Ashoka Buildcon Q2 FY27 Results (NSE: ASHOKA)
Signal: Margin pressure
The read
The operating trajectory improved sequentially but remains weak: revenue rose 2.1% QoQ to ₹1,31,548.41 lakh while operating margin slipped from 7.22% to 7.09%; the larger YoY PAT decline is mainly a normalisation from the ₹11,205.41 lakh exceptional gain in Q2FY26, but raw-material intensity and finance costs remain the key pressure points.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,315.48 Cr | +3.9% | +2.1% |
| Net profit | ₹37.96 Cr | -72.7% | |
| EPS | ₹1.35 | -72.8% | |
| EBIT margin | 7.09% |
P&L walk
Standalone revenue increased to ₹1,31,548.41 lakh, +3.9% YoY and +2.1% QoQ, but raw-material intensity rose to 34.14% of revenue from 30.93%, compressing gross margin by 321bps; finance costs rose 92.9% YoY and PAT fell 72.7% because the year-ago quarter included a ₹11,205.41 lakh exceptional gain.
Key positives
- Revenue from operations increased 3.9% YoY to ₹1,31,548.41 lakh and 2.1% QoQ, indicating a modest sequential recovery after the weak Q1 base.
- Operating cash flow improved to ₹11,240.48 lakh in H1FY27 from ₹822.95 lakh in H1FY26, supported by a ₹32,587.48 lakh reduction in trade receivables.
- Debt-equity improved to 0.48x from 0.56x YoY, while interest service coverage rose to 2.36x from 2.05x.
Key concerns
- Gross margin fell 321bps YoY to 65.86% as raw-material cost increased to 34.14% of revenue from 30.93%; the filing does not disclose the cause or degree of pass-through.
- Finance costs increased 92.9% YoY to ₹5,719.39 lakh, keeping operating margin at only 7.09% despite 3.9% revenue growth.
- H1FY27 revenue was ₹2,60,336.06 lakh, only 1.0% above H1FY26, while operating margin fell to 7.15% from 9.53%.
- The planned issue of unsecured NCDs up to ₹500 crore could increase funding obligations, subject to actual allotment and utilisation.
Research and educational content only. Not investment advice.