Ahluwalia Contracts falls 3% after Q1; buy, sell or hold? Analysts suggest

Ahluwalia Contracts' share price was trading 2.7 per cent lower at ₹927 per share on the NSE after the company reported lower-than-estimated numbers in Q1FY26

Ahluwalia Contracts share price today: Shares of civil construction company Ahluwalia Projects fell nearly 3 per cent to hit an intraday low of ₹926.1 on the NSE after the company reported lower-than-estimated numbers in the June 2025 quarter (Q1FY26), missing market expectations.

 

At 1:40 PM, the company's share price was trading 2.7 per cent lower at ₹927 per share on the NSE. In comparison, NSE Nifty50 was up 0.36 per cent at 24,965 levels. The market capitalisation of the company stood at ₹6,228.5 crore. The stock has plunged over 30 per cent from the 52-week high of ₹1,363.7 touched on August 20, 2024.

 

Ahluwalia Contracts Q1 results

In the Q1FY26, the company reported revenue from operations of ₹1,004.9 crore, up 9.3 per cent from ₹9,193 crore in the year-ago period. The company's earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 42.7 per cent year-on-year (Y-o-Y) to ₹86.3 crore against ₹60.5 crore in Q1FY25. The company posted profit after tax (PAT) of ₹51.1 crore, up 67 per cent from ₹30.6 crore in the year-ago quarter.  

 

As of June 30, 2025, the company has an order book of ₹16,582 crore and a year-to-date (YTD) order inflow of ₹3,889 crore. The company has an L1 status in two projects worth ₹1,796 crore. For FY26, the management has guided for order inflows of over ₹8,000 crore. 

Analysts on Ahluwalia Contracts Q1 results 

According to HDFC Securities, Ahluwalia Contracts reported a revenue, Ebitda and PAT miss amid moderation in execution usually witnessed in Q1. However, the brokerage has maintained 'Add' rating on the stock with a target price of ₹983, citing the company's focus on high margin private sector projects, large marquee public projects, pickup in execution in CSMT project on the back of progress in obtaining clearances, and execution of DLF Dahlias project expected to begin by September 2025.

 

In a research note, JM Financial said the company missed PAT and Ebitda margin estimates due to lower margins, seasonality and heavy monsoon. "Execution ramp-up in CSMT project has been slow given the design changes and complexity of the project, while Gems and Jewellery Park project remains delayed as ACIL expects execution to start in Q3FY26," the brokerage said.

 

"We like ACIL given its asset-light business, lean balance sheet, consistent FCF generation over the last 10 years and strong return ratios despite moderate margins," it added. JM Financial maintained a 'Buy' rating on the stock with a revised target price of ₹1,175. 

 

According to analysts at Axis Securities, the company's executable order book remains robust. With favourable attributes such as a strong and diversified order book, a healthy bidding pipeline, steady order inflows, an asset-light model, and emerging opportunities in the construction space, Ahluwalia Contracts is expected to generate healthy free cash flows moving forward. The brokerage expects the company to deliver revenue/Ebitda/PAT growth of 19/34/32 per cent CAGR, respectively, over FY25–FY27E.