AIA Engineering (AIAENG) Q2 2026 earnings summary

Executive summary

• Q2 FY26 performance was steady, with consolidated sales volume for H1 FY26 reaching 123,315 MT, up from 120,922 MT in H1 FY25.

• Total income from operations for H1 FY26 was ₹208,671 lakhs, compared to ₹206,418 lakhs in H1 FY25.

• PAT after minority interest for H1 FY26 stood at ₹58,246 lakhs, up from ₹51,630 lakhs in H1 FY25.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were reviewed and approved by the Board on 7 November 2025, with auditors expressing an unmodified conclusion.

• Major breakthrough: secured a significant 18-month contract with a key Chilean mining customer, marking the first major entry into the South American market for high-chrome grinding media.

Financial highlights

• Q2 revenue was INR 1,029 crore, EBITDA at INR 395 crore, and profit after tax at INR 277 crore.

• EBITDA margin for H1 FY26 was 39.11%, compared to 35.78% in H1 FY25.

• Other income for Q2 was INR 98 crore, including INR 33 crore from forex, INR 18 crore from export benefits, and INR 64 crore from treasury income.

• Standalone revenue from operations for Q2 FY26 was ₹94,170.90 lakhs, up from ₹80,044.23 lakhs in Q2 FY25; consolidated revenue for Q2 FY26 was ₹102,967.48 lakhs.

• Capex incurred during H1 FY26 was ₹44 crores.

Outlook and guidance

• Expecting volume growth of at least 30,000 tons annually from FY27, subject to successful conversion of ongoing trials.

• Q4 FY26 will see initial shipments for the Chile order, with 3,000-4,000 tons expected in the quarter and 12,000-15,000 tons annually thereafter.

• Order book as of 1st October 2025 stood at ₹968 crores, indicating strong future demand.

• Long-term EBITDA margin guidance remains at 20-22%, with 24-25% seen as sustainable; current higher margins are due to favorable product mix.

• Closure of the Nagpur manufacturing unit and Welcast Steels Limited's factory is not expected to adversely affect production, business operations, or profitability.