Ashoka Buildcon (ASBL IN) – Q1FY27 Result Update – Execution muted; Guidance revised; Margin recovery H2 – BUY
Published on 12 Aug 2026
ASBL reported a soft Q1FY27, with standalone revenue at INR 12.9bn (-2% YoY) and consolidated revenue at INR 15.0bn (-21% YoY), the latter reflecting the BOT/HAM assets monetised in FY26. Standalone EBITDA fell 24% YoY to INR 929mn with margin at 7.2% vs 9.3% YoY (reported EBITDA including other income at INR 1.26 bn, -17% YoY, margin 9.5%), weighed by front-loaded mobilisation and establishment costs on newly commenced projects; PAT was largely flat at INR 315mn on lower finance cost. Management has cut FY27 revenue growth guidance to 10-15% (from 20%) and EBITDA margin to 9-9.5% (from ~10%, on a reported basis), with recovery deferred to H2 as new projects ramp. Order book stands at INR 152.5bn (~2.6x TTM standalone revenue), diversified with ~63% roads/railways and ~33% power T&D, and inflow guidance of INR 60-80 bn over the balance three quarters against INR 7.8bn booked and INR 18bn at L1. We retain BUY, as the stock continues to trade below book value, offering valuation support despite near-term execution challenges.
