Ashoka Buildcon (ASBL IN) – Q2FY27 Result Update – Margins weak again; HAM sale near – BUY
Published on 07 Nov 2026
ASBL reported a weak Q2FY27. Standalone revenue grew 4% YoY. However, EBITDA fell 24.4% YoY as margin slipped to 7.1% (9.7% in Q2FY26; our estimate 9.5%), on higher material and other expenses. Management has cut FY27 standalone revenue growth guidance for the second time, to ~5–10% (10–15% after Q1, 20% at the start of the year), and expects margin to improve by ~150bps by year-end, to ~9–9.5% in H2. Order book stands at INR 159.6bn (~2.7x TTM standalone revenue, +7% YoY) after INR 19.7bn of inflows in Q2; including INR 3.9bn won after September and INR 8.7bn where ASBL is L1, it is INR 172.2bn. Management expects a further INR 30–50bn of orders over the next 4–5 months. Post Q2FY27 we have factored weak execution, resulting in EPS cut of 9%/4% for FY28E/29E and revised TP to INR 130 (earlier INR 152). Retain rating at BUY, as valuation is closer to -1STD , PBV at 0.6/0.5x for FY28E/29E. Catalyst is closure of Sale of four HAM SPVs and margin and execution uptick in 2HFY27.
