Nomura has maintained its buy rating on Afcons Infrastructure with a target price of ₹550 per share following a muted Q2FY26 performance, driven by slower execution and reduced growth guidance from the company.
Nomura cut its FY26–28 earnings estimates by 6–14%, reflecting lower revenue expectations and delays in certain key projects. The company reduced its FY26 revenue growth guidance to 10%, although the brokerage expects medium-term execution to improve as bottlenecks ease.
Despite near-term challenges, Afcons’ order book remains a significant strength, standing at ₹32,700 crore, offering strong multi-year revenue visibility. Nomura said EBITDA margins are now poised to exceed the earlier guidance of 11%, supported by improved mix, cost discipline, and operational efficiencies.
Execution-related headwinds may continue in the near term, but the brokerage expects a gradual revival in order execution from FY27 onwards as project clearances and on-ground progress improve.
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