Ahluwalia Contracts (India) Limited (AHLUCONT) AI Stock Analysis

• Market Cap: ₹48.68B
• Dividend Yield: 0.06%
• Average Volume (3M): 2.24K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 1.30
• Revenue Growth: 5.56%
• EPS Growth: -22.59%
• Country: IN
• Employees: 2,995
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 8.10
• Shares Outstanding: 66,987,560
• 10 Day Avg. Volume: 1,837
• 30 Day Avg. Volume: 2,243
• PEG Ratio: -0.60
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 32.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹945.67
• Price Target Upside: 0.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 40.41
• Revenue Forecast (FY): ₹46.14B

• Rating: 68 Neutral
• Price Target: ₹792.00 ▼(-15.82% Downside)
• Action: Downgraded Date: 11/19/25
• Date: Action: Downgraded 11/19/25

Ahluwalia Contracts has a strong financial foundation with consistent revenue growth and stable margins, contributing positively to its stock score. However, technical indicators suggest caution due to overbought conditions, and the valuation indicates limited upside potential. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Consistent revenue growth

Ahluwalia has delivered steady top-line growth (≈10% reported) with revenue recognition tied to certified milestones in EPC contracts. That project-linked billing model supports predictable multi-month cash flow visibility and durable revenue conversion as long-term contracts progress.

Stable and improving margins

Gross and operating margins have been resilient, reflecting disciplined cost control and procurement/execution efficiency in an inherently low-margin EPC industry. Sustained ~19% gross margin and stable EBIT/EBITDA indicate structural operational advantages that support profitability over coming quarters.

Strong balance sheet with low leverage

A low debt-to-equity profile and near-50% equity ratio provide financial flexibility for bid security, mobilization and working-capital needs inherent to EPC projects. Rising shareholder equity and minimal leverage reduce refinancing risk and support sustained project execution capacity.

Negative Factors

Recent net income decline & negative EPS growth

A falling EPS and a recent net income dip signal profit volatility which can reflect timing of project margins, claims realization or higher costs. For an EPC firm this can constrain retained earnings and reduce room for reinvestment or buffer against project delays over the next several months.

Free cash flow variability

FCF growth accompanied by swings indicates uneven cash conversion driven by capex timing, retention and RA billing cycles. Such variability complicates funding for new mobilizations and working-capital spikes on large projects, raising reliance on short-term financing in stress periods.

Slight increase in total liabilities

The modest rise in liabilities, while debt remains low, could presage growing payables or contingent obligations as activity scales. If liabilities continue to climb it may erode the current low-leverage advantage and pressure margins or liquidity during project slowdowns.

Ahluwalia Contracts (India) Limited Business Overview & Revenue Model

Company Description

Ahluwalia Contracts (India) Limited, together with its subsidiaries, operates as a construction company in India. The company operates through Construction Contract, Lease Rental, and Others segments. Its project portfolio includes residential and commercial properties, institutional properties, corporate offices, power plants, hospitals, hotels, IT parks, metro stations and depots, automated car parking lots, and other properties caters to government and private clients. The company also leases a commercial complex; and trades in real estate properties. Ahluwalia Contracts (India) Limited was founded in 1965 and is based in New Delhi, India.

How the Company Makes Money

AHLUCONT primarily makes money by executing construction/EPC contracts awarded by government/semi-government bodies and private sector clients. Revenue is typically recognized as projects progress (i.e., based on certified work done/milestone billing under contract terms), and cash is collected through running account (RA) bills and milestone payments, net of retention amounts. Key revenue streams generally include: (1) Core EPC/construction contract revenue from civil, structural, finishing and MEP coordination for building projects (residential, commercial, institutional, industrial) and selected infrastructure works; (2) Variation orders and change requests that increase the contract value during execution (e.g., scope changes, additional items, specification upgrades), billed as per agreed rates; (3) Claims and escalation where permitted under contract provisions (e.g., compensation for time/cost impacts), recognized when it becomes probable and measurable; and (4) Ancillary project-related income (if applicable) such as recoveries from subcontractors/vendors for delays/defects or site-related services billed under contract terms. The company’s earnings are influenced by its order book (pipeline of awarded projects), ability to mobilize resources and subcontractors, procurement and execution efficiency (which drives project margins), working-capital management (receivables, advances, retention, and payables), and timely certification/payment by clients. Specific named partnerships, client concentration, or segment-wise revenue splits are null.

Ahluwalia Contracts (India) Limited Financial Statement Overview

Summary

Ahluwalia Contracts demonstrates strong financial performance with consistent revenue growth and stable profitability margins. The balance sheet is robust with low leverage and solid equity, indicating financial health. Cash flow management is effective, though free cash flow variations suggest a need for careful capital planning.

Income Statement

Ahluwalia Contracts has shown strong revenue growth over the past few years, with a consistent increase in gross and net profit margins. The TTM gross profit margin is approximately 19.0%, up from previous years, indicating efficient cost management. Net profit margin stands at roughly 4.9%, which is a positive trend despite a decrease in net income in the most recent period. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio, indicating minimal leverage, which reduces financial risk. The stockholders' equity has been increasing, and the equity ratio is healthy at around 48.5%, indicating strong financial stability. However, a slight increase in total liabilities over recent years suggests caution for future leverage.

