Detailed Narrative
Q3 FY26 and 9M FY26 Financial Performance
Ahluwalia Contracts reported a turnover of ₹1,060.72 crores in Q3 FY26, marking an 11.43% year-on-year growth from ₹951.96 crores in Q3 FY25. Profit After Tax (PAT) for the quarter stood at ₹54.02 crores, a 9.38% increase from ₹49.39 crores in the prior year. The EBITDA margin for Q3 FY26 was 9.05%, slightly up from 8.86% in Q3 FY25, while PAT margin was 5.02%. For the nine months ending December 2025, turnover reached ₹3,242.90 crores (up 12.49% YoY), and PAT significantly grew by 55.62% to ₹184.18 crores, with EBITDA margin at 9.59% and PAT margin at 5.6%.
Order Book and Inflow Dynamics
As of December 31, 2025, the company's net order book was ₹18,679.50 crores, providing revenue visibility for the next 2.5 to 3 years. Total order inflow for FY26 year-to-date is ₹9,562 crores (₹8,959 crores excluding GST). The company is currently L1 on four projects valued at approximately ₹2,485 crores (including GST). The bid pipeline stands at around ₹7,000 crores. Management indicated a strategic shift for FY27, expecting slightly lower order inflow (possibly ₹5,000-6,000 crores) as the focus shifts to efficient execution and margin improvement.
Impact of NGT Ban and Seasonal Disruptions
Execution in Q3 and Q4 FY26 has been significantly impacted by recurring NGT (National Green Tribunal) bans and pollution-related project closures in Delhi-NCR, which constitutes nearly 44% of the company's order book. This, coupled with the early Holi festival in March causing labor disruptions, led to a revision of the FY26 revenue growth guidance to 10-15% from an earlier 15-20%. Management acknowledges this as a recurring annual challenge but notes that the ecosystem is becoming more aware and adapting with measures like offsite work and mechanization.
Project Updates (CSMT, DLF Dahlias, Gem & Jewellery Park)
The CSMT project experienced a 'huge delay' due to a complete redesign but is now progressing, with an expected execution of ₹300-350 crores in FY26 and ₹700 crores in FY27. The DLF Dahlias project was also delayed as new earthquake codes necessitated redesigns, impacting FY26 revenue (only ~40% of the original target). Work on DLF Dahlias is expected to pick up post-Holi. The Gem & Jewellery Park project is anticipated to commence in Q1 FY27, with 20-25% of its total value projected for execution in FY27.
Capital Structure and Liquidity Position
The company reported gross borrowings of approximately ₹22 crores. It maintains a strong liquidity position with a cash balance of ₹253 crores and a bank balance of ₹587 crores, totaling ₹840 crores in cash and equivalents. Capital expenditure for the first nine months of FY26 amounted to ₹193 crores, with an additional ₹55 crores incurred in Q3 FY26. The estimated capex for Q4 FY26 is ₹100 crores, bringing the full-year FY26 capex to around ₹300 crores, with a similar amount projected for FY27.
Outlook and Margin Guidance
Management guides for a revenue growth of 15-20% for FY27. Operating margins are expected to be 'double digit' for FY26 and '10-10.5%' for FY27, reflecting a focus on efficiency and profitability. The company is strategically picking and choosing projects, moving away from aggressive residential project bidding, especially in NCR, to concentrate on institutional, airport, hotel, and commercial projects. The impact of the new Labour Code for 9M FY26 was ₹1.31 crores, and raw material cost inflation is largely passed through in contracts.