Samyag

Corporate Actions

Back

Acuit' Ratings reaffirms ratings of Ashoka Buildconn at 'AA/A1+'

25-Feb-26 14:50 Hrs IST

The agency has also affirmed the company's short-term rating at 'ACUITE A1+'.

Acuit' Ratings had previously placed the company's rating on 'Rating Watch with Developing Implications' on account of impending asset monetisation transactions.

Acuite notes that ABL has completed the monetization of 5 BOTs (build-operate-transfer) and 5 HAMs (hybrid annuity model) resulting in total proceeds of Rs 2817 crore.

The proceeds have been utilized to provide an exit to SBI Macquarie, reduction in short term borrowings thereby strengthening the capital structure of the company, make payments to Viva Highways (VHL) to acquire stake in Jaora Nayagaon Toll Road Company (JNTCPL) and settle vendor payments to avail cash discounts. Hence, the rating has been removed from rating watch.

The remaining monetization of 6 HAM assets are expected to be completed by Q1 FY27 with an inflow of Rs 1100 crore. the timely completion of this transaction will remain key monitorable factor.

The rating reaffirmation reflects a steady scale of operations with comfortable order book albeit subdued operating performance.

The company's unexecuted order book remains robust at Rs.16,477 crore as of 06 February 2026, providing revenue visibility at 2.33x of FY25 revenue. The order book is well-diversified across roads, buildings, power and railways. Additionally, the company has established a subsidiary in Saudi Arabia to tap infrastructure opportunities in the Middle East.

The rating further factors in moderation in the company's financial risk profile due to decrease in debt protection metrics during FY25. The increase in debt has led to higher interest costs, while lower accruals have resulted in a decline in both interest coverage ratio (ICR) and debt service coverage ratio (DSCR).

Despite this moderation, the company's tangible net worth has increased, and gearing remained below unity in FY25. The working capital cycle remains intensive due to inherent nature of the business.

Ashoka Buildcon undertakes engineering, procurement and construction (EPC) contracts for the road, railways, buildings and power sector. The company is also the leading players in the BOT (build, own, transfer) segment and hybrid annuity model (HAM).

The scrip fell 1.82% to currently trade at Rs 137.75 on the BSE.

Powered by Capital Market - Live News

Attention Investors: Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. || Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. || Pay 20% upfront margin of the transaction value to trade in cash market segment. || Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard. || Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.|| KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.|| No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.