Why Did Afcons Infra's Net Profit Drop 23% in Q1?
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Synopsis
Afcons Infrastructure Ltd has reported a significant 23% sequential decline in its net profit for Q1 FY26, despite a notable year-on-year increase. With revenues remaining stable and growing international orders, the company is navigating challenging market conditions. What does this mean for its future prospects?
Key Takeaways
- Net profit decreased by 23% QoQ
- 31% YoY growth in profit
- Total income stable at Rs 3,411.58 crore
- Expenses rose due to input costs
- Order book at Rs 35,311 crore
New Delhi, Aug 8 (NationPress) Afcons Infrastructure Ltd has reported a 23% decline in standalone net profit for Q1 of FY26, amounting to Rs 135.73 crore, a decrease from Rs 175.34 crore in Q4 FY25, as stated in an exchange filing on Friday.
In contrast, the company achieved a remarkable 31% year-on-year increase in its profit compared to Rs 103.62 crore in Q1 FY25.
Total income for Q1 FY26 remained relatively unchanged at Rs 3,411.58 crore, compared to Rs 3,379.66 crore in the previous quarter, signaling a 7% increase from Rs 3,185.69 crore during the same period last year.
Expenses rose to Rs 3,229.87 crore in the June quarter, up from Rs 3,131.19 crore in the January-March quarter and Rs 3,038.31 crore in Q1 FY25, reflecting the rising costs of inputs and project execution.
The firm’s order book stood at Rs 35,311 crore as of June 2025, and in the April-June period, orders worth Rs 1,093 crore were secured, according to the exchange filing.
Furthermore, the company has secured L1 status in three road and rail projects in Croatia valued at Rs 11,321 crore in July.
This quarter also marked the inauguration of the final segment of the Udhampur–Srinagar–Baramulla Rail Link with the opening of the Chenab Railway Bridge, where Afcons has played a pivotal role.
Subramanian Krishnamurthy, Executive Vice Chairman of Afcons Infrastructure Limited, stated, "Afcons Infrastructure has commenced the new fiscal year with favorable results, positioning us strongly for the remainder of FY26. Our profitability metrics reflect significant growth."
He added, "Our persistent efforts to penetrate European markets have paid off, as we have attained L1 status in several large orders in Croatia, aligning with our strategy to focus on major contracts and expand our international footprint."
Point of View
Afcons Infrastructure's performance reflects a broader trend in the infrastructure sector, where rising costs and market fluctuations present challenges. Yet, the company's ability to secure significant international contracts and maintain a stable revenue stream indicates resilience. As an industry leader, Afcons will likely continue to adapt and thrive amidst these dynamics.
NationPress
05/10/2025
Frequently Asked Questions
What caused the decline in Afcons Infra's net profit?
The decline was primarily attributed to rising expenses, which increased due to higher input costs and project execution outlays.
How does Afcons Infra's Q1 FY26 performance compare year-on-year?
Despite the sequential decline, Afcons Infra reported a 31% increase in standalone net profit compared to Q1 FY25.
What is the current order book value of Afcons Infra?
As of June 2025, Afcons Infra's order book stood at Rs 35,311 crore.
What major projects has Afcons Infra secured recently?
The company secured L1 status in three road and rail projects in Croatia worth Rs 11,321 crore.
What significant project was inaugurated in this quarter?
The final stretch of the Udhampur–Srinagar–Baramulla Rail Link was inaugurated, featuring the Chenab Railway Bridge.
