Ahluwalia Contracts soars as analysts up target; jumps 20% in two sessions

Ahluwalia Contracts shares rose 10 per cent as analysts upped their target price after it reported a multifold jump in the Q2 profit

Shares of Ahluwalia Contracts (India) Ltd. rose nearly 10 per cent on Tuesday as analysts upped their target price after it reported a multifold jump in the September quarter bottom line. 

 

The civil construction company's stock rose as much as 9.82 per cent during the day to ₹1,077.9 per share, a day after it jumped as much as 13 per cent on Monday. The Ahluwalia Contracts stock pared gains to trade 8.12 per cent higher at ₹1,061 apiece, compared to a 0.28 per cent decline in Nifty 50 as of 12:52 PM. 

 

Shares of the company rose for the second straight session and currently trade at 33 times the average 30-day trading volume, according to Bloomberg. The counter has risen 3.5 per cent this year, compared to a 9.6 per cent advance in the benchmark Nifty 50. Ahluwalia Contracts has a total market capitalisation of ₹7,107.72 crore.   READ STOCK MARKET UPDATES TODAY LIVE

Ahluwalia Contracts Q2 results 

Ahluwalia Contracts reported a profit after tax jump of 104.8 per cent to ₹78.6 crore, compared with ₹38.4 crore in Q4 FY24. The company's revenue from operations rose 16.4 per cent year-on-year (Y-o-Y) to ₹1,177.3 crore in Q2 FY26. Sequentially, revenue grew 17.2 per cent and profit after tax increased 53.4 per cent.

 

Profit before tax rose 101.7 per cent Y-o-Y and 52.23 per cent quarter-on-quarter to ₹105.9 crore. Current tax expense increased to ₹28.3 crore from ₹17 crore a year earlier. Total expenditure was up 11.8 per cent to ₹1,049.2 crore. Net cash flow from operating activities improved significantly, rising to ₹247.74 crore in the first half of FY26 from ₹86.05 crore in the same period last year.  ALSO READ | Why did 5paisa Capital shares zoom 21% in two days? Details here

Analysts on Ahluwalia Contracts earnings 

Antique Stock Broking said that the company delivered a strong Q2 performance, supported by a robust order book. The brokerage expects margins to remain in the 10-11 per cent range, driven by an improved project mix, disciplined bidding and continued mechanisation. 

 

Execution momentum remains healthy across key projects, backed by a bidding pipeline of ₹6,500 crore, with ₹4,400 crore in inflows during the first half of FY26 across metros, airports, water infrastructure and real estate. Antique Stock Broking maintained its 'Hold' rating on the stock and raised its target price to ₹1,090 from ₹871 earlier.

 

JM Financial said it has slightly moderated its FY26 and FY27 revenue estimates due to delays in the commencement of a few projects, resulting in earnings per share cuts of 1 per cent and 4 per cent, respectively. The brokerage expects a robust EPS compound annual growth rate of 33 per cent over FY25-28.

 

JM Financial added that it remains positive on the company given its asset-light model, lean balance sheet, consistent free cash flow generation over the past decade and strong return ratios despite moderate margins. The brokerage maintained its 'Buy' rating with a revised target price of ₹1,230, from ₹1,175 apiece