Ashoka Buildcon Ltd Management Discussions

FORWARD LOOKING STATEMENT

This report may contain forward looking statements, which describe the Companys objectives, projections, estimates, expectations or predictions within the applicable Securities Laws and Regulations. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information or events.

INDIAN ECONOMY

Indias economic landscape in 2025 reflects a combination of resilience and emerging challenges.

According to projections by the International Monetary Fund (IMF), Indias real GDP growth is expected to reach 6.2% this year, making it the fastest-growing major economy in the world. This growth is driven by strong private consumption especially in rural areas and continued public investment in infrastructure and manufacturing.

Significantly, India has overtaken Japan to become the worlds fourth-largest economy, with a nominal GDP of $4.18 trillion. However, global uncertainties such as trade tensions and geopolitical risks have prompted Moodys to revise Indias growth forecast for 2025 slightly downward to 6.3%. On the domestic front, the Reserve Bank of India (RBI) has taken a cautious approach to monetary policy in its efforts to balance growth with inflation control.

In June 2025, the Reserve Bank of India (RBI) cut the repo rate by 50 basis points, bringing it down to 5.50%. It also changed its policy stance to "accommodative" to help boost the economy. This was the biggest rate cut since March 2020, when emergency steps were taken during the COVID-19 pandemic. The RBI also lowered the Cash Reserve Ratio (CRR) by 100 basis points to 3%. This means banks can now lend more money, which is expected to support growth during uncertain global conditions. Before this, the RBI had already cut the repo rate by 25 basis points in both February and April 2025. So far this year, the total rate cut has been 100 basis points. These decisions show that the RBI is trying to support the economy as inflation is easing and global risks remain. To support liquidity, the RBI has injected substantial capital into the banking system, aiming to lower interbank lending rates and boost credit growth.

Despite these efforts, the Indian rupee has shown signs of volatility. Analysts anticipate further depreciation in the months ahead, influencedby expected rate cuts and a reduction in RBIs intervention in the currency markets.

Indias medium- to long-term economic outlook remains promising, supported by ongoing structural reforms, rapid advancements in digital infrastructure, and a focus on inclusive development.

Key sectors such as renewable energy, manufacturing, and technology are poised to drive future growth.

Nonetheless, several risks persist. These include global geopolitical instability, potential disruptions in supply chains, and domestic concerns like an uneven rural recovery and climate-induced agricultural challenges.

Sustaining Indias growth momentum will require continued policy support, prudent macroeconomic management, and targeted interventions to mitigate both external and internal risks.

Source: https://pib.gov.in/PressReleasePage. aspx?PRID=2123826&utm_source https://timesofindia.indiatimes.com/business/india-business/ moodys-cuts-indias-2025-gdp-growth-forecast-to-6-3-amidst-trumps-trade-tariff-uncertainty-india-pakistan-tensions/ articleshow/120923531.cms?utm_source https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=1545 73&ModuleId=3#:~:text=Policy%20repo%20rate%20is%20 being,per%20cent%20with%20immediate%20effect.

INDUSTRY OVERVIEW

Indias infrastructure sector is very important for the countrys economic growth. It helps create jobs, supports businesses, and makes India more competitive in the world. The government has been focusing strongly on this sector, which has led to large investments, faster upgrades, and important changes in areas like roads, railways, energy, city infrastructure, and logistics.

Several key government programs are helping plan and complete projects more quickly. These include the National Infrastructure Pipeline (NIP), the PM Gati Shakti Master Plan, and the Jal Jeevan Mission. Together, they aim to build a more connected and efficient India.

One of the biggest changes is happening in Indias road network. Roads are the backbone of the economy because they connect people, goods, and markets. Over the last ten years, the government has invested heavily to expand national highways to more than 146,000 kilometers. This helps goods move faster across states and makes travel easier. Big expressway projects like the Delhi-Mumbai and Bengaluru-Chennai corridors, as well as the Bharatmala Pariyojana, are improving how goods are transported, saving time and costs.

Recently, the government approved new National High-Speed Road Corridor projects that cover 936 kilometers, with a budget of INR 50,655 crores. These roads will reduce traffic congestion and improve connectivity across the country. Modern technology like GNSS-based toll collection and the use of FASTag (an electronic toll payment system) is making travel smoother and helping collect tolls more efficiently.

