Ashoka Buildcon (ASBL IN) – Q3FY26 Result Update – Balance sheet getting lean – BUY
Published on 03 Feb 2026
Ashoka Buildcon (ASBL) delivered weak performance in Q3FY26/9MFY26, with standalone revenue declining 18% YoY / 21% YoY. However, a healthy order book of Rs159bn (2.7x TTM revenue) provides medium-term revenue visibility, with the management guiding for a return to revenue growth in FY27E. The order book is well diversified, led by roads and railways, which account for ~65%, while power T&D contributes a meaningful ~32%. Order inflows during 9MFY26 stood at Rs50bn, and the management expects further Rs30–35bn of inflows in Q4FY26. Crucially, the balance sheet has turned materially leaner following the monetization of 5 BOT assets, reducing consolidated debt from ~Rs49bn in Sep’25 to ~Rs27bn by Dec’25. Further, another tranche of HAM asset monetization is expected to lower net debt to Rs2–3bn by Mar/Apr’26. The stock is currently trading below its book value, offering valuation comfort with limited downside. We have ‘BUY’ rating with SoTP-based TP of Rs183.
