ASHOKA - Ashoka Buildcon
📢 Recent Corporate Announcements
Ashoka Buildcon and its subsidiary Viva Highways have converted 77,41,250 Class A Compulsorily Convertible Debentures (CCDs) into an equivalent number of Optionally Convertible Debentures (OCDs) in Ashoka Concessions Limited (ACL). This restructuring, effective March 13, 2026, is aimed at limiting further equity exposure and ensuring capital protection within the subsidiary. The conversion was executed on a 1:1 basis following a valuation report, and it does not alter the existing equity shareholding pattern of the company or ACL.
- Conversion of 77,41,250 Class A CCDs into 77,41,250 Class A 0.01% OCDs on a 1:1 basis.
- Ashoka Buildcon Limited holds 49,81,119 units and Viva Highways holds 27,60,131 units of the new OCDs.
- Restructuring aims to provide capital protection and avoid dilution risk in the subsidiary.
- No change in the equity shareholding pattern of Ashoka Buildcon or Ashoka Concessions Limited.
- The conversion is based on a valuation report from R & A Valuation LLP dated March 9, 2026.
Ashoka Buildcon's wholly-owned subsidiary has received a Provisional Certificate for the completion of 52.885 KMs out of a total 53.315 KMs for its NHAI project in Karnataka. The project, executed under the Hybrid Annuity Mode (HAM), saw a recent addition of 2.68 KMs to the operational stretch as of February 28, 2026. This milestone confirms the company's eligibility for semi-annual annuity payments from NHAI over a 15-year period. The project covers the four-laning of the Tumkur Shivamogga section (Package-II).
- Provisional COD achieved for 52.885 KMs of the total 53.315 KM revised project stretch
- Latest stretch of 2.68 KMs declared operational as of February 28, 2026
- SPV is eligible for annuity payments from NHAI for 15 years at 6-month intervals
- Project involves four-laning of NH-206 Tumkur Shivamogga Section in Karnataka
- Execution handled by Ashoka Karadi Banwara Road Private Limited, a 100% subsidiary
Ashoka Buildcon Limited has announced the successful passage of two key special resolutions via postal ballot. Shareholders overwhelmingly approved the re-appointment of Mr. Ashok Katariya as Whole-time Director and Chairman for a three-year term starting April 1, 2026, with 99.32% of votes in favor. Additionally, Ms. Shilpa Hiran was re-appointed as an Independent Director for a second five-year term. These results ensure leadership continuity and stability for the company's strategic management over the coming years.
- Re-appointment of Mr. Ashok Katariya as Chairman approved for a 3-year term effective April 1, 2026.
- The resolution for the Chairman's re-appointment received 11,53,39,240 votes in favor (99.32%) and 7,94,001 against (0.68%).
- Ms. Shilpa Hiran re-appointed as an Independent Director for a second consecutive term of 5 years starting February 1, 2026.
- Both resolutions were passed as Special Resolutions with the requisite majority through a month-long e-voting process.
Ashoka Buildcon Limited has successfully completed the full redemption of its Commercial Papers (CPs) worth Rs 50 crore on the scheduled maturity date of February 27, 2026. The company paid the principal amount along with an interest/discount component of Rs 53.73 lakh. This timely fulfillment of debt obligations reflects the company's stable liquidity position and disciplined financial management. Following this payment, there is no outstanding amount remaining under the specific ISIN INE442H14493.
- Full redemption of 1,000 Commercial Papers amounting to Rs 50 crore
- Total interest/discount payment of Rs 53.73 lakh settled on maturity
- Payment successfully executed on the due date of February 27, 2026
- Outstanding balance for ISIN INE442H14493 stands at Nil post-redemption
Acuite Ratings & Research Limited has reaffirmed the credit ratings for Ashoka Buildcon Limited's debt instruments. The long-term rating is maintained at 'ACUITE AA' with a 'Stable' outlook, and the short-term rating is reaffirmed at 'ACUITE A1+'. Significantly, both ratings have been removed from 'Rating Watch' status, indicating a stabilization of the company's credit profile. This update covers various debt instruments including Commercial Papers and Non-Convertible Debentures.