As cities grow quickly and people demand better infrastructure, the government is focusing on building sustainable and high-quality projects. Future plans include more partnerships between the government and private companies (called PPP models), selling or leasing government assets to raise money (asset monetisation), and using digital technology to manage infrastructure better.

Looking ahead, India is pushing for developments in electric vehicles, green highways, high-speed trains, and smart cities. These efforts support Indias long-term goal of becoming a developed and modern nation by 2047, a vision called "Viksit Bharat @ 2047." https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=151963 &ModuleId=3&reg=3&lang=1 https://www.news18.com/india/delhi-mumbai-expressway-1136-km-of-total-1386-km-ready-oct-2025-final-deadline-govt-tells-parliament-8985751.html?utm

Highways

India continues to have the worlds second-largest road network, with National Highways stretching over 146,195 kilometers. These highways are essential for transportation and play a big role in driving the countrys economy.

In the last 10 years, the National Highway network has grown rapidly. It increased by more than 60%, from about 91,287 kilometers in 2014 to over 146,000 kilometers today. There has been a big focus on building high-capacity roads, including high-speed corridors, which grew from just 93 kilometers to 2,474 kilometers. Similarly, the length of four-lane or wider highways more than doubled, helping to improve road quality and traffic flow.

In the financial year 2024-25, the National Highway Authority of India (NHAI) built 5,614 kilometers of highways. Although this is good progress, the speed of building and awarding new projects slowed down a bit due to longer election periods and delays in starting new work.

Looking ahead to 2025-26, the Ministry of Road Transport and Highways (MoRTH) plans to speed things up, aiming to build 10,000 to 10,500 kilometers of highways. About 30% of this work will focus on upgrading existing roads, not just building new ones. The government is also prioritizing development in underdeveloped areas, with special targets of 1,100 kilometers in the North-Eastern states and 750 kilometers in tribal regions. There is also a big plan to create a 5,800-kilometer high-speed corridor network to improve travel across the country.

To fund these projects, NHAI is using different methods to raise money, including Toll Operate Transfer (TOT), Infrastructure Investment Trusts (InvITs), and toll securitization. In 2024-25, they raised INR 28,724 crore this way, including a record INR 17,738 crore from one InvIT round. Monetisation of highways is becoming a key way to get funds, with a target of INR 30,000 crore for 2025-26. NHAI has already identified 24 highway assets covering 1,472 kilometers for monetisation next year. The government also wants private companies to invest more in highway projects. For 2025-26, the goal is to attract INR 35,000 crore from the private sector through Build-Operate-Transfer (BoT) projects, mainly for multi-lane and expressway projects. Around 30% of all highway projects awarded are expected to be developed through Public-Private Partnerships (PPP), helping to speed up construction and improve quality.

The government is also focusing on high-speed corridors, using digital tools to monitor projects better, simplifying approval processes, and offering strong policy support to improve how fast and efficiently highways are built.

Looking to the future, under its Vision 2047 plan, MoRTH aims to build 50,000 kilometers of access-controlled highways. These highways will mostly be 4 to 8 lanes wide, making travel faster and safer. While the annual growth in highway length might slow compared to recent years, the focus will be on building better, high-quality roads.

NHAI remains committed to creating world-class highway infrastructure that will boost Indias economy and development. The expanding road network will continue to be a key driver of progress, helping to connect people, businesses, and markets across the country.

Source: HSCs- High Speed Corridors https://nhai.gov.in/nhai/sites/default/files/2025-04/NHAI_ Press_Release-NHAI_Achieves_Robust_Growth_in_National-Highway_Construction_During_FY-2024-25.pdf https://www.financialexpress.com/business/infrastructure-highway-construction-target-for-fy26-set-at-10000-km-3788468/ https://www.livemint.com/industry/centre-3-000-km-access-controlled-highways-fy26-30-000-crore-monetisation-nhai-11739692854102.html https://www.livemint.com/news/india/india-highway-c o n s t r u c t i o n - f y 2 5 - i n d i a - h i g h w a y - c o n s t r u c t i o n -slowdown-highway-strengthening-projects-india-morth-highways-11743482086219.html https://www.financialexpress.com/business/infrastructure-nhai-surpasses-fy25-construction-target-by-9-3796727/

