Akash Infra Projects Limited Stock Analysis

The company proactively filed a clarification to NSE to correct the allottee name, demonstrating at least a baseline commitment to disclosure accuracy and regulatory compliance. / The clarification confirms PAN details (CUQPG7205R) for the allottee, providing a verifiable identity trail that adds a minimal layer of transparency to the preferential allotment process. / The filing was submitted on the same date (February 17, 2026) in close proximity to the original board meeting (February 14, 2026), indicating a relatively swift correction rather than a prolonged discrepancy. / The managing director (DIN: 00463335) has signed off on the clarification, establishing board-level accountability for the corrected disclosure.

The original board meeting outcome contained an incorrectly stated allottee name, raising questions about the diligence and verification processes applied to material corporate disclosures before submission to the exchange. / A preferential allotment of up to 40,00,000 warrants convertible into 40,00,000 equity shares represents a significant potential equity dilution event, the rationale, pricing, and use of proceeds for which are entirely absent from this filing. / The identity of the allottee (Gol Jasjitsinh Premalsinh) and their relationship to the promoter group or company insiders is not disclosed, creating concerns about related-party dynamics in the preferential allotment. / No financial statements, order book data, revenue visibility, or operational commentary is provided in this filing, making it impossible to assess the company's underlying business health or the justification for raising capital via warrants.

The warrant issue price of Rs. 40 per warrant has been determined in compliance with SEBI ICDR Regulations 164(1) and 166A(1), ensuring regulatory adherence and fair pricing methodology. / Independent valuation by RV Ms. Monika Gupta, a registered valuer, provides third-party validation for the warrant pricing, reducing concerns about preferential pricing or dilution at unfair terms. / The company is following proper corporate governance by convening an Extra-Ordinary General Meeting on March 16, 2026 to seek shareholder approval, demonstrating transparency in the capital-raising process. / Timely disclosure to NSE within regulatory timelines (meeting held February 16, 2026) shows compliance with Regulation 30 of SEBI LODR and commitment to investor communication.

Complete absence of financial performance data in the filing makes it impossible to assess whether the capital raise is being undertaken from a position of strength or financial distress. / No disclosure on the intended use of funds from the convertible warrant issue raises concerns about capital allocation strategy and whether the proceeds will generate adequate returns. / Convertible warrants introduce potential equity dilution risk for existing shareholders, with the conversion terms and dilution percentage not disclosed in this filing. / The infrastructure sector faces execution risks, commodity price volatility, and working capital intensity, but the filing provides no order book, project pipeline, or operational metrics to assess the company's competitive positioning or ability to deploy new capital effectively.

Strong year-to-date (YTD) consolidated revenue growth of 17% (Rs. 4,415.96 Lakhs for 9M FY26 vs Rs. 3,776.19 Lakhs for 9M FY25). / Strong year-to-date (YTD) standalone revenue growth of 62% (Rs. 2,147.13 Lakhs for 9M FY26 vs Rs. 1,325.53 Lakhs for 9M FY25). / Secured significant new work orders totaling approximately Rs. 25.43 Crores after the quarter ended, providing a future revenue pipeline. / Board approved preferential allotment of up to 40,00,000 warrants convertible into equity shares, signaling potential capital infusion and improved liquidity.

Critical concern with Rs. 143.95 Crores in debtors outstanding for over 180 days, which are under litigation and significantly exceed current YTD revenues. / Consolidated Revenue from Operations declined by 21.5% quarter-on-quarter (Rs. 1,088.49 Lakhs in Q3 FY26 vs Rs. 1,387.22 Lakhs in Q3 FY25). / Significant increase in Cost of Material Consumed in Q3 FY26 (Standalone: Rs. 407.20 Lakhs) attributed to a 'significant rise in prices of construction materials'. / Increased Employee Benefit Expenses (Standalone: Rs. 115.48 Lakhs in Q3 FY26 vs Rs. 76.59 Lakhs in Q3 FY25) and Other Expenses, impacting overall profitability. / Issues with advances to suppliers related to sub-contractors discontinuing work prior to completion, with equivalent deposits outstanding. / Decline in segment revenue for 'Fuel and Grocery' both QoQ (Rs. 674.14 Lakhs in Q3 FY26 vs Rs. 748.04 Lakhs in Q2 FY26) and YoY (vs Rs. 793.43 Lakhs in Q3 FY25).

