Ashoka Buildcon Limited (ASHOKA.NS) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Ashoka Buildcon 3Q FY '26 Conference Call hosted by IIFL Capital. [Operator Instructions] I now hand the conference over to Mr. Mudit Bhandari from IIFL Capital. Thank you, and over to you, Mr. Mudit Bhandari.

Thank you so much, [ Ikra ]. Good afternoon, everybody. On behalf of IIFL Capital, I welcome you all to Q3 FY '26 Earnings Conference Call of Ashoka Buildcon Limited. From the management, we have Mr. Satish Parakh, Managing Director; and Mr. Paresh Mehta, Chief Financial Officer. With this, I would request Mr. Satish Parakh to start with his opening comments, and then we can open floor for question and answer. Thank you, and over to you, sir. .

Thank you, Mudit. Good afternoon, everyone. I welcome you all to the Q3 9 Months FY '26 Earning Conference Call of Ashoka Buildcon Limited. Thank you for taking out time to join us. As we share our operational and financial updates for the quarter and 9 months ended 31st December 2025. Joining me on this call is our CFO, Mr. Paresh Mehta an Investor Relations partner from SGA.

Sorry to interrupt, sir. Your voice is breaking. We are unable to hear you properly.

So along with me, I'm having our CFO, Mr. Paresh Mehta and our Investor Relations partner from SG.

Sorry, sir, we are unable to hear you. Your voice is breaking.

Is it clear now?

No, still the same, sir.

So joining me on this call are our CFO, Mr. Paresh Mehta and the Investor Relations partner from SGA. Am I clear now?

No, sir, we can use the backup line. Please mute this line, and I will help...

I'll use backup. Just hold on.

Yes. Sir, backup line is unmuted from my side. You can speak from.

Can you hear?

Yes, sir, we can hear you.

Good afternoon, everyone. I welcome you all to the Q3 9 months FY '26 Earnings Conference Call of Ashoka Buildcon Limited. Thank you for taking out time and to join us for this operational and financial updates for the quarter and 9 months ended 31st December 2025. Joining me on this call are our CFO, Mr. Paresh Mehta; and our Investor Relations partner from SGA. The Indian highway sector is currently navigating a phase of major transition where the emphasis is gradually shifting from rapid expansion to quality, sustainability and capital efficiency. While near-term activity levels reflect moderation, the medium- to long-term structural outlook for the sector remains intact. The awarding activity by the central agencies has remained subdued for the past 2 years. And in this financial year, the highway construction is expected to drop by 10% to 15% to 9,000 to 9,500 kilometers from 10,660 kilometers in 2024, '25. The construction of national highways this financial year will be lowest since 2017, '18. That said, there are several signs of improvement also. The Ministry of Road Transport and Highways and NHI have consciously recalibrated their focus to corridor [ bosst ]development. Access control highways, and expressways. Under this approach, the government is targeting approximately 11,000 kilometers by FY '27 and 15,000 kilometers by FY '22. Up from 3,000 kilometers currently, reflecting a sharper focus on economic productivity, safety and logistics efficiency rather than sheer scale. At the same time, the government focus on financial prudence at NHAI continues, INR 35,000 to INR 40,000 crores is expected from monetization of road assets in FY '26 by NHAI, which will be used for supporting new investments without materially increasing the public sector leverage. An important positive development for the sector is a renewed push towards PPP models. Against this backdrop, Ashoka aims to leverage its strong execution capabilities, prudent capital management and experience across EPC, HAM and BOT assets monetization models remain well positioned to navigate the cycle and participate in the next phase of growth. Now let me take you through some of the key developments during the period. We began with significant portfolio monetization milestone in November 2025. Ashoka Concessions Limited completed the sale of its entire stake in 5 BOTs SPVs to Mapple Infrastructure Trust and its nominees.The transaction was concluded for an aggregate consideration of INR 1,814 crores and marks an important step in unlocking value from mature assets. I'm pleased to announce that this led to a significant reduction in our consolidated date from INR 4,910 crores in September to INR 2,722 crores in December 2025, and aligns with our strategic move towards deleveraging, thus reducing interest costs and strengthening our balance sheet. Following this, Ashoka Buildcon Limited, acquired equity shares in Ashoka Concessions Limited. And Ashoka Buildcon, together with Viva Highways Limited, acquired the remaining Class A and Class B CCDs held by the investors. This was done for an aggregate consideration of INR 667 crores, resulting in the full acquisition of securities previously held by Macquarie SBI Infrastructure Funds. This transaction consolidates our control and simplifies the ownership structure of ACL, which is now 100% subsidiary of Ashoka Buildcon. On the receipt of -- on the project execution front, 2 major letters of acceptance were received from BMC through joint ventures. The Adani, Ashoka-Aakshaya, JV secured Mithi River development and allied work projects valued at INR 1,816 crores, excluding GST. The project includes a 48-month design and build phase followed by 10 years of O&M. In addition, Ashoka-Aakshaya JV received a LOI of flyover construction project worth INR 1,041 crores including GST, with 24-month execution time line. Ashoka has also secured an additional scope of work order from the BMC towards the existing Sion Panvel Highway flyer project amounting to INR 447 crores including taxes, reflecting continued confidence in our execution capabilities. Lastly, we received an LOA from the Public Works Department in Daman for a construction of a signature bridge, connecting Jampore Sea Front to Devka Sea Front. This project is valued at INR 307.7 crores, excluding GST with a completion time line of 30 months. Coming to the order book status. The company has received 4 new project orders including one additional work order as discussed above from the BMC and Daman Public Road Department. As on 31st December 2025, a balance order book stands at INR 15,927 crores. This is excluding orders received for 31st December 2025 of INR 308 crores. So as on that, it is INR 15,235 crores of balance order book. Roads and railway projects comprise around INR 10,292 crores, which is 65% of the total order book. Among the road project order book HAM projects are to the tune of INR 1,705 crores, EPC road projects are to the tune of INR 7,025 crores and railway is around INR 1,562 crores. Power T&D accounts for around INR 5,108 crores. This is approximately 32.1% of the total order book. Total EPC Building segment is to the tune of INR 528 crores, which is 3.3% of the total order book. Our primary focus remains on maintaining a substantial EPC business in segments of roads, highways, railways, power transmission distribution as well as buildings. I'll now request Mr. Paresh Mehta, our CFO, to present the financial performance. Thank you.