Continued Growth Momentum in Toll Collections

In the financial year 2025 (FY25), Indias toll collections reached an all-time high of INR 72,931 crore, showing a strong growth of 12.5% compared to the previous year. This increase happened because more vehicles are using the highways, toll rates were raised to keep up with inflation, and new toll roads were added to the network. These changes have helped improve connectivity and made travel across the country smoother and more To make paying tolls easier and faster, the government is rolling out a new system called GNSS-based Electronic Toll Collection. This system uses satellite technology to automatically deduct toll charges without the need for physical toll booths or barriers. This will help reduce traffic congestion at toll plazas and make sure toll collections are more accurate by preventing evasion. By introducing GNSS-based tolling, India is modernizing its transport infrastructure. This technology will make journeys faster and more convenient for travelers while supporting the countrys goal of building a more efficient and transparent road network.

(Source: https://nhai.gov.in/nhai/sites/default/files/2024-06/

Press_Release_GNSS_EOI.pdf https://economictimes.indiatimes.com/news/economy/ infrastructure/toll-mopup-rises-12-5-in-fy25-to-an-all-time-high/articleshow/119954601.cms?from=mdr https://indianexpress.com/article/india/with-up-rajasthan-gujarat-topping-the-user-fee-listing-fy25-toll-collection-headed-for-a-new-record-9921084/ )

Railways

Indias railway system is going through a major transformation focused on modernization, safety, and increasing capacity. The government is working hard to develop faster trains, including semi-high-speed and high-speed rail corridors, while also upgrading railway stations to make them more comfortable and efficient for passengers. At the same time, efforts are being made to improve freight services, helping goods move faster and more reliably across the country.

One of the biggest highlights is the expansion of the Vande Bharat trains, which are modern, fast, and made in India. New routes for these trains are being introduced to connect important cities and regions better. Another important step is electrifying the railway tracks. More than 98% of Indias broad-gauge railway lines are now electrified, which helps reduce pollution and supports the countrys goal of greener, more sustainable transportation.

In the governments Union Budget for 2025 26, a large amount of INR 2.52 lakh crore was allocated to the Ministry of Railways. This money will be used for building new railway lines, doubling existing tracks to handle more trains, and completing electrification projects. The budget also supports installing modern signalling systems, which improve train safety and make railway operations more efficient Overall, these investments and upgrades aim to create a faster, safer, and more environmentally friendly railway network that meets the needs of passengers and businesses, helping India grow and connect better than ever before.

(Source https://pib.gov.in/PressReleasePage aspx?PRID=2098714 https://pib.gov.in/PressReleasePage.aspx?PRID=2115511)

Water Sector

Indias rapid urbanisation and growing population have significantly increased the demand for sustainable water and wastewater management solutions. With rising environmental regulations and the need to restore river ecosystems and bring back lost glory, Municipal and Industrial bodies are increasingly investing in advanced treatment technologies. The wastewater treatment market in India is projected to grow at a robust pace, driven by government initiatives such as the Namami Gange programme, river rejuvenation projects, and Smart City missions.

Ashoka Buildcon continues to strengthen its presence in this high-potential segment through its expertise in designing and executing complex projects on a Design-Build-Operate (DBO) model. Our current engagement on the Poisar River project exemplifies this capability, where we are delivering modern, fully automated modular sewage treatment plants based on MBR technology, laying sewer networks, and integrating interceptors to improve water quality and river health. The scope includes 15 years of operations and maintenance, ensuring long-term efficiency and compliance with stringent environmental norms. Looking ahead, we see wastewater management not just as a business opportunity, but as an essential pillar of sustainable urban development. With growing emphasis on smart monitoring, decentralised treatment, and energy-efficient processes, Ashoka Buildcon is poised to play a pivotal role in shaping next-generation water infrastructure. Our strategic focus remains on leveraging advanced technologies, driving operational excellence, and delivering solutions that balance cost efficiency with environmental responsibility. As cities grow and water scarcity intensifies, our goal is to create resilient, future-ready systems that safeguard public health and restore natural water bodies.