Strong Q3 profitability recovery with standalone PAT of ₹102.38 lakhs versus Q2 loss of ₹101.34 lakhs, marking a sequential turnaround of ₹203.72 lakhs driven by operational efficiencies / Significant inventory liquidation in Q3 with changes in inventories at negative ₹478.63 lakhs (versus negative ₹135.32 lakhs in Q2), indicating accelerated project execution and revenue recognition / New work orders worth ₹25.43 crore received in January 2026 from Sabarkantha and Mehsana districts (₹21.53 crore + ₹3.90 crore), providing medium-term revenue visibility for road construction segment / Proposed preferential allotment of 40 lakh warrants at market price to raise equity capital, aimed at strengthening balance sheet and funding expansion without immediate dilution / Consolidated revenue from operations at ₹1,088.49 lakhs in Q3 remains stable compared to ₹1,206.20 lakhs in Q2, with fuel and grocery segment contributing ₹674.14 lakhs demonstrating business diversification

Massive aged receivables of ₹143.95 crore outstanding for over 180 days, primarily tied to litigation, creating severe cash flow strain and working capital blockage / Nine-month consolidated net profit of only ₹0.28 lakhs (versus loss of ₹149.67 lakhs in 9M FY2025) reflects fragile profitability despite Q3 recovery, with EPS at negligible ₹0.002 for the period / Material cost escalation with cost of materials consumed at ₹984.61 lakhs in Q3 (up from ₹949.38 lakhs in Q3 FY2025), driven by rising construction input prices squeezing gross margins / Advances to discontinued subcontractors flagged by auditors as potential NPAs, with internal audit recommending scrutiny of old debtor-creditor accounts indicating weak vendor management / Employee benefit expenses jumped 50% to ₹115.48 lakhs in Q3 FY2026 versus ₹76.59 lakhs in Q3 FY2025, reflecting wage inflation and staffing costs outpacing revenue growth / High finance costs at ₹90.93 lakhs in Q3 FY2026 (consolidated) indicate elevated debt servicing burden despite planned equity fundraise, limiting net margin expansion

Consolidated Q3 PAT improved to Rs 91.41 lakh from Rs 5.84 lakh YoY, indicating strong reported profit recovery. / 9M consolidated performance moved to near break-even profit of Rs 0.28 lakh versus a loss of Rs 149.67 lakh in the prior year period. / Standalone Q3 PAT rose to Rs 102.38 lakh versus Rs 12.21 lakh YoY, and total comprehensive income was Rs 102.15 lakh. / 9M standalone revenue from operations increased to Rs 2,147.13 lakh from Rs 1,325.53 lakh YoY, showing stronger activity versus last year. / Post-period order inflow was disclosed at about Rs 25.43 crore (Rs 21.53 crore + Rs 3.90 crore), supporting near-term execution visibility.

Receivables risk is elevated: debtors outstanding for more than 180 days are Rs 143.95 crore and are linked to litigation, which can delay cash realization. / Q3 consolidated revenue declined to Rs 1,088.49 lakh from Rs 1,387.22 lakh YoY and Rs 1,206.20 lakh QoQ, signaling near-term growth deceleration. / Cost pressure remains visible: auditors highlighted higher construction material prices, increased employee costs, and higher other expenses due to project execution intensity. / Capital dilution risk exists from proposed preferential issue of up to 40,00,000 warrants (18-month conversion window), expanding equity base from 1,68,62,534 to 2,08,62,534 shares on full dilution. / Governance/financial reporting comfort is mixed as prior statutory auditors resigned on 05-Sep-2025 and one overseas subsidiary’s interim numbers were not reviewed by an auditor.