, total income for Q2 FY 2027 stood at INR 1,609.21 crore as compared to INR 1,907.88 crore in Q2 FY 2026, down by 15%. EBITDA for the quarter stood at INR 314.67 crore, with an EBITDA margin of 19.55%. Profit after tax stood at negative INR 118.96 crore during Q2 FY 2027. In Q2 FY 2027, in our BOT division, the company recorded a gross total toll collection from its Jaora-Nayagaon Toll Road Company of INR 73.5 crore. With this, we now open the floor for question and answers. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Sir, what has been the order inflow in first half and year-to-date in terms of EPC value?
In Q2, the order intake was INR 1,966. And for Q1, I will just tell you. INR 362 crore for Q1. Yeah. Anything further? Hello? Hello?
Mr. Vaibhav? Mr. Vaibhav, you are not audible.
Am I audible now?
Yes, sir.
Yeah. What was Q1 inflow? I did not get the number.
Q1 was INR 362 crore.
What have you received in October so far?
That is INR 391 crore plus INR 865 crore. Around INR 1,200 crore.
Okay. In the presentation, you have mentioned that there are two SPV projects worth INR 1,928 crore. That won't fall in the standalone order backlog?
They are in the backlog. But the revenue will be recognized at the SPV level.
It won't come in standalone?
The revenue will not be recognized as standalone. It will be recognized as CFS.
Okay. Secondly, what is our CapEx target for the year?
Up to date, CapEx was around INR 62 crore, and target is approximately INR 125 crore for the whole year.
Okay. And what is the equity to be invested now pending?
Equity to be invested is around INR 340 crore for the HAM projects, including Bowaichandi, to be invested for 2026-2027, INR 153 crore, 2027-2028, INR 114 crore, and INR 72 crore for 2028-2029.
INR 153 is in second half?
153.
INR 153 is in second half of this year?
Yeah, yeah. Because we have received the Bowaichandi appointed date just recently. So there we will be doing major infusion of equity of around INR 25 crore.
How much you have infused in first half in HAM projects?
In the first half, INR 68 crore, sir.
Okay. Lastly, on the monetization of HAMs, the remaining HAMs, what is the timeline and when do we expect to receive the proceeds?
We are around the corner for monetizing the four HAM projects. The two HAM projects will probably happen in Q4 or Q1 of next year. That is Basawantpur and Tumkur-Shivamogga 4. Of the six, four will happen by December. Before the 10th. We've got maybe in the next couple of weeks.
And the proceeds from the four and the two assets?
Proceeds from the four assets will be in the next two weeks' time.
No, no.
We have already signed off on the sale of the transaction. The actual monetization will happen in Q4 or Q1 of FY 2027.
And sir, what will be the amount we expect to receive from four and two assets?
So, four and two assets, approximately INR 1,000 odd crores will be received. The first tranche will be approximately INR 600 crore.
So, from four, INR 600, and last two, INR 400 crore?
Yeah.
Okay. And sir, one last booking question. What debt target are we having for March 2027?
March 2027, the four assets will be sold. Today we have a total debt of INR 2,781 crore. The four assets debt will go off the consol of ABL. We will be left with INR 2,000 crore of debt, which will be split into project debt of INR 800 crore, and balance would be working capital.
Standalone we target roughly INR 700 crore by year end?
Standalone debt will be approximately INR 1,000 crore, which based on today's numbers, actual, which will transpire would be substantially less because there will be realization of monetization also, but there will be some investment in new projects also, Bowaichandi and others. The estimated standalone debt as of March 2027 would be in the range of INR 600 crore-INR 700 crore.
Even after factoring these investments?
Pardon?
Even after factoring the investments, we
Yeah, yeah.
Okay. Thank you, sir. I will follow back in a minute.
Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and one on your touch-tone telephone. I repeat, in order to ask a question, please press star and one on your touch-tone telephone. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Thanks for the follow-up. Sir, out of the INR 2,100 crore of debt we have on standalone basis as of September, of that, what would have been third-party and what is from the SPVs that you have taken?
Third-party total gross debt is INR 2,781 crore.
No, on standalone.
On standalone?
Yeah.
On standalone, INR 1,169 is the lenders' debt. Balance is inter-company.
Sir, when we say that we are targeting roughly INR 700 crore of debt by March, that is only third party we are targeting or including everything?
No, this is third party. That is outside debt from lenders.
The rest is INR 600 crore.
The sister concern debts are debts owned by the sister concern, their own network. From the group concept, it is not an outflow.
Sir, but we will be paying interest on that, right? The interest outflow would be there, even on the sister concern.
Agreed, agreed. But that will remain in the system. Because these are all 100% owned companies of ABL.
Sir, but from finance, from numbers point of view, in modeling, the interest portion will be still remaining higher, something around that interest on INR 600 crore-INR 700 crore of debt, even at March 2027.
That interest will be there.
Okay. Sir, lastly, execution was quite fine in the first half, but margins have been quite weak at around 7.1% in the first half. How do you see the margins for the entire year of FY 2027 and revenue growth?
We expect the margin to inch up by 1.5% by the year end. Probably we will have to see from perspective of the next two to three years how the existing order book will get executed. Based on that, probably we will be in an average of 10% or 10%-10.5% of EBITDA margins.
