Afcons Infrastructure Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Afcons Infrastructure Ltd filed with BSE on 22 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Afcons reported a net loss in Q4 FY26, its first quarterly loss since it began publishing quarterly numbers, alongside a full-year revenue decline of 5.4% to Rs 12,322 crore. Management attributed the weak quarter to delayed customer payments, geopolitical disruptions affecting overseas supply chains, project-specific provisions, and a one-time Labor Code related charge. The company declined to provide FY27 revenue or margin guidance, citing continued uncertainty, while guiding to Rs 30,000 crore of new order bookings for the year.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR 12,322 crores (FY26)
p. 3
“For the year, revenue stood at INR 12,322 crores, reflecting a decline of 5.4% year-on-year.”
Paramasivan Srinivasan, page 3 of the filed PDF · View the filing
EBITDA margin: 11.7% (FY26)
p. 3
“EBITDA was INR 1,439 crores, and despite the moderation in performance, we maintained a healthy EBITDA of 11.7%.”
Paramasivan Srinivasan, page 3 of the filed PDF · View the filing
Profit after tax: INR 251 crores (FY26)
p. 3
“Profit after tax stood at INR 251 crores, after providing INR 76 crores for a one-time impact, arising from the implementation of the new Labor Code.”
Paramasivan Srinivasan, page 3 of the filed PDF · View the filing
Revenue: INR 2,777 crores (Q4 FY26)
p. 4
“For the 4th Quarter, revenues were INR 2,777 crores, while EBITDA stood at INR 170 crores.”
Paramasivan Srinivasan, page 4 of the filed PDF · View the filing
Net loss: INR 89 crores (Q4 FY26)
p. 4
“The quarter closed with a net loss of INR 89 crores, impacted by certain project-specific developments, provisions and one-time factors during the period.”
Paramasivan Srinivasan, page 4 of the filed PDF · View the filing
New order inflow: INR 4,125 crores (FY26)
p. 5
“Coming to order inflows during the financial year, we secured new orders worth INR 4,125 crores, excluding approximately INR 3,800 crores of variation and change orders received on existing projects.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
Total income: INR 2,777 crores (Q4 FY26)
p. 6
“We had a total income of INR 2,777 crores. This is 18% down as compared to Q4 FY25 wherein we had done INR 3,387 crores.”
Ramesh Jha, page 6 of the filed PDF · View the filing
Profit before tax: INR 387 crores (FY26)
p. 7
“For the full year, we have done INR 387 crores of profit before tax which works out to be 3.1% of the top line”
Ramesh Jha, page 7 of the filed PDF · View the filing
ROCE: 12% (FY26)
p. 8
“In FY26, we have done around 12% ROCE and ROE is around 5%, which is quite low.”
Ramesh Jha, page 8 of the filed PDF · View the filing
Net debt to equity: 0.49x (FY26)
p. 8
“So, on net basis, the debt to equity is around 0.49x of the net worth.”
Ramesh Jha, page 8 of the filed PDF · View the filing
Gross debt: INR 3,538 crores (FY26)
p. 8
“Gross debt has remained in the similar range that of September and December and that stands at INR 3,538 crores and net debt is INR 2,653 crores on the net basis.”
Ramesh Jha, page 8 of the filed PDF · View the filing
CAPEX: INR 1069 crores (FY26)
p. 14
“So, in FY26, we have incurred a CAPEX of INR 1069.”
Ramesh Jha, page 14 of the filed PDF · View the filing
Q4 provisions: INR 160-odd crores (Q4 FY26)
p. 13
“In Q4, across all projects, we have done a provision close to INR 160-odd crores.”
Ramesh Jha, page 13 of the filed PDF · View the filing
Full year provisions: INR 325 crores (FY26)
p. 13
“FY26, the number is close to INR 325 crores.”
Ramesh Jha, page 13 of the filed PDF · View the filing
Net working capital days: 143 days (FY26)
p. 19
“Because at the moment, this networking capital number of around 143 days and in last call, we had talked about that we are looking at somewhere around, say, 120 odd days.”
