Synopsis: A major infrastructure player reported a sharp profitability decline this quarter, influenced by exceptional items and reduced operating gains, even as order book strength remained notable.
A listed infrastructure and EPC player witnessed sharp profit contraction during the quarter, drawing investor attention. The results reflected a significant fall in earnings, prompting concerns over profitability.
Ashoka Buildcon Ltd, with a market capitalisation of Rs. 5,304.27 crore, opened at Rs. 193.95 against the previous close of Rs. 198.65 and hit an intraday low of Rs. 186.80. This reflects a 5.97 percent decline from the previous closing price.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Revenue declined from Rs. 1,887 crore to Rs. 1,851 crore, registering a 1.91 percent decrease. Operating profit reduced from Rs. 599 crore to Rs. 585 crore, reflecting a 2.34 percent decline, while operating margin remained stable at 32 percent.
Profit before tax fell from Rs. 300 crore to Rs. 64 crore, marking a sharp 78.67 percent drop. Net profit declined from Rs. 227 crore to Rs. 91 crore, translating to a 59.91 percent fall. Earnings per share dropped from Rs. 7.74 to Rs. 2.78, down 64.08 percent sequentially.
Year-on-Year (YoY): Revenue decreased from Rs. 2,489 crore to Rs. 1,851 crore, resulting in a 25.63 percent decline. Operating profit declined from Rs. 905 crore to Rs. 585 crore, reporting a 35.36 percent contraction, while operating margins dropped from 36 percent to 32 percent. Profit before tax fell from Rs. 540 crore to Rs. 64 crore, reflecting an 88.15 percent decrease, and net profit declined from Rs. 462 crore to Rs. 91 crore, registering a 80.30 percent fall. Earnings per share dropped from Rs. 16.28 to Rs. 2.78, down 82.91 percent year-on-year.
The consolidated debt position stood at Rs. 4,910 crore as of the quarter. The BOT division recorded toll collections of Rs. 357 crore in Q2FY26, reflecting 13 percent YoY growth.
The company and its subsidiary ACL completed the sale of their entire stake in five HAM subsidiaries for Rs. 1,146.08 crore, resulting in an exceptional loss of Rs. 219.29 crore. The shortfall between the book value and the sale consideration resulted in this loss, which has been recorded as an exceptional item in the financial results. Sale processes for six remaining HAM and five BOT subsidiaries continue, all classified as held for sale, including GVR Ashoka Chennai ORR Limited.
Order Book Details
The company reported an order book of Rs. 14,888 crore as of 30 September 2025, up from Rs. 11,104 crore in Q2FY25, indicating year-on-year expansion. Road EPC contributed 45.8 percent, followed by 31 percent from power transmission and distribution, 12.3 percent from road HAM projects, 7.8 percent from railways and 3.1 percent from building EPC work.
The business mix comprised 62.9 percent orders from state government agencies, 13.4 percent from central government, 12.3 percent from HAM projects, 8.2 percent from overseas and 3.2 percent from private sector clients.
About the Company
Ashoka Buildcon Limited operates across construction, BOT/annuity-based infrastructure development and sale of goods, including ready-mix concrete and real estate. The company executes large-scale EPC and BOT projects spanning highways, bridges, power infrastructure, buildings, solar assets, water supply systems, railways and airports.
-Manan Gangwar
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