Ahluwalia Contracts India Gets Buy Rating as Axis Securities Sets INR 1,073 Target

Ahluwalia Contracts India has drawn fresh interest from Axis Securities, which has named the infra stock its "pick of the week" with a target price of Rs 1,073 over the next six to nine months. The brokerage notes that the stock trades at 18x FY27E EPS and highlights healthy order inflows, margin gains and solid earnings visibility as key drivers.

The construction and engineering company focuses on building and infrastructure projects across India, with a strong tilt towards private sector clients. Axis Securities expects Ahluwalia Contracts India to benefit from a large executable order book, improving execution and more profitable projects, which together are projected to support robust revenue, EBITDA and PAT growth over FY25-FY27E.

On Monday, December 22, Ahluwalia Contracts (India) opened on the BSE at Rs 975.40 and climbed to an intraday high of Rs 1,005, before closing near Rs 998.35. The small-cap stock has rallied around 61% from its 52-week low of Rs 620.65, hit on February 18, 2025, though it still trades about 12% below the 52-week high of Rs 1,134.95 recorded on January 2, 2025.

This rebound in Ahluwalia Contracts India follows evidence of stronger order inflows and an improvement in profitability metrics, which have supported a re-rating in the stock. Axis Securities believes that, despite the sharp rise, room remains for further upside as earnings are projected to grow at a healthy pace, driven by execution on existing projects and new wins.

Analysts Uttam K Srimal, Sr. Research Analyst, and Shikha Doshi, Research Associate at Axis Securities highlight that Ahluwalia Contracts India holds an order book of Rs 18,057 crore as of 30th September, 2025, along with year-to-date order inflows of Rs 5,262 crore. This portfolio spans hospitals, commercial, institutional, residential, infrastructure and hotel projects across multiple regions in India and a small overseas presence.

The composition of Ahluwalia Contracts India orders by segment and geography is summarised below, showing diversification across end-markets and regions, which supports revenue visibility over the next two to two-and-a-half years and reduces concentration risk for investors tracking project exposure and execution timelines.

Segment	Value (Rs crore)	Share of order book
Hospitals	1,619	9%
Commercials	3,711	20.6%
Institutional	661	3.7%
Residential	7,918	43.8%
Infrastructure	3,997	22%
Hotels	150	0.7%

Region	Share of order book
East	15%
North	50%
West	30%
South	4%
Overseas	1%

Ahluwalia Contracts India order inflows, bidding pipeline and strategy

Alongside the existing backlog, Ahluwalia Contracts India has reported YTD order inflows of Rs 5,262 crore and currently holds L1 status in two projects worth Rs 1,620 crore. For FY26, management guides for order inflows of more than Rs 8,000 crore, indicating confidence in the near-term tender pipeline and conversion prospects across target segments.

The bidding pipeline for Ahluwalia Contracts India in the private segment stands at around Rs 6,000 crore. Management aims to maintain 50-60% of the order book in private sector projects, as it expects better visibility and scalability in private CAPEX compared with public orders. This approach is intended to support more stable margins and quicker execution cycles.

Ahluwalia Contracts India EBITDA margin trends and execution outlook

During Q2FY26, Ahluwalia Contracts India posted a notable jump in EBITDA margins to 10.9%, compared with 7.3% in the corresponding quarter last year. Axis Securities attributes this improvement mainly to stronger execution, a higher share of better-margin projects and favourable operating conditions that are expected to continue in the second half of FY26.

With a sizeable executable order book and key projects such as the CST project in Mumbai moving into higher execution phases, Ahluwalia Contracts India is projected to sustain double-digit margins from H2FY26. The brokerage expects operating leverage and disciplined cost management to support profitability as more large projects move beyond initial mobilisation stages.

Ahluwalia Contracts India valuation, growth projections and analyst view

"Given its large executable order book and favourable attributes-including a strong and diversified order book, a healthy bidding pipeline, steady order inflows, an assetlight operating model, and emerging opportunities in the construction space-ACIL is well-positioned to generate healthy cash flows and is expected to deliver revenue/EBITDA/PAT growth of 19%/35%/34% CAGR over FY25-FY27E," commented the research analysts of Axis Securities.

Based on these forecasts, Axis Securities remains bullish on Ahluwalia Contracts India, reiterating its target price of Rs 1,073 within a six to nine-month horizon. The brokerage notes that the current valuation of 18x FY27E EPS factors in recent gains but still leaves room for further re-rating if execution and margin trends remain on track.

Ahluwalia Contracts India operates with an asset-light model, which limits balance sheet strain while handling a large order book, and this structure supports cash flow generation when project execution accelerates. For investors watching construction and infrastructure themes, the stock reflects a play on private CAPEX, residential and commercial building demand, as well as selective infrastructure spending.

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