Ashoka Buildcon: Revenue is well-diversified

Ashoka Buildcon’s (ASBL) standalone revenue/EBITDA/APAT came in at INR 13.1/1.2/0.3bn, a miss of -23.3/-9.5/-24.6% vs. our estimates as early monsoon and project mobilization delays affected execution. EBITDA margin: 9.3% (+286/+207bps YoY/QoQ), higher than our estimate of 7.9%.

ASBL has guided for 10% revenue growth YoY in FY26 and expects to record higher EBITDA margins of 9.5-10% during that year on the back of new order execution. The Order Book as of Jun-25 stood at INR 158.9bn (~2.25x FY25 revenue), Order Inflow (OI) stood at INR 1.96bn from domestic and LOA of USD 67.25mn.

Further, ASBL guided for OI of INR 100-120bn for FY26, while participating in bids worth INR 1.1trn. Business-wise, the revenue is well-diversified with HAM (roads)/EPC (roads)/power T&D/railways/EPC (buildings) and others comprising 11.6/52.4/19.7/6.7/9.6% respectively.

Additionally, ASBL has already invested INR 11.1bn in the HAM portfolio; the balance equity requirement in its existing NHAI HAM assets is INR 2.3bn as of Jun-25. Given the stable OB, improving visibility on asset monetization of INR 16.8bn by Sept-25, and margin expansion on the back of new order execution, we maintain BUY. Our SOTP is pegged at INR 273/sh (11x Mar-27E EPS) and factors 1.4x P/BV for HAM assets.

 Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest. The target price recommendation given  are general in nature and not specifically for you. They do not consider your unique risk tolerance and investment objectives.

 Source : HDFC Securities Institutional Equities

 Full Report : https://www.hdfcsec.com/hsl.docs/HSIE%20Results%20Daily%20–%2013%20Aug%2025%20-%20HSIE-202508130652556341486.pdf?t=138202565458815