Ashoka Buildcon Limited (NSE: ASHOKA) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Satish Parakh — Managing Director
Paresh Mehta — Chief Financial Officer
Analysts:
Unidentified Participant
Mudit Bhandari — Analyst
Vaibhav Shah — Analyst
Aditya Sahu — Analyst
Vasudev Ganatra — Analyst
Presentation:
operator
Sa. Sam. Sa. Sam. It. Foreign. Ladies and gentlemen, you have been connected for Ashoka buildcon call. Please stay connected, the call will begin shortly. Sa. Sam. Ladies and gentlemen, good day and welcome to the Ashoka Bilcon 3Q FY26 conference call hosted by IIFL Capital. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Mudit Bhandari from IFL Capital. Thank you. And over to you, Mr. Mudad Bhandari.
Mudit Bhandari — Analyst
Thank you so much. Ikra. Good afternoon everybody. On behalf of IFL Capital, I welcome you all to Q3FY26 standing conference call of Ashoka Wilcon Limited. From the management we have Mr. Satish Parikh, Managing Director and Mr. Parish Mehta, Chief Financial Officer. With this I would request Mr. Satish Parikh to start with his opening comments and then we can open floor for question and answers. Thank you. And over to you sir.
Satish Parakh — Managing Director
Thank you. Mudit. Good afternoon everyone. I welcome you all to the Q3 9 months FY26 earning conference call of Ashoka Bilcon Limited. Thank you for taking out the join time to join us as we share our operational and financial updates for the quarter and nine months ended 21st December 2025. Joining me on this call is our CFO, Mr. Parish Mehta and industrial relations partner.
operator
Sorry to interrupt, sir, your voice is breaking. We are unable to hear you properly.
Satish Parakh — Managing Director
Okay. So along with me I’m having our CFO, Mr. Parish Mehta and our investor relations partner.
operator
Sorry sir, we are unable to hear you. Your voice is freaking.
Satish Parakh — Managing Director
Is it clear now?
operator
No, still the same, sir.
Satish Parakh — Managing Director
I don’t know what’s happening. So joining me on this call are our CFO, Mr. Parish Mehta and our investor relations partners from FGA. Am I clear now?
operator
No sir, we can use the backup line. Please mute this line and I will just hold down. Yeah, yeah. So backup line and unmuted from my side. You can speak some.
Satish Parakh — Managing Director
Can you hear?
operator
Yes sir, we can hear you.
Satish Parakh — Managing Director
Can you hear me now?
operator
Yes, sir.
Satish Parakh — Managing Director
Okay, I’ll begin from the beginning. Thank you. Good afternoon everyone. I welcome you all to the Q3 nine months FY26 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 nine 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 two years and in this financial year the highway construction is expected to drop by 10 to 15% to 9,000 to 9,500 km from 10,660 km in 2425. 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 corral both development, access control, highways and expressways. Under this approach, the government is targeting approximately 11,000 km by FY27 and 15,000 km by FY32, up from 3,000 km currently reflecting a sharper focus on economic productivity, safety, logistics efficiency rather than sheer scale.
At the same time, the government focus on financial prudence at NHI continues. Rupees 35,000 to 40,000 crores is expected from monetization of road assets in FY26 by NHI which will be used for supporting new investments without materially increasing the public sector leverage. An important positive development for the sector is 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 five bot SPVs to Mapple Infrastructure Trust and its nominees. The transaction was concluded for an aggregate consideration of 1814 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 4,910 crores in September to 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 Bilcon Ltd.
Acquired equity shares in Ashoka Constructions Ltd. And Ashoka Bilcon, together with Viva Was Ltd. Acquired the remaining Class A and Class B CCDs held by the investors. This was done for an aggregate consideration of 667 crores resulting in a 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 Buildcore. On the receipt of on the project execution front, two major letters of acceptance were received from BMC through joint ventures. The Adani Ashoka Akshaya JV secured Mithi River Development and allied work projects valued at 1,816 crores excluding GST.
