Any current/future capex/capital investment/strategic investment?

Total CAPEX done in 9 months FY25: Rs. 154 crores; expected CAPEX in 4th quarter FY25: Rs. 175 crores. CAPEX for next year FY26 expected to be lower around Rs. 125 crores due to slow CAPEX requirements for larger projects like CSMT and DLF which have already done major CAPEX. The company is undergoing digital transformation including SAP implementation going live shortly. Focus on using AI and data-driven operations for improving efficiency. Investments are also being made in staff training, upskilling, and succession planning to support business growth. No specific mention of strategic invest

Future growth expectations in sales/revenue/volumes?

The company expects about 15%+ sales/revenue growth in FY26, improving from 8.5%-9% growth in FY25. Execution of slow-moving large projects like CSMT, which have cleared design approvals, will boost growth starting next financial year. New projects, especially in residential, healthcare, commercial sectors, and upcoming bids, will contribute to growth. Private sector order book is increasing, with plans to maintain a 50:50 public-private sector order mix. Order inflows are expected to remain buoyant, with a pipeline similar to FY25's Rs. 7,800 crore inflow. Growth expectations are conservative

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects FY26 revenue growth of around 15% plus, with a double-digit margin exceeding 10% (potentially 10.5%-11%). Q4 FY25 margins expected to improve to about 10% after being impacted by NGT issues earlier in the year. Operating profit margins (EBITDA) have shown quarter-on-quarter improvement despite industry challenges. EPS for 9 months FY25 was Rs. 17.67 versus Rs. 26.23 in the prior year, with expectations of margin and profit improvement next year. Order inflows expected to be similar to FY25 (about Rs. 7,800 crores), supporting healthy execution and revenue growth.

Current/ Expected Orderbook/ Pending Orders?

Net order book as of December 31, 2024: Rs. 16,258.44 crores, to be executed over the next 3 years. Total order inflow during FY25: Rs. 7,794.37 crores. For FY26, expected order inflow is similar to FY25, around Rs. 7,800 crores. Upcoming bids in segments like residential, healthcare, commercial with a total pipeline valued around Rs. 25,000 crores. Recently won residential bids include Rs. 1,100 crores projects from De-luxe DXP and composite Steel Structural works, expected to start execution in next financial year. Company aims to maintain an equitable 50:50 ratio between public and private

Ahluwalia Contracts (India) LtdQ4 FY25

Ahluwalia Contracts (India) Ltd Q4 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹837P/E: 21.1Market Cap: ₹5.6K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company expects about 15%+ sales/revenue growth in FY26, improving from 8.5%-9% growth in FY25.
→Execution of slow-moving large projects like CSMT, which have cleared design approvals, will boost growth starting next financial year.
→New projects, especially in residential, healthcare, commercial sectors, and upcoming bids, will contribute to growth.
→Private sector order book is increasing, with plans to maintain a 50:50 public-private sector order mix.
→Order inflows are expected to remain buoyant, with a pipeline similar to FY25's Rs. 7,800 crore inflow.
→Growth expectations are conservative but confident, with anticipation of better margins and double-digit profitability alongside volume growth.
→Delay-affected projects will start picking up pace from April leading to improved turnover.

Margin guidance

Category 1

→The company expects FY26 revenue growth of around 15% plus, with a double-digit margin exceeding 10% (potentially 10.5%-11%).
→Q4 FY25 margins expected to improve to about 10% after being impacted by NGT issues earlier in the year.
→Operating profit margins (EBITDA) have shown quarter-on-quarter improvement despite industry challenges.
→EPS for 9 months FY25 was Rs. 17.67 versus Rs. 26.23 in the prior year, with expectations of margin and profit improvement next year.
→Order inflows expected to be similar to FY25 (about Rs. 7,800 crores), supporting healthy execution and revenue growth.
→Company is focusing on larger projects and private sector growth, expecting higher margins over the long term with improved project execution and skill upgradation.

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Fundraise plans

- No explicit mention of any current or planned fundraising through equity in the call. - Regarding debt, the company has long-term debt of approximately Rs. 11 crores as of now. - No announcement of new debt issuances; finance cost increase mainly due to mobilization advances and certain project-specific factors. - The management indicated CAPEX will be lower next year (around Rs. 125 crores), which might reduce the need for incremental debt. - Working capital requirements have increased due to project scale and mechanization, but no mention of additional debt raising plans. - Overall, the company seems focused on internally funding operations and reducing finance costs, e.g., funding two airport projects from internal accruals without mobilization advance. In summary, no current or immediate future fundraising plans via debt or equity have been disclosed during the call.

Order book

→Net order book as of December 31, 2024: Rs. 16,258.44 crores, to be executed over the next 3 years.
→Total order inflow during FY25: Rs. 7,794.37 crores.
→For FY26, expected order inflow is similar to FY25, around Rs. 7,800 crores.
→Upcoming bids in segments like residential, healthcare, commercial with a total pipeline valued around Rs. 25,000 crores.
→Recently won residential bids include Rs. 1,100 crores projects from De-luxe DXP and composite Steel Structural works, expected to start execution in next financial year.
→Company aims to maintain an equitable 50:50 ratio between public and private sector order inflows.

Capex plans

Yes

→Total CAPEX done in 9 months FY25: Rs. 154 crores; expected CAPEX in 4th quarter FY25: Rs. 175 crores.
→CAPEX for next year FY26 expected to be lower around Rs. 125 crores due to slow CAPEX requirements for larger projects like CSMT and DLF which have already done major CAPEX.
→The company is undergoing digital transformation including SAP implementation going live shortly.
→Focus on using AI and data-driven operations for improving efficiency.
→Investments are also being made in staff training, upskilling, and succession planning to support business growth.
→No specific mention of strategic investments beyond these CAPEX and digital initiatives.

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