Ahluwalia Contracts (India) Limited has announced impressive financial results for the second quarter of fiscal year 2026, showcasing substantial growth in both revenue and profitability.

Financial Highlights

The company reported a turnover of Rs. 1,177.30 crores in Q2FY26, marking a 16.39% increase from Rs. 1,011.48 crores in Q2FY25. More notably, the Profit After Tax (PAT) surged by 106.07% to Rs. 79.45 crores, compared to Rs. 38.36 crores in the same quarter last year.

Improved Margins

Ahluwalia Contracts demonstrated significant improvement in its operational efficiency:

The substantial increase in EBITDA margin indicates enhanced operational performance and cost management.

Earnings Per Share

The company's Earnings Per Share (EPS) for Q2FY26 stood at Rs. 11.80, more than doubling from Rs. 5.73 in Q2FY25, reflecting the strong bottom-line growth.

Half-Yearly Performance

For the first half of FY26 (H1FY26), Ahluwalia Contracts reported:

• Turnover: Rs. 2,182.18 crores (up from Rs. 1,930.83 crores in H1FY25)
• PAT: Rs. 130.16 crores (increased from Rs. 68.96 crores in H1FY25)
• EPS: Rs. 19.43 (compared to Rs. 10.29 in H1FY25)

Order Book and Future Outlook

As of September 30, 2025, the company maintains a robust net order book of Rs. 18,057.60 crores, to be executed over the next 2.5 years. The total order inflow during FY26 stands at Rs. 4,521.06 crores, with the company being L1 (lowest bidder) in two projects aggregating Rs. 1,620 crores.

Management Commentary

During the earnings conference call, Mr. Shobhit Uppal, Deputy Managing Director, expressed confidence in the company's growth trajectory. He highlighted the company's strategic focus on high-value projects and improved operational efficiencies.

Sector-wise Performance

The company has a diversified presence across various sectors, with a significant portion of its order book coming from residential projects. Notable clients include DLF, Signature Global, and other reputable developers, indicating a strong foothold in the real estate sector.

Challenges and Mitigation Strategies

While labor shortages remain a persistent challenge in the construction industry, Ahluwalia Contracts is addressing this through increased mechanization and investment in advanced equipment. The company is also focusing on skill development and training programs to enhance workforce productivity.

Conclusion

Ahluwalia Contracts' Q2FY26 results demonstrate the company's ability to capitalize on the growing infrastructure and real estate sectors in India. With a strong order book, improved margins, and strategic focus on high-value projects, the company appears well-positioned for sustained growth in the coming quarters.

Ahluwalia Contracts , a prominent player in the Indian construction sector, has reported robust financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

Performance Analysis

Ahluwalia Contracts has delivered an exceptional performance in the second quarter, with its net profit more than doubling compared to the same period last year. The company's net profit surged by 106% to ₹791.00 million, up from ₹384.00 million in the corresponding quarter of the previous year.

The company's top-line growth was also noteworthy, with revenue increasing by 17% to reach ₹11.80 billion. This growth in revenue indicates a strong order book and efficient project execution.

Operational Efficiency

One of the standout aspects of Ahluwalia Contracts' Q2 results is the significant improvement in operational efficiency. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 78% to ₹1.30 billion, reflecting a substantial increase in profitability.

The EBITDA margin expanded impressively from 7.25% to 10.92%, a gain of 367 basis points. This margin expansion suggests that the company has been successful in optimizing its costs and improving its operational processes.

Conclusion

Ahluwalia Contracts' Q2 performance demonstrates the company's ability to drive growth and enhance profitability in the competitive construction sector. The substantial improvements across key financial metrics, particularly the doubling of net profit and the significant expansion in EBITDA margin, indicate a robust business model and effective management strategies.

As the construction industry continues to play a crucial role in India's infrastructure development, Ahluwalia Contracts' strong financial results position it well for potential future growth opportunities in the sector.