Ramesh Jha, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Order booking — INR 30,000 crores · FY27
stated firmly by Paramasivan Srinivasan
p. 5
“we expect to book another INR 15,000 crores of more orders, making a total order booking guidance of INR 30,000 crores for the current financial year.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
Revenue and EBITDA margin guidance — FY27
stated conditionally by Paramasivan Srinivasan
p. 5
“we believe it would be prudent to wait for greater visibility before providing specific revenue growth or EBITDA margin guidance for FY27.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
Tunneling operations on Mumbai-Ahmedabad HSR C2 — commencement · before end of next quarter
stated firmly by Paramasivan Srinivasan
p. 5
“We expect tunneling operations to commence before the end of next quarter.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
CAPEX — INR 725 crores · FY27
stated firmly by Ramesh Jha
p. 10
“So, FY27, we are looking at a CAPEX of around INR 725 crores.”
Ramesh Jha, page 10 of the filed PDF · View the filing
Debt levels — FY27
stated firmly by Ramesh Jha
p. 21
“But one thing for sure we can tell you that for this financial year FY27, we will see a sizable drop in the debt number.”
Ramesh Jha, page 21 of the filed PDF · View the filing
Net working capital days — 120 odd days
stated as an aspiration by Ramesh Jha
p. 19
“So, I think, bare minimum, we can look at 120 days and from there on, we need to see improvement.”
Ramesh Jha, page 19 of the filed PDF · View the filing
Contract asset liquidation — INR 1000 odd crores · by June
stated conditionally by Ramesh Jha
p. 26
“We are looking at those liquidation, maybe say by June, we should see a sizable liquidation in the range of say INR 1000 odd crores.”
Ramesh Jha, page 26 of the filed PDF · View the filing
Bid pipeline domestic-international split for remaining orders — 60:40 · FY27
stated as an aspiration by Paramasivan Srinivasan
p. 22
“Domestic will be around 60, international will be around 40.”
Paramasivan Srinivasan, page 22 of the filed PDF · View the filing
Middle East market entry
stated as an aspiration by Paramasivan Srinivasan
p. 13
“We are definitely at it, and sooner than later, we will start bagging projects in the Middle East.”
Paramasivan Srinivasan, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said payments from customers slowed unexpectedly in Q4, and the war disrupted supply chains for overseas projects, forcing a choice between funding growth and preserving liquidity.
Answered by Ramesh Jha
Asked by Shravan Shah: Why did revenue guidance shift so dramatically from expected growth to a decline given confidence expressed in the prior quarter's call?
p. 9
“But this year was an exception wherein we have seen that there was a slowdown in terms of payment and payments were not forthcoming.”
Ramesh Jha, page 9 of the filed PDF · View the filing
Management said they are not ruling out giving margin guidance but need to see how escalated costs in overseas fixed-price contracts play out.
Answered by Ramesh Jha
Asked by Shravan Shah: Will FY27 margin guidance also be withheld given the historical 11% target?
p. 9
“See, we are not saying we are not giving any guidance on the margin front also, because we need to see how it actually pans out.”
Ramesh Jha, page 9 of the filed PDF · View the filing
Management said supply chain disruption from the war and energy shortages in overseas markets, plus delays in fast-track private projects, caused the shortfall.
Answered by Ramesh Jha
Asked by Ankita Shah: What caused the miss versus earlier commentary that execution was on track for Q4 targets?
p. 11
“So, that severely impacted. And some of the projects, even in domestic market, got impacted in the month of March.”
Ramesh Jha, page 11 of the filed PDF · View the filing
Management said delays stemmed from state elections affecting fund releases and a UP Jal Jeevan Mission dispute over payment conditions, not a specific customer concern.
Answered by Ramesh Jha
Asked by Jainim Jain: Are payment delays linked to specific customers or broader government/private issues?
p. 12
“Some of the customers, we heard that they were not deciding. Payments were certified. It was sent to their centralized finance team, and then we just heard that the payments will be released.”
Ramesh Jha, page 12 of the filed PDF · View the filing
Management quantified the combined one-off items including ECL provisioning matrix changes, an arbitration provision, and marine cost overruns.
Answered by Ramesh Jha
Asked by Parvez Qazi: What was the total quantum of one-time provisions and costs in Q4?
p. 14
“I think all this put together, the quantum could be around say INR 260-265 crores.”