Thank you. Good afternoon, everyone. Starting with the stand-alone numbers. Q3 FY '26 total income stood at INR 1,492 crores as compared to INR 1,816 crores in Q3 FY '25, a degrowth of 18%. EBITDA for the quarter stood at INR 157 crores, a degrowth of 16% year-on-year with an EBITDA margin of 10.6%, an increment by 30 bps year-on-year. Profit before tax before exceptional items stood at INR 50 crores, overall PAT stood at INR 102 crores against INR 161 crores during Q3 FY '25, up by 68% year-on-year. Our revenue contribution for each segment for quarter 3 FY '26 is as follows: Road EPC 51.9%, Road EPC HAM 13.2%, Power T&D 21.9%; railways, 9%; and other segments, 4%. For 9 months FY '26, stand-alone total income stood at INR 4,134 crores as compared to INR 5,175 crores in 9 months FY '25, a degrowth of [ 20%]. EBITDA for 9 months FY '26 stood at INR 468 crores, down 5% year-on-year, with an EBITDA margin of 11.3%, an improvement over FY '25 of 180 bps. Profit before tax before exceptional items stood at INR 150 crores and PAT stood at INR 272 crores as compared to INR 138 crores in 9 months FY '25, up by 97% year-on-year. Coming to the consolidated results. Total income for Q3 FY '26 stood at INR 1,866 crores (sic) [ 1,866.3 crores ] as compared to INR 2,426 crores (sic) [ 2,426.4 crores ] in Q3 FY '25, registering a 23% a degrowth. EBITDA for the quarter stood at INR 474 crores (sic) [ 474.3 crores ] down by 30% year-on-year with EBITDA margin of 25.4%. Profit before tax before exceptional items stood at INR 233 crores, PAT stood at INR 2,111 crores (sic) [ INR 2,111.4 crores] during Q3 FY '26. Total consolidate as on 31st December, 2025 stood at INR 2.722 crores, down from INR 4,910 crores. The stand-alone debt is at INR 1,046 crores which comprises of INR 79 crores on equipment loans, INR 300 crores on NCDs and INR 667 crores on Working Capital Loans. In Q3 FY '26, in our BOT division, the company recorded a total gross Toll Collection of INR [ 773 crores ] from Jaora-Nayagaon Toll Road company. With this, we now open the floor for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Vaibhav Shah from JM Financial.

