Afcons Infrastructure reported a marginal 0.9% decline in nine-month total income to INR9,545 crores, with EBITDA improving 35 basis points to 13.3% for the nine-month period, excluding a one-time labor code provision. Q3 revenue fell 9% YoY to INR3,025 crore, though margins improved to 14%. Management highlighted operational milestones, including completing a record 777m tunnel drive and securing major contracts in India and Uganda.
FY26 Q3 & 9M Performance Review
For the nine-month period ending December 2025, Afcons Infrastructure’s total income stood at INR9,545 crores, marking a marginal 0.9% decline year-on-year. EBITDA for the period rose 1.8% to INR1,269 crores, improving the margin by 35 basis points to 13.3% (excluding a one-time labor code impact). Profit after tax for nine months was INR339 crores.
Quarterly Results (Q3 FY26)
In the third quarter, the company reported total income of INR3,025 crore, a 9% decline YoY. However, EBITDA for Q3 was INR424 crores, with margins improving to 14% (a 50 basis point improvement YoY). Profit after tax for the quarter stood at INR 97 crores, impacted by a one-time provision of INR76.51 crores related to the New Labor Code.
Operational Headwinds and Order Inflow
The top line was affected by execution delays in some secured projects and slow conversion of large L1 projects, alongside liquidity issues with certain government clients. However, the management expressed optimism about the operating environment following the government’s robust INR12.12 lakh crore infrastructure allocation in the budget.
Total order inflow year-to-date reached approximately INR3,700 crores, with a healthy pending order book of INR32,635 crores. Management remains hopeful of achieving the full-year order inflow guidance of INR20,000 crores.
Key Contract Wins and Recognition
Management proudly shared several operational achievements during the quarter:
- Completion of the first 5.5-kilometer TBM drive in the CIDCO water supply project, setting a new record for tunneling: 777 meters in a single month.
- Secured two strategic marine contracts domestically worth about INR1,400 crores.
- Secured a road project in Uganda valued over EUR100 million.
- Received recognition as the Most Innovative Knowledge Enterprise for the 8th consecutive year at both India and global levels.
Future Outlook and Margins
Management projects that while a 10% growth might be challenging, a 5% growth for the full year is achievable. The company is currently focused on realizing L1 bids, particularly the Croatia railway project, which is expected to be awarded shortly. The overall bid pipeline extends close to INR3.8 trillion over the next two years, with 35% concentrated in urban infrastructure.
Regarding margins, management confirmed that an 11% EBITDA margin is sustainable, with recent improvements driven by project efficiencies, design enhancements, and arbitration awards (such as the INR165 crore revenue recognized from the Chenab Bridge arbitration).
Source: BSE
