This Micro-cap Infra Stock, engaged in infrastructure development, specializing in engineering, procurement, and construction (EPC) projects across roads, bridges, industrial civil works, and urban infrastructure, is in focus after the management expected 121 percent revenue growth guidance for FY26.

With a market capitalization of Rs. 462.12 crores, the share of AVP Infracon Limited has reached an intraday high of Rs. 189 per equity share, rising nearly 3.76 percent from its previous day’s close price of Rs. 178.30. Since then, the stock has retreated and is currently trading at Rs. 185 per equity share. 

Guidance: For FY26, AVP Infracon aims to achieve total revenue of Rs. 575–600 crore, a strong increase from Rs. 272 crore in FY25. This represents a growth of approximately 121 percent year-on-year. The target includes Rs. 500 crore from the core EPC business and Rs. 75–100 crore from the solar EPC segment. So far, only one 1MW solar order has been secured, but a pipeline of small orders and bids for larger projects is expected to boost solar revenue.

Looking ahead, the company plans to grow further, targeting Rs. 750–800 crore in FY27, which would be around 194 percent higher than FY25. Over the next two years, the company’s goal is to reach Rs. 1,000 crore in revenue, nearly 3.7 times its FY25 revenue.

Order Book Guidance: The company expects to receive new orders worth Rs. 700–800 crore in FY26, significantly boosting its order book. This strong inflow will provide healthy revenue visibility for the next 18–24 months. It also reflects growing demand and supports the company’s medium-term growth targets.

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Expansion: The company plans to expand geographically, targeting 25–30 percent of its revenue from outside Tamil Nadu for FY26. Alongside regional growth, the company is entering new verticals such as solar EPC, private sector infrastructure, and industrial civil works. Despite higher costs expected from scaling and expansion, management is committed to maintaining FY25-level PAT margins. 

To support these plans, the company has budgeted a capital expenditure of Rs. 15–20 crore for FY26. These strategic moves aim to diversify revenue streams and strengthen the company’s long-term growth while maintaining financial discipline and profitability.

Overview: AVP Infracon Limited, formerly AVP Constructions (P) Limited, is a leading infrastructure and construction company based in Chennai, Tamil Nadu. Founded in 2009, the company has established itself as a trusted player in India’s infrastructure sector, focusing on building roads, highways, bridges, and flyovers that enhance connectivity and urban mobility.

Financial Highlights: AVP Infracon Limited’s revenue has increased from Rs. 88 crore in H2 FY24 to Rs. 177 crore in H2 FY25, which has grown by 101.14 percent. The net profit has also grown by 81.82 percent, from Rs. 11 crore in H2 FY24 to Rs. 20 crore in H2 FY25.

AVP Infracon Limited’s revenue and net profit have grown at a CAGR of 47.16 percent and 101.54 percent, respectively, over the last four years.

In terms of return ratios, the company’s ROCE and ROE stand at 26.2 percent and 30.2 percent, respectively. AVP Infracon Limited has an earnings per share (EPS) of Rs. 13.2, and its debt-to-equity ratio is 1.13x.

Written By – Nikhil Naik

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