The project includes a 48 month design and build phase followed by 10 years of ONDEM. In addition, the Ashoka JV received a LOI for a flyover construction project worth 1041 crores including GST with 24 month execution timeline. Shuka has also secured an additional scope of work order from the BMC toward the existing San Penwell highway flyover project amounting to rupees 447 crores including taxes reflecting continued confidence in our execution capabilities. Lastly, we received an LOA from the Public Department in Daman for a construction of a signature bridge correcting Jampur Sea front to Devka seafront. This project is valued at 307.7 crores excluding GST with a completion timeline of 30 months.
Coming to the order book status, the company has received four new project orders including one additional work order as discussed above from BMC and dhavan Public Work Department. As on 31st December 2025 a balance order book stands at 15,927 crores. This is excluding orders received post 31st December 2025 of INR 308 crores so as on death it is 16,235 crores of balance order book. Roads and railway projects comprise around 10,292 crores which is 65% of the total order book. Among the road projects order book Ram projects are to the tune of 1705 crores, EPC rope projects are to the tune of 7025 crores and railway is around 1562 crores.
Part DND accounts draw around 5108 crores which is approximately 32.1% of the total order book. Total EPC building segment is to the tune of 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’d now request Mr. Paresh Mehta, CFO, to present the financial performance. Thank you.
Paresh Mehta — Chief Financial Officer
Thank you. Good afternoon everyone. Starting with the standalone numbers for Q3FY26. Total income stood at INR 1492 crores. As compared to INR 1816 crores. In Q3FY25, a degrowth of 18%. EBITDA for the quarter stood at 157 crores, a degrowth of 16% year on year with the EBITDA margin of 10.6% and improvement by 30bps. Year on year. Profit before tax before exceptional Items stood at INR 50 crores. Overall PAD stood at 102 crores against INR 61 crores during Q3 FY25, up by 68% year on year. Our revenue contribution for Each segment for Quarter 3 FY26 is as follows. Road EPC 51.9% Road EPC HAM 13.2% Power TND 21.9% Railways 9% and other segments 4%. For nine months FY26 standalone total income stood at 4134 crores as compared to 5175 crores in nine months.
FY25, a degrowth of 50% EBITDA for nine months. FY26 stood at 468 crores down 5% year on year with an EBITDA margin of 11.3% and improvement over FY25 of 180bps. Profit before tax before exceptional items stood at 150 crores and PAD stood at INR two hundred and seventy two crores as compared to 138 crores in nine months. FY 25 up by 97% year on year. Coming to the consolidated results, Total income for Q3FY26 stood at 1,866 crores as compared to INR24.26 crores in Q3FY25 registering a 23% degree growth. EBITDA for the quarter stood at INR 474 crores, down by 30% year on year with EBITDA margin of 25.4%.
Profit before tax before exceptional items stood at 233 crores. Add stood at 2111 crores during Q3FY26 total consolidate as on 31st December 2025 stood at INR27.22 crores down from 4,910 crores. The standalone debt is at 1046 crores which comprises of INR 79 crores on equipment loan, 300 crores on NCDs and INR 667 crores on working capital loans. In Q3FY26 in our BoT division the company recorded a total gross total collection of 773 crore crores from Javaranago Toll Load Company. With this we now open the floor for question answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press Star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Sir. On the EBITDA margin side we saw some impact on Q3 and also other expenditure was quite high at 71 crores. So is there any one off and why the margins were lower on a QOQ basis?
Satish Parakh
On a Q and Q basis I think so. The EBITDA should get 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. They are.
Vaibhav Shah
And certain provision turnover was higher?
Satish Parakh
Yeah, there was ECA provision which has increased the other expenses.
Vaibhav Shah
What is the quantum of the provision?
Satish Parakh
25 crores.
Vaibhav Shah
And what is it regarding to 25 crores?
