IL&FS Engineering & Construction Co. Ltd. (IL&FSENGG) AI Stock Analysis

• Market Cap: ₹3.09B
• Dividend Yield: N/A
• Average Volume (3M): 13.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -6.13%
• EPS Growth: 98.35%
• Country: IN
• Employees: 235
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 131,121,080
• 10 Day Avg. Volume: 4,649
• 30 Day Avg. Volume: 13,385
• PEG Ratio: -2.02
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 1.13
• P/FCF Ratio: -6.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ₹22.50 ▼(-16.48% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

The overall stock score is primarily driven by the company's poor financial performance, characterized by declining revenues, negative profitability, and high financial leverage. The lack of technical indicators and poor valuation metrics further contribute to the low score. The absence of earnings call insights and corporate events limits the analysis.

Positive Factors

Predictable EPC revenue recognition

The company's EPC model recognizes revenue as work is performed via milestone billing and running account bills. This contract-based revenue recognition creates durable cash flow visibility for active projects and aligns revenue to project progress, supporting steady topline when execution is on track.

Public‑sector infrastructure focus

Concentration on public-sector infrastructure provides structural demand and long-term project pipelines driven by government spending. Such work often involves larger, multi-year contracts and stronger counterparty credit, which can stabilize order flow and revenue over a 2–6 month horizon and beyond.

Signs of operational margin improvement

Reported improvement in EBIT margin in 2025, even if not yet profitable, indicates management progress on cost controls or project execution. If sustained, margin recovery is a durable operational improvement that can compound with better project mix and execution to restore profitability over subsequent quarters.

Negative Factors

Negative shareholders' equity

Persistently negative equity signals insolvency risk and materially weak capital structure. This undermines financial flexibility, increases borrowing costs, constrains the ability to obtain performance bonds, and limits competitiveness for large contracts absent recapitalization or restructuring.

Weak cash generation

Negative operating and free cash flows indicate the core business is not generating sufficient cash to fund operations or capex. This creates ongoing dependence on external financing, risks project delays or supplier issues, and is a durable constraint on growth until cash generation improves.

Declining revenues and ongoing losses

A multiyear revenue decline combined with negative net margins reduces scale benefits and harms long-term viability. Sustained top-line contraction and losses erode competitive position, limit reinvestment capacity, and raise the need for strategic corrective actions such as cost restructuring or new order wins.

IL&FS Engineering & Construction Co. Ltd. Business Overview & Revenue Model

Company Description

IL&FS Engineering and Construction Company Limited engages in infrastructure development and construction, and project management businesses in India and internationally. It develops and constructs roads and bridges, railways, expressways, and highways; residential buildings, commercial buildings, industrial structures, and hospital buildings; irrigation canals and dams; and thermal and hydel power projects. The company also develops ports involving construction of berths, jetties, breakwaters, marine structures, and cargo handling facilities, as well as land for setting up port-based industries; and constructs terminal buildings, runways, aprons, parking bays, hangers, and other structures in the airport sector. In addition, it constructs rail and rail-based systems; oil and gas pipelines and storage tank terminals; water and water treatment plants; power generation, transmission, and distribution projects; and industrial construction projects. The company was formerly known as Maytas Infra Limited and changed its name to IL&FS Engineering and Construction Company Limited in January 2011. IL&FS Engineering and Construction Company Limited was incorporated in 1988 and is based in Hyderabad, India.

How the Company Makes Money

IL&FSENGG primarily makes money by winning infrastructure construction contracts and executing them, typically under EPC and similar project-delivery arrangements. Under these contracts, revenue is generally earned as work is performed (e.g., based on milestone/measurement certifications such as running account bills), with payments received from customers according to agreed billing schedules and contract terms. Key revenue streams therefore include: (1) EPC/project execution income from civil construction and infrastructure works; (2) variations/claims, escalation clauses, and change orders where contract terms allow additional compensation for scope changes, time extensions, or cost increases; and (3) ancillary receipts tied to project execution (e.g., mobilization advances, retention releases upon completion, and defect-liability-period releases), to the extent recognized as revenue under applicable accounting standards. The company’s earnings are influenced by its ability to secure new orders, execute projects within cost and time budgets, manage subcontractors and procurement effectively, and collect receivables on time. Specific disclosures on the company’s segment-wise revenue mix, named major customers, or significant partnerships are not available in the provided context and are therefore null.

IL&FS Engineering & Construction Co. Ltd. Financial Statement Overview

Summary

IL&FS Engineering & Construction Co. Ltd. faces significant financial challenges with declining revenues, negative profitability margins, and high financial leverage. The company has struggled with negative equity and cash flow difficulties, indicating a need for strategic restructuring or financial support. The current financial state suggests a high-risk profile, with urgent attention needed to address liquidity and profitability issues.

Income Statement

The income statement reveals declining revenue from 2020 to 2025, with a significant drop in 2023 followed by some recovery. The gross profit margin is low and has been decreasing, indicating challenges in maintaining profitability. Net profit margin is negative, reflecting losses over the years. Despite improvements in EBIT margin in 2025, it remains negative, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, which has been deteriorating. The debt-to-equity ratio is negative due to negative equity, indicating high financial leverage and risk. The equity ratio is negative, reflecting insolvency concerns. Overall, the balance sheet suggests financial instability and high leverage.

Cash Flow

The cash flow statement shows negative operating and free cash flow in recent years, indicating operational challenges. Although there was a significant positive free cash flow in 2020, subsequent years have seen declines. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies. The company needs to improve cash generation to stabilize its financials.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.66B	3.21B	2.56B	1.71B	2.33B	3.33B
Gross Profit	319.80M	384.60M	633.90M	544.20M	353.70M	940.30M
EBITDA	85.30M	59.50M	-604.70M	-947.50M	-1.67B	-1.34B
Net Income	-17.10M	-48.80M	-774.50M	-1.24B	-3.86B	-2.85B
Balance Sheet
Total Assets	16.45B	17.07B	16.95B	18.26B	19.16B	24.39B
Cash, Cash Equivalents and Short-Term Investments	2.21B	3.18B	3.41B	3.48B	1.04B	669.70M
Total Debt	26.72B	26.72B	26.71B	26.71B	26.29B	26.69B
Total Liabilities	48.45B	48.96B	48.79B	49.33B	48.98B	50.34B
Stockholders Equity	-32.00B	-31.89B	-31.84B	-31.07B	-28.74B	-24.88B
Cash Flow
Free Cash Flow	-1.59B	-488.10M	-727.50M	77.50M	931.00M	305.50M
Operating Cash Flow	-1.59B	-488.10M	-727.50M	77.50M	975.40M	349.90M
Investing Cash Flow	1.25B	867.40M	-227.20M	547.60M	-139.30M	94.60M
Financing Cash Flow	-10.90M	-8.90M	-97.30M	-191.40M	-466.00M	-444.40M

IL&FS Engineering & Construction Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MBLINFRA	49 Neutral	₹3.84B	-12.79	―	―	12.96%	-132.20%
A2ZINFRA	48 Neutral	₹2.88B	-113.54	―	―	1.97%	-6.97%
IL&FSENGG	40 Underperform	₹3.09B	-215.95	―	―	-6.13%	98.35%
SUPREMEINF	39 Underperform	₹7.42B	-4.23	―	―	-31.16%	―
MADHUCON	38 Underperform	₹341.67M	-0.11	―	―	-52.19%	-3109.52%