Cash Flow

Operating cash flow has improved significantly, showing a healthy cash conversion cycle. The free cash flow has grown, but with fluctuations, reflecting variability in capital expenditures. The operating cash flow to net income ratio is strong, indicating efficient cash management, although free cash flow to net income has seen some inconsistencies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.50B	40.99B	38.37B	28.05B	26.71B	19.66B
Gross Profit	9.07B	7.79B	7.14B	5.18B	4.71B	3.80B
EBITDA	4.86B	3.98B	6.05B	3.33B	2.74B	1.64B
Net Income	2.63B	2.02B	3.75B	1.94B	1.55B	772.00M
Balance Sheet
Total Assets	39.46B	37.06B	31.95B	24.93B	20.46B	20.61B
Cash, Cash Equivalents and Short-Term Investments	10.60B	9.98B	7.80B	4.25B	4.33B	4.18B
Total Debt	746.79M	761.32M	1.05B	577.98M	539.28M	677.24M
Total Liabilities	20.22B	19.07B	15.95B	12.65B	10.11B	11.82B
Stockholders Equity	19.24B	17.98B	16.00B	12.28B	10.35B	8.79B
Cash Flow
Free Cash Flow	1.27B	1.71B	1.43B	1.95B	376.66M	2.23B
Operating Cash Flow	2.48B	3.59B	2.57B	3.01B	657.49M	2.59B
Investing Cash Flow	-1.61B	-3.23B	-3.10B	-1.66B	-1.01B	-478.63M
Financing Cash Flow	-54.79M	-524.36M	207.16M	-160.50M	-441.90M	-507.22M

Ahluwalia Contracts (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 940.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AHLUCONT, the sentiment is Negative. The current price of 940.8 is above the 20-day moving average (MA) of 760.23, above the 50-day MA of 827.58, and above the 200-day MA of 932.24, indicating a bearish trend. The MACD of -28.03 indicates Negative momentum. The RSI at 36.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AHLUCONT.

Ahluwalia Contracts (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASHOKA	72 Outperform	₹31.92B	0.56	―	―	-17.28%	43.34%
AHLUCONT	68 Neutral	₹48.68B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹36.83B	13.34	―	0.67%	13.96%	12.91%
RPPINFRA	62 Neutral	₹3.36B	186.32	―	0.47%	-7.32%	-26.92%
RAMKY	61 Neutral	₹32.03B	12.27	―	―	-15.09%	-15.98%
CAPACITE	58 Neutral	₹18.92B	10.65	―	―	15.23%	8.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Ahluwalia Contracts (India) Limited Corporate Events

Ahluwalia Contracts Schedules Investor Call on Q3 FY26 Results

Ahluwalia Contracts (India) Limited has scheduled a conference call on February 16, 2026 at 3:30 p.m. IST to discuss its financial results for the third quarter of fiscal year 2025-26. The call, accessible to domestic and international participants, underscores the company’s ongoing engagement with investors and regulators through timely disclosure of its quarterly performance.

Dial-in access has been arranged for participants from India, the U.S., U.K., Singapore and Hong Kong, with a note that the date and time remain subject to change. By formally notifying multiple stock exchanges and requesting updates to its records, the company reinforces its compliance with SEBI’s listing regulations and its commitment to transparent communication with market stakeholders.

Ahluwalia Contracts Sets Board Meet to Review Q3 Results, Weigh Subsidiary Merger Plan

Ahluwalia Contracts (India) Limited has scheduled a meeting of its Board of Directors for February 14, 2026 to review and approve the unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025. The board will also consider and approve a proposed scheme of amalgamation to merge five wholly owned subsidiaries—Dipesh Mining Private Limited, Jiwanjyoti Traders Private Limited, Paramount Dealcomm Private Limited, Premsagar Merchants Private Limited and Splendor Distributors Private Limited—into the parent company, a move that will not involve issuance of new equity or other securities and is aimed at internal restructuring and simplification of the group structure; the company has also confirmed that its trading window remains closed until 48 hours after the Q3 results are declared, in line with insider trading regulations.

Ahluwalia Contracts Wins Rs 3,069-Crore Central Vista EPC Project

Ahluwalia Contracts (India) Limited has secured a domestic civil construction order worth Rs 3,069.70 crore (including GST) from the Central Public Works Department’s Central Vista Project Division-12 in New Delhi. The EPC contract covers the construction of the Common Central Secretarial Buildings 8 and 9 on Maulana Azad Road and is to be executed within 21 months, reinforcing the company’s role in major government infrastructure projects and potentially strengthening its order book and visibility in the high-profile Central Vista redevelopment program.

Ahluwalia Contracts Closes Insider Trading Window Ahead of Q3 FY2025 Results

Ahluwalia Contracts (India) Limited has announced the closure of its trading window for company insiders, including directors, officers, designated employees and certain connected persons such as auditors, law firms, analysts and consultants, from 1 January 2026 until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. Trading in the company’s securities will continue to remain open for general investors, and the board meeting date to approve these financial results will be communicated separately, underscoring the firm’s adherence to SEBI’s insider trading regulations and its internal code of conduct to ensure fair disclosure and prevent unlawful trading ahead of key financial announcements.