Satish Parakh
Maybe I’ll come back.
Vaibhav Shah
Okay. Okay. Secondly, how do you see the margin going ahead in Q4 and FY27?
Satish Parakh
So as we have been saying the margins will improve over the quarters as we go ahead. Q20, Q4, 26 would typically remain similar. But 2627 definitely will be in the range of 9, 9 and a half percent plus.
Vaibhav Shah
We don’t see that double digit margin yet in 27. Are you targeting around 10 to 10, 10 and a half, 11%?
Satish Parakh
Yes. Yeah. So we see as the quarter goes or quarter on quarter, what we believe the bits which are there, the pipeline which is there will throw approximately 10, 10 and a half percent. I’m being a bit conservative.
Vaibhav Shah
Okay. Secondly on the overall revenue side we have seen quite a weak numbers in the first nine months. So how do you see the revenue for 26 and what will be your guidance for 27?
Satish Parakh
So 26 probably based on current order book and the way the projects are moving, the 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, 27, we definitely believe that 15% growth would be there. Or 15% growth is there over 26. Pardon.
Vaibhav Shah
So given the lower base of 26, even if we grow at 15% will be still lower than our 24 and 25 revenue numbers. So you see scope of a higher growth.
Satish Parakh
Yes. It will also depend on certain new projects which you are vying for and order book which will come. Then provide we’ll do a better number definitely.
Vaibhav Shah
Okay. Lastly on the order inflow side, so what would be our order inflow in terms of EPC value for YTD FY26.
Satish Parakh
Year? Today approximately 5200 crores is the order book flow for EPC in 9 months and another 307 crores which has come post December.
Vaibhav Shah
So what are you targeting for the entire year?
Satish Parakh
So we believe that we should keeping in this three months. 2. 2. 2 months. Around 3000 odd crores order book should come in with probably NHA also pushing their biddings probably in the last two months. I think 3000 should be an easy number to achieve for a new order in book.
Vaibhav Shah
Okay. Okay. Okay. Thank you sir. Those are my questions.
operator
Thank you. The next question is from the line of Bhavin Modi from Anand Prati. Please go ahead.
Unidentified Participant
Hi sir. Thank you for providing me the opportunity. Couple of questions from my side, sir. First I saw your order book, you know, details and there was few of the slow moving projects like Kundalika, Jaiga, Bandkot, Gaimu, Paigao. So like how are we looking, you know, in terms of, you know, accelerating the speed of execution.
Satish Parakh
So these projects basically are suffering on 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.
Unidentified Participant
Okay. Okay. So second in terms of the appointed date for, you know, Guskara Boyvanchi. So when it is expected.
Satish Parakh
So we expect in February. February. We should get an appointed date for this.
Unidentified Participant
So what actually took it so long, you know, because I think we completed the financial closure 2/4 back.
Satish Parakh
Yes, we completed financial closure but land acquisition is still very difficult in West Bengal.
Unidentified Participant
Okay.
Satish Parakh
Now this will pick up only in these two months. That is what they have promised. By Feb they should be able to award us.
Unidentified Participant
Understood. So third point was, you know there are two things, you know in the bot assets we sold. One was the holdback amount you know, and second is the contingent consideration. So like, you know, like when are we, you know, what, what is the, you know, quantification in terms of the holdback amount and the contingent consideration and, and what are the expected timelines?
Satish Parakh
So on the holdback amounts in the have we have approximately 96 crores of holdback and in the BOT project approximately 50 crores. We expect both these numbers to materialize before March. All the compliances or whatever actions to be taken. So I think so before around February. Between February and March we should to get those monies released along with the sale of at least four of the six assets before March.
Unidentified Participant
Okay, and so what about the contingent consideration? You know, there was some 500 crore of compute.
Satish Parakh
The contingent consideration is a consideration linked to extension of concession period which is, which will be, which will take approximately a year, one to two years for it to materialize with nhi. Once the period is freeze, at that time the monies will be released. So it will be based on how NHI gives us the extension for no traffic as per consideration.
