Afcons Infrastr. Q2 FY27 Results (NSE: AFCONS)
Signal: Revenue declined
The read
The operating trajectory remains weak: standalone revenue fell 11.8% YoY to ₹2635.26 crore and operating margin contracted 490bps to 5.08% after the Q1FY27 recovery, while the 17.7% PAT increase to ₹131.84 crore was largely supported by ₹183.33 crore of arbitration interest rather than core execution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,635.26 Cr | -11.8% | -1.3% |
| Net profit | ₹131.84 Cr | +17.7% | |
| EPS | ₹3.58 | +17.4% | |
| EBIT margin | 5.08% |
P&L walk
Standalone revenue declined to ₹2635.26 crore, down 11.8% YoY and 1.3% QoQ; operating margin fell to 5.08% from 9.98% a year ago as direct project costs remained elevated, while PAT rose to ₹131.84 crore mainly because other income included ₹183.33 crore of arbitration interest.
Key positives
- Employee costs declined 14.7% YoY to ₹294.73 crore, faster than the 11.8% revenue decline, limiting some operating-cost pressure.
- PAT increased 17.7% YoY to ₹131.84 crore and EPS rose 17.4% to ₹3.58, with EPS broadly tracking PAT.
- H1FY27 operating cash outflow improved to ₹368.83 crore from ₹667.18 crore in H1FY26, although it remained negative.
Key concerns
- Revenue declined 11.8% YoY to ₹2635.26 crore and operating margin contracted 490bps YoY to 5.08%, reversing the Q1FY27 margin recovery.
- PAT growth was not purely operational: other income rose to ₹272.29 crore and included ₹183.33 crore of arbitration interest.
- Finance costs increased 7.5% YoY to ₹182.44 crore while the debt-equity ratio rose to 0.94x from 0.71x a year earlier.
- H1FY27 operating cash flow remained negative at ₹368.83 crore, with contract assets of ₹8185.97 crore and ongoing working-capital absorption.
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