- Long-term credit rating reaffirmed at 'ACUITE AA' with a 'Stable' outlook
- Short-term credit rating reaffirmed at 'ACUITE A1+', the highest rating for short-term debt
- Ratings for both long-term and short-term debt have been removed from 'Rating Watch' status
- The reaffirmation applies to multiple debt codes including CPs and NCDs (976190, 976191, 976192)
Ashoka Buildcon, in consortium with Railtel Corporation of India, has secured a Letter of Intent for a major modernization project from the Maharashtra government. The project involves the end-to-end IT infrastructure management for the Office of Inspector General of Registration (IGR) for a five-year period. While the contract is based on a per-page scanning rate of ₹24.75, the estimated total value is approximately ₹1,136.18 Crores. This win signifies a strategic diversification for the company into managed IT services and digital infrastructure.
- Consortium with Railtel awarded a 5-year turnkey modernization project for IGR Maharashtra.
- Estimated total contract value is approximately ₹1,136.18 Crores based on historical volumes.
- Revenue model is fixed at an accepted rate of ₹24.75 per scanned page.
- Scope includes modernization of IT, network, cloud, and application infrastructure.
- Project execution is scheduled to be completed by March 19, 2032.
Ashoka Buildcon Limited has informed the exchanges that its officials will be participating as speakers in a webinar focused on the Road Sector. The event is organized by ICRA Limited and is scheduled for February 25, 2026, at 4:00 PM. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during this interaction. This is a standard industry engagement and part of the company's routine communication with stakeholders.
- Participation in a web event on the Road Sector organized by ICRA Limited
- Scheduled date and time: February 25, 2026, at 04:00 PM IST
- Company officials will be featured as speakers during the webinar
- No unpublished price sensitive information (UPSI) intended to be shared
- Disclosure made under Regulation 30(6) of SEBI LODR Regulations 2015
Ashoka Buildcon Limited has issued unsecured Commercial Papers (CPs) amounting to Rs 50 crore on February 16, 2026. The instrument carries a coupon rate of 6.90% with a short tenure of 42 days, maturing on March 30, 2026. This issuance is part of a larger Board-approved limit of Rs 300 crore for short-term financing. The funds are likely intended for managing immediate working capital requirements or short-term liquidity needs.
- Issued Commercial Papers worth Rs 50 crore with a tenure of 42 days
- Coupon rate offered is 6.90% per annum with interest paid upfront
- The principal amount is scheduled for repayment on the maturity date of March 30, 2026
- Issuance is within the Board-approved limit of Rs 300 crore for outstanding CPs
Ashoka Buildcon Limited has officially cancelled its meeting with analysts and institutional investors that was scheduled for February 18, 2026. The meeting, organized by Dolat Capital, was intended to be a 1x1 or group session held in Mumbai between 9:30 am and 12:30 pm. This cancellation follows the company's previous intimation regarding the event made on February 15, 2026. No specific reason for the cancellation was provided in the regulatory filing.
- Cancellation of investor meeting originally scheduled for February 18, 2026
- Meeting was organized by Dolat Capital at Grand Hyatt, Mumbai
- The session was planned for a duration of 3 hours from 9:30 am to 12:30 pm
- The company filed this update under Regulation 30 of SEBI LODR Regulations
Ashoka Buildcon Limited has scheduled an interaction with institutional investors and analysts on February 18, 2026, in Mumbai. The meeting, organized by Dolat Capital, will include both 1x1 and group sessions between 9:30 am and 12:30 pm. The company has clarified that no unpublished price sensitive information (UPSI) will be shared during these discussions. This is a routine engagement aimed at maintaining transparency with the investment community.