Sir, on the EBITDA margin side, we saw some impact on Q3 and also other expenditure was quite high at INR 71 crores. So is there any one-off and why the margins were lower on Q-o-Q basis?

On a Q-on-Q basis, I think the EBITDA stood at approximately 9%, which is almost equal to that. It's more an impact of a lower turnover and coverage of the fixed overheads which are there. Otherwise, I think so if they are and certain provision.

Q-o-Q basis, the turnover was highest.

Yes. There was ECL provision, which has increased the other expenses.

What is the quantum of the provision.

It's INR 25 crores.

And what is it regarding to INR 25 crores?

Maybe I'll come back.

Okay. Okay. Sir, secondly, how do you see the margin going ahead in Q4 and FY '27?

So as we have been saying the margins will improve over the quarters as we go ahead. Q4 '26 will typically remain similar, but '26, '27 definitely will be in the range of 9%, 9.5% plus.

We don't see that double-digit margin yet in '27. You are targeting around 10% to 10.5%, 11% in...

Yes. So we see as the quarter goes on quarter-on-quarter. But we believe the bids which are there, the pipeline, which is there, will throw approximately 10%, 10.5% and being a bit conservative.

Secondly, on the overall revenue side, we have seen quite a weak numbers in the first 9 months. So how do you see the revenue for the '26 and what is your guidance for '27?

So '26 probably based on current order book and the way the projects are moving, new projects having started a bit late, we believe that we will probably may not be able to achieve last year's revenue and we'll be probably short by approximately 8% to 10%. But going ahead for '26 and '27, we definitely believe that 15% growth would be there over 15% growth is there over '26.

Given the lower base of '26, so even if we grow at 15%, we will be still lower than our '24 and '25 revenue numbers. So will you see scope of higher growth?

Yes. It will also depend on certain new projects, which we are [ buying ] for an order book, which will come, then probably we'll do a better numbers definitely.

Okay. And lastly, on the order inflow side. So what will be our order inflow in terms of EPC value for YTD FY '26?

Year-to-date, approximately INR 5,200 crores is the order book flow for EPC in 9 months and another INR 307 crores, which has come post December.

So what are you alluding for the entire year?

So we believe that we should kicking in this 3 months -- 2 months available, around INR 3,000-odd crores order book should come in with probably NHI, also pushing their biddings, probably in the last 2 months, I think INR 3,000 crores should be an easy number to achieve for a for a new order [ plain ] book.

The next question is from the line of Bhavin Modi from Anand Rathi.

A couple of questions from my side. Sir, first, I saw your order book details and there was a few of the slowing projects like Kundalika, Jaigad, Bankot, Gaimukh, Peyagaon. So like, how are we looking in terms of accelerating the speed of execution?

So these projects basically are suffering in terms of land acquisition and probably, this would get over in another quarter. So next year, we'll see a good pickup in all these projects.

Okay. Sir, second, in terms of the appointed date for Guskara, Bowaichandi. So when it is expected?

So we expect in February, February we should get an appointed date for this.

So what it took so long, because I think we completed the financial closure 2 quarters back.

Yes, we completed financial closure, but land acquisition is still very difficult in West Bengal. Now this will pick up only in these 2 months. That is what they are promised by Feb, they should be able to award us.

Understood. So third point was there are 2 things in the BOT assets we sold. One was the holdback amount. And second is the contingent consideration. So like when are we -- what is the quantification in terms of the holdback amount and the contingent consultation? And what are the expected time lines?

So on the holdback amount, in the HAM, we have approximately INR 96 crores of holdback. And in the BOT project approximately INR 50 crores. We expect both these numbers to materialize before March, all the compliances or whatever actions to be taken. So I think before around February -- between February and March, we should get those monies leased, along with the sale of at least 4 of the 6 assets before March.

Okay. And sir, what about the contingent considerations, there was some INR 500 crores of company [ load ].

The contingent consideration is -- consideration linked to extension of total concession period, which is -- which will be -- which will take approximately a year -- 1 to 2 years for it to materialize with NHAI, once the period is freezed, at that time the monies will be released. So it will be based on how NHAI gives us the extension for low traffic as per concession.

Okay. But right now, we cannot zeroing on any number, right, sir? Because that will only come to the once the NHAI gives the approval for the extension.

Right, right.