For second half, we expect something around 9% odd?
Yeah, 9%-9.5%.
What will lead this improvement from 7% to 9.5% in second half?
The existing projects which we are executing, where the road yet to ramp up, like the road projects in Maharashtra and other projects, international projects, they will contribute to the increase in the ramp up.
Our revenue guidance for this year?
Revenue guidance will be probably as flat as last year. At present, what we see, we will target around to achieve at least 5% up. But at least we will have to move or look more from a larger period, typically because the execution sometimes get delayed due to various reasons. But in the larger framework of three years, we will be in the range of 15% CAGR.
20 should be a much higher number in terms of growth.
Right.
With 27 being flattish.
Right.
Because earlier you were targeting much better numbers in terms of revenue growth for You were targeting 10%-15% for this year. Now, given the current scenario, we are looking for a flattish growth?
Yeah, based on the order intake, which is coming late, we may achieve 10%, which is approximately INR 6,600 revenue by March end. We will have to probably see how the execution happens. Based on existing, we may have around 10% growth overall.
On standalone, right?
Standalone.
Okay. Lastly on order inflows, what is your guidance for the year?
Another INR 3,000-INR 5,000 is what we are expecting, which is now order bidding has started at a good pace. Orders, of course, bidding will happen, but how fast the order is, all depends upon the government. What we are targeting is INR 3,000 crore-INR 5,000 crore.
That is beyond what we have received till October. In the last four months, we are targeting INR 3,000-INR 5,000. Four, five months.
Right.
Okay. Thank you. Those were my questions. Thank you.
Thank you very much. The next question is from the line of Vasudev from Nuvama. Please go ahead.
Yeah, thank you for the opportunity. Sir, from this BOT stake sale that we have done, we have received the entire amount or something is still pending to be received?
Largely, we have received most of it. Some amount is expected to be received by March end, approximately INR 15 crore. There is a deferral based on toll collection, which will be received over, say, next two to three years' time. There are two portions of it.
How much have we received in total until now?
We have received approximately INR 1,700 crore on the BOT, plus another INR 20 crore which we received in the last two quarters.
Okay. Do we have any plans right now for Chennai ORR and Jaora-Nayagaon stake sale?
We are pursuing both the projects for sale, and we are talking to potential investors. Then when we have a concrete plan, we will come back to the investors for what is happening.
Okay. Sir, what would be our bid pipeline right now if you can break it up across segments?
Total bid pipeline for Ashoka Buildcon is INR 51,000 crore immediately, which includes NHAI, MoRTH, railways, states. This is from the visibility of orders which have already been announced, like tenders which have been announced.
Okay, got it, sir. Have we bidded for any project?
Yeah, beg your pardon?
Have we bidded for any projects where bids are yet to open?
Around INR 800 crore bids or INR 8,000 crore bids are yet to be opened, 170 km.
Okay. Sure, sir. That's it from my side. Thank you and Happy Diwali to you all.
Yeah.
Thank you very much. The next question is from the line of Bhavin Modi from Anand Rathi Share and Stock Brokers Limited. Please go ahead.
Sir, can you just help us in how are we placed with respect to the BOT road projects? I see a lot of big-ticket BOT projects are coming in. So even if we win one or two projects, our order book may shoot by INR 6,000 crore-INR 12,000 crore. Are we open to the BOT projects, and how are we placed when it comes to the network or the technical qualifications?
BOT project, we are very well placed. We are also evaluating various projects. Definitely, we will target these projects where traffic risk is within our visibility.
Right.
Definitely, there is a team in place already, and we are working with investors on various BOT projects.
And second, sir, with respect to, apart from the road, which segment do you foresee the growth to be coming in? I believe there are a lot of opportunities coming in the railway sector as well as the metros. Should we see those segments where the growth will be coming in?
Yes, we are participating in railways, metros, TBCB. All these three sectors are very promising. Other than this, international markets are also good. That vertical is also focusing on further six, seven countries.
Right, got it. Sir, do we have any strategy with respect to our domestic and overseas mix? How much are we planning to have our order book proportion in the next two, three years? How much would be the overseas and how much would be domestic?
Today, if you say it is 90/10 is overseas and 90% is domestic. Going ahead, it could be 80/20, and we will see how we move ahead with our experience in various countries. India itself is throwing up a lot of opportunities.
Right.
Indian opportunities grow up, it again will remain 90/10.
Right. But sir, when it comes to overseas, which segment are we targeting apart from the roads? Or road is the only-
All the opportunities we have, whether it is roads, railways, transmission, distribution, all.
Got it.
Same what we do in India, we will do abroad.
Got it. Yes, sir, that is it from my side.
Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and one on your touch-tone telephone. I repeat, in order to ask a question, please press star and one on your touch-tone telephone. As there are no further questions, I would now like to hand the conference over to management for closing comments.
We thank all the attendees for this conference call and we wish everybody a very happy Diwali and prosperous New Year. We are available for any queries on a one-to-one basis. You can call me on my number in the presentation already shared. Thanks everybody again.
Thank you very much. On behalf of Ashoka Buildcon Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.