Airport Sector

Indias aviation industry is growing very quickly. Domestic air travel is expected to double by 2030, thanks to a rising middle class, higher incomes, and continuous improvements in airport and airline infrastructure. Because of this fast growth, India is also becoming an important player in international air travel and is expected to be the fifth-largest market for outbound tourism by 2027. This means many more Indians will be traveling abroad in the coming years.

One of the main reasons for this growth is the governments UDAN scheme, which aims to make air travel affordable and improve connectivity in smaller cities and towns. Under this program, 619 new flight routes have started, connecting 88 airports across the country. The government also plans to build 50 new airports in the next five years and link 120 more destinations within the next ten years to reach more people and places.

To support all these developments, the National Infrastructure Pipeline (NIP) has set aside more than INR 91,000 crore for building and upgrading airport infrastructure between 2019 and 2025. By November 2024, about INR 82,600 crore of this amount had already been spent, showing strong government commitment to modernizing airports and making air travel more convenientandefficient for everyone Overall, Indias aviation sector is on a path of rapid expansion, improving travel options for millions, boosting tourism, and helping connect the country better than ever before.

(Source: https://pib.gov.in/PressReleaseIframePage. aspx?PRID=2123537)

Union Budget Highlights for the Infrastructure Sector

The Union Budget for the financial year 2025 26 presents a clear plan to boost Indias economic growth, with infrastructure development playing a major role in achieving the long-term goal of Viksit Bharat 2047.

A large amount of INR 11.21 lakh crore has been set aside for capital spending. This money will be used to improve important sectors like transportation, energy, urban development, and water supply. The goal is to make the country more connected, enhance public services, and increase overall productivity in the economy.

Out of this, the Ministry of Road Transport and Highways (MoRTH) has been given INR 2.72 lakh crore for the year, which is about the same as last year. Even though the budget hasnt increased, this funding will help continue building and expanding highways and expressways. This is important, especially because rising interest rates and higher land costs make these projects more expensive. Within this, INR 1.87 lakh crore is allocated specifically to the National Highways

Authority of India (NHAI), which is a 10% increase from last years amount.

To raise more money for infrastructure projects, the government has introduced a new asset monetisation plan for 2025 to 2030.

The plan aims to generate INR 10 lakh crore by selling or leasing existing government assets. This follows the success of a similar plan started in 2021. Also, ministries related to infrastructure are required to prepare a detailed three-year plan for projects under public-private partnerships (PPP), where private companies work with the government. States will get incentives, including INR 1.5 lakh crore in 50-year interest-free loans, to spend on important projects and reforms.

The government continues to prioritize key initiatives such as the National Infrastructure Pipeline (NIP), the PM Gati Shakti Master Plan for integrated development, and the Jal Jeevan Mission (JJM) to provide clean drinking water to rural homes. The budget increases funds for JJM to achieve 100% access to safe water in villages.

To improve air travel in smaller cities and regions, a revised UDAN scheme has been announced. This plan aims to connect

120 new destinations and serve around four crore passengers over the next ten years. Special attention will be given to improving connectivity in hilly areas, remote districts, and the Northeast through new helipads and smaller airports. In Bihar, the government plans to build new greenfield airports, expand the existing Patna airport, and develop a new brownfieldairport. This shows a comprehensive effort to strengthen infrastructure both regionally and nationally.

Source:https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/technical/alerts-hub/documents/2025/ey-union-budget-2025-alert-infra-sector.pdf

1. COMPANY OVERVIEW

1.1. Business Overview for the Fiscal Year 2024 – 25

During FY25, the Company recorded a decline in revenue of ~8% on a standalone level whereas the higher increase in operating expenses impacted the profitability. As of 31^st March 2025, EBITDA stood at Rs.673 Crores with EBITDA margin of 9% and Profit After Tax stood at Rs.197 Crores with PAT Margins at 2.74%.

Total Order Inflowduring the year FY25 stood at Rs.7,874.60 Crore, where roads and bridges comprised of Rs.7,417.57 Crore and Power T&D Project worth

Rs.457.03 Crore. a. Updates on Asset Monetization

Asset monetization program continues to substantiate the Companys full cycle credentials and efficient use of capital to develop, construct, commission, operate and sale of investments. The improvement in the overall business environment also helped your Company in its efforts for monetizing some of its assets.

