Ahluwalia Contracts (India) Limited has delivered a strong financial performance in the third quarter of FY26, showcasing consistent growth across key operational metrics. The engineering, designing, and construction company reported its unaudited results for the quarter ended December 31, 2025, reflecting robust business momentum.

Financial Performance Overview

The company's quarterly performance demonstrates solid growth trajectory with revenue from operations reaching ₹1,060.72 crore in Q3FY26, compared to ₹951.96 crore in the corresponding quarter of the previous year. This represents a healthy growth rate of 11.43%, indicating strong project execution capabilities.

Earnings Per Share Performance

The company maintained consistent earnings per share performance with both basic and diluted EPS at ₹8.06 for Q3FY26, compared to ₹7.37 in the corresponding quarter of the previous year. The paid-up equity share capital remained stable at ₹13.40 crore with a face value of ₹2 per share.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, showcased even stronger performance metrics. Revenue from operations reached ₹3,242.90 crore, marking a significant 12.50% increase from ₹2,882.79 crore in the corresponding period of the previous year.

Corporate Developments

The Board of Directors approved a significant corporate restructuring initiative during their meeting held on February 14, 2026. The scheme involves the amalgamation of five wholly-owned subsidiaries with the parent company on a going concern basis. These subsidiaries include Dipesh Mining Pvt. Ltd., Jiwanyoti Traders Pvt. Ltd., Paramount Dealcomm Pvt. Ltd., Preamsagar Merchants Pvt. Ltd., and Splendor Distributors Pvt. Ltd. All transferor companies are engaged in real estate activities and generate rental income.

Regulatory and Compliance Updates

The company has implemented provisions related to the new Labour Codes notified by the Government of India on November 21, 2025. This implementation resulted in an increase of ₹131.96 lakhs in gratuity provisions, which has been recognized as employee benefit expense in the current quarter's financial results. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) and have undergone limited review by statutory auditors, who expressed an unmodified conclusion on the results.

Ahluwalia Contracts (India) Limited has announced board approval for a significant corporate restructuring through the amalgamation of five wholly owned subsidiaries. The engineering, designing, and construction company's board meeting on February 14, 2026, formally approved the comprehensive merger scheme under the Companies Act, 2013.

Scheme Structure and Companies Involved

The amalgamation involves five transferor companies merging with Ahluwalia Contracts as the transferee company. The scheme encompasses Dipesh Mining Private Limited, Jiwanjyoti Traders Private Limited, Paramount Dealcomm Private Limited, Premsagar Merchants Private Limited, and Splendor Distributors Private Limited.

All transferor companies are incorporated under the Companies Act, 1956, with registered offices at KB-25, Salt Lake City, Sector III, Kolkata. These subsidiaries are primarily engaged in real estate investment activities and earning rental income from immovable assets.

Capital Structure and Share Details

The scheme involves companies with varying capital structures across the transferor entities. Each subsidiary maintains authorized capital of ₹1,00,00,000 to ₹1,10,00,000, with issued and paid-up capital ranging from ₹88,75,000 to ₹1,03,25,000.

Ahluwalia Contracts maintains authorized capital of ₹20,00,00,000 with issued and paid-up capital of ₹13,39,75,120 comprising 6,69,87,560 equity shares of ₹2 each.

Regulatory Compliance and Exemptions

The scheme benefits from regulatory exemptions under SEBI Master Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated June 20, 2023. Since the amalgamation involves exclusively wholly owned subsidiaries with their listed parent company, the scheme is exempt from obtaining prior approval, no-objection certificate, or observation letter from stock exchanges and SEBI.

The company has submitted required documentation to BSE Limited, including certified copies of board resolutions, the amalgamation scheme, and processing fees. BSE Limited serves as the designated stock exchange for the scheme purposes.

Strategic Rationale and Benefits

The amalgamation aims to achieve multiple strategic objectives through corporate structure simplification. The scheme is designed to consolidate group entities, optimize corporate structure, pool financial and managerial resources, eliminate multiple entities, improve operational efficiency, and enhance long-term shareholder value.

Key benefits include elimination of multiple subsidiary layers, simplification of corporate and ownership structure, reduction in regulatory and compliance overheads, improved operational flexibility and efficiency, and more effective capital allocation and financial planning.

Implementation Timeline and Next Steps

The scheme requires sanction from the National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013. Upon NCLT approval, all assets and liabilities of the transferor companies will transfer to Ahluwalia Contracts on a going concern basis without requiring separate share issuance.

All employees of the transferor companies will become employees of the transferee company without service interruption and on terms not less favorable than existing conditions. The scheme ensures no change in management or control of Ahluwalia Contracts, maintaining continuity in operations and governance.

Source: Exclusive