Afcons shifts focus to Europe, Middle East amid Africa slowdown

Core Viewpoint - Afcons Infrastructure Ltd is actively seeking new opportunities in Eastern Europe and the Balkans to counteract a slowdown in its traditional overseas markets, particularly Africa and neighboring countries of India [1][5]. Group 1: Business Strategy and Market Expansion - The company has previously aimed to enhance its presence in the Middle Eastern market, particularly in Saudi Arabia and the UAE, through local partnerships, establishing a 90:10 joint venture in July 2023 [2][4]. - Afcons has emerged as the lowest bidder for three projects in Croatia, valued at over ₹11,300 crore, with expectations to receive formal contract awards by December [3][5]. - The company traditionally derived about 30% of its business from overseas markets, but this share has decreased due to a slowdown in Africa and political instability in neighboring regions [6][8]. Group 2: Financial Performance and Projections - For FY25, Afcons reported revenues of ₹12,548 crore and a profit of ₹487 crore, with a revenue growth guidance of 20-25% for FY26 [4][9]. - As of June 2025, only 12% of the company's ₹35,311 crore order book was from international sources, indicating a need for increased overseas business [8]. - The company aims to increase the overseas share of its pending order book to 30% by the end of FY26, supported by new international orders [7][8]. Group 3: Market Conditions and Challenges - The company faces challenges due to political turmoil in neighboring countries, which has affected business visibility and opportunities in those regions [6]. - Analysts have noted that Afcons is on track for a stronger second half of FY26, driven by the conversion of large L1 wins and fast-track project execution [9].