India’s power grid is going through its biggest rebuild in a generation. Renewable capacity is being added faster than the wires that carry it, and the government has been handing transmission projects to private developers through competitive bidding to close that gap. For infrastructure companies, this opens a new lane.They no longer only build for others; they can bid for, own and run the substations and lines themselves.
Shares of Ashoka Buildcon Ltd were trading at Rs. 111.85, down 0.75 percent from previous close of Rs. 112.70. The stock opened at Rs. 112.25, reaching an intraday high of Rs. 112.40 and low of Rs. 111.45. The company currently has a market capitalization of Rs. 3,144 crores.
What’s the News?
Ashoka Buildcon Limited has signed a Share Purchase Agreement and acquired 100% equity in Sakoli Power Transmission Limited, a project SPV previously held by REC Power Development and Consultancy Limited. The company informed the exchanges on September 23, 2026. The SPV was formed in July 2025 to set up a new 400/220/132 kV AIS substation at Sakoli in Bhandara district, along with associated transmission lines, on a Build-Own-Operate-Transfer basis. The deal was done for Rs 3.06 crore in cash, which covers the share price, related expenses and the SPV’s liabilities till date.
The purchase follows the Letter of Intent Ashoka received on August 13, 2026 after a tariff-based competitive bidding process. Buying the SPV from REC was a condition of the bid, and Ministry of Power approval for the share transfer is already in place. The project’s annual transmission charges are Rs 126.54 crore (Rs 1,265.37 million), payable for 35 years. The commercial operation date is 24 months from the acquisition. The SPV is brand new, so it has no turnover history yet.
Financial & Business Analysis
Looking at the quarterly results of Ashoka Buildcon Ltd., the company’s consolidated revenue decreased by 20.85 percent YoY, from Rs. 1,937.00 crore in Q1 FY26 to Rs. 1,533.71 crore in Q1 FY27, and decreased by 23.02 percent QoQ from Rs. 1,992.33 crore in Q4 FY26
In Q1 FY27 Ashoka Buildcon Ltd.’s consolidated net profit decreased by 43.95 percent YoY, reaching Rs. 127.17 crore compared to Rs. 226.89 crore during the same period last year. As compared to Q4 FY26, the net profit has decreased by 13.37 percent, from Rs. 146.80 crore. The basic earnings per share stood at Rs. 4.55 as against Rs. 7.74 recorded in the same quarter in the previous year, FY2026.
Ashoka is still best known as a roads company, and the mix reflects that. Road EPC leads revenue, but Power T&D now sits second, ahead of Railways and Road HAM. The order book shows the same shift. Road EPC still holds the biggest share, with Power T&D right behind it. Power is no longer a side business for the company. It is a large part of everything Ashoka has lined up to execute.
Sakoli adds something the order book alone can’t. It is a tariff-backed asset rather than a construction contract, so once the substation is commissioned, the income comes with a fixed payment structure and a very long runway. That matters at a time when management is monetising a few BOT and HAM assets, because it gives the company a fresh long-tenure asset to replace them. It also helps with diversification, since domestic road awarding has been subdued and power gives Ashoka another growth engine. The real test is delivering on the 24-month timeline.
Industry Context
The transmission build-out in India is massive. By 2032, the National Electricity Plan assumes investment of more than Rs 9.15 lakh crore in transmission; where over 1,91,000 ckm of lines and 1,270 GVA of transformation capacity are expected to be added by the end of 2032. The network will expand from 485,000 circuit kilometres in 2024 to 648,000 by 2032, and transmission projects under PpPs are in the process of being competitive bid and are now over 90% of the transmission network. This constant stream of projects based on bids is what makes it possible for wins like Sakoli to occur.
It has gotten larger and larger. ICRA estimates Rs 6 trillion for transmission investments till 2032 and the CEA has planned a grid for evacuating power from the excess of more than 900 GW of non-fossil power till 2035-36. But its weakness is the execution. Currently only approximately 12% of the TBCB projects (with a median delay of more than 10 months) that were commissioned before March 2026 have been completed. Typically, the problems stem from land, right-of-way and approvals, and developers who get the job done on time will be the ones that stand out.
Company Overview
Ashoka Buildcon Limited is a Nashik-headquartered infrastructure company with over 50 years of experience in construction. It works across roads, railways, power transmission and distribution, and buildings, and also holds BOT and annuity road assets. Recent wins include a Rs 328 crore highway in Guyana and a Rs 450 crore Gems and Jewellery Park in Chhattisgarh, both part of a push beyond domestic roads. With Sakoli, the company adds a long-duration power transmission asset to a portfolio that is steadily moving away from pure road contracting.