- Investor meeting scheduled for February 18, 2026, in Mumbai
- Interaction format includes 1x1 and group meetings organized by Dolat Capital
- Sessions will run from 9:30 am to 12:30 pm at Grand Hyatt, Mumbai
- Company confirms no unpublished price sensitive information will be discussed
Ashoka Buildcon Limited has received a Letter of Award from the Ministry of Public Works, Liberia, for a road upgrading project. The contract involves work on the Nrowkia to Barclayville and Sasstown road segments. The total bid cost is valued at USD 45,276,621.07, providing a boost to the company's international order book. The project is an Engineering, Procurement, and Construction (EPC) contract with a completion period of 24 months.
- Secured an international EPC contract worth USD 45,276,621.07 in Liberia
- Project involves upgrading roads from Nrowkia (Sasstown Jn) to Barclayville and Sasstown
- The execution timeline for the project is 24 months
- The contract is awarded by the Ministry of Public Works, Republic of Liberia
- Expands the company's footprint and order book in the international infrastructure market
Ashoka Buildcon, in a joint venture with Aakshya Infra Project Private Limited, has received a Letter of Acceptance for a major bridge project in Bihar. The total project value is Rs 474.38 crore, with Ashoka Buildcon holding a 51% stake, making its share approximately Rs 241.93 crore. The project involves constructing a 2,280-meter bridge over the River Gandak in Muzaffarpur on an EPC basis. The execution timeline for this domestic contract is set at 30 months, providing healthy revenue visibility.
- Total project value stands at Rs 474.38 crore including GST for bridge construction in Bihar.
- Ashoka Buildcon's 51% share in the Joint Venture amounts to Rs 241.93 crore.
- The project involves a 2,280-meter bridge over River Gandak to be executed on EPC mode.
- The contract has a defined execution period of 30 months.
- Awarded by Bihar Rajya Pul Nirman Nigam Limited, a domestic government entity.
Ashoka Buildcon's Saudi Arabian subsidiary, in a 49:51 joint venture with BEC Arabia, has secured a major contract for the Diriyah II development in Saudi Arabia. The project involves the main construction works for a hotel, awarded by the PIF-backed Diriyah Company. Ashoka's 49% share of the total contract is valued at approximately ₹846.38 crore (SAR 351.37 million). The project is slated for completion within a 27-month period starting February 2026.
- Total project value is SAR 717.09 million (approx. ₹1,727 crore) excluding VAT.
- Ashoka Buildcon holds a 49% stake in the JV, with its share valued at ₹846.38 crore.
- The contract is awarded by Diriyah Company, owned by the Saudi Arabian Public Investment Fund (PIF).
- Execution timeline is 27 months from the effective date of February 5, 2026.
- The project focuses on the 'Main Construction Works of Diriyah II – Delivery Partner for One Hotel'.
Ashoka Buildcon reported a significant reduction in consolidated debt from ₹4,910 crores to ₹2,722 crores following the successful sale of five BOT SPVs for ₹1,814 crores. While standalone revenue declined 18% YoY to ₹1,492 crores due to execution delays and land acquisition issues, consolidated PAT surged to ₹2,111 crores, driven by exceptional gains from asset monetization. The company's order book remains robust at ₹16,235 crores as of February 2026, with a strategic shift towards diversifying into power T&D and urban infrastructure. Management expects a 15% revenue growth in FY27 as new projects transition into the execution phase.
- Consolidated debt reduced by 44.5% to ₹2,722 crores from ₹4,910 crores in the previous quarter.
- Completed sale of 5 BOT SPVs to Maple Infrastructure Trust for an aggregate consideration of ₹1,814 crores.
- Order book stands at ₹16,235 crores as of February 2026, with Roads/Railways at 65% and Power T&D at 32.1%.
- Standalone PAT for Q3 FY26 rose 68% YoY to ₹102 crores, while consolidated PAT reached ₹2,111 crores.
