ASHOKA

Q2 FY26 presented operational headwinds for the company, with execution muted by an extended monsoon and competitive pressures. Despite these challenges, total income stood at INR 1,303 crores, notably accompanied by an improved EBITDA margin of 12.3% and a striking 284% YoY increase in PAT to INR 139 crores. The period also saw the successful sale of five SPVs for INR 1,146 crores, with plans to conclude BOT asset monetization by November 30. Further substantial monetization of four assets by March and two by June 2026 is targeted, expecting gross inflows of INR 2,300 crores. The order book remains strong at INR 14,888 crores, primarily in roads and railways (65.8%), with management eyeing INR 6,000–7,000 crores in incremental orders across diverse sectors in H2 FY26. While FY26 revenue is guided as flattish due to project delays, a healthy 10–15% growth is expected in FY27, with EBITDA margins projected at 10–11% for both years. Crucially, significant deleveraging is anticipated by year-end post-monetization, bringing standalone debt near zero, alongside pending equity infusion for HAM projects. Opinion: This quarter shows resilience amidst challenges, with strong profit growth. The aggressive asset monetization plan is a clear positive, promising substantial deleveraging and improved financial health. While FY26 revenue is flat, the strong FY27 growth outlook and robust order book suggest a positive trajectory, making this largely good news for investors.