Ahluwalia Contracts Q3 Results Review: IDBI Capital Maintains 'Hold' Rating On The Stock — Here's Why

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IDBI Capital Report

Ahluwalia Contracts India Ltd. reported Q3 FY25 PAT below our estimates due to a lower Ebitda margin of 8.8% compared to 10.9% YoY. Margin was impacted by slow execution in NCR due to the construction ban and delays in project approvals.

The company has guided for Ebitda margins to reach double digits in FY26E. Ahluwalia Contracts has maintained consistency in order wins, securing Rs 77.9 billion in YTDFY25, with additional inflows expected for FY25.

We retain our Hold rating on the stock with a target price of Rs749, valuing it at 14x FY27E EPS. The company's order book stands at Rs 163 billion (four times trailing twelve months revenue), with a Government to-Private order mix of 45:55.

Additionally, Ahluwalia Contracts is focusing on increasing the average ticket size of projects by targeting higher-value contracts.

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