Ahluwalia Contracts (India) Limited — Q1FY27 earnings call summary

Filed 17 August 2026 · Company audio recording

Labor cost increase estimated to cause a 1-1.5% EBITDA margin hit company-wide, with NCR projects (50% of order book) most affected.
EBITDA margin to remain below double digits in FY27 due to labor cost hikes and other headwinds; double-digit margin target deferred to FY28 or later.
Order inflow for FY27 expected at Rs. 4,000-5,000 crore, down from earlier Rs. 8,000 crore guidance, reflecting cautious bidding amid cost volatility.
Material cost volatility partly pass-through; labor cost escalation claims submitted to clients, with compensation expected over next two quarters.
Staff costs increased due to organizational ramp-up for large projects; expected to rationalize as project revenues scale.
Increased working capital days at 119 expected to reduce by year-end; CapEx guidance lowered to Rs. 220-260 crore from Rs. 300 crore.
GEMS and JV Park project delayed due to design changes; work expected to start Q3 FY27 with Rs. 100 crore billing in FY27 and Rs. 450 crore in FY28.
Q1 FY27 EBITDA margin at 4.29%, down from 8.59% YoY, impacted by Rs. 29 crore bill finalization (2.6% EBITDA hit), labor wage hikes (35-40% increase in NCR), and election-related disruptions in West Bengal and Assam.