1. Opening Hook
Monsoon flooded sites, governments delayed payments, TBMs got stuck at ports, and Afcons calmly downgraded guidance like it was no big deal.
If you came expecting a blockbuster infra quarter, this concall politely asked you to manage expectations. Revenue barely moved, profits dipped, and management openly admitted they stopped work where money wasn’t coming. Bold, but expensive.
Yet, margins refused to collapse, order book stayed obese, and L1 wins kept piling up—just not converting fast enough to pay the bills. Somewhere between execution excellence and cash-flow reality, Afcons reminded investors that infrastructure is not a quarterly Instagram story.
Read on. The real drama isn’t revenue—it’s receivables, delayed awards, and a pipeline that looks great on slides but slow on cash.
2. At a Glance
- H1 Revenue ₹6,520 cr (+3.4%) – Growth technically alive, just walking with a limp.
- Q2 Revenue flat at ₹3,101 cr – Construction paused, invoices waiting for blessings.
- H1 EBITDA margin 13% – Margins flexed while topline sulked.
- Q2 EBITDA down to ₹401 cr – Project mix played party pooper.
- PAT H1 up 7% to ₹242 cr – Arbitration and cost savings to the rescue.
- FY26 revenue guidance cut to 10%+ – Reality check delivered, no sugar coating.
3. Management’s Key Commentary
“Revenue growth for FY26 will be below earlier guidance.”
(Translation: That 20% dream met the Jal Jeevan Mission 😐)
“We have stopped work on some
projects due to non-payment.”
(Translation: No cash, no construction. Simple economics.)
“Order inflow H1 stood at ₹1,268 crores; order book at ₹32,681 crores.”
(Translation: Plenty of work on paper, patience required in reality.)
“Our project pipeline stands at ₹3.6 trillion.”
(Translation: Slides are heavy; execution will be selective 😏)
“We expect Croatia rail LOA in Q3.”
(Translation: Europe may pay faster than Indian states.)
“EBITDA margins should be better than 11% for the full year.”
(Translation: Growth weak, but profitability won’t embarrass.)
4. Numbers Decoded
| Metric | Q2 FY26 | H1 FY26 | What’s Really Happening |
|---|---|---|---|
| Revenue | ₹3,101 cr | ₹6,520 cr | Execution slowed intentionally |
| EBITDA | ₹401 cr | ₹846 cr | Margins held despite chaos |
| EBITDA Margin | 12.9% | 13.0% | Strong project-level discipline |
| PAT | ₹105 cr | ₹242 cr | Arbitration & forex helped |
| Order Book | – | ₹32,681 cr | Healthy, but slow to convert |
| Net Debt | – | ₹2,714 cr | Working capital strain visible |
One-liner: Margins strong, revenue stalled, cash flow uncomfortable.
5. Analyst Questions
- Why guidance cut from 20% to 10%?
Delayed L1 conversions, payment issues, and deliberate project stoppages. - What’s stuck in Jal Jeevan Mission?