Sir, one point was, sir, you have created some impairment for certain subsidiary loans in your financials. So what is this -- which is the subsidiary -- what is the loan amount?

So largely, this is we have floated a subsidiary in Saudi for businesses in the Middle East, where we have incurred establishment expenses at around INR 37 crores, which is taken as an impairment. We are looking at the business being prudent, we have presently impaired it as soon as we get business probably these amounts will get reversed. This is the initial establishment expenses for the office] established for overseas projects.

Sir, last 2 questions from my end. These are regarding 2 things. One is the time line and the amount for the balance 6 assets to be monetized. And second is the, sir, the NHAI the matter, which was subsidies, we got actually the, you can say, the [ immediately ] from the court. But where is the matter now right at present.

So it's status quo, still, there is a state in the court, and we are bidding NHAI projects, all of the projects. So there is no impact on the business as such.

Okay. But do we expect any action from the NHAI or hasn't gone to any disciplinary committee the thing. So like what is the status with that?

We formed the committee and work is in progress. There will be series of meetings and then decision will be taken.

Okay. Sir, the last question about the monetization of the balance 6 assets. What are the time lines? And what are the amounts that we can expect?

For the monetization of the 6 HAM projects which are yet with us, 4 of the HAM projects we expect to monetize by March, approximately INR 750 crores plus and the last 2 projects approximately INR 400 crores by in June -- by June '26.

[Operator Instructions]. The next question is from the line of Aditya Sahu from HDFC Securities.

On the bidding part that is mentioned, if you can help us on the what is the current bid pipeline that we have?

So current bid pipeline for NHAI is around INR 65,000 crores. And for [indiscernible] INR 20,000 crores.

INR 20,000 crores?

Yes.

Okay. Understood, sir. And just one other question would be on the HAM equity investment, what is the -- what would be the amount that we have invested till date? And what are we planning -- how much is the amount that we would invest going forward?

So on the equity investment balance for the current HAM portfolio. Approximately INR 320 crores is balance, of which largely INR 220 crores is for the new HAM project Bowaichandi and that is for the TS III and TS IV that is Tumkur-Shivamoga III and IV, balance equity to be invested. Which will be invested in the period of INR 180 crores by March '26 -- '26, '27, INR 72 crores and '27, '28 INR 72 crores.

Okay. INR 180 crores by March '26, and INR 70 crores...

Sorry June '26, I mean it all depends on how Bowaichandi appointed date is declared.

The next question is from the line of Mudit Bhandari from IIFL Capital Services Limited.

Out of the total order book of around INR 15,900 crores. So how much is executable? I mean how much is any pending clearance, including appointed date or any other clearances?

So this entire is executable. We already received appointed date and work is progress on all the projects.

Sir, but even if we, let's say, look at last quarter order book, so we are not able to execute in terms of reported numbers from revenue. So is there any other thing.

So as I explained earlier, despite projects of bridges are stuck up due to land acquisition. They are slow moving. So we expect them by quarter 1, we should be able to pick up on all these projects. And Bowaichandi project, which we explained you, we are yet to get the appointed date. So that we are expecting in Feb. So March onwards we should be able to carry out work on this project also.

Understood, sir. And from comparing Q-on-Q from 2Q to 3Q, how is the payment been from NHAI side or from DISCOM side across all our sectors?

Payment wise, there is not much issue either at NHAI level or DISCOM. DISCOMs are also funded from central points. Payment wise, there is not an issue. Execution-wise, there have been challenges and that is how the order book has been very slow.

The next question is from the line of Vasudev from Nuvama.

Congratulations on the monetization of the BOT assets. So, sir my most of the questions are answered just a few bookkeeping kind of questions. So these 5 BOT assets which we sold, what was the enterprise value and the equity value of these assets?

So enterprise value was -- equity value was approximately INR 2,400 -- INR 2,300 crores against which there was debt approximately INR 2,500 crores. So enterprise was approximately INR 5,000 plus [indiscernible]. So the debt has already been excluded from the console now. And out of the total equity of INR 2,300 crores. We have already realized INR 1,750 crores and balance will be realized over a period of time, including contingent consideration.

Sure, sir. So now after these monetizations, even we are hopeful of monetizing for other HAM assets. So by end of FY '26, where do we see our debt levels?

Once we monetize this 4 assets also, we should see our debt levels by March or April, there are certain dates like NCDs which are payable in April, considering that also as paid, we should be in the range of INR 200 crore to INR 300 crores.

