AGIIL - AGI Infra

📊 NSE: AGIIL 🏢 Construction 📅 Last Updated: 12/13/2025 17:59

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Construction and Real Estate Development. Total revenue for HY1 FY26 grew by 17.80% YoY to INR 176.91 Cr compared to INR 150.18 Cr in HY1 FY25. Q2 FY26 revenue was INR 87.13 Cr, an 8.88% increase over Q2 FY25.

Geographic Revenue Split

100% of the company's operations and revenue are concentrated in the state of Punjab, primarily in Jalandhar, where it has delivered approximately 90.44 lakh square feet (LSF) of real estate space.

Profitability Margins

Net Profit Margin improved to 20.52% in FY25 from 17.28% in FY24, a 15.15% increase. Operating Profit Margin rose to 25.72% in FY25 from 24.21% in FY24. Profit After Tax (PAT) for HY1 FY26 was INR 42.06 Cr, up 32% YoY.

EBITDA Margin

EBITDA for Q2 FY26 was INR 35.45 Cr, representing a margin of 40.6%, which is a 21.88% increase from INR 29.08 Cr in Q2 FY25. EBITDA for FY25 (standalone) was INR 92.54 Cr.

Capital Expenditure

Purchase of fixed assets (including CWIP) for HY1 FY26 was INR 4.77 Cr. In FY25, the company spent INR 47.91 Cr on fixed asset additions.

Credit Rating & Borrowing

The company holds a 'CARE BBB+; Stable' rating for its long-term bank facilities (INR 200 Cr) and fixed deposits (INR 78 Cr). Interest coverage ratio declined by 50% to 0.58 in FY25 from 1.16 in FY24.

⚙️ Operational Drivers

Raw Materials

Construction raw materials (including imported components) represent the primary cost, with 'Cost of materials consumed' totaling INR 144.48 Cr in HY1 FY26, accounting for 81.6% of total revenue.

Import Sources

Raw materials are imported regularly as per company guidelines, though specific countries of origin are not disclosed in available documents.

Capacity Expansion

The company has a track record of completing 14 projects and delivering 90.44 lakh square feet (LSF) of real estate space over two decades. Current projects are ongoing with financial closure already achieved.

Raw Material Costs

Raw material costs increased by 41.81% YoY in HY1 FY26 to INR 144.48 Cr. The company does not undertake commodity hedging, making it sensitive to price fluctuations.

Manufacturing Efficiency

Inventory turnover improved by 12.65% to 160.37 days in FY25 from 183.60 days in FY24, indicating better project execution and sales velocity.

📈 Strategic Growth

Expected Growth Rate

17.80%

Growth Strategy

Growth is driven by the development of world-class Group Housing, Office space, commercial, and institutional buildings. The strategy focuses on maintaining a strong track record in affordable and premium housing, leveraging its brand reputation in Punjab, and ensuring financial closure for ongoing projects to mitigate execution risks.

Products & Services

Affordable and Premium Group Housing, Office spaces, Commercial buildings, Institutional buildings, and Township projects.

Brand Portfolio

AGI Infra, Jalandhar Heights, Jalandhar Heights-II, Urbana.

New Products/Services

The company continues to focus on its core 'Affordable & Premium Group Housing' projects, which are its primary revenue contributors.

Market Expansion

Expansion is currently focused on deepening its presence in the Punjab real estate market, particularly through large-scale township and housing projects.

Market Share & Ranking

A renowned name in Affordable & Premium Group Housing in Punjab with 90.44 LSF delivered.

🌍 External Factors

Industry Trends

The real estate industry is currently benefiting from favorable saleability and an adequate outlook, though it remains subject to cyclicality and regulatory changes like RERA.

Competitive Landscape

Competes with other regional and national real estate developers in the Punjab market; competitive advantage is derived from its execution team and integrated business model.

Competitive Moat

The moat is built on a 20-year track record, 14 completed projects, and a strong brand in the Punjab region. This is sustainable due to the high entry barriers in large-scale township development and established customer trust.

Macro Economic Sensitivity

Highly sensitive to the performance of the Indian economy and real estate market trends. Interest rate sensitivity is high given the debt-equity ratio of 0.33 and reliance on bank borrowings.

Consumer Behavior

Demand is driven by customer preferences for affordable vs. premium housing and trust in established developers for timely project delivery.

Geopolitical Risks

Exposure to global supply chain disruptions that could affect the price and availability of imported raw materials.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Real Estate (Regulation and Development) Act (RERA) and local building norms in Punjab. Compliance with SEBI Listing Regulations is maintained.

Taxation Policy Impact

Current tax expense for HY1 FY26 was INR 8.92 Cr, up from INR 6.75 Cr in HY1 FY25. The company follows Indian Accounting Standards (Ind AS).

Legal Contingencies

The company reports no transactions with related parties were in conflict with its interests. Specific values for pending court cases are not disclosed in available documents.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for ongoing developments and high reliance on customer advances for liquidity. Market price fluctuations in real estate can impact realizations.