The Afcons Infrastructure share price has spiked up nearly 5% in intra-day trade. This is after the company’s Q1FY26 numbers beat estimates by a significant margin. No debt, limited tariff impact and a strong order pipeline are fuelling a big rally in the stock. The fact that the company maintained its revenue guidance is also another key factor supporting the positive recommendations on the stock.
Here is a look at what’s driving the big brokerage recommendations –
Jefferies on Afcons: Strong growth visibility
Jefferies maintained Buy on the share price of Afcons with a target of Rs 580 per share. This implies as much as 43% One of the key positives, as per Jefferies, is that “the management maintained FY26 order flow guidance of Rs 20,000 crore, as Afcons is L1 on orders of Rs 21,600 crore, of which Rs 11,300 crore from Croatia should convert in H2FY26.”
The company has also exhibited confidence about achieving the 20-25% revenue growth guidance with an execution uptick expected in H2. Jefferies estimates 17% revenue growth annually on a compounded basis between FY25-FY28.
According to Jefferies, “the results call highlighted that despite US tariffs and geopolitical tensions causing global uncertainty, Afcons’ target markets are unaffected, and the prospect pipeline remains strong.”
Additionally, domestic capex prospects remain healthy across both center and state governments, “though cash flow issues on select programs such as Jal Jeevan Mission persist.”
Moreover, the management confidence about the balance sheet leverage being “very comfortable with net debt:equity at 0.5x. “Execution remains on track and delays in receiving tunnel boring machines for the high-speed rail project is factored in 20-25% FY26 revenue growth guidance,” they added.
Nomura on Afcons: Hopes of Rs 20,000 crore the big positive
Nomura too maintained Buy on Afcons Infrastructre with a target price of Rs 560 per share. This implies as much as 37% upside for Afcons Infra share price. The brokerage house has given a big thumbs up to the company’s order inflow guidance. They added that, “as per management, the total order pipeline is healthy at Rs 3.3 trillion, with Rs 1.4 trillion/0.8 trillion/0.7 trillion/0.5 trillion arising from the urban infra/hydro/transport/marine segments.”
Moreover, the management expects fresh order inflows of Rs 20,000 crore in FY26. This is because Afcons has emerged as L-1 for orders worth Rs 11,300 crore in Croatia and management expects these to be awarded in 3-4 months.
“The inflow guidance excludes orders worth Rs 10,000 crore in Maharashtra in which AFCONS has been declared as the L-1 bidder, but have not yet been awarded due to land acquisition (LA) and other issues. However, management is confident of booking these orders soon as LA is near 100% now,” they added.
At the end of Q1FY26, the order book stood at Rs 35,300 crore with a healthy book-to-bill ratio of 2.8x, providing ample revenue visibility. They pointed out that the “management has maintained its guidance of 20-25% revenue growth and 11% EBITDA margin in FY26 as it expects execution to pick up substantially,”
The management also highlighted that it “does not foresee a material reduction in debt levels since the company is likely to continue investing in strategic equipment to fuel growth.”