1. At a Glance – The “Sarkari Thekedaar” Stock That Ran Too Fast
Atal Realtech Ltd is one of those classic SME stocks that quietly built roads, bridges, courts, and government buildings for years—and then suddenly woke up one fine morning and decided to become a market darling. With a market cap of ₹337 crore, a current price of ₹27.2, and a 3-month return of ~10% (and nearly 99% over one year), the stock has clearly enjoyed its chai-biscuit moment with traders.
But here’s the plot twist: despite Q3 FY26 revenue of ₹29.5 crore (up 46.7% YoY) and PAT of ₹1.71 crore (up 66%), the stock is trading at a P/E of 86x, EV/EBITDA of 40.9x, and Price to Book of 4.85x. ROE? A very polite 6.7%. ROCE? A barely energetic 10.8%.
So yes, the numbers are growing. But the valuation has already reached the wedding buffet—while profitability is still tying its shoelaces. Curious already?
2. Introduction – From Government Files to Stock Market Hype
Atal Realtech Limited was incorporated in 2012 and does exactly what it says on the tin: civil construction and government contracting. Roads, irrigation projects, public buildings, courts, schools—if it smells like a government tender, Atal Realtech is probably standing in line with a folder full of documents.
The company got listed on the NSE Emerge SME platform in October 2020, and for a long time, nobody really cared. Then revenues picked up, quarterly growth started flashing green, and suddenly—boom—Atal Realtech entered WhatsApp University syllabus.
But scratch beneath the surface and you’ll find a business that is execution-heavy, margin-thin, working-capital-hungry, and deeply dependent on government payments that move at the speed of Indian Railways before Vande Bharat.
So the
real question isn’t “Is the company growing?”
It’s “Is the market already pricing in 10 years of perfect execution?”
3. Business Model – WTF Do They Even Do?
Atal Realtech is a Class I-A contractor with the Maharashtra PWD, which is basically the contractor version of a blue tick.
The company provides:
- Project Management – Design, planning, procurement, construction, delivery.
- Construction Services – Civil and industrial structures.
- Engineering & Sub-contracting – Structural and infrastructure works.
Projects include collector offices, district courts, government rest houses, schools, malls, housing projects, and more. Translation:
👉 No fancy branding.
👉 No luxury apartments.
👉 No Instagrammable projects.
Just hardcore concrete, tenders, and bills submitted to government departments.
Revenue-wise, 100% of FY22 revenue came from contract receipts. No diversification. No asset-light dreams. This is a pure “build it, bill it, wait for payment” business.
So tell me—how scalable do you think this model really is without crushing working capital?
4. Financials Overview – Growth Is Real, Margins Are Not
Quarterly Performance Table (Standalone, ₹ Crore)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 29.51 | 20.12 | 19.74 | 46.7% | 49.5% |
| EBITDA | 2.86 | 1.98 | 2.54 | 44.4% | 12.6% |
| PAT | 1.71 | 1.03 | 1.04 | 66.0% | 64.4% |
| EPS (₹) | 0.14 | 0.09 | 0.09 | 55.6% | 55.6% |
Annualised EPS (Q3 rule):
Average of Q1,