Further, divestment of road project SPVs will facilitate successful exit to financial investor of Ashoka Concessions Limited, a subsidiary of the Company and efficient release of capital. Currently the Company is pursuing sale of HAM projects, toll projects & annuity projects of National/state highway authorities. b. Project Updates

The updates on the Projects won and other developments as regards the Projects undertaken by the Company and its subsidiaries are covered in the Boards Report. c. Order Book

The Company had an order book of Rs.14,905 Crore as on March 31, 2025. The breakup of order is, the roads and railway project are Rs.10866.54 Crores, which is 73% of the total order book. Among the road projects, HAM projects are to the tune of Rs.1859 Crores and EPC road projects are Rs.8687.44 Crore and railway is around Rs.320 Crore.

Power T&D is to the tune of Rs.3002.05 Crore which is approximately 20% of the total order book.

The total EPC building segment is Rs.420.30 Crores, which is 3% of the order book. The Companys focus would always remain on maintaining a sustainable EPC business in segments encompassing highways, railways, power generation, transmission & distribution and buildings as well. d. Innovation, Quality, Safety and Environment

The Company continues its focus on the latest technology, innovative construction practices as well as ensuring high quality in its entire work. Your Company is also conscious of the threat posed by global warming to our planet and therefore takes its responsibility towards the sustainable construction.

Your Company is very much sensitive and concerned about the health and safety of all its employees and other stakeholders. QHSE Policy and procedure have been framed and are implemented at all Project sites and offices The Company is dedicated to adopting internationally recognised best practices and adhering to all relevant health, safety and environmental regulations across its operations. It ensures compliance with occupational health and safety laws, regulations and contractual obligations concerning the wellbeing of employees and subcontractors at project sites and manufacturing facilities. The Company identifiesincident reporting and investigation as an integral step to understanding the potential areas of improvement.

In this regard, your Company has the following accreditations: Integrated Management System comprising of

Certification of ISO 9001: 2015, ISO 14001: 2015 and ISO:45001:2018 Quality Management System ISO:9001:2015 Environmental Management System ISO 14001: 2015; Occupational Health and Safety Management System; ISO:45001:2018; and

Green House Gases Monitoring and Measurement and planning for reduction management system ISO

14064.1:2006 & ISO 14064.2:2006 e. Resources and Liquidity

The finance cost had increased due to higher usage of bank credit limit, interest bearing Mobilization Advance from clients, though decrease in interest rate as compared to previous year. The total consolidated project debt of various subsidiaries of the Company (road project SPVs developing & managing road concessions for NHAI and state authorities) stood at Rs.6796 Crore as on March 31,

2025.

The Interest cost have gone up due to increased borrowing but due to a proper mix of products like Working Capital Demand Loans, Supply Chain Finance, Commercial Papers, NCDs and Corporate Credit Cards have kept the cost at reasonable levels. The Company is comfortable in sourcing for the funding of the ongoing and upcoming projects.

The Long Term rating of the Company is ‘AA/Stable by Acuite and ‘AA- / Negative by CRISIL. The Company is thereby comfortably placed in its working capital financing. f. Challenges and Risks (a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk interest rate risk, currency risk and product / commodity price risk. Financial instruments affected by market risk include borrowings, trade and other payables, security deposit, trade and other receivables, deposits with banks etc. i. Interest rate risk: The Companys activities exposed to interest rate risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In addition, an increase in interest rates may adversely affect ability to service long-term debt and to finance new projects, all of which in turn may adversely affect results of operations. The Company dynamically manages interest rate risks through a mix of fund-raising products and investment products across maturity profiles and currencies within a robust risk management framework. ii. Foreign currency risk: The functional currency of the Company is Indian Rupees. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companys exposure to the risk of changes in foreign exchange rates is very less and relates primarily to the Companys creditors for capital expenditures. The Company regularly monitors

Foreign Currency exposure and movement in forex rates for appropriate decision. The

Company has approved Forex Hedging Policy. iii. Commodity Price Risk: While executing certain projects, the Company has to buy material which contains precious metals i.e. aluminum, copper, etc. For the same, the Company is able to manage its exposure to price increases in project materials through bulk purchases and better negotiations and hedging wherever possible. The company proactively manages these risks through forward booking, inventory management and proactive vendor development practices.

