Ahluwalia Contracts shares experienced a surge of over 11% in trading today following the release of its Q2 results, which showcased significant growth in profit and revenue. The construction company's strong performance in the September quarter has instilled confidence among investors, driving the stock price upward.
Financial Performance Highlights
Ahluwalia Contracts reported a remarkable 106% surge in net profit, reaching ₹79.05 crore for the second quarter ended September 2025, compared to ₹38.36 crore in the same period last year. The company's total income also witnessed substantial growth, rising to ₹1,192.29 crore. These figures highlight the company's robust operational performance and efficient project execution.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant increase of 78%, climbing to ₹1.30 billion. Consequently, the EBITDA margin expanded considerably from 7.25% to 10.92%, demonstrating enhanced operational efficiency.
For the first half of FY26, Ahluwalia Contracts continued its growth trajectory, with profit reaching ₹130.16 crore, an 88.7% increase compared to ₹68.96 crore in the corresponding period last year.
Revenue Growth and Order Book
The company's topline experienced a growth of 16.4%, reaching ₹1,177 crore, compared to ₹1,011 crore in the same period last year. This growth can be attributed to a strong order book and the swift progress of key project sites. As of June 30, 2025, Ahluwalia Contracts boasted a robust order book of ₹16,582 crore and a year-to-date order inflow of ₹3,889 crore, providing revenue visibility for the next 2 to 2.5 years. The company anticipates an order inflow of around ₹7,000 crore for FY26, further bolstering its growth prospects.
Segment-wise Performance
The contract work segment, Ahluwalia Contracts' core business, experienced a growth of 16.6%, reaching ₹117,583.68 lakhs.
Financial Position
As of September 30, 2025, Ahluwalia Contracts' total assets stood at ₹394,738.08 lakhs, with total equity at ₹192,609.41 lakhs. The company's healthy balance sheet and net cash position further solidify its financial stability.
Market Reaction and Analyst Views
The surge in Ahluwalia Contracts' stock price reflects the positive market sentiment surrounding the company's strong Q2 performance. The stock reached an intraday high of ₹998, nearly touching the ₹1000 mark.
Recent Developments and Future Outlook
In recent months, Ahluwalia Contracts has secured significant orders, including:
- ₹1,100 crore for projects in Gurugram and Bengaluru, giving a fresh push to its residential project pipeline.
- ₹2,089 crore residential construction project from DLF Ltd for "The Dahlias" project in Gurugram.
These new orders are expected to enhance the company's order book visibility and revenue pipeline, instilling further confidence among investors.
Stock Performance
While Ahluwalia Contracts shares have shown negative returns of 5% on a year-to-date basis and a 2% fall over the past 12 months, the company's strong Q2 results and positive future outlook may signal a potential turnaround. The stock is currently trading at a relative strength index of 48, suggesting neutral market sentiment.
Conclusion
Ahluwalia Contracts' impressive Q2 results demonstrate its strong position in the Indian construction sector. With a robust order book, improving operational efficiency, and a healthy financial position, the company is well-positioned for continued growth and success in the future.
