Synopsis:
Atal Realtech jumped sharply after it secured an LOI to operate a subcontracting work from ABH Developers, which involves a court building in Karanja, Maharashtra, worth Rs 49 crore.
The shares of this leading business engaged in civil construction and government contracting are in focus after securing a key contract. In this article, we will dive more into the highlights of this order.
With a market capitalization of Rs 284 crore, the shares of Atal Realtech Ltd reached a day’s high of Rs 23.03 per share, up 2 percent from its previous day’s closing price of Rs 22.53 per share. Over the past five years, the stock has delivered a robust return of 645 percent, outperforming NIFTY 50’s return of 102 percent.
About the Order
Atal Realtech has secured a Letter of Intent (LOI) to operate a subcontracting work from ABH Developers. ABH Developers was awarded a government contract to build a court building in Karanja, Maharashtra, with a total project value of approximately Rs 49.47 crore.
ABH Developers chose Atal Realtech to execute this work on a back-to-back basis, meaning Atal will handle the actual execution under the same terms as the main contract. As part of this arrangement, ABH Developers will charge a 4 percent royalty on the total contract value, including any future escalations.
Q2 Highlights
Atal Realtech reported a core revenue of Rs 19.74 crore in Q2 FY26, a decline of 31 percent as compared to Rs 28.42 crore in Q2 FY25. However, it grew by 86 percent from Rs 10.60 crore in Q1 FY26.
Regarding its profitability, it reported a net profit of Rs 1.04 crore in Q2 FY26, a staggering decline of 43 percent as compared to Rs 1.81 crore in Q2 FY25. However, it recorded a growth of 58 percent from Rs 0.66 crore in Q1 FY26.
Atal Realtech Limited is a Nashik-based construction and infrastructure company that takes up both government and private projects. Founded in 2012 by Mr. Vijaygopal Atal, the company has grown steadily and is now considered one of the notable builders in the region. It specialises in civil construction, industrial works, and project management, handling everything from planning to execution.
The company works largely on government projects such as water supply systems, drainage networks, roads, bridges, irrigation works, stadiums, hospitals, commercial buildings, and mass-housing projects. Atal Realtech is also a registered Class I-A contractor with the Maharashtra Public Works Department, which allows it to bid for and execute large-scale public infrastructure projects.
Written by Satyajeet Mukherjee
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