Unidentified Participant
But right now we cannot zero in on any number, right sir? Because that will only once we will come to the. Once the NHI gives the approval for the.
Satish Parakh
Right.
Unidentified Participant
Sir. And one point also, you have created some impairment, you know, for certain subsidiary loans in your financials. So what is this, you know, which is the subsidy and what is the loan amount? What is the loan amount?
Satish Parakh
So largely, so largely this is. We have floated a subsidiary in Saudi for businesses in the Middle east where we have incurred establishment expenses of around 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.
Unidentified Participant
Okay, so last question from my end. These are regarding two things. One is the timeline and the amount for the, you know, balance six assets to be monetized. And second is the, sir, you know, the NHA the matter which was subsidies, you know, we got actually, you know, the, you can say the, you know, immunity from the, you know, court. But where is the, you know, where is the matter now right at present?
Satish Parakh
So it’s a status quo still. There is a state in the court and we are bidding NHR projects, all of the projects. So there is no impact on the business as such.
Unidentified Participant
Okay, but do we have any, you know, any action from the NHAI or, or has it gone to any, you know, disciplinary committee? You know, the thing. So like what is the statement with.
Satish Parakh
That from the committee and working in progress, there will be series of meetings and then decision will be taken.
Unidentified Participant
Okay. Yeah, send the last question about the you know, monetization of the you know, balance six assets. You know, what are the timelines and you know what are the amount that we can expect.
Satish Parakh
Yeah. So for the monetization of the six hand projects which are yet with us, four of the hand projects we expect to monetize by March approximately 600 and 750 crores plus the last two projects approximately 400 crores by in June by June 26th.
Unidentified Participant
Okay, got it. Thank you sir.
operator
Thank you. Before we take the next question, a reminder to all. If you wish to ask a question please press star and 1. The next question is from the line of Aditya Sahu from HDFC Security. Please go ahead.
Aditya Sahu
Hi sir, thanks a lot for the opportunity on the bidding part that it mentioned. If you can help us on the what is the current bid pipeline that we have.
Satish Parakh
So current bid pipeline for NHI is around 65,000 crores.
Aditya Sahu
20,000 crores.
Satish Parakh
Yeah.
Aditya Sahu
Okay, understood. And just one other question would be on the HAM equity investment, what is the, what would be the amount that you know we have invested till date and you know what are we planning? How much is the amount, you know that we would invest going forward?
Satish Parakh
So on the equity investment balance for the current ham portfolio approximately 320 crores is balance of which largely 220 crores is for the new HAM project and balance is for the TS3 and TS4. That is Tumku Shimuga 3 and 4 balance equity to be invested.
Aditya Sahu
Okay.
Paresh Mehta
Which will be invested in the period of 180 crores by March 26th. 262772 crores and 272872 crores.
Aditya Sahu
Okay. 180 crores were March 26 and 70 or June 26th.
Paresh Mehta
I mean it all depends on how Bulchendi what do you call appointed date is declared.
Aditya Sahu
Okay, understood. Thanks a lot.
operator
Thank you. The next question is from the line of from iifl capital services ltd. Please go ahead. Mudit sir, your line is unmuted. Please proceed with your question.
Mudit Bhandari
Hi sir, out of the total order book of around 15,900 crore. So how much is executable? I mean how much is any pending clearance including appointed date or any other clearances.
Satish Parakh
So this entire is executable. We already received appointed date and work is progress on all the projects.
Mudit Bhandari
So but even if you. Let’s look at last quarter order book so we are not able to execute in terms of reported numbers from revenue.
Satish Parakh
So is there any other? So as I explained earlier this five projects of bridges are stuck up due to land acquisitions they are slow moving so we expect them by quarter one. We should be able to pick up on all these projects and Boichendi project which we explained you we have to get the appointed date so that we are expecting in Sep so March onwards we should be able to carry out work on this project also.
