A Goldman Sachs-backed infrastructure stock has come into sharp focus as it sets an ambitious target of securing order inflows worth Rs.20,000–Rs.25,000 crores in FY26. This bold projection signals strong business momentum and renewed investor interest, positioning the company as a key player in India’s rapidly evolving infrastructure landscape.
During Friday’s trading session, shares of Afcons Infrastructure Ltd were closed at Rs. 441 apiece, down 1.28 percent from its previous closing price of Rs. 446.70 apiece.
Orderbook Guidance
For FY26, Afcons Infrastructure is aiming for a top-line growth of 20 percent to 25 percent, supported by strong order inflows. The company targets new order bookings in the range of Rs.20,000–Rs.25,000 crores, excluding L1 orders.
Afcons currently holds over Rs.10,500 crores worth of L1 orders. The company expects the conversion of several key projects early in the year. These include letters of acceptance for two Pune Ring Road projects totaling Rs.4,788 crores and a Rajasthan water supply project worth Rs.427 crores. Additionally, two Nagpur-Gondia projects are also expected to move forward in the first quarter of FY26.
In addition to targeting strong top-line growth, Afcons Infrastructure aims to maintain healthy EBITDA margins in FY26. While the company had earlier guided margins above 11 percent and delivered approximately 12.8 percent last year, it continues to maintain guidance of over 11 percent for the current year. Despite facing a temporary slowdown, Afcons remains optimistic about sustained infrastructure demand both in India and globally.
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Domestic and International Expansion
On the domestic front, Afcons anticipates a rise in investments aligned with the government’s infrastructure agenda, particularly in border infrastructure, road and tunnel connectivity, and the hydro sector. With its diversified capabilities and strong execution record, the company is well-positioned to contribute meaningfully to India’s strategic and infrastructure development goals.
Internationally, Afcons is exploring emerging opportunities in key focus regions such as Africa and neighboring countries. While it has consciously scaled back its exports in the broader Middle East, the company is now selectively pursuing projects in Saudi Arabia and Dubai, collaborating with strong local partners to leverage favorable market conditions.
Financial Performance
According to its recent financial updates, Afcons Infrastructure Limited reported a consolidated revenue of Rs.3,223 crores in Q4 FY25, marking a decline of approximately 11.4 percent compared to Rs.3,636 crores in Q4 FY24. However, revenue grew marginally by around 0.4 percent on a sequential basis from Rs.3,211 crores in Q3 FY25.
The company’s net profit stood at Rs.111 crores in Q4 FY25, reflecting a decline of nearly 23.5 percent from Rs.145 crores in Q4 FY24, and a sequential drop of about 25.5 percent compared to Rs.149 crores in Q3 FY25.
The company has a Return on Capital Employed (ROCE) of 12.9 percent and a Return on Equity (ROE) of 9.25 percent. Its Price-to-Earnings (P/E) ratio stands at 32.01, higher than the industry average of 19.94. Furthermore, the company maintains a current ratio of 1.71, a debt-to-equity ratio of 0.45, and an Earnings Per Share (EPS) of Rs.13.24.
Written by – Siddesh S Raskar
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