01 — At a Glance
The Infrastructure Play That Nobody’s Talking About (Because It’s Boring)
- 52-Week High / Low₹1,129 / ₹718
- Q3 FY26 Revenue₹1,061 Cr
- 9M FY26 Revenue₹3,243 Cr
- Q3 EPS₹8.07
- Annualised EPS (Q3×4)₹32.28
- Book Value₹287
- Price to Book2.57x
- Debt / Equity0.04x
- Net Order Book₹18,679 Cr
- Order Book / Revenue4.41x
The Auditor’s Dispatch: Ahluwalia closed 9 months of FY26 with ₹3,243 crore revenue (+12.5% YoY), PAT of ₹184 crore (+56% YoY), and an order book of ₹18,679 crore. The latter part is crucial — that’s 4.4x of annual revenue, ensuring visibility until FY28. Q3 was hit by Delhi’s construction ban. Q4 and FY27 guidance of 10–15% and 15–20% growth respectively suggest management already priced this disaster into expectations. The stock, trading at 18.4x P/E, is waiting for someone to notice there’s 2.4+ years of work to execute at improving margins.
02 — Introduction
Welcome to the World’s Most Underrated Backlog Bingo
Ahluwalia Contracts is one of India’s oldest construction firms — incorporated in 1979, building since the days when Nokia was still relevant. The company does what contractors do: takes money from developers, government agencies, and institutional clients, then builds their dreams one concrete slab at a time.
The business model is simple. You bid for projects. You win some. You execute. You bill. You make margin. Repeat. No AI. No blockchain. No “platform synergies.” Just bricks, cement, steel, and labour hours — the kind of business that your grandfather would recognize immediately, yet somehow mystifies modern-day equity analysts.
But here’s where it gets interesting: management is sitting on ₹18,679 crore in unexecuted orders. That’s 4.4 years of guaranteed revenue at current run rates. The company is deliberately shifting from “grow at any cost” to “execute profitably” — because after decades in the business, they’ve learned that a 12% margin is better than a 8% margin with the same topline growth, every single time.
In the latest concall from February 2026, management made it crystal clear: Delhi’s NGT construction ban (part of GRAP air quality protocols) torpedoed Q3 growth. But Central Vista is progressing, CSMT is finally moving, and FY27 is expected to be a bounce-back year. The order book confirms it. And the stock? Still trading like the company just won one tender in a government contract lottery.
Concall Highlight: “We have now slowed down as far as bidding for further residential projects is concerned… focusing on institutional projects, airports, hotels, or commercial projects.” — Management explicitly reducing residential exposure in NCR after it became a concentration risk. This is the kind of strategic clarity that funds charge ₹5 lakh advisory fees to deliver. They said it for free on a call.
03 — Business Model: WTF Do They Even Build?
From Residential Apartments to Iconic Landmarks. The Unsexy Truth Behind India’s Skyline.
The company operates across multiple segments: residential (historically 31% of order book), infrastructure (29%), commercial (17%), hospitals (14%), and others (9%). They’ve completed AIIMS West Bengal, South Asian University, CBI office building in Mumbai, and various Tata Housing projects. Currently executing over 50 projects across 17 Indian states and 1 overseas project.
The biggest draw right now is the mega-order book. Central Secretarial Building (₹3,070 crore, just awarded Jan 2026) is GRAP-insulated and running on government timelines — which means no surprise work stoppages from air pollution. Chhatrapati Shivaji Maharaj Terminus (CSMT) redevelopment (₹2,450 crore) faced design delays but is now progressing. India Jewellery Park in Navi Mumbai (₹12% of order book) just got site handover and will start Q1 FY27. Bihar’s Shri Ram Janmabhoomi project (₹888 crore) is government-backed and politically prioritized.
The execution model hinges on project management, resource allocation (both material and human), and cash-flow timing. Residential work requires developer coordination but has shorter cycles (32–44 months). Government infrastructure can take 21–42 months but has lower payment risk and fewer design whipsaws. Working capital is the silent killer — debtors stand at ₹638 crore, retention at ₹431 crore, mobilisation advances at ₹729 crore.
Residential31%Order Mix
Infrastructure29%Order Mix
Commercial17%Order Mix
Hospitals14%Order Mix
Concall Clarification: Management is explicitly de-risking residential in NCR: “we have now slowed down as far as bidding for further residential projects.” They’ve seen payment discipline improve (RERA does work), but they’re aware NCR residential = GRAP sensitivity. Central Vista, Gem & Jewellery Park, CSMT, and government hospitals are the new north star. Margin accretion through project mix shift is the unspoken strategy.
💬 If Ahluwalia executes ₹3,500+ crore this year and ₹4,000+ crore next, do you think the stock’s at fair value, or is management being too conservative with their guidance?
04 — Financials Overview
Q3 FY26: The Numbers That Nearly Got Buried Under NGT Bans
Result type: Quarterly Results | Q3 FY26 EPS: ₹8.07 | Annualised EPS (Q3×4): ₹32.28 | Full-year FY25 EPS: ₹30.17
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,061 | 952 | 1,177 | +11.4% | -9.9% |
| EBITDA | 96 | 84 | 128 | +14.3% | -25.0% |
| EBITDA % | 9.05% | 8.86% | 10.9% | +19 bps | -85 bps |
| PAT | 54 | 49 | 79 | +9.4% | -31.6% |
| EPS (₹) | 8.07 | 7.37 | 11.73 | +9.5% | -31.2% |
The Real Story: Q3 revenue of ₹1,061 crore (+11.4% YoY) sounds healthy until you realise it’s down 9.9% QoQ — that decline is entirely attributable to the Delhi NGT ban (GRAP Level 4) which halted work in November–December. The 9-month FY26 number tells the truth: ₹3,243 crore revenue (+12.5% YoY) with PAT of ₹184 crore (+56% YoY). Yes, PAT grew 56% in 9 months despite the NGT disaster. That’s margin expansion talking — EBITDA margins hit 9.59% (vs 7.57% prior year), and PAT margins at 5.6% (vs 4.05%). The company is executing smarter, not just bigger.
05 — Valuation: Fair Value Range
What’s This Construction-to-Execution Pipeline Actually Worth?