The risk of price fluctuations in commodities is also mitigated to certain extent based on the price escalation clause included in the contracts with the customers and through commodity hedging.

(b) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. The Company constantly monitors the liquidity levels, economic and capital market conditions and maintains access to the lowest cost means of sourcing liquidity through banking lines, trade finance and capital markets. In addition, processes and policies related to such risks are overseen by senior management.

(c) Regulatory Risk

The Company executes various Projects across the

Country and hence the Company is exposed to risks attached to various statutes, laws and regulations of various states. The Company is mitigating these risks through regular review of legal compliances carried out through internal control and audits and advise from various experts in respective fields.

(d) Human Resource Risk

Retaining the existing talent pool and attracting new talent are major risks. The Company has initiated various measures including training and integration of learning and development activities. The Company has formulated various schemes in the interest of the employees. g. Internal Control and its adequacy

At Ashoka Buildcon Limited, Internal Controls are a key pillar for compliance of Corporate Governance. It operates through ERP system SAP and has implemented adequate internal controls, which safeguard the Companys resources and ensures efficiency in monitoring systems, and compliance with applicable laws and regulations.

The Company has well-placed function-wise detailed internal control system, and that the transactions are authorized, recorded and reported correctly. The Companys internal financial control framework commensurate with the size and operations of the business and is in line with requirements of the Companies Act, 2013. A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone and consolidated financial statements for external purposes in accordance with generally accepted accounting principles. Internal control systems are aligned to prevent frauds and errors, if any.

A companys internal financial control over financial reporting includes following policies and procedures: Maintenance of records accurately and fairly; provides reasonable assurance that transactions are recorded as necessary to permit preparation of standalone, consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization of matrix approved by management.

provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements. The Management have approved, adopted and implemented various policies, documents/standard operating procedures which assist the various departments of the Company in ensuring accountability, accuracy, controls and transparency within the organization. The Audit Committee periodically reviews the adequacy of the internal control systems and provides direction and guidance.

The internal audit plan is approved by Audit Committee which covers more than 80% of expected annual business every year. The Audit Plan includes a combination of audit of internal control systems and operational audits. Audit of internal control system focuses on the adequacy of internal controls in the Company and also the reporting system in various functional areas like Procurement, Project execution & Billing, Construction Equipment and vehicles, accounts, human resource, administration and other departments. The audit of information technology general control (ITGC) is also done every year by Internal auditors and Statutory auditors of the Company.

The findings of the Internal Audit and Internal Control system are shared by internal auditors with the Audit Committee by way of presentation. The Audit Committee has expressed its satisfaction with the adequacy of the

Internal Control systems and procedures of the Company for monitoring these systems.

Whistle-blower mechanism, an important element of the internal control system, encourages the directors and employees to report genuine concerns, misconduct, or fraud without any fear of unfair treatment or punishment with direct access to the Chairman of the Audit Committee in appropriate and exceptional cases. h. Human Resource Management

The Human Resource Department is dynamic and there have been developments and emerging practices followed by HR Dept. Further there have been addition of new verticals in the organization creating more business opportunities. The Human Resource Department of the Company has significantly invested in its employer brand to attract and retain top talent and is focused on communicating the

Company culture, values, and employee value proposition to differentiate themselves and appeal to prospective candidates. For the Financial Year 2024-25, the Companys focus remained on attracting and retaining the right talent to support business objectives, improve governance, and foster an inclusive work culture.

Training and development delivered via virtual mode i.e. e-learning offers the chance to the organization to deliver training at far reduced cost than traditional methods which require physical space and provisions. However, extensive skill development programs are conducted for site supervisors and vehicle operators to enhance and upgrade their skill sets. Commitment to governance was demonstrated through comprehensive code of conduct training, ensuring ethical standards across all the Offices and Project sites.

