Construction firm AFcons Infra experiences a 5% surge, and brokerages foresee potential gains of up to 43% - Explore the reasons behind this rise
The latest investment insights and brokerage recommendations for Afcons Infrastructure are very positive, driven by its strong Q1 FY26 financial results, a robust order book, and significant new order inflows.
Strong Q1 FY26 performance
Total income rose by around 6.4%-6.8% YoY to approximately ₹3,419 crore. EBITDA increased by about 19.6%-20% YoY to ₹445 crore, with the EBITDA margin expanding from 11.6% to 13.0%, indicating improved operational efficiency. Profit After Tax (PAT) surged 50% YoY to ₹137 crore, with the PAT margin rising to 4.0% from 2.9% the previous year [1][2][3][4].
Order book and new orders
The company's total order book stands strong at ₹35,311 crore. L1 (lowest bidder) projects worth ₹21,556 crore, including major wins in Croatia for road and rail projects valued at ₹11,321 crore. New orders of ₹1,093 crore were secured in Q1 FY26, indicating strong inflows and future revenue visibility [1][2][3].
Market reaction and broker views
Afcons Infrastructure's shares rose around 4% soon after results, suggesting positive market sentiment. Brokers and analysts emphasize the strong growth in key profitability metrics, expanding margins, and the robust order pipeline as factors positioning the company well for FY26 growth [2][3].
Operational highlights
The inauguration of the Chenab Railway Bridge, the world's highest single-arch railway bridge, underscores execution capabilities and enhances company reputation, which could lead to more prestigious projects [1].
In summary, the combination of solid quarterly financials, an expanding and healthy order book, and large new contract awards make Afcons Infrastructure a favourable investment prospect according to current market and brokerage assessments, with positive share price momentum and confidence around FY26 performance growth [1][2][3][4].
Additional insights
- Nomura is positive about Afcons' order inflow guidance, with a total order pipeline of Rs 3.3 trillion.
- Afcons Infra has won contracts worth Rs 4,535 crore in Croatia.
- No debt and limited tariff impact are factors contributing to the stock's rally.
- The management confidence about the balance sheet leverage being "very comfortable with net debt:equity at 0.5x."
- Jefferies, a brokerage, has maintained a Buy rating on the share price of Afcons with a target of Rs 580 per share.
- Jefferies estimates 17% revenue growth annually on a compounded basis between FY25-FY28 for Afcons Infra.
[1] Afcons Infrastructure Q1 FY26 Results
[2] Business Standard: Afcons Infrastructure Q1 Results: Net up 10.4% at Rs 3,418.7 crore
[3] Money Control: Afcons Infrastructure Q1 Results: Net up 10.4% at Rs 3,418.7 crore
[4] Economic Times: Afcons Infrastructure Q1 Results: Net up 10.4% at Rs 3,418.7 crore
- The strong Q1 FY26 performance of Afcons Infrastructure, as indicated by its increased total income, EBITDA, and PAT, along with expanding margins, has caught the attention of financial analysts and investors, making its portfolio a potential addition in the DEFI and stock-market investment levels.
- The steady growth of Afcons Infrastructure's order book, along with significant new order inflows, suggests a prosperous business outlook, which could be an attractive factor for investors to consider in their portfolio diversification strategies.
- The positive market sentiment, brokerage recommendations, and share price momentum following the Afcons Infrastructure Q1 FY26 results make this company an attractive investment opportunity in the wider finance and investment landscape.
- Analysts and brokers view Afcons Infrastructure's strong financials, robust order pipeline, and executed projects like the Chenab Railway Bridge as factors that position the company well for growth in FY26, potentially leading to increased revenue and future returns for investors in their portfolio.
