Shares of Ahluwalia Contracts (India) Ltd (ACIL) are in focus after brokerage firm Anand Rathi reiterated a Buy rating with a target price of ₹1,009, implying an upside of around 28 percent from the previous close of ₹787.90.
The stock rose 1.6 percent during the session to touch ₹800.60.
The company has a market capitalisation of around ₹5,346 crore.
Record order book boosts visibility
As of March 31, 2026, Ahluwalia Contracts reported:
- Gross order book: ₹296,757 million.
- Unexecuted order book: ₹210,963 million.
The unexecuted order book is equivalent to about 4.6 times trailing twelve-month revenue, providing visibility for several years.
Major projects include
- Central Vista.
- DLF Dahlias.
- Signature Global developments.
- CSMT railway works.
According to Anand Rathi, the sizeable order book supports steady revenue growth and reduces the impact of cyclical slowdowns.
Private projects account for 60% of orders
The company’s order mix has shifted towards private-sector clients.
Private projects account for roughly 60 percent of the order book.
Brokerage expectations for margin expansion are based on:
- Better project mix.
- Scale benefits.
- Improved execution efficiency.
Management has guided towards double-digit EBITDA margins in FY27.
Nearly 89 percent of orders carry escalation clauses, providing protection against input cost increases.
Balance sheet remains strong
Ahluwalia Contracts continues to maintain low leverage.
Key financial metrics
- ROCE: 20.4%.
- ROE: 13.8%.
- Debt-to-equity ratio: 0.04.
The company also has a net cash position of around ₹8.1 billion, which provides flexibility for:
- Capital expenditure.
- Working capital requirements.
- Future growth opportunities.
Anand Rathi expects return ratios to improve further.
Execution pipeline entering active phase
Several high-value projects are now moving into execution.
This could support faster conversion of the order book into revenue.
The company has been focusing on:
- Mechanisation.
- Efficiency improvements.
- Faster project completion.
These measures are expected to improve billing momentum.
Valuation outlook
Anand Rathi’s target price is based on a sum-of-the-parts (SOTP) approach.
The brokerage values the company at 19 times FY28 estimated earnings, citing:
- Strong order inflows.
- Improving margins.
- Healthy balance sheet.
- Better earnings visibility.
Q4 FY26 performance
Revenue increased to ₹1,322 crore in Q4 FY26 from ₹1,216 crore a year earlier.
That represents growth of 8.76 percent.
Net profit stood at ₹82 crore, compared with ₹83 crore in Q4 FY25.
Order inflows remain healthy
During FY26, the company secured fresh orders worth ₹102,574 million.
It currently has:
- More than 53 ongoing projects.
- Presence across 16 states.
- One overseas project.
Diversified project portfolio
Over the years, Ahluwalia Contracts has executed projects across multiple sectors.
Key segments
- Residential and commercial buildings.
- Hospitals.
- Hotels.
- IT parks.
- Industrial facilities.
- Metro stations and depots.
- Railway redevelopment projects.
- Data centres.
- Urban infrastructure.
Major clients include
- State Bank of India.
- Infosys.
- Vedanta.
- Reliance Industries.
- Tata Group.
The company also works with agencies such as:
- Airports Authority of India.
- NBCC.
- Delhi Metro Rail Corporation.
- Asian Development Bank.
- AdaniConneX.
Is a 4.6x order book enough?
A large order book provides strong revenue visibility, but it does not guarantee long-term compounding on its own.
Future growth will depend on:
Factors investors should watch
- Execution efficiency.
- Margin improvement.
- Timely project completion.
- Fresh order inflows.
- Working capital management.
The combination of a healthy balance sheet, improving return ratios and a strong pipeline supports the long-term outlook, though the business remains exposed to infrastructure cycles.
TL;DR
Anand Rathi has a ₹1,009 target price on Ahluwalia Contracts, citing its 4.6x TTM order book and improving margins. However, sustained earnings growth will depend on execution, profitability and continued order inflows.
AI summary
- Anand Rathi has a Buy rating with a ₹1,009 target.
- The unexecuted order book stands at ₹210,963 million.
- Private projects account for about 60% of the order book.
- The company maintains a debt-to-equity ratio of 0.04.
- Long-term growth depends on execution and margin expansion.