Aditya Sahu
Understood sir. And from comparing Q1Q from 2Q to 3Q how’s the payment been? From IHI side or from DISCOM side Across all our sectors.
Satish Parakh
Payment wise this is not much issue either at NHI level or DISCOM level discoms are also funded from central funds so payment wise there is not an issue. Execution wise there have been challenges and that is how the order book has moved Pretty slow.
Aditya Sahu
Got it sir. Thank you.
operator
Thank you. The next question is from the line of Vasudev from Nwama. Please go ahead.
Vasudev Ganatra
Yeah. Thank you for the opportunity sir. And congratulations on the monetization of the bot assets. Most of the questions are answered just a few bookkeeping kind of questions. So these five BOT assets which we sold, what was the enterprise value and the equity value of these assets?
Satish Parakh
So enterprise value was. Equity value was approximately 24002300 against which there was a debt of at most 2500 crores so enterprise was approximately 5000 plus 5006 700. So the debt has already been excluded from the console now and out of the total equity of 2300 we have already realized 1750 crores and balance will be realized over period of time including contingent consideration.
Vasudev Ganatra
So now after these monetizations and even we are hopeful of monetizing four other ham assets. So by end of FY26 where do we see our debt levels.
Satish Parakh
Once we monetize this four assets Also we should see our debt levels by March or April if there are certain debts like the NCDS which are payable. Considering that also as paid we should be in the range of 2 to 300 crores.
Vasudev Ganatra
Okay, sure sir. And lastly, what is the CapEx that we did in Q3 and how much are you planning for Q4? 4.
Satish Parakh
So for Q3 the CapEx was approximately 15 crores. We expect another 25 crores in Q4 to take it around 75 to 80 crores for the year.
Vasudev Ganatra
Okay, sure. So that’s it from myself. Thank you and all the best.
operator
Thank you. A reminder to all, you may press star N1 to ask a question. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
So do we expect any further ECL provisions in Q4?
Satish Parakh
ECL generally are largely time related provision for payments which are slightly delayed. So we believe that recovery will happen by March. So I don’t think some large impact may be there for Q4.
Vaibhav Shah
Okay. So secondly you mentioned about the Saudi establishment expenses. So when did we incur those expense and why did we write it off so early?
Satish Parakh
So this expenditure is being incurred since last one and a half year for the establishment. We are bidding for projects. Unfortunately they’re not bad from a conservative view because there was no order book at that office we took addition of making an impairment of it Rarely as soon as we expect a few orders in next month or so, four to five weeks. Once that happens then maybe for post Q1 FY27 we’ll be able to reverse those impairments.
Vaibhav Shah
And what segments are we targeting from Saudi which verticals?
Satish Parakh
All infra type of infrastructures, roads, power and buildings.
Vaibhav Shah
Okay. Secondly our PBT was around 50 crores for the quarter. So what was the adjusted pad reported PAT is 102 crores. So what was the adjusted part for the quarter?
Satish Parakh
I didn’t follow up. 50 crores.
Vaibhav Shah
50 crore is a PBT. So basically you are trying to figure it out. Figure out what was the tax expense for the quarter both on the normal operations and on the exception item.
Satish Parakh
Before exceptional item the profit was 50 crores which is approximately similar to, I mean almost on the Same edge of Q3 Q2 also.
Vaibhav Shah
Slightly maybe tax was negligible for the quarter.
Satish Parakh
Right. 57 crores.
Vaibhav Shah
For Q2 tax was negligible for the quarter tax amount.
Satish Parakh
Tax amount was negligible because of the deferred tax reversal of the provisions which we made for payments.
Vaibhav Shah
Okay, okay, okay. Thank you.
operator
Thank you. The next question is from the line of Amit Kumar from Determined Investment. Please go ahead.