Ramesh Jha, page 14 of the filed PDF · View the filing
Management explained that heavy civil infrastructure projects have long gestation periods before revenue accumulates, and geopolitical uncertainty makes it inappropriate to guide now.
Answered by Paramasivan Srinivasan
Asked by Bhavik Shah: Isn't it misleading to guide Rs 30,000-60,000 crore order book without giving revenue guidance?
p. 15
“The revenue starts accumulating in the heavy civil infrastructure project, by and large, from the second year onwards only.”
Paramasivan Srinivasan, page 15 of the filed PDF · View the filing
Management said current debt-to-equity levels are comfortable compared to historical levels and the company has sizeable undrawn limits and advances to draw on.
Answered by Ramesh Jha
Asked by Bhavin Modi: Given negative operating cash flow in recent years funded partly by debt, what gives confidence debt will fall?
p. 21
“At the moment, even on a gross debt basis, we are at around 0.65. So, it's not that alarming level, and we are at a very comfortable situation”
Ramesh Jha, page 21 of the filed PDF · View the filing
Management said the Gabon guarantee was already paid and no margin was being recognized on that contract; a sizeable liquidation of contract assets of around Rs 1000 crore is expected by June.
Answered by Ramesh Jha
Asked by Siddharth Suren: Was there an earnings impact from the Lombard bank guarantee invocation in Gabon, and when will contract assets be liquidated?
p. 26
“Gabon, so, Gabon, we have already paid that bank guarantee invocation. And in that contract, anyways, we were not recognizing any margin”
Ramesh Jha, page 26 of the filed PDF · View the filing
Risks flagged
Liquidity constraints and delayed payments from customers, including government clients
p. 4
“Our top line during the year was also impacted by continued liquidity constraints at the client level, which affected execution momentum in some projects longer than anticipated.”
Paramasivan Srinivasan, page 4 of the filed PDF · View the filing
Geopolitical developments disrupting overseas project supply chains
p. 4
“In addition, certain overseas projects witnessed temporary disruptions during the 4th Quarter due to geopolitical developments in the region.”
Paramasivan Srinivasan, page 4 of the filed PDF · View the filing
Delays in project ramp-up due to design and alignment changes
p. 4
“A few projects that were expected to ramp up during Q4 also experienced delays, arising from design and alignment-related changes.”
Paramasivan Srinivasan, page 4 of the filed PDF · View the filing
Cancellation of Croatia road tenders due to client budgetary constraints
p. 5
“As disclosed recently to the stock exchanges, the two Croatia Road tenders, where we were declared L1, have been cancelled by the client due to budgetary constraints.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
Delayed conversion of L1 positions into firm orders
p. 5
“The order intake was below our earlier expectations, largely on account of the deferment of several large project awards and delays in conversion of L1 positions into firm orders, particularly in the 4th Quarter.”
Paramasivan Srinivasan, page 5 of the filed PDF · View the filing
Rising energy and fuel prices in overseas markets during wartime disruptions
p. 9
“Because many overseas places we have seen that the petrol, diesel prices have significantly gone up during the war period.”
Ramesh Jha, page 9 of the filed PDF · View the filing
Non-recovery of escalated costs under fixed-price overseas contracts
p. 10
“So, we need to see how we are able to recover from the customer these escalated costs.”
Ramesh Jha, page 10 of the filed PDF · View the filing
UP Jal Jeevan Mission customer withholding payment until 100% project completion, contrary to contract terms
p. 12
“They have taken a stand that wherever people are completing 100 percent, then only they will release the payment. This is contrary to the contractual condition, but this is how it has been taken up.”
Ramesh Jha, page 12 of the filed PDF · View the filing
Elongation of payments across projects rather than outright non-payment
p. 12
“Actually, what we are trying to say is that the payments are getting elongated.”
Ramesh Jha, page 12 of the filed PDF · View the filing
Labor availability issues at project sites
p. 22
“But yes, there is an availability issue of the labor part, but not protest, nothing like that.”
Hitesh Singh, page 22 of the filed PDF · View the filing
Elongation of award cycles delaying order conversion and revenue impact
p. 16
“Because we are also seeing that the award cycle is getting elongated.”
Hitesh Singh, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.