Ashoka Buildcon (ASBL IN) – Q4FY26 Result Update – Execution recovery & deleveraging is key catalysts – BUY
Published on 23 May 2026
ASBL reported a subdued Q4FY26/FY26 performance, with standalone revenue declining 10% YoY / 18% YoY, reflecting slower execution. Management, however, has guided for a recovery in FY27 with ~20% revenue growth and EBITDA margins improving to ~9.5–10.5% as execution normalizes. Margin delivery remains a key monitorable given the prevailing cost inflation environment. FY26 order inflow stood at INR 66bn, while the order book remains diversified at ~INR 153bn (~2.6x TTM revenue), with ~66% exposure to roads/railways and ~20% to power T&D, providing medium-term revenue visibility. The ongoing HAM asset monetisation is expected to strengthen the balance sheet, with management guiding for INR 11–12bn proceeds that could materially reduce standalone debt of ~INR 11bn. Following the weak Q4 results, we cut FY27E/FY28E EPS estimates by 11%/5% and lower TP to INR 152. We retain BUY, as the stock continues to trade below book value, offering valuation support despite near-term execution challenges.
