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

• Market Cap: ₹2.94B
• Dividend Yield: N/A
• Average Volume (3M): 13.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -6.13%
• EPS Growth: 98.35%
• Country: IN
• Employees: 235
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 131,121,080
• 10 Day Avg. Volume: 4,649
• 30 Day Avg. Volume: 13,385
• PEG Ratio: -1.97
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -6.02
• 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: ₹21.50 ▼(-20.19% Downside)

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

EPC business model

The EPC contract model generates milestone-based revenue and recurring cash inflows tied to project execution. Over the medium term this provides structural revenue visibility when backlog is healthy and supports scale benefits in procurement and subcontract management.

Public-sector infrastructure focus

A concentration on public-sector infrastructure ties the business to long-duration projects and government budgets, offering steadier, less cyclical demand versus discretionary segments. This structural exposure supports repeat work and long-term contract pipelines if execution and compliance are maintained.

Evidence of margin improvement

An improving EBIT margin indicates operational fixes and cost discipline are having effect. If sustained, this suggests management can extract efficiencies across projects and supply chains, narrowing losses and creating a pathway to durable profitability rather than relying solely on nonrecurring items.

Negative Factors

Negative equity and high leverage

Negative shareholders' equity reflects accumulated losses and undermines financial flexibility. High leverage and insolvency indicators constrain the company's ability to raise low-cost capital, bid on new contracts, or absorb shocks, posing persistent solvency and counterparty risk over the medium term.

Weak cash generation

Consistent negative operating and free cash flow impairs the firm's capacity to fund working capital, mobilization, and capex required for EPC projects. Over months, this raises counterparty risk with suppliers, increases dependence on external financing, and can force contract slowdowns or restructuring.

Declining revenue and shrinking margins

Sustained revenue decline combined with falling gross margins signals pressure on pricing, cost absorption, or project mix. Structurally, this erodes competitive positioning in bids, reduces scale economies, and makes it harder to restore profitability without meaningful contract wins or structural cost transformation.

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 generates revenue primarily through its construction contracts, which are awarded by government and private sector clients. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time and material contracts, allowing it to earn from various project types. Key revenue streams include civil construction projects, infrastructure development, and engineering services. Additionally, the company may engage in joint ventures and strategic partnerships to enhance its project capabilities and access new markets, which can further contribute to its earnings. The successful execution of projects, adherence to timelines, and maintaining quality standards play crucial roles in securing repeat business and building a positive reputation in the industry.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.77B	3.21B	2.56B	1.71B	2.33B	3.33B
Gross Profit	294.80M	384.60M	633.90M	544.20M	353.70M	940.30M
EBITDA	-10.80M	59.50M	-604.70M	-947.50M	-1.67B	-1.34B
Net Income	-111.70M	-48.80M	-774.50M	-1.24B	-3.86B	-2.85B
Balance Sheet
Total Assets	0.00	17.07B	16.95B	18.26B	19.16B	24.39B
Cash, Cash Equivalents and Short-Term Investments	3.18B	3.18B	3.41B	3.48B	1.04B	669.70M
Total Debt	0.00	26.72B	26.71B	26.71B	26.29B	26.69B
Total Liabilities	31.89B	48.96B	48.79B	49.33B	48.98B	50.34B
Stockholders Equity	-31.89B	-31.89B	-31.84B	-31.07B	-28.74B	-24.88B
Cash Flow
Free Cash Flow	-488.10M	-488.10M	-727.50M	77.50M	931.00M	305.50M
Operating Cash Flow	-488.10M	-488.10M	-727.50M	77.50M	975.40M	349.90M
Investing Cash Flow	867.40M	867.40M	-227.20M	547.60M	-139.30M	94.60M
Financing Cash Flow	-8.90M	-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	₹3.98B	-3.80	―	―	12.96%	-132.20%
IL&FSENGG	40 Underperform	₹2.94B	-170.96	―	―	-6.13%	98.35%
A2ZINFRA	40 Underperform	₹2.48B	96.77	―	―	1.97%	-6.97%
SUPREMEINF	39 Underperform	₹2.24B	0.04	―	―	-31.16%	―
MADHUCON	39 Underperform	₹385.95M	-0.06	―	―	-52.19%	-3109.52%