- Ashoka Buildcon's Q1 net profit fell 41% to Rs 127.8 crore year-on-year
- Revenue dropped 20.5% to Rs 1,500 crore in the quarter ended June 30, 2026
- EBITDA declined 56.9% to Rs 258 crore, with margin shrinking to 17.2%
Ashoka Buildcon Ltd.'s consolidated net profit fell 41% year-on-year to Rs 127.8 crore in the first quarter ended June 30, 2026, from Rs 217.4 crore a year earlier, as revenue declined and operating margins came under pressure.
Revenue from operations stood at Rs 1,500 crore, down 20.5% from Rs 1,887 crore in the year-ago quarter. EBITDA declined 56.9% to Rs 258 crore from Rs 599 crore, while the EBITDA margin contracted sharply to 17.2% from 31.7%.
The decline was led by weakness in the company's BOT/annuity projects segment. Revenue from this business fell to Rs 320 crore in Q1 FY27 from Rs 636 crore a year earlier. Construction and contract revenue also declined to Rs 1,114 crore from Rs 1,194 crore. Revenue from sale of goods, however, rose to Rs 65.5 crore from Rs 57.3 crore.
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Despite the earnings decline, Ashoka Buildcon's consolidated debt-equity ratio improved significantly to 0.45 in Q1 from 1.85 a year earlier. The company's interest service coverage ratio also strengthened to 3.59 from 2.08, while its current ratio stood at 2.23.
The company and its subsidiary Ashoka Concessions Ltd. are in the process of divesting their entire stake in five HAM subsidiaries. The assets, liabilities, investments and loans related to these projects have been classified as held for sale. Ashoka Buildcon is also in the process of divesting its entire stake in GVR Ashoka Chennai ORR Ltd.
Separately, Ashoka Purestudy Technologies ceased to be a subsidiary during the quarter after a preferential allotment reduced the group's stake from 59% to 39.33%. It is now an associate of the group.
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The company also disclosed that a Bihar project linked to an ongoing CBI matter has been completed and received its NHAI completion certificate as of June 30. The company has filed a writ petition before the Patna High Court seeking to quash the allegations and said it does not expect a material impact on its financial results. The matter remains sub-judice.
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