Ahluwalia Contracts (India) Limited (AHLUCONT)

Construction · Construction · NSE · Updated 15 July 2026
₹843.85 ↓ 24.45% (1Y)

🎯 Key Takeaways

  • Ahluwalia Contracts (India) Limited is in a growth phase driven by expanding order book and margin improvement, transitioning from a turnaround to a structurally improving mid-cap construction player. Despite a 24% annual return decline, recent financial performance shows accelerating profitability and execution momentum, supported by strategic capex and sector tailwinds.
  • Revenue grew 24.7% QoQ to ₹1,322 in Q4FY26.
  • ⚠️ Labor shortages and input cost inflation are explicitly flagged as operational risks that could pressure margins despite contract escalation mechanism
Market Cap
₹5,321
P/E Ratio
17.0
P/B Ratio
2.96
ROE
17.4%
ROCE
27.1%
Debt/Equity
0.01
Div Yield
0.00%
Promoter
0.0%

📖 The Story

Ahluwalia Contracts (India) Limited is in a growth phase driven by expanding order book and margin improvement, transitioning from a turnaround to a structurally improving mid-cap construction player. Despite a 24% annual return decline, recent financial performance shows accelerating profitability and execution momentum, supported by strategic capex and sector tailwinds.

📰 What's Happening

Management highlighted robust FY26 execution with ₹4,565.20 crores revenue (+11.38% YoY) and ₹264.32 crores PAT (+31.17% YoY), supported by a ₹21,096.31 crores net order book targeting 15-20% growth. FY27 capex of ₹300 crores is planned to scale operations, with double-digit EBITDA margin and 15-20% revenue growth targeted for FY28. Key growth catalysts include Central Vista, Indian Jewellery Park, and new projects in Assam, Bengal, and Bihar, though labor shortages and inflation are acknowledged risks.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricQ2FY25Q3FY25Q4FY25Q1FY26Q2FY26Q2FY26Q3FY26Q4FY26
Revenue1,0119521,2161,0052,1821,1771,0611,322
Operating Profit8599142102246144111151
OPM %7.3%8.9%10.2%8.6%9.8%10.9%9.1%9.3%
Net Profit39508351130795482
EPS₹5.77₹7.39₹12.44₹7.64₹19.37₹11.73₹8.07₹24.48

Quarterly revenue trends show sequential improvement, with Q4FY26 revenue at ₹1,322.3 crores up from ₹1,060.72 crores in Q3FY26, and OPM expanding to 9.35% from 9.06%. Net profit rose to ₹129.78 crores in Q2FY26, the highest quarterly PAT in the dataset, and EPS peaked at ₹19.37. This progression reflects operational efficiency gains and higher-margin order execution, aligning with management’s margin expansion narrative.

🔮 Management Outlook & What's Next

Management expressed confidence in sustaining profitability through mechanization, escalation clauses in contracts, and capex-led scaling. Forward guidance includes targeting double-digit EBITDA margins, 15-20% order book growth, and 15-20% revenue growth in FY28. No formal profit guidance was provided, but margin improvement and execution momentum are central to their strategic narrative.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item2025-20262025-20262025-20262025-20262025-2026
Equity Capital1313131313
Reserves1,9111,9112,046
Borrowings664
Total Liabilities1,9822,0222,0222,0272,206
Fixed Assets446446532
Investments000
Total Assets3,8313,9463,9464,0054,265

The balance sheet shows minimal net debt with total borrowings at ₹4 crores and equity of ₹13 crores plus reserves of ₹2,046 crores, indicating a near-debt-free structure. Total assets of ₹4,265 crores reflect strong capital base, enabling flexible capex deployment of ₹300 crores in FY27 without leverage concerns, supporting a conservative capital allocation strategy focused on organic growth.

💰 Cash Flow Statement (₹ Cr)

Item2020-20212020-20212025-2026
Operating-2+259+248
Investing-19-48-161
Financing-11-51-5
Net Cash Flow

⚖️ Peer Comparison — Construction

Company MCap (₹ Cr) P/E ROCE ROE D/E
Larsen & Toubro Limited 5.38 L Cr 33.1
Rail Vikas Nigam Limited 59,006 45.4
NBCC (India) Limited 25,331 49.1
IRB Infrastructure Developers Limited 24,518 3.8
Kalpataru Projects International Limited 21,476 39.0
Cemindia Projects Limited 15,453 44.3
KEC International Limited 14,602 31.4
Techno Electric & Engineering Company Limited 13,909 36.5
Engineers India Limited 13,868 33.4
Ircon International Limited 13,416 17.6

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Labor shortages and input cost inflation are explicitly flagged as operational risks that could pressure margins despite contract escalation mechanisms. 2. Heavy reliance on a concentrated order book with 75.33% promoter ownership creates governance and liquidity risks. 3. Execution of FY27 capex depends on timely project execution amid macro volatility, with no contingency planning disclosed. 4. Limited transparency in shareholding changes may raise governance concerns among institutional investors.

📋 Recent Filings

🧠 Analyst's Read

The company is transitioning into a higher-margin execution phase with strong order book visibility and capex discipline, but investor sentiment remains muted amid macro headwinds. Key near-term catalysts include FY27 capex deployment progress and margin trajectory in FY28, which will determine whether growth translates into sustainable share price recovery.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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