Okay. Sure, sir. And lastly, what is the CapEx that we did in Q3? And how much are you planning for Q4?

So for Q3, the CapEx was approximately INR 15 crores. We expect another INR 25 crores in Q4 to take it around INR 75 crores to INR 80 crores for the year.

[Operator Instructions] The next question is from the line of Vaibhav Shah from JM Financial.

So do we expect any further ECL provisions in Q4?

ECL, January are largely it's time-related provision for payments, which are slightly delayed. So we believe that the recovery will happen by March. So I don't think a large impact may be there for Q4.

Okay. And sir, secondly, you mentioned about the Saudi establishment expenses. So when did we incur the expense? And why did we write it off so early?

So these expenditures being incurred since last 1.5 years for the establishment. We are bidding for projects, unfortunately, they're not bad. From a consecutive view, because there was no order book at that office. We took a decision of making an impairment of it probably as soon as we expect a few orders in the next month or so, 4 to 5 weeks. Once that happens, then maybe post Q1 FY '27, we'll be able to reverse those impairments.

And what segments are we targeting from Saudi, which vertical?

All type of infrastructures roads, power and buildings.

Okay. And sir, secondly, our PBT was around INR 50 crores for the quarter. So what was the adjusted PAT-- reported PAT INR 102 crores. So what was the adjusted PAT for the quarter.

[ Refund ] of INR 50 crores.

INR 50 crores is PBT. So basically, you're trying to figure it out -- figure out what was the tax expense for the quarter, both on the normal operations and on the exceptional item? .

Before exceptional items, the profit was INR 50 crores, which is approximately similar to -- I mean, almost on the same age of Q2 also. Like you may be...

Types of negligible for the quarter.

Right, INR 57 crores for Q2.

Tas was negligible for the quarter, Tax amount?

Tax amount was negligible because of the deferred tax reversal of the provisions which we made for [ payments ].

The next question is from the line of Amit Kumar from [ Trimline Investments ].

I'm looking at -- I'm sort of investor new to the entire domain of this entire EPC and project business. So my apologies upfront if this is sort of silly question to begin with. You're sort of deleveraging the balance sheet, you've already done a lot in the first 9 quarters, you're still sort of looking to further sell assets. And at a point in time where either the new project pipeline is like you sort of said that this year has been fairly soft, you're obviously expecting some improvement next year and even your existing projects are like slow. I'm just sort of trying to understand because EPC business was seemingly -- it involves a fair bit of debt any which ways in terms of working capital basically. So when you're basically sort of selling those assets, I'm just sort of trying to understand the balance sheet bulk up that you're sort of looking to do, what is the sort of purpose of that? And isn't the balance sheet as it sort of stands today sort of already support your future plan?

So see, so there are 2 strategies this year. One is the development projects which we have, which we are monetizing and bringing cash in. This typically gives us opportunity to look at future development projects also like projects under solar or projects under BOT. Now the balance sheet being as it is around almost a net worth of plus INR 4,000 crores and monetizing on these assets and deleveraging the debt to the extent of almost in the range of INR 200 crores to INR 300 crores only or maybe as we have made. I think so we'll try to make the balance sheet a bit leaner.

Yes. But you are also -- I mean, the projects that you have on your balance sheet, right? I mean there is always a construction risk, a whole bunch of risk during the construction period in a project. You have sort of executed these projects, they are now sort of starting to throw cash. So I mean let's even assume that fourth quarter, basically, these 4 assets that you are looking to sell that happens NCDs also you sort of pay back in April and you sort of get to a INR 300 crore sort of debt number, which is for the size of your company, I mean, that's a INR 5,000 crores, INR 6,000 crores kind of top line company that's actually quite small. So is there any need to basically further sell the assets that you have or at least sell them sort of strategically, I mean, we are sort of bidding for some huge projects than maybe might be to sort of sell some assets to basically fund it on that side. But let's say, beyond March and beyond April, is there sort of any need to basically sell additional projects? As you have indicated in the past that we are pretty much selling everything. I don't think that you're planning to keep any operational that HAM or BOT whatever projects on your books basically. Is there any need to do that? That's my point.

