MUMBAI
:
Main infrastructure participant Afcons Infrastructure Ltd is exploring alternatives within the Jap European and Balkan areas to offset a slowdown in enterprise from its standard abroad markets, together with Africa and India’s neighbouring nations.
The Shapoorji Pallonji Group firm had taken the same name earlier this 12 months to extend its presence within the profitable Center Jap market, albeit with native companions. It had to this point restricted its publicity to the area, citing unfavourable contract phrases.
Afcons is probably the most bullish on Saudi Arabia and the United Arab Emirates within the Center East. In Saudi Arabia, it established a 90:10 three way partnership firm with a neighborhood companion in July 2023, known as Afcons Contracting Co., to deal with native tasks.
In July, Afcons emerged because the lowest bidder for 3 tasks in Croatia, that are cumulatively price over ₹11,300 crore and are to be executed over 42-72 months. The corporate has but to be formally awarded the contracts, which it expects to obtain earlier than December.
These embrace the event of a railway line and the development of two stretches of a freeway challenge.
The corporate will likely be competing with key European, American and Turkish contractors energetic within the area.
For context, Afcons’ FY25 income was ₹12,548 crore with a revenue of ₹487 crore.
“As a worldwide EPC firm, we persistently discover new geographies to help development and danger mitigation,” mentioned Hitesh Singh, vice chairman and head, company technique, Afcons Infrastructure Ltd.
“Traditionally, our key worldwide enterprise has been in Africa and neighbouring areas. As a part of our abroad technique, amid some uncertainties in neighbouring areas and funding slowdowns in Africa, we proceed pursuing alternatives throughout areas like Jap Europe and the Balkans, in addition to choose prospects within the Center East.”
The corporate’s three bids in Croatia had been a part of this strategy, he added.
Turmoil within the neighbourhood
Afcons historically received about 30% of its enterprise from abroad, primarily from Africa and from India’s neighbouring nations. Nonetheless, the share of worldwide enterprise dipped in recent times amid a slowdown in enterprise from Africa. The political turmoil in India’s neighbourhood—with governments being toppled in Bangladesh and Nepal not too long ago and an financial slowdown in Sri Lanka—has additionally lowered enterprise visibility in these areas.
Paramasivan Srinivasan, managing director Afcons, mentioned in an earnings name on 8 August that the orders from Croatia and some extra worldwide orders will take the abroad share of the corporate’s pending order ebook to the acknowledged steering of 30% by the tip of FY26.
As of June 2025, solely 12% of the corporate’s ₹35,311 crore orderbook was from abroad.
The corporate is actively looking for new enterprise alternatives abroad. A 3rd of Afcons’ ₹3.4 trillion addressable challenge pipeline for the following two years was from worldwide orders, Srinivasan mentioned through the name. An addressable pipeline refers to tasks that the corporate plans to bid on within the close to future.
“Afcons is on observe for a stronger H2FY26, supported by conversion of huge L1 wins and ramp-up in fast-track tasks,” analysts at Elara Capital led by Ankita Shah famous on 9 August.
The corporate has supplied income development steering of 20-25% for FY26, with an anticipated ramp-up in execution within the latter half of the fiscal 12 months, as fast-track orders and key tasks are anticipated to realize momentum. This comes after its FY25 income was 5% decrease than the previous 12 months.
Afcons Infrastructure closed at ₹449.90 on the BSE on Friday. The scrip has misplaced practically 17% because the starting of the 12 months.
