Ashoka Buildcon targets ₹1,150 cr cash from HAM asset sales
Management sets a 20% growth target for FY27 while pushing out the timeline for its remaining six asset disposals.
What's new
- FY27 revenue growth guided at 20% with EBITDA margins between 9.5% and 10.5%.
- Order inflow target for FY27 set at ₹8,000 cr to ₹10,000 cr.
- Debt reduction target to ₹500-600 cr by March 2027 via asset sales.
Why it matters
The asset monetization timeline remains the most critical lever for deleveraging. Stretching the closure of these six HAM projects into late 2026 delays the expected debt relief.
What we're watching
- Progress on the first four HAM asset sales due by June 2026.
- Actual order book conversion against the ₹15,312 cr backlog.
- Ability to maintain 9.5-10.5% margins despite competitive bidding.
The full read
Ashoka Buildcon is looking to a mix of new orders and asset sales to manage its balance sheet over the next two years. During its May 22 conference call, management issued FY27 guidance of 20% revenue growth and targeted order inflows reaching up to ₹10,000 crore. The current order book sits at ₹15,312 crore, providing a baseline for these projections. Yet, the central theme remains deleveraging. Standalone debt currently rests at ₹1,127 crore. Ashoka plans to cut that figure roughly in half by March 2027. Success here hinges on the ₹1,150 crore expected from the sale of its final six HAM assets. The company has clarified the schedule for these exits: four projects are set for closure by June 2026, with the remaining two pushed to December. This is a longer horizon than previous informal targets, making the actual cash conversion the primary test for the company’s capital allocation strategy.