Ahluwalia Contracts (India) (AHLU IN) – Q4FY26 Result Update – High-quality EPC Play with strong growth visibility – BUY
Published on 01 Jun 2026
Ahluwalia stands out as one of India's highest-quality EPC companies, backed by a strong execution track record, a debt-free balance sheet, consistent positive operating cash flow generation, and a robust order book of INR 211 bn (~4.6x TTM revenue), providing strong earnings visibility. Unlike road-focused EPC peers, the company is well positioned in structurally growing building infrastructure segments such as healthcare, residential townships, educational institutions, commercial complexes, airports and government infrastructure, offering diversified growth opportunities. With FY26 order inflows of INR 103 bn, additional L1 projects worth INR 16.2 bn, and management guiding for 15–20% revenue growth in FY27 (vs last guidance of 10-15% revenue growth), we expect execution momentum to accelerate, supported by key projects including Central Vista, CSMT redevelopment and large residential developments. We forecast revenue growth to improve from low single-digit CAGR over FY24–26 to 19% CAGR over FY26–28E, aided by a healthy project pipeline, absence of election-related disruptions, improved labour availability and a favourable execution environment. We value the company at 16x FY28E EPS with BUY rating and TP of INR 929, a discount to its 10-year average multiple of 18x, reflecting an attractive risk-reward proposition.
