Ashoka Buildcon Ltd.'s consolidated net profit fell 41.23% year-on-year to ₹127.77 crore in the first quarter ended June 2026, compared to ₹217.39 crore in the same period last year, as reported by Business Standard. The significant profit decline was attributed to revenue decline and operating margins coming under pressure during the quarter. Following the quarterly results, the company has lowered its FY27 EBITDA margin guidance to 9%-9.5% from its earlier expectation of a double-digit margin, reflecting the challenging operating environment.
Revenue from operations stood at ₹1,499.61 crore, down 20.53% from ₹1,887.07 crore in the year-ago quarter, according to the company's latest financial results. The revenue decline was primarily driven by weakness in the company's BOT/annuity projects segment, which experienced a significant contraction in business activity during the quarter. However, recent quarterly data shows a 10.97% increase in operating income compared to the previous quarter, indicating some sequential recovery. Consolidated total income fell 21% year-on-year to ₹1,534 crore for the quarter ended June 30 from ₹1,937 crore a year earlier, as reported by CNBC TV18.
EBITDA declined 56.9% to ₹208.57 crore from ₹337.53 crore in the previous year, while the EBITDA margin contracted sharply to 17.19% from 31.72%, as reported by Business Standard. This substantial margin compression reflects the company's operational challenges and the impact of reduced business volumes across key segments during the quarter. Consolidated EBITDA declined 55% to ₹292 crore with the EBITDA margin at 19% for the quarter, according to CNBC TV18. Recent quarterly data shows net income before taxes of ₹172.80 crore, representing a 42% decline compared to the previous quarter.
Ashoka Buildcon has received a Letter of Intent worth ₹126.5 crore annually from REC Power Development and Consultancy Ltd. (RECPDCL) for the Sakoli power transmission project in Maharashtra's Bhandara district. The project involves establishing the 400/220/132 kV AIS Sakoli substation and was awarded through the tariff-based competitive bidding (TBCB) route. Under the terms of the award, Ashoka Buildcon is required to provide a performance bank guarantee of ₹16.70 crore within 10 days of the LoI being issued. The project is scheduled to be completed within 24 months, followed by an operations and maintenance period of 35 years, with annual transmission charges of ₹126.53 crore payable during this period.
Ashoka Buildcon's order book stood at ₹15,251 crore as of June 30, excluding ₹450 crore of orders received after the end of the quarter, according to CNBC TV18. The company has also announced plans to enter two to three additional countries as part of its international expansion strategy. Despite the challenging quarterly performance, shares of Ashoka Buildcon ended 2.69% lower at ₹113.90 in the previous trading session, reflecting market concerns about the company's near-term execution challenges. The stock is currently trading 47.47% below its 52-week high of ₹214.35 and 11.49% above its 52-week low of ₹101.00, with a market capitalisation of ₹3,160.94 crore.