Unidentified Participant
Yeah. Hi sir, thank you so much for the opportunity. I’m looking at, you know, I’m sort. Of invested new to the, you know, entire domain of, you know, this entire EPC and project business. So my apologies up front if this is a sort of silly question to begin with but you know, you’re sort of deleveraging the balance sheet. You’ve already done a lot in the, you know, first nine quarters. You’re still sort of looking to, you know, further sell assets. And at a point in time where you know either the new project pipeline is like, you know, as you said that, you know, this year has been fairly soft. You’re obviously expecting, you know, some improvement, you know, next year.
And even your existing projects are like, you know, slowly. I’m just trying to understand because, you know, epc, you know, business was seemingly, it involves a fair bit of, you know, debt any which ways in terms of, you know, working capital, basically. So, you know, when, when you are basically sort of selling those assets, I’m just sort of trying to understand, you know, the, you know, the, the balance sheet bulk up that you’re sort of, you know, looking to do. What is the, you know, sort of purpose of that and you know, isn’t, you know, the balance sheet as it sort of stands today sort of already, you know, support your, you know, future plans.
Satish Parakh
So there are two strategies which we have. 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 eot. Now, the balance sheet being as it is around almost a net worth of plus 4000 crores and monetization of these assets and deleveraging the debt to the extent of almost in the range of 2 to 300 crores only or maybe as well as mil, I think. So we’re trying to make the balance sheet a bit leaner.
Unidentified Participant
Yeah, but you are also, I mean, you know, 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. You know, in a project now you have sort of executed these projects. They are, you know, now sort of starting to, you know, throw cash. So I mean, let’s even assume that, you know, fourth quarter, basically, you know, these four assets that you are looking to sell, that happens ncd, you know, also you sort of pay back in April and you sort of get to a 300 crore, you know, sort of, you know, debt number which is, you know, for the size of your company.
I mean, you know, that’s 5,000, 6,000 crore kind of, you know, top line company that’s actually quite small. So is there any need to basically further sell the assets that you have or, or at least sell them sort of strategically? I mean, if you’re sort of bidding for, you know, some huge, you know, project then maybe you might need to sort of sell some assets to basically, you know, fund it on that side. But you know, let’s say beyond March or beyond April, you know, is there sort of any, you know, need to basically, you know, Sell additional products as you have indicated in the past that you know, you’re pretty much selling everything.
I don’t think that you’re planning to keep, you know, any, you know, operational either ham or bot or whatever projects on your books basically. Is there any need to do that? That’s my point.
Satish Parakh
Yeah. So 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 bank or pension funds, they are generally discounting these cash flows at 10 to 12%. Makes sense in cashing them out and use this money for newer projects which will bring an EPC order book also plus another asset with say 17, 15 to 17% IRR which again will be have an opportunity to flip to a new buyer.
So this is, this probably is the model of every EPC contractor come developer should be going at also that you create assets, hold for a couple of years, match your return, flip it to a investor who’s happy with a 10 to 12% IRR or.
Unidentified Participant
That’s exactly my point. First of all, your existing projects are for a 15, 16% IRR. They’re fairly safe cash flow to execute. You know, they are running essentially. And you know, you, I presume you will also be, you know, managing the ONM for you know, all of your projects basically. Again, like I said, I’m sort of slightly new to the, you know, business and the, you know, companies. I’m not sort of sure on that count also. But so, and you know, when you’re sort of taking a new project, sort of, that also sort of new projects also sort of, you know, bring a fair bit of risk.
But even leaving that aside, my, my sort of principal point here is that you know, this year, year we have seen a very, you know, again, principally, you know, given the fact that you are in the, you know, 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 FY26. I’m not sure what sort of changes in FY27. You’ve seen the budget also, you know, just about less than a 10% increase in you know, capex, you know, what the government is basically talking about.