Ashoka Buildcons Learning Environment (‘ABLE) offers several benefits, including flexibility to learners to access learning content at their convenience, pace, anytime and anywhere. The ABLE provides opportunities for individuals to update their skills and knowledge and allows our professionals to acquire knowledge in their domain. This platform incorporates multimedia elements such as videos, simulations, and interactive quizzes. These features make the learning process more engaging and enhance understanding by catering to different learning styles for up-skilling and reskilling of our employees. i. Financial Overview Standalone Financial Overview

All figures in Rs. Crore

Particulars	Fiscal 2025	Fiscal 2024
Revenue from Operations	7061.43	7726.66
Other Income	126.37	114.61
Total Income	7187.80	7841.27
Expenses
Cost of Material Consumed	2882.22	3442.99
Construction Expenses	3140.31	3263.23
Employee Benefits Expenses	240.46	233.05
Finance Expenses	296.35	228.06
Depreciation and Amortisation	98.20	104.64
Other Expenses	251.55	210.90
Total Expenses	6901.09	7482.87
Profit before exceptional items	278.70	358.40
Less -Exceptional Items	-	(216.64)
Share of Profitfrom Partnership
	0.20	0.43
Firms and AOPs
Profit /(Loss) before Tax	278.90	575.47
Tax Expense:	81.66	132.71
Current Tax	79.46	153.55
Deferred Tax	2.20	(20.84)
Add - Other Comprehensive
	(0.34)	0.02
Income
Profit for the year	197.24	442.78

Revenue from Operations

During the Fiscal 2025, on Standalone basis, your Company registered revenue from operations of Rs.7,061.43 Crore as against Rs.7,726,66 Crore in Fiscal 2024, showing a decrease of ~8.60% mainly due to lesser new bids floated by the Authority due to general elections during the period, delay in starting of execution in case of few new projects as planned due to delay in contract document execution, approval from clients for drawing, etc.

Other Income

Other income for the Fiscal 2025 stood at Rs.126.37 Crore as compared to Rs.114.61 Crore in Fiscal 2024, with increase of ~10%, mainly due to increase in interest income on loans given to Subsidiaries, Joint venture companies, Reversal of obligation towards Investor in Subsidiary.

Cost and Expenses

Cost of Material Consumed and Construction Expenses decreased by ~10% to Rs.6,022.53 Crore in Fiscal 2025 from Rs.6,706.22 Crore in Fiscal 2024, in line with reduction in revenue from operations. There is a pressure of increase in prices of material and cost of construction.

Employee Benefit Expenses

Employee Benefit Expenses increased marginally by ~3% to

Rs.240.46 Crore in Fiscal 2025 from Rs.233.05 Crore in Fiscal

2024, primarily on account of regular annual increments to existing staff.

Other Expenses

Other expenses increased to Rs.251.55 Crore in FY 2025 from Rs.210.90 Crore, by ~19%, mainly due to increase in provisioning for expected credit loss on account of increased working capital cycle and, travelling and other admin expenses. The other expenses mainly comprise of rent, rates and taxes, insurance, repairs and maintenance, traveling and conveyance, legal & professional expenses, CSR, donation etc.

Depreciation and Amortisation Expenses

Depreciation decreased by ~6% to Rs.98.20 Crore in Fiscal 2025 from Rs.104.64 Crore in Fiscal 2024, mainly due to lower capex as compared to previous year to the tune of Rs.90 Crore as compared to Rs.148 Crore in previous year.

Finance Costs

Finance costs increased by ~30% to Rs.296.35 Crore in Fiscal 2025 from Rs.228.06 Crore in Fiscal 2024. The finance cost comprises of interest on term loan, working capital loan, Commercial Papers, Non-convertible Debentures, bank guarantee charges and other borrowing costs. Finance cost has increased mainly due to increased working capital cycle on account of nature of projects where initially working capital requirement is more. The cost also increased due to increase in interest rates, increase in Interest on working capital loans and interest bearing mobilisation advances taken from client for execution of projects.

Exceptional Items

There are no exceptional gains/losses during Fiscal 2025 as compared to exceptional gain of Rs.216.64 Crore in Fiscal 2024 on account of profit on sale of investment in subsidiary company i.e. Unison Enviro Private Limited.

