Ashoka Buildcon is a builder that turned itself into a factory for infrastructure assets - it designs, constructs, commissions, and then systematically sells roads, power lines, and buildings, recycling the proceeds to start again. Founded in 1976 by Chairman Ashok Katariya and shaped over four decades by Managing Director Satish Parakh, the company has grown from a Nashik-based contractor into a Fortune India 500 group operating across 22 states, with over 14,000 lane-kilometers of highways built and 30,000 villages electrified. Its recurring approach is to bid for government EPC contracts, build the asset, and - where it holds a concession - sell the completed, revenue-generating project to a financial investor, a cycle it has demonstrated with toll roads, city gas distribution, and annuity-based highway portfolios. # Business segments Three engines drive the group - a road-construction core that generates the bulk of activity, a power-transmission business that provides a second large-scale EPC stream, and a portfolio of road concessions that turns construction output into recurring annuity and toll income before being sold to recycle capital. ## 1. Road construction: the group’s main engine **Building highways, expressways, and bridges for government clients on fixed-price contracts is the activity that consumes most of the company’s people, equipment, and working capital.** - **Paid to build, not to own** - the company wins competitively-bid contracts from NHAI, state road corporations, and other government bodies, then executes everything from design to final surfacing, with cement, bitumen, steel, and fuel making up roughly 30-35% of construction costs. - **Speed is a competitive weapon** - it has set construction records such as laying 12,765 tonnes of bituminous material in 64 hours non-stop on the Bundelkhand Expressway, and completed India’s first 8-lane extra-dosed cable-stayed bridge across the Narmada in 33 months despite floods and the pandemic. - **Price shocks are shared with the customer** - contracts include price escalation clauses, and the company supplements these with bulk purchasing, forward booking of materials, and proactive vendor development to protect its margins when commodity prices swing. - **The order book is deep but lumpy** - road EPC made up 46.3% of the total order book as of March 2026, worth INR 7,084 crores, and contributed half of standalone revenue in the final quarter of the year. ## 2. Power transmission and distribution: the second EPC pillar **Stringing high-voltage lines and building distribution networks for state electricity boards provides a large, multi-year revenue stream that balances the road-focused portfolio.** - **A rural-electrification track record** - the company has illuminated 30,000 villages through its power T&D work, executing projects across a dozen states from Maharashtra to Assam. - **One state, many contracts** - in a single year, it won INR 2,930.72 crores of power T&D work from Maharashtra’s state electricity distribution company alone, spread across multiple circles and zones. - **Cash arrives slowly** - the segment has a distinctive working-capital rhythm: 20% of the contract value is paid only when the project is operationalised, which usually takes two years, and a further 10% is held as retention money for up to five years. - **The backlog has grown substantially** - the power T&D order book stood at INR 4,627 crores as of March 2026, up from INR 2,258 crores four years earlier, making it the second-largest segment by committed work. ## 3. Road concessions: the asset-recycling machine **The company builds highways under government concession models, collects annuity or toll income while it operates them, and then sells the project companies to infrastructure funds - turning construction profits into lump-sum capital gains.** - **Two models, one logic** - under the Hybrid Annuity Model (HAM), it receives fixed biannual payments from NHAI for 15 years after construction; under the older BOT-Toll model, it collects tolls directly from road users over a 20-to-30-year concession. - **Sold, not just built** - during FY26 alone, the company monetized 10 HAM and BOT projects, including the sale of five HAM special-purpose vehicles to Epic Concesiones and Infrastructure Yield Trust for INR 1,146 crores, and five BOT toll-road companies to Maple Infrastructure Trust for INR 1,814.42 crores. - **One toll road still throws off cash** - the Jaora-Nayagaon project, a 511-kilometer highway in Madhya Pradesh, collected INR 304.3 crores in gross tolls during FY26, with quarterly collections up 16% year-on-year. - **Annuity payments are locked in** - the Chennai Outer Ring Road project receives 35 biannual payments of INR 119.97 crores each, providing a visible, government-backed income stream for years to come. # Group structure and partners **The company operates through a parent EPC contractor and a web of project-specific subsidiaries, with financial investors and infrastructure trusts as the repeat buyers of its completed road assets.** - **Ashoka Concessions Limited is the road-holding arm** - formerly co-owned with Macquarie and SBI infrastructure funds, it was bought out in stages during FY26 for an aggregate cash consideration of INR 1,526 crores, making it a wholly owned subsidiary that now bids for NHAI concessions on a BOT, TOT, and HAM basis. - **Viva Highways holds the toll-road stake** - this wholly owned subsidiary acquired the 26% minority interest in the Jaora-Nayagaon toll road from the Macquarie-SBI funds for INR 166.60 crores, lifting the group’s aggregate stake to 61.17%. - **International work runs through a Saudi subsidiary** - Ashoka Buildcon Limited for Contracting, a wholly owned entity in the Kingdom of Saudi Arabia, bids on overseas projects, including a joint venture for the Diriyah-1 hotel package where Ashoka holds a 49% stake. - **Renewable energy is housed under a holding company** - 16 wholly owned renewable-energy subsidiaries were consolidated under Unique Hybrid Renewables Energy Private Limited in April 2025, while a 51% stake in another entity was sold to Sunbreeze Renewables, a specialist asset manager overseeing over 3,000 MW of renewable capacity.