So there is -- yes, there is a lot of demand for assets, and there is a good arbitrage in selling these assets. These assets may be giving us an IRR of 15% to 17%. And the kind of projects which are acquired by buyers, who are largely financial institutions or private equity funds or pension funds. They are generally discounting these cash flows at 10% to 12%. It makes sense in cashing them out and use this money for newer projects, which will bring the EPC order book also plus another asset with, say, 15% to 17% IRR, which again, will be a have an opportunity to flip to a new buyer. So this probably is the model of any EPC contractor come developer should be going ahead also that you create assets hold for a couple of years, [ maturity ] flip it to an investor who's happy with the 10% to 12% IRR.

So that's exactly my point. And see this -- I mean, first of all, your existing projects are for a 15%, 16% IRR. They're fairly safe cash flows to execute they are running essentially and I presume you'll also be managing the O&M for all of your projects basically. Again, like I said, I'm sort of slightly new to the business and these companies, I'm not sort of assured on that count also. But -- so -- and when you're sort of taking a new project sort of that also sort of new projects also sort of bring a fair bit of risk. But even leaving that aside, my sort of principal point here is that this year, we have seen a very again, principally given the fact that you are in the almost 60%, 70% of your order book, 65%, 2/3 of your order book is in the road sector. We've seen a pretty soft bidding in FY '26. I'm not sure what sort of changes in FY '27, if you sort of seen the budget also, just less than a 10% increase in CapEx, what the government is basically talking about? And clearly, defense the other sectors high-speed rail corridors, et cetera, those sort of seem to be the priorities. Unless you're basically -- so are you -- okay. So then the other sort of question is that are you basically looking to expand materially into some new sectors where traditionally, the companies are seemingly has been mostly on the road side and of course, there is a little bit of Power T&D, railways less than 10% or a share of order book that's fairly small. So are you sort of looking to expand in a big way into some new verticals, new business lines or -- because as far as the road piece is concerned, I don't really see -- I mean even the current balance sheet and let's assume the March, April, what you're basically saying also happens. Beyond that, I mean, the existing projects do you -- the leftover projects that you have, which you have sort of said that you would sort of look to monetize those, what is the -- what purpose would that sort of serve? Because at least in the intermediate term, till such time that you can sort of scale up your order book and get new projects which I think this year also, you're missing on your order book guidance at the beginning of the year, primarily because of slow bidding on the road side itself, right? I mean that's the going to be cash sitting on the books earnings, what, like 6%, 7%. That interest rates are also like fairly low. So isn't it better to sort of keep those projects at least sort of keep having that 15%, 16% IRR or whatever it is, basically, definitely double-digit IRR, keep earning that IRR. And then -- I mean, as and when you see the order book pipeline basically coming up, then you can probably -- selectively probably monetize some of those assets.

So actually, there are 2 thoughts to it. The assets which are monetizing and the core business of the company, are typically 2 different revenue streams. The assets which are monetized are giving a revenue stream of either financial income or toll revenue, which is not an effort driven. Once we have quality constructed, it's more of an economic impact on the project. So we are not making any EPC effort. Our major source of revenue is EPC, which brings in revenue. So we -- definitely, our return expectation on EPC is better, and we expect 15% to 18% IRR on that kind of business, better to invest in EPC contracts to earn that income, which we have monetized at a discounting of 12%. So that is definitely one driver to that. And second also is the burden. So initially, with all these projects, which are the BOT projects or PP projects have high debt. It typically brings a lot of -- definitely there is a pressure on the balance sheet with a high debt. These are almost INR 6,700 crores debt before Q2. And now we are in the range of around INR 2,700 crores. Substantially bring down the debt burden on the console level also. So these 2 being in the main drivers and helps in creating cash, which could be used for various purposes, including probably also servicing the investors who are there today on board.

I understand the history of it. I'm still sort of...

Sorry to interrupt Amit.

Can I have just one sort of one bookkeeping question, if you don't mind, please? One final one. So this Middle East impairment also INR 25 crores, I mean, isn't sort of running an office principally an operational sort of expense? Why is this coming on the balance sheet side? And why are you sort of impairing it? I'm not sure I understood this bit also basically. Fine there is an office in the Middle East, but principally the expense on that side would be operational and not capital.

That is true. But then this is a -- the operations are being done by a subsidiary where the holding company which is Ashoka Buildcon has given a loan or equity to that subsidiary. So in the books of ABL as a bookkeeping issue is an invested a loan. It's not an operational expense. Operation at the console level, probably yes, what you're seeing is right, console level, it would be merged as an expenditure. But at the stand-alone level, it is looking as a loan or equity invested. Now because of the business not coming in the way, we have preferred to do an impairment as a conservative policy over the quarters, probably we will reverse them.

