Ashoka Buildcon Secures ₹312 Crore Order
Ashoka Buildcon Ltd., one of India’s leading infrastructure and highway development companies, has secured a ₹312 crore order from the Maharashtra State Electricity Transmission Company (MSETCL).
On March 10, 2025, the company announced that it had received a Letter of Acceptance (LoA) worth ₹311.92 crore for a turnkey works contract related to the establishment of a 400/220 KV substation in Nandgaon Peth, Amravati, Maharashtra.
This significant contract underscores Ashoka Buildcon’s growing footprint in the power transmission sector, which is a crucial part of its diversified infrastructure portfolio. The company has been involved in various infrastructure projects, including road construction, power transmission, and renewable energy initiatives.
This latest order is expected to strengthen Ashoka Buildcon’s revenue pipeline and support its growth momentum in the coming quarters.
Project Details and Expected Completion Timeline
The new contract entails the supply, erection, testing, and commissioning (ETC) of electrical infrastructure, along with civil construction work for the substation project. The total cost of the project is ₹311.92 crore, and the company is expected to complete the work within 18 months from the date of the award.
A 400/220 KV substation plays a critical role in power transmission by ensuring efficient distribution of electricity, reducing transmission losses, and enhancing grid stability. The project at Nandgaon Peth, Amravati, Maharashtra, is likely to improve power reliability in the region and support Maharashtra’s growing industrial and residential power demand.
With expertise in power distribution and electrical infrastructure projects, Ashoka Buildcon is well-positioned to execute this contract successfully. The company has previously undertaken multiple EPC (Engineering, Procurement, and Construction) projects in the power sector, adding to its credibility and expertise.
This order also aligns with India’s increasing focus on strengthening power infrastructure and expanding renewable energy capacity.
Ashoka Buildcon Q3 FY25 Results: Profit Surges 62.4%
Strong Profit Growth Despite Revenue Decline
Ashoka Buildcon reported robust profitability growth for the third quarter of the financial year 2025 (Q3 FY25). According to a report by CNBC TV-18, the company’s profit before tax (PBT) surged 62.4% year-on-year (YoY) to ₹306.7 crore, despite a 10.1% decline in revenue compared to the same quarter last year.
- Revenue for Q3 FY25 stood at ₹2,387.9 crore, compared to ₹2,657.1 crore in Q3 FY24, marking a 10.1% YoY drop.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 7% YoY to ₹638 crore, up from ₹597 crore in the previous year.
- Operating margins expanded significantly, rising to 26.8% from 22.5% in Q3 FY24, indicating strong cost management and improved execution efficiency.
The rise in profitability was driven by operational efficiencies and improved cost structures, which helped mitigate the impact of declining revenue. Despite the revenue drop, strong margin expansion and effective cost control measures contributed to higher earnings.
Growth Factors Behind Profitability
- Operational Efficiency – The company has optimized its operations to reduce costs and improve project execution timelines.
- Better Margin Management – The rise in EBITDA and profit margins indicates improved pricing power, project efficiencies, and cost control mechanisms.
- Diversified Revenue Streams – With involvement in roads, power, and renewable energy projects, Ashoka Buildcon has created a diversified revenue model that helps balance risks.
The Q3 FY25 earnings highlight Ashoka Buildcon’s strong financial position and strategic execution capabilities, positioning it well for future growth.
Company’s Expansion in Green Hydrogen Projects
Apart from infrastructure and power transmission projects, Ashoka Buildcon is also expanding into green hydrogen production as part of its diversification strategy.
In December 2024, the company announced plans to invest ₹9,000 crore in setting up a green hydrogen plant in Bihar.
Key Details of the Green Hydrogen Project
- The company signed a Memorandum of Understanding (MoU) with the Bihar government during the Bihar Business Connect 2024 event.
- The project aims to develop a 1,250 MW solar power plant, which will be used to generate green hydrogen through electrolysis.
- The first phase of the plant is planned in Begusarai, Bihar.
- Ashoka Buildcon’s COO-Renewable Energy, Mayank Sharma, stated that the company is focusing on clean energy solutions to support India’s transition to renewable energy.
This major investment in renewable energy aligns with India’s ambitious goal of achieving carbon neutrality and reducing dependence on fossil fuels.
The green hydrogen project is expected to:
✔ Boost India’s clean energy production.
✔ Support industrial applications and hydrogen-based fuel adoption.
✔ Create new business opportunities in the renewable sector.
With this move, Ashoka Buildcon is diversifying its business beyond highways and infrastructure into the fast-growing green energy space.
Ashoka Buildcon Share Price Performance
The Ashoka Buildcon share price on the National Stock Exchange (NSE) has shown a positive trend over the past year.
- Stock Performance (Past 12 Months): The stock has rallied nearly 9% over the last year, reflecting investor confidence in the company’s growth prospects.
- Factors Driving Stock Momentum:
- Strong financial performance and profit growth.
- New order wins, including the ₹312 crore MSETCL contract.
- Expansion into green energy and renewable hydrogen production.
With a strong order book, improving margins, and new business initiatives, Ashoka Buildcon remains a key stock to watch in the infrastructure and renewable energy sectors.
Conclusion
Ashoka Buildcon’s latest ₹312 crore contract win from MSETCL marks another milestone in the company’s expanding portfolio in power infrastructure projects.
Despite a decline in revenue, the company’s strong profitability in Q3 FY25, along with its strategic expansion into green hydrogen, demonstrates its commitment to growth, diversification, and operational excellence.
With a positive stock performance and a strong project pipeline, Ashoka Buildcon continues to be a major player in India’s infrastructure and energy sector.
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