Ashoka Buildcon shares up 5% on ₹569 crore LoA from Central Railway

Shares of Ashoka Buildcon rose nearly 5 per cent on Wednesday after it received a Letter of Acceptance (LoA) from Central Railway for a ₹568.86 crore project involving gauge conversion and related civil works on the Pachora-Jamner section.

 

Ashoka Buildcon's stock rose as much as 4.8 per cent during the day to ₹207.6 per share. The stock trimmed gains to trade 1.7 per cent higher at ₹201.6 apiece, compared to a 0.17 per cent advance in Nifty50 as of 11:15 AM. 

 

The stock of the company extended its rally to the fourth day on Wednesday, a surge of over 20 per cent since its lows of 170 early this month. The counter has fallen 35 per cent this year, compared to a 2.9 per cent advance in the benchmark Nifty50. The company has a total market capitalisation of ₹5,649.55 crore, according to BSE data.  

 

 

Ashoka Buildcon bags LoA worth ₹568 crore

 

In an exchange filing on Tuesday, Ashoka Buildcon said that it was awarded a contract worth ₹568.86 for a railway infrastructure project under the Central Railway. It had earlier submitted a bid for the gauge conversion project involving a range of civil and track-related works. The project pertains to the gauge conversion of the Pachora-Jamner section, covering approximately 53.3 kilometres, excluding the Pachora yard and road over bridges.

 

The scope of the project includes construction of earth work, major and minor bridges, road under bridges, permanent way (P. Way) work and miscellaneous civil works, it said in the filing.  

 

Ashoka Buildcon Q3 results 

 

Ashoka Buildcon’s consolidated profit (attributable to the owners of the group) for the third quarter of the financial year 2025 (Q3 FY25) increased multiple times to ₹654.51 crore, against ₹96.24 crore in Q3 FY24, amid recognition of a deferred tax asset. 

 

The company’s revenue from operations, however, declined by 10.13 per cent year on year (Y-o-Y) to ₹2,387.9 crore. Its total expenses also declined by 15.23 per cent to ₹2,119.8 crore. As of December 2024, the company’s debt-to-equity ratio stood at around 2.18, against 3.65 at the end of Q3 FY24. 

 

About Ashoka Buildcon

 

Ashoka Buildcon is one of the leading highway developers in India. The company is an integrated  Engineering Procurement and Construction (EPC), Built Operate and Transfer (BOT) and Hybrid Annuity Model (HAM) player. It has constructed various prestigious projects across the country in the road and highway sectors.