Okay. So this impairment then doesn't sort of exactly show up into your console basically then.

No, it is not.

The next question is from the line of Bhavin Modi from Anand Rathi.

Sir, in your order book details the Maharashtra in the Power T&D others, Maharashtra has increased by INR 641 crores. So can you help me in which product -- which project was included in this?

Okay. I'll come back on this specific project you're talking about.

Yes, yes. And sir, also in the EPC building, it has increased from INR 462 crores to INR 528 crores. So again where this increase? Was it change in the scope or there was some new addition?

New addition.

New addition of an EPC contacts, small EPC contracts.

Okay. Sir, second thing, I just wanted to understand with the NHAI coming up with a stringent role about the network, so the formula on a broader level grows like this 5x into the net worth minus the unexecuted value of BOT and HAM projects. So just wanted to understand this BOT and HAM project, the unexecuted value, will this belong only to the NHAI more or will it also belong to the state projects as well as other than the road projects. Like for example, there are water projects, which are also in the under HAM category.

They are all PPP projects, it will be all PPP.

All the PPP across the state or across the segments, right?

Yes. All PPP in the company.

Okay. And sir, one more thing. Like sir, are we currently L1 in any of the projects?

Yes, we are L1 in some of the projects, but we cannot disclose at this stage.

Okay. Got it. And sir, last bookkeeping question, sir. [indiscernible] exceptional item which has been recognized, where it has mentioned that like -- it was mentioned the we have created the obligation of something around INR 3,600 crores for the obligations towards the investors in subsidiary, but of which we have only like an adjusted INR 2,660 crores and balance INR 953 crores was credited back to the P&L. So just wanted to understand in terms of bookkeeping, what is this provision about?

So over the years, in the past, because Macquarie was investor with us in our HoldCo company [indiscernible]. There was a provision created for the investors of around INR 360 crores. After existing their value of actual investment and our most acquiring their CCDs, the balance amount of INR 95 crores, which was on the credit side was brought to the P&L account as an income.

Okay. So sir, over the period, what was the cumulative, the provision was INR 361 crores. Was it like debited to the P&L like now that...

Yes it was [indiscernible].

The next question is from the line of Vasudev from Nuvama.

What is our current status and thoughts on monetization of Chennai ORR and Jaora-Nayagaon project?

Chennai ORR, we continue to pursue [ seller ] on the Jaora-Nayagaon we are still holding it in our books as an investment. The revenues are strong, and we are just -- if any good interest comes, we would be [ telling ] doing a dialogue. Chennai ORR we continue to discuss with investors potential ones.

The next question is from the line of Dr. Amit Vora from Homoeopathic Clinic.

So just wanted to know, yesterday, our Finance Minister has told that INR 12.2 lakh crores will be spent on infrastructure. So what is your expectation for order book this year and next financial year and the margins?

For FY '26, we are typically looking at order book intake in the next 2 months to the tune of around INR 3,000 crores, INR 3,500 crores. And based on budget promises which have been made, definitely we will look overall order book intake for the next year to the tune of around INR 11,000 to INR 12,000 crores. We generally keep as a vision for the intake of policies.

And what is the kind of margin, sir, that we are looking at?

So generally in the range of 10% to 11%.

So this INR 11,000 to INR 12,000 crores for next year includes only this central government orders or even Maharashtra or state government?

This would be all sectors, the roads, power and others.

Ladies and gentlemen, we'll take this as a last question for today. I now hand the conference over to Mr. Mudit for closing remarks. Over to you, sir.

Just last question. I think you said there was some impact because of extraordinary items of INR 52 crores. So if you have mentioned -- quantified the amount of tax, it will be helpful or otherwise, over to you, sir. Thanks.

Yes. We have already said approximately INR 19 crores of reversal on deferred taxes based on the impact of the impairments and other impairments of investments all put together. So deferred tax reversal of INR 19 crores.

You can proceed with your closing remarks.

So we thank everybody for having joined this call. We hope you've had the answers for what you are looking for. If you need any further information, you are free to contact me or our Investor Relations advisers, SGA Mr. Deven Dhru. And thank you, everybody. Good day.

Thank you, everyone.

Thank you very much. On behalf of IIFL Capital Services Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.