- Management targets ₹3,000 crores in new order inflows for the remainder of the fiscal year.
Ashoka Buildcon Limited has issued a postal ballot notice seeking shareholder approval for the re-appointment of key leadership positions. The company proposes to re-appoint Mr. Ashok Katariya as Chairman for a three-year term starting April 1, 2026, and Ms. Shilpa Hiran as an Independent Director for a second five-year term starting February 1, 2026. As Mr. Katariya is over 70 years old, his appointment requires a special resolution to ensure leadership continuity. The e-voting period for these resolutions is scheduled from February 7, 2026, to March 8, 2026.
- Proposed re-appointment of Mr. Ashok Katariya as Chairman for a 3-year term effective April 1, 2026
- Proposed re-appointment of Ms. Shilpa Hiran as Independent Director for a 2nd term of 5 years effective February 1, 2026
- Special resolution required for Mr. Katariya due to him being over 70 years of age
- Remote e-voting period for shareholders runs from February 7 to March 8, 2026
- The results of the postal ballot will be announced within two working days of the conclusion of voting
Financial Performance
Revenue Growth by Segment
The order book of INR 14,888 Cr as of September 2025 is dominated by Road EPC at 82%, followed by Power T&D at 12%, and Railways at 6%. Standalone revenue for FY25 was INR 7,061.43 Cr, representing an 8.7% decline from INR 7,726.7 Cr in FY24. H1 FY26 standalone revenue saw a further 21% YoY degrowth to INR 2,642 Cr due to execution delays.
Geographic Revenue Split
Not specifically disclosed in available documents, though operations are spread across India with major projects in Maharashtra (BMC projects) and various highway SPVs in states like West Bengal, Chhattisgarh, and Karnataka.
Profitability Margins
Consolidated Net Profit Margin improved significantly to 17.28% in FY25 from 5.32% in FY24, largely due to exceptional gains from asset sales. However, standalone PAT margin compressed to 2.8% in FY25 from 5.7% in FY24 due to higher provisioning and labor cess outflows.
EBITDA Margin
Standalone EBITDA margin for H1 FY26 was 11.8%, an improvement of 270 bps YoY from 9.1% in H1 FY25. FY25 standalone EBITDA margin was 7.7%, slightly up from 7.5% in FY24 despite lower absolute revenue.
Capital Expenditure
The company expects yearly cash accruals of INR 400-500 Cr to cover its capex, investment plans, and maturing debt of INR 60-90 Cr per annum over the medium term.
Credit Rating & Borrowing
The company maintains an [ICRA]A1+ rating for its INR 100 Cr Commercial Paper and an Acuite AA/Stable rating for long-term debt. Standalone interest coverage ratio moderated to 1.85x in FY25 from 2.53x in FY24, but is expected to improve to over 4x following debt reduction from asset sales.
Operational Drivers
Raw Materials
Key raw materials include steel, cement, and bitumen. Cost of materials consumed in FY25 was INR 2,978.69 Cr, representing 29.7% of consolidated revenue, a decrease from 36.6% in FY24.
Import Sources
Not specifically disclosed, but typically sourced domestically within India for large-scale infrastructure projects.
Capacity Expansion
Current execution capacity is reflected in the construction of 14,000 lane kms of highways and the illumination of 30,000 villages. The order book expanded to INR 14,888 Cr by Sept 2025, up 27% from INR 11,700 Cr in March 2024.
Raw Material Costs
Consolidated material costs decreased by 17% YoY to INR 2,978.69 Cr in FY25. Procurement strategies involve centralized SAP-based ERP monitoring to manage costs across various SPVs.
Manufacturing Efficiency
Efficiency is tracked through the 5-year CAGR of 17% in revenue and 16% in EBITDA as of March 2025, indicating consistent operational scaling.
Logistics & Distribution
Not disclosed as a specific percentage, but distribution of resources is managed across multiple highway and power project sites nationwide.