And clearly, you know, defense and you know, some of the other sectors, you know, high speed rail corridors, etc. Those sort of seem to be, you know, the priorities. Unless, unless you’re basically so are you. Okay, so then the other sort of question is that, you know, are you basically, you know, looking to expand materially into, you know, some new sectors where traditionally the company sort of seemingly has been, you know, mostly on the roadside. And of course there’s a little bit of power TND, I mean, railways, less than 10% or a share of order book.
That’s fairly small. So, you know, are you sort of looking to expand in a big way into some, you know, 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, you know, what you’re basically saying, you know, also happens beyond that. I mean, you know, the existing projects, do you. The leftover projects that you have, which you’ve sort of said that, you know, you would sort of look to monetize those as well. What is the.
What, 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 know, you’re missing on your order book, you know, guidance at the beginning of the year primarily because of slow bidding on the roadside itself. Right. I mean, that is, that’s just going to be cash sitting on the books, earning, you know, what, like 6, 7% that, you know, interest rates are also like fairly low. Isn’t it better to sort of keep those projects at least sort of keep having that, you know, 15, 16, IRR, whatever it is, basically definitely double digit, you know, IRR.
Keep earning that IRR. And you know, then, I mean, as in when, you know, you see the, you know, order book, you know, pipeline basically firming up, then you can probably, you know, selectively probably, you know, monetize some of those assets.
Satish Parakh
So actually there are two parts to it. The assets which are monetizing and the core business of the company are typically two different revenue streams. The asset which are monetized are giving a revenue stream of either a financial income or a total revenue, which is not an effort driven once we have already constructed. It’s more of a 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 bird. So initially it is all these projects which are 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. We got almost 6700 debt before Q and now we are in the range of around 2700. Substantially brings down the debt burden on the console level also. So these two 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.
Unidentified Participant
I understand the history of it, but I’m still sort of.
Paresh Mehta
Sorry to interrupt. Amit. Sorry.
Unidentified Participant
Can I have one bookkeeping question if you don’t mind, please. One final point. So you know, this Middle east, you know, impairment Also in this 25 crores, I mean isn’t sort of running an office principally, you know, an operational sort of expense? So you know, why is this coming, you know, 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 you know, principally the, the expense on that side will be operational and not, you know, capital.
Satish Parakh
That is true. But then this is a. The operations are being done by a subsidiary where the holding company, which is Ashoka Bilcon, has given a loan or equity to that subsidy. So in the books of ABL as a booking issue is an investor loan. It’s not an operational expense operation. At the console level? Probably, yes. What you’re saying is right at the console level it would be merged as an expenditure. But at the standard 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 or the over the quarters, the value is reversed then.
Unidentified Participant
So this, this impairment then doesn’t sort of exactly show up into your console basically then?
Satish Parakh
No, no, it will not.
Unidentified Participant
It will not. Okay, thank you. Thank you. That’s it.
operator
Thank you. The next question is from the line of Bhavyan Modi from Anandrate. Please go ahead.
Unidentified Participant
Yeah, thank you for, you know, providing me the opportunity again. S order book details. The Maharashtra, you know, the. In the power TND and others Maharashtra is increased by 641 crore. So can you help me like which product, which project was included in this?
Satish Parakh
Okay, I come back on this. Which specific project you’re talking about?
Unidentified Participant
Yeah, yeah. And so Also in the EPC buildings, you know, it has increased from 462 crore to 528 crore. So again, you know where this increase was? Was it, you know, change in the scope or there was some new addition?
Satish Parakh
New addition. New addition of an EPC contract. Small EPC contract.
Unidentified Participant
Okay. So second thing is I just wanted to understand, you know with the NHA coming up with the stringent rule about the net worth. So the formula, you know, on a broader level goes like this, you know, five times into the net worth minus the unexecuted value of bot and HAM projects. So just, just wanted to understand this. Bot and ham projects, the unexecuted value, will this belong only to the nhi, Martha, you know, or will it also belong to the state projects as well as you know, other than the road projects? Like for example, you know, there are water projects which are also in the.
