According to reports from CNBC TV18, Afcons Infrastructure Limited delivered mixed results for Q3 FY26, with net profit declining 34.8% year-on-year to ₹97 crore compared to ₹148.8 crore in the corresponding period last year. Revenue fell 7.3% year-on-year to ₹2,975 crore from ₹3,211 crore in Q3 FY25. Despite the revenue decline, the company demonstrated operational resilience with EBITDA rising 12.3% year-on-year to ₹409.5 crore from ₹364.6 crore, while EBITDA margin expanded sharply to 13.8% from 11.4% a year ago, aided by better cost management. The latest analysis reveals that revenue for the quarter was ₹2,975.77 crores, marking a slight sequential contraction of 0.42% from the previous quarter and representing the lowest quarterly performance in the past two years.
As reported by CNBC TV18, for the nine months ended December 2025, Afcons reported total income of ₹9,545 crore with EBITDA growing 1.8% year-on-year to ₹1,269 crore, excluding a one-time labour code impact of approximately ₹77 crore. Profit after tax for the nine-month period stood at ₹339 crore. The company's order book remained healthy at ₹31,543 crore as of December 2025, translating into a book-to-bill ratio of 2.5 times, providing revenue visibility for the coming years with order inflows during 9MFY26 standing at ₹2,640 crore.
According to CNBC TV18, Executive Chairman Subramanian Krishnamurthy attributed the topline impact to client-related execution delays, ongoing payment delays and slower conversion of L1 orders. However, operational execution remained strong, highlighted by a key breakthrough in the CIDCO water tunnel project, achieved one month ahead of schedule. During the quarter, Afcons set a record by completing 777 metres of tunnelling in a single month. The company also secured a road project worth over €100 million in Uganda, reinforcing its international presence, particularly in Africa. The operational challenges are compounded by a competitive environment in the infrastructure sector, which is characterized by intense competition and execution delays.
As per the latest analysis, Afcons Infrastructure's return on equity (ROE) stands at 9.32%, which is below the average of its peers, indicating moderate returns on shareholder capital. The return on capital employed (ROCE) of 11.22% suggests that while the company is generating returns above its cost of capital, there is room for improvement in capital efficiency. The balance sheet reflects manageable leverage with a debt-to-equity ratio of 0.52, but the company's negative cash flow from operations of ₹132 crores in FY2025 raises liquidity concerns. The operational profit before depreciation, interest, and tax (excluding other income) rose to ₹410.28 crores, showcasing a quarter-on-quarter increase of 24.85%, highlighting the company's efforts in cost management and project execution.
As reported by CNBC TV18, ahead of the earnings announcement, shares of Afcons Infrastructure Limited closed 1.13% higher at ₹344.55 on the NSE. The mixed performance with margin expansion despite revenue decline reflects the company's operational efficiency improvements despite challenging market conditions affecting project execution timelines. However, the company has fallen 2.14% following the latest results announcement, with investors monitoring future revenue trends and project execution capabilities as indicators of potential recovery.