Strategic Growth
Expected Growth Rate
17%
Growth Strategy
The strategy focuses on a 'full cycle' model: develop, construct, operate, and monetize. Growth will be achieved by recycling capital through the sale of 11 SPVs (INR 2,324 Cr deal) and 5 HAM assets (INR 1,146 Cr received), and acquiring the remaining stake in Ashoka Concessions Limited (ACL) for INR 1,550 Cr to gain full control of the project pipeline.
Products & Services
EPC services for highways, bridges, power transmission and distribution lines, and railway infrastructure. Final outputs include toll roads, annuity roads, and illuminated rural households.
Brand Portfolio
Ashoka Buildcon, Ashoka Concessions Limited (ACL), Viva Highways.
New Products/Services
Expansion into municipal infrastructure with the Brihanmumbai Municipal Corporation (BMC) project and diversification into Airport EPC projects (INR 7,417.57 Cr worth of new road and airport projects won in FY25).
Market Expansion
Targeting large-scale urban infrastructure projects (BMC) and continuing to bid for National and State Highway Authority projects (HAM, BOT, and EPC).
Market Share & Ranking
One of the leading highway developers in India with 14,000 lane kms constructed.
Strategic Alliances
Partnerships with Edelweiss Group (Infrastructure Yield Trust) and Epic Concesiones for asset monetization. Previously partnered with SBI Macquarie in ACL.
External Factors
Industry Trends
The industry is shifting toward asset-light models for developers through monetization (HAM/BOT sales). There is a growing trend in Power T&D and urban infrastructure (Smart Cities/Municipal projects) where ABL is actively diversifying.
Competitive Landscape
Competes with other major Indian infra players like L&T, KNR Constructions, and Dilip Buildcon in the highway and EPC segments.
Competitive Moat
Moat is built on a 30-year track record, large-scale execution capability (14,000 lane kms), and an integrated business model (EPC + BOT). Sustainability is supported by a strong order book of INR 14,888 Cr.
Macro Economic Sensitivity
Highly sensitive to India's GDP growth (projected at 6.2%) and government infrastructure spending. Inflation in steel and cement prices directly impacts construction margins.
Consumer Behavior
Not applicable for B2B/B2G infrastructure, but demand is driven by government policy and national logistics requirements.
Geopolitical Risks
Minimal direct impact as operations are domestic, but global commodity price fluctuations (crude oil/bitumen) affect input costs.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, NHAI guidelines, and SEBI (LODR) Regulations. Compliance is managed through an internal Audit Committee and Risk Management Committee.
Environmental Compliance
Not specifically disclosed in INR Cr, but the company maintains a Corporate Social Responsibility (CSR) Committee and adheres to applicable environmental laws for project execution.
Taxation Policy Impact
Consolidated current tax was INR 282.94 Cr in FY25. The company saw a significant deferred tax reversal of INR 461.73 Cr in FY25 due to accounting for SPV losses and carrying value differences.
Legal Contingencies
Profitability in FY25 was impacted by additional cash outflows related to a labor cess assessment. The company also manages provisioning for Expected Credit Loss (ECL) on its receivables.
Risk Analysis
Key Uncertainties
Execution risk due to weather (monsoon) and land acquisition delays. Financial risk associated with the timely completion of the remaining asset monetization deals (6 HAM assets expected by early FY27).
Geographic Concentration Risk
Primarily concentrated in India, with significant project clusters in Maharashtra and other major states.
Third Party Dependencies
Dependent on government authorities (NHAI/BMC) for project awards and timely payments, and on financial investors for asset exits.
Technology Obsolescence Risk
Low risk in construction, but the company is digitizing through SAP ERP to improve operational monitoring and internal controls.
Credit & Counterparty Risk
Exposure to government entities is generally low risk, but the company closely monitors ECL and receivables quality, which impacted FY25 standalone profits.