Ahluwalia Contracts (India) Limited has filed its 47th Annual Report for the financial year ended March 31, 2026, along with the notice for its upcoming Annual General Meeting (AGM). The filing was dispatched to the BSE, NSE, and CSE on September 3, 2026, in compliance with Regulation 34 of the SEBI Listing Obligations and Disclosure Requirements Regulations.

The company has scheduled its 47th AGM for Tuesday, September 29, 2026, at 12:30 pm. The meeting will be held through Video Conferencing or Other Audio-Visual Means, hosted at the company’s office in New Delhi. The annual report and AGM notice are available on the company’s website.

Operational and Workforce Metrics

Ahluwalia Contracts operates across 53 project sites nationally and one international location. The company employs 3,978 permanent employees and engages 19,879 workers. The turnover rate for permanent employees stood at 20.82% in FY26, down from 22.49% in FY25.

Safety remains a critical focus. The Lost Time Injury Frequency Rate (LTIFR) for workers was 0.08 per million person-hours worked in FY26, compared to 0.01 in the previous year. Total recordable work-related injuries for workers rose to 174 from 162. There were 2 fatalities among workers in both FY26 and FY25.

Environmental Disclosures

The company reported a significant increase in energy consumption metrics, which it attributes to expanded data collection coverage rather than operational changes alone. Total energy consumed rose to 679,165 GJ in FY26 from 238,505 GJ in FY25. Non-renewable sources accounted for the majority of this usage at 679,149 GJ.

Greenhouse gas emissions were disclosed for the first time in this reporting cycle. Scope 1 emissions totaled 13,323 metric tons of CO2 equivalent, while Scope 2 emissions reached 102,088 metric tons. Water withdrawal increased to 3,784,680 kilolitres from 1,970,601 kilolitres in the prior year.

Governance and Stakeholder Engagement

No monetary penalties or fines were reported during the year. The company maintained zero complaints regarding conflict of interest or bribery. Related-party sales constituted 0.06% of total sales, while loans and advances to related parties made up 1.7% of total loans and advances.

The board includes 1 female director, representing 12.5% of the total board strength of 8 members. Training on human rights covered 100% of employees and workers.

Ahluwalia Contracts (India) Limited reported a sharp contraction in profitability for the quarter ended June 30, 2026, despite double-digit growth in top-line revenue. The engineering and construction firm’s standalone net profit after tax fell 78% year-on-year to ₹114.2 lakh, down from ₹511.1 lakh in Q1FY26.

Standalone revenue from operations expanded 12% to ₹11,258.1 lakh, up from ₹10,048.8 lakh in the corresponding quarter of FY26. This marks a sequential decline from the full-year FY26 average, where total income stood at ₹45,652.0 lakh.

Consolidated figures mirrored the standalone trend, with net profit after tax dropping to ₹103.9 lakh from ₹511.1 lakh in the prior year period. Consolidated revenue remained flat at ₹11,258.1 lakh against the standalone figure, indicating no significant subsidiary contribution variance in this reporting cycle.

Margin Compression Drivers

The company’s EBITDA margin contracted sharply to 4.29% in Q1FY27, down from 8.59% in Q1FY26. Deputy Managing Director Shobhit Uppal identified three primary headwinds during the earnings call held on August 17, 2026:

• AIIMS Jammu Project Dispute: The finalization of the bill for the AIIMS Jammu project resulted in a reduction of bill value by ₹29 crore. This adverse impact accounted for approximately 2.6% of EBITDA compression. The company has initiated arbitration proceedings to resolve the dispute.
• Labor Cost Hikes in NCR: Minimum wage increases of 35% to 40% across skilled and unskilled categories in the National Capital Region (NCR), which contributes nearly 50% of the total portfolio, led to substantial wage cost increases. Management noted that while some contracts have labor escalation clauses, many large developer contracts do not, requiring separate claims for rate revisions.
• Execution Disruptions: Political events, including State Industrial Relations (SIR) drives and elections in West Bengal and Assam, reduced turnover in projects executed in these states and increased idle costs (IDC).

Balance Sheet and Order Book Update

The company maintained a strong cash position with cash and bank balances of ₹920 crore against gross debt of merely ₹2.28 crore. Key working capital metrics as on June 30, 2026, included:

• Trade Receivables: ₹776 crore
• Retention Money: ₹401 crore
• Inventory: ₹391 crore (including real estate inventory)
• Mobilization Advances: ₹924 crore (31% interest-bearing at an average rate of 8%)
• Unbilled Revenue: ₹946 crore

The net order book stood at ₹20,663.52 crore as on June 30, 2026, executable over the next 3 to 3.5 years. Total order inflow for FY27 up to June 30 was ₹512.81 crore. Management indicated a more conservative approach to new bidding due to volatility in material and labor prices, revising full-year order inflow expectations downward from previous aggressive targets.

Project-Specific Updates

Management provided visibility into key large-ticket projects:

• Central Vista: Demolition of Nirman Bhawan is complete, with foundation casting begun. Udyog Bhawan demolition is 90% complete. Billing is targeted at ₹700 crore in FY27 and ₹1,000 crore in FY28. The entire project is expected to be completed in FY29.
• DLF Dahlias: Design changes have delayed ground work, but billing is targeted at ₹30–35 crore monthly going forward.
• CST Project: Billing is expected to reach ₹400–450 crore in FY27, ramping up to ₹700 crore in FY28.
• Gems and Jewellery Park: Work on ground is likely to begin in Q3FY27, with expected billing of ₹100 crore in FY27 and ₹450 crore in FY28.

What the Numbers Show

The divergence between revenue growth and profit collapse highlights severe margin compression. While operational income grew by over ₹1,200 lakh, pre-tax profit declined by ₹541 lakh. This suggests that cost of goods sold or operating expenses rose disproportionately to revenue, eroding the bottom line significantly despite higher sales volume. Basic earnings per share fell to ₹1.70 from ₹7.63, reflecting the direct impact on shareholder value. The reliance on NCR for 50% of the portfolio exposes the firm to acute regional labor supply shocks, as evidenced by the inability to pass through 35–40% wage hikes in contracts lacking escalation clauses.

Earnings Call Details

The company held an Analyst/Institutional Investors Meeting on August 17, 2026, at 4:00 pm to discuss the unaudited financial results for Q1 FY2026-27. The meeting was conducted pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The outcome of the conference call was filed with the Compliance Departments of BSE Limited, National Stock Exchange of India Ltd, and Calcutta Stock Exchange Ltd under Regulation 46(2) of the SEBI (LODR) Regulations, 2015. Vipin Kumar Tiwari, Company Secretary, signed off on the disclosure.