Ahluwalia Contracts (India) Ltd Q2 FY26 Earnings Analysis

- Ahluwalia Contracts targets a 15% to 20% growth in topline/revenue for FY'26 and expects similar growth of 15% to 20% next year (FY'27). - The unexecuted order book stands at approximately Rs. 18,671 crores, to be executed over the next 2 to 2.5 years, supporting sustained growth. - Key projects like CSMT are expected to contribute Rs. 400-500 crores in revenue this year, with revenues increasing next year as higher-value items kick in. - New marquee private sector projects, particularly with clients like DLF (order book exposure around Rs. 5,500 crores), are expected to support growth with potential additional work in future phases. - The Gems and Jewellery Park (Rs. 2,000 crore-plus project) is anticipated to gradually contribute revenue once clearances are received and construction begins. - Overall, management is confident of maintaining double-digit EBITDA margins alongside the revenue growth.

- The company projects 15% to 20% topline growth for FY'26 and expects similar growth for FY'27. (Page 12, 10, 6, 5) - EBITDA margin is expected to improve to double digits, with 10% blended margin anticipated from Q2 or later in H2 of FY'26, and maintenance of double-digit margins in FY'27. (Page 11, 10) - Profit after tax (PAT) showed a 67% growth in 1QFY26 compared to 1QFY25, indicating strong earnings momentum. (Page 4) - Earnings per share (EPS) for 1QFY26 was Rs. 7.63 versus Rs. 4.57 in 1QFY25, reflecting positive profit growth. (Page 4) - Order book of Rs. 16,582 crores to be executed over next 2-2.5 years supports revenue and profit growth visibility. (Page 4, 13) - New projects and strong client relationships (e.g., with DLF and Birla) signal sustained future earnings potential. (Page 13, 5)

- The company's CAPEX for the current year (FY26) is expected to be around Rs. 500 crores. - In Q1FY26, Rs. 62 crores of CAPEX was already spent. - CAPEX for next year (FY27) will be lower than the current year. - No specific mention of strategic investments or other capital investment plans beyond usual CAPEX guidance was provided.

- There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript. - Borrowings are minimal, with borrowing reported at around Rs. 2 crores as mentioned by Satbeer Singh. - Cash reserves stand at Rs. 920 crores, indicating a strong liquidity position. - The company is expecting CAPEX of about Rs. 500 crores this year, with a lower amount anticipated next year. - Management appears focused on executing existing projects and order inflow rather than raising new funds.

- The net order book as of June 30, 2025, stands at Rs. 16,582.09 crores, to be executed over the next 2-2.5 years. - Total order inflow during FY'26 till date is Rs. 3,889.06 crores. - Additional order inflow of Rs. 2,089 crores has been reported, increasing the unexecuted order book to Rs. 18,671 crores. - The company is currently L1 in two projects amounting to Rs. 1,796 crores. - Order pipeline includes government sector bids which are minimal and private sector bids valued at about Rs. 5,000 crores with ongoing negotiations on contracts worth Rs. 1,000 crores. - The order backlog is expected to generate 15-20% growth in topline next year.