1. At a Glance
Welcome to A B Infrabuild Ltd, where bridges are made faster than Mumbai traffic moves, and yet quarterly profits fall faster than your Wi-Fi speed during IPL finals. The stock closed at ₹19.4 (as of 21 Nov 2025), down 3.86%, but still up 133% in a year — proving that in the market, drama pays. The company flaunts a market cap of ₹1,230 crore, a P/E ratio of 62.7, and a debt-to-equity of 0.29. ROE and ROCE stand strong at 17.3% and 18.4%, respectively — not bad for a firm juggling railway, bridge, and road contracts like a circus artist on caffeine.
But here’s the spicy bit — Q2FY26 (Sep 2025) saw revenue of ₹37.3 crore, down 21% QoQ, and profit at ₹2.13 crore, down a painful 43.6%. That’s like winning a ₹100-crore Central Railway order and then realizing your profit just ghosted you.
So, what’s going on? Let’s crack open this concrete-coated mystery of A B Infrabuild — where railway lines meet shareholder headlines.
2. Introduction
Every bull market needs its poster child — and in the mid-cap construction universe, A B Infrabuild Ltd has been that quirky cousin who shows up late but leaves a lasting impression. Born in 2011, the company started by fixing roads and bridges but soon graduated to full-fledged railway infrastructure projects — all while being a “Grade AA Contractor” for MCGM and a Class 1(A) PWD specialist. In short, if it’s made of concrete and has rails, ABIL probably bid for it.
From building Road Over Bridges (ROBs) at Thane and Foot Over Bridges (FOBs) at Oshiwara, to railway line expansion between CSMT and Kurla — the firm is literally laying the foundation of Mumbai’s future commutes. Yet, despite these grand projects, the company’s P/E ratio (62.7x) suggests that optimism here is as inflated as a politician’s promises before elections.
The company recently migrated from NSE SME to the main board — a kind of “graduation ceremony” for companies, except this one came with a ₹4,000 lakh rights issue and a 1:10 stock split. Investors clapped. Auditors probably sighed.
Still, A B Infrabuild stands tall. It’s building not just roads but also a reputation — one tender at a time.
3. Business Model – WTF Do They Even Do?
In short: they build India’s backbone — the parts we curse every day in traffic jams.
A B Infrabuild Ltd operates across five verticals — Railways, Bridges, Roadways, Dams, and Canals — all under the broad umbrella of civil construction. Think of them as a jackhammer-powered Swiss Army knife.
In Railways, ABIL handles everything from laying tracks to building platforms, stabling lines, and booking offices. They’re the reason you sometimes see construction chaos near stations — not inefficiency, just infrastructure in progress.
Under Bridges, they’ve built beam bridges, suspension bridges, and cable-stayed masterpieces
that sound more glamorous than most Bollywood set pieces.
Their Roadways division is the asphalt hero — constructing concrete and bituminous roads that connect cities, districts, and sometimes investors’ patience.
They also dabble in Dam and Canal projects — because why let water flow freely when you can make a business out of controlling it?
And then there’s Repairs, the evergreen Mumbai business model: break, fix, repeat every monsoon.
Their clientele includes Western Railway, MRVC, Central Railway, RCF, MCGM, JP Infra, Kanakia, and others who actually pay on time (hopefully).
If L&T is the Amitabh Bachchan of infrastructure, ABIL is that promising sidekick actor who might one day headline the movie.
4. Financials Overview
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 37.3 | 47.23 | 60.56 | -21.0% | -38.4% |
| EBITDA (₹ Cr) | 5.47 | 7.45 | 9.61 | -26.6% | -43.1% |
| PAT (₹ Cr) | 2.13 | 3.58 | 5.12 | -40.5% | -58.4% |
| EPS (₹) | 0.03 | 0.06 | 0.08 | -50% | -62.5% |
Commentary:
If civil engineering had a heartbreak chart, this quarter would top it. Sales collapsed like an unfinished bridge during monsoon, and PAT fell harder than a cement price in surplus season. Yet, margins held a respectable 14.66%, showing that ABIL knows how to squeeze profit out of even modest contracts. Annualised EPS of ₹0.12 gives a P/E of 161x — which means the market is either high on optimism or short on options.
5. Valuation Discussion – Fair Value Range
Let’s crunch some safe, educational numbers:
a) P/E Method:
Current EPS (TTM): ₹0.30
Industry P/E: 20x
→ Fair Value = 0.30 × 20 = ₹6
But the market P/E is 62.7, giving an implied “hope premium” — so,
Range: ₹6 – ₹19 (based on mood swings)
b) EV/EBITDA Method:
EV = ₹1,232 Cr
EBITDA (TTM) = ₹37 Cr
EV/EBITDA = 33.3x (industry avg ~12–15x)
→ Fair Value Range: ₹550 – ₹700 Cr in EV terms (~₹9–₹12/share)
c) DCF (Simplified):
Assume FCFE grows 20% for 3 years, then 10%, discount at 12%.
Rough DCF range = ₹10 – ₹15