Key Financial Ratios - Standalone Financial Statements

Particulars	Fiscal 2025	Fiscal 2024
Current Ratio	1.82	1.43
Debt Equity Ratio	0.51	0.38
Debt Service Coverage Ratio	0.72	2.56
Interest Service Coverage Ratio	2.12	4.13
Inventory Turnover (No of Days)	50 days	39 days
Trade Receivable Turnover ratio	1.85	2.36
EBIDTA (%)	9.37%	8.81%
Net Profit Margin (%)	2.74%	5.65%
Return on Equity (excluding
	5.03%	6.30%
exceptional item)

Consolidated Financial Overview

All figures in Rs. Crore

Particulars	Fiscal 2025	Fiscal 2024
Revenue from Operations	10,036.63	9,798.46
Other Income	168.79	206.83
Total Income	10,205.42	10,005.29
Expenses
Cost of Material Consumed	2,978.69	3,591.96
Construction Expenses	3,371.66	3,217.13
Employee Benefits Expenses	446.18	438.68
Finance Expenses	1,245.31	1,310.39
Depreciation and Amortisation	289.71	366.63
Other Expenses	320.00	299.19
Total Expenses	8,651.55	9,223.98
Profit / (loss) from associate and
	0.91	(18.26)
joint venture
Less -Exceptional Items	-	(106.92)
Profit /(Loss) before Tax	1,554.78	869.97
Tax Expense:
Current Tax	282.94	261.34
Deferred Tax	(461.73)	87.40
Add - Other Comprehensive
	1.37	0.15
Income
Profit for the year	1,734.94	521.38

Revenue from Operations

During the Fiscal 2025, on a consolidated basis, your Company registered revenue from operations of Rs.10,036.63 Crore as against Rs.9,798.46 Crore in Fiscal 2024, showing marginal increase of ~2%, mainly due to increase in turnover of real estate business to Rs.715.39 Crore during the year as against Rs.424.10 Crore in previous financial year, whereas, turnover in Construction contract/BOT/ HAM projects was marginally decreased from Rs.9,374 Crore to Rs.9,321 Crore.

Other Income

Other income for the Fiscal 2025 stood at Rs.168.79 Crore as compared to Rs.206.83 Crore in Fiscal 2024, showing decrease of ~18%. The nature of other income primarily constitutes, interest income on deposits with banks, profit on sale of assets and investments etc.

Cost of Material Consumed and Construction Expenses

Cost of Material Consumed and Construction Expenses decreased by ~6.7% to Rs.6,350.35 Crore in Fiscal 2025 against Rs.6,809.09 Crore in Fiscal 2024. This cost has decreased proportionately in line with decrease in turnover.

Employee Benefit Expenses

Employee Benefit Expenses marginally increased to Rs.446.18 in Fiscal 2025 against Rs.438.68 Crore in Fiscal 2024, primarily on account of regular annual increments to the existing staff.

Other Expenses

Other expenses increased by ~7 % in Fiscal 2025 to Rs.320 Crore as compared to the previous financial year. The other expenses mainly comprise of rent, rates and taxes, insurance, repairs and maintenance, traveling and conveyance, legal & professional expenses, donation etc. Increase in cost is mainly due to provision of expected credit loss on receivables (Refer Note 54) and marketing & advertisement expenses.

Depreciation and amortisation expenses

Depreciation and amortisation expenses were decreased by 21% to Rs.289.71 Crore in Fiscal 2025 from Rs.366.63 Crore in Fiscal

2024, primarily on account of lesser addition of machineries, construction equipment, vehicles, etc. as new assets in fixed assets block and reduction in charge for license to collect toll as compared with previous year.

Finance Costs

Finance costs decreased by ~5% from Rs.1310.39 Crore in Fiscal 2024 to Rs.1245.31 Crore in Fiscal 2025, due to provision for repayment of obligation towards Investor in Subsidiary was not required during FY 2024-25 as compared with Rs.111.44 Crore in FY 2023-24. (Refer Note 65(i)).

The finance cost comprises of interest on term loan, working capital loan, bank guarantee charges, other borrowing costs and unwinding of discount on financial liabilities.

Exceptional Items

There was no Exceptional gain / loss in Fiscal 2025 as against exception gain / loss of Rs.106.92 Crore in FY2024.

Disclosure of Accounting Treatment

The Company has consistently followed a treatment that has been prescribed in Indian Accounting Standards in the preparation of financial statements and the same shows true and fair view of the financial statements.