Under the hem.
Satish Parakh
Yeah, all PPP projects. It will be all ppp.
Unidentified Participant
All the PPP across the state or across the, you know, segments. Right?
Satish Parakh
Yes. Yeah, all PPP in the company.
Unidentified Participant
Okay. And sir, one more thing like sir, are we, you know currently L1 in any of the projects?
Satish Parakh
Yeah, we are L1 in some of the project but we cannot disclose at this stage.
Unidentified Participant
Okay, got it. And the last bookkeeping question, sir, there was a you know, exceptional item, you know which is being recognized where it has mentioned. Right. You know like we are. Just a minute, I will just. So it was mentioned, you know the. We have created the obligation of something around 3,600 crore for you know the obligations towards the investors in subsidiary but of which you know, we have only, you know like, like adjusted 2660 crores and balance 953 crore was credited back, you know, to the PNL. So just wanted to understand, you know, so in terms of bookkeeping, what is this provision about?
Satish Parakh
So over the years in the past, because Mercury was a investor with us in our world Co company that is Azure, there was a provision created for the investors of around 360 crores after existing their value of actual investment and the amounts for acquiring the CCDs. The balance amount of 95 crores which was on the credit side was brought to the P and L account as a income.
Unidentified Participant
Okay. As. Okay. So over the period, whatever the cumulative, you know the provision was done. 361 crore. Was it like debited to the PNL like right now that excess has been, you know. Got it. Good. Thank you sir. That’s from my side.
operator
Thank you. The next question is from the Line of Vasudev from Nuama. Please go ahead.
Vasudev Ganatra
Yeah. Thank you for the follow up. Sir, what is our current status and thoughts on monetization of Chennai Orr and Java Nagao projects.
Satish Parakh
Chennai Aurora. We continue to pursue seller on the Java Naga. We are still holding it in our books as a investment. The revenues are strong and we are just. Any good interest comes. We would be interested in doing a dialogue Chennai or are we continue to discuss with investors potential ones?
Vasudev Ganatra
Sure. Thank you.
operator
Thank you. The next question is from the line of Dr. Amit Vohra from the homeopathic clinic. Please go ahead.
Unidentified Participant
Yeah. Good afternoon. I have joined little late so just wanted to know. Yesterday our finance minister has told that 12.2 lakh crores will be spent on infrastructure. So what is your expectations for order book this year and next financial year and the margins? Hello.
Satish Parakh
So for FY26 we are typically looking at order book intake in the next two months to the tune of around 3000, 3500 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 11 to 12,000 which we generally keep as a vision for the intake of orders. And what is the kind of margin sir that we are looking out? So generally in the range of 10 to 11%.
Unidentified Participant
10 to 11%. Okay. So this. This 11 to 12,000 crore for next year includes only this Central government orders or even Maharashtra or state.
Satish Parakh
This would be all sectors, the roads, power and power.
Unidentified Participant
Okay. Thank you so much sir. Thank you.
operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I now hand the conference over to Mr. Mudit for closing remarks. Over to you sir.
Unidentified Participant
Hi sir, just the last question. I think you said there was some impact because of extraordinary items of 52 crore. So if you have mentioned quantified the amount of text it will be helpful or otherwise. Over to you sir. Thanks.
Satish Parakh
Yeah. We have already said approximately 19 crores of reversal or deferred taxes of the impact of these impairments and other impairments of investments all put together. So deferred tax reversal is that of 19 crores.
Unidentified Participant
Thank you so much sir. You can proceed with your closing remarks.
Mudit Bhandari
Yeah. Shambi. So we thank everybody for having joined this call. We hope you read the answers for what you are looking for. If you need any further information you are free to contact me or our Investor Relationship Advisors SGA, Mr. Devin Drew. And thank you everybody. Good day.
Satish Parakh
Thank you everyone.
Paresh Mehta
Thank you.
operator
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.