Q1 2027 Ashoka Buildcon Ltd Earnings Call Transcript
Key Points
- Diversification strategy is yielding results with new wins in international (Guyana highway) and non-road sectors (Gems & Jewellery Park in Chhattisgarh), reducing reliance on the subdued domestic road market.
- Strong bid pipeline of approximately INR 8,000 crores across NHAI, state roads, railways, and power T&D, with L1 of INR 1,800 crores expected to materialize in Q2 FY27.
- Order book remains robust at INR 15,251 crores (excluding post-June orders), with a healthy mix of road EPC, HAM, railways, and international projects, providing revenue visibility.
- Successful monetization of BOT/HAM assets is on track, with four assets expected to close by September/October 2026 and two more by Q4 FY27, generating around INR 1,150 crores in cash inflows.
- Management expects revenue growth of 10-15% for FY27, with margins improving in H2 as new projects ramp up, and long-term EBITDA margins of 10.5-11% are anticipated as the project portfolio matures.
- Domestic highway awarding environment remains subdued, with NHAI awarding only 5 km in June and construction activity down 34% YoY in the first two months of FY27, impacting sector growth.
- Q1 FY27 standalone revenue was flat YoY at INR 1,320 crores, and consolidated revenue declined 21% YoY due to asset monetization, indicating weak near-term top-line momentum.
- EBITDA margin guidance has been lowered to 9-9.5% for FY27 (from earlier double-digit expectations) due to initial costs from new project mobilizations and subdued Q1 performance.
- Monetization timeline for four assets has been revised from Q1 to Q2 FY27 due to compliance delays, and there could be holdbacks of INR 30-40 crores on the total INR 1,150 crores expected.
- Working capital has increased by approximately INR 250 crores in Q1 due to advances for new projects, and collections in the power T&D segment are delayed, straining cash flows.
Ladies and gentlemen, good day and welcome to the Ashoka BuildCon Q1 FY27 Earnings Conference Call hosted by IIFL Capital. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Mudit Bhandari from IIFL Capital. Thank you and over to you sir.
Thank you so much. Good afternoon, everybody. On behalf of IFRE Capital, I welcome you all to first quarter FY27 earning conference call of Ashoka Buildcon Limited. From the management, we have Mr. Satish Parikh, 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-answer. Thank you and over to you, sir.
Thank you, Budit. Good afternoon, everyone. A very warm welcome to all of you joining us for Shuka Bilcon Earnings Conference Call for the quarter ended 30th
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