Afcons Infrastructure has released its Q2 and H1 FY26 earnings, reporting revenue of INR 6,520 crores in H1, a 3.4% year-over-year increase. EBITDA rose by 6% to INR 846 crores, with a margin of 13%. The company anticipates revenue growth to moderate to 10% plus for the full financial year. Order inflow for the first half reached INR 1,268 crores, with a strong pending order book of INR 32,681 crores.
Financial Performance Overview
Afcons Infrastructure has announced its financial results for Q2 and H1 FY26. Key highlights include:
- H1 Revenue: INR 6,520 crores, a 3.4% year-over-year growth.
- H1 EBITDA: INR 846 crores, up by 6%, with a margin of 13%.
- H1 PAT: INR 242 crores, a 7% increase.
- Q2 Revenue: INR 3,101 crores.
- Q2 EBITDA: INR 401 crores, with a margin of 12.9%.
- Q2 PAT: INR 105 crores, reflecting a margin of 3.4%.
Strategic Developments
Several key developments were highlighted:
- Board Changes: Mr. Pallon Mistry and Firoz Mistry have joined the Board, representing the next generation of Shapoorji Pallonji Group. Mr. Santosh Nayar has also been appointed as an independent director.
- Operational Milestones: Significant progress has been made on various projects, including the Mumbai-Ahmedabad high-speed rail project, Kanpur MRTS, and Delhi MRTS.
Order Book and Future Outlook
The company’s order inflow for the first half stood at INR 1,268 crores, with a pending order book of INR 32,681 crores. A strong project pipeline of approximately INR 3.6 trillion is spread across various segments and geographies. Revenue growth for FY26 is now estimated to be 10% plus.
Segmental Breakup of Project Pipeline
The project pipeline is diversified across several key sectors:
- Urban Infrastructure: Approximately INR 1.6 lakh crores.
- Hydro and Underground: Around INR 94,000 crores.
- Roads (Surface Transport): Approximately INR 65,000 crores.
- Marine and Industrial: Around INR 43,000 crores.
Financial Strategy and Capital Management
The company has been managing its finances strategically, improving its average borrowing cost. However, the interest-bearing component in customer advances has doubled, leading to an increase in overall finance costs. ROCE for the first half is 15%, and ROE is around 11%.
Guidance and Expectations
Afcons Infrastructure anticipates maintaining a growth trajectory with a focus on operational excellence and sustainable growth. The company expects to achieve its INR 20,000 crore order inflow guidance for the year. While near-term pressures on margins exist, the company is confident in its ability to deliver long-term value.
Source: BSE