Ahluwalia Contracts (India) LimitedInfrastructure & ConstructionAHLUCONT
Q1 FY27 concall · earnings callAhluwalia Contracts (India) Limited
Significant margin contraction due to a disputed project finalization, sharp labor cost inflation, and project delays led to a 77.65% drop in PAT despite 12% revenue growth.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Turnover | ₹1,125.81 Cr | 12.03% | |
| PAT | ₹11.42 Cr | -77.65% | |
| EPS | INR 1.70 | — | |
| EBITDA Margin | 4.29% | -4.30 p.p. | |
| PAT Margin | 1% | -4.01 p.p. | |
| Net Order Book | ₹20,663.52 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹951.96 Cr-7.3% YoY-5.9% QoQ | ₹49.51 Cr-29.5% YoY+28% QoQ | ₹7.39— YoY+28.1% QoQ |
| Q2 FY25 | ₹1,011.48 Cr+12.2% YoY+10% QoQ | ₹38.67 Cr-29.8% YoY+26.5% QoQ | ₹5.77-29.8% YoY— QoQ |
| Q1 FY25 | ₹919.35 Cr+20.4% YoY-21% QoQ | ₹30.56 Cr-38.5% YoY-84.7% QoQ | ₹0.00-100% YoY-100% QoQ |
| Q4 FY24 | ₹1,163.66 Cr+34.8% YoY+13.4% QoQ | ₹199.80 Cr+176.9% YoY+184.5% QoQ | ₹29.83— YoY— QoQ |
| Q3 FY24 | ₹1,026.48 Cr+38.1% YoY+13.9% QoQ | ₹70.24 Cr+56.3% YoY+27.5% QoQ | ₹0.00-100% YoY-100% QoQ |
TL;DR
- PAT fell 77.65% YoY to INR 11.42 Cr despite 12% revenue growth.
- EBITDA margin collapsed to 4.29% from 8.59% due to a INR 29 Cr bill reduction on AIIMS Jammu (2.6% impact), labor cost hikes (35-40%), and project delays.
- Order book stands at INR 20,663.52 Cr; order inflow YTD is INR 512.81 Cr.
- Management rules out double-digit EBITDA margin for FY27 due to labor inflation and potential NGT impact.
- Revenue growth guidance maintained at 12-15% for FY27.
Said on the call
“This year, there have been a few black swan events... it would be fair to say that this financial year, we are ruling out having a double-digit EBITDA margin.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Outlook & Labor Cost Impact | Management ruled out double-digit EBITDA margin for FY27 due to labor cost inflation (35-40% hike in NCR) and potential NGT impact; expects some client compensation over next two quarters. |
| AIIMS Jammu Dispute | Final bill reduction of INR 29 Cr caused a 2.6% EBITDA hit; dispute will go to arbitration. |
| Order Inflow & Bidding Strategy | Order inflow guidance reduced; company is now 'conservative' and will not bid aggressively due to cost volatility, targeting ~INR 4,000-5,000 Cr for FY27 vs. earlier INR 8,000 Cr. |
| Project-Specific Updates | Gems & Jewellery Park billing expected at INR 100 Cr in FY27 (start Q3); Central Vista billing guided at INR 700 Cr (FY27) and INR 1,000 Cr (FY28); CST project billing expected at INR 400-450 Cr for FY27. |
| Working Capital & Capex | Capex for FY27 reduced to INR 220-250 Cr from INR 300 Cr; working capital days at 119, expected to improve. |
| Defense of Guidance & Communication | Management defended previous guidance, stating labor cost impact was unpredictable and pushed back on analyst suggestions that they should have known earlier. |
Guidance
- Revenue growth of about 12% to 15% for FY27.
- Double-digit EBITDA margin ruled out for FY27.
- Order inflow target reduced; company being 'conservative'.
- Capex for FY27 reduced to INR 220-250 Cr from INR 300 Cr.
- Expect some client compensation for labor cost hikes over the next two quarters.
Source
Summary written from the transcript filed by Ahluwalia Contracts (India) Limited for the call held on 17 Aug 2026; published 20 Aug 2026, 18:53 IST.
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