Ajax Engineering Limited (AJAXENGG) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 48% year-over-year to INR 4,448 million, driven by strong SLCM segment growth and large contract execution.

• H1 FY26 revenue reached INR 9,113 million, up 18% year-over-year, aligning with historical growth rates.

• Market share rebounded to 71% YTD, with recent months reaching 80% due to strategic product launches and disciplined pricing.

• Faced challenges from extended monsoon, emission norm changes, and slower project execution, impacting margins.

• The company completed its IPO in February 2025, raising Rs. 12,688.84 million through an offer for sale of 20,180,446 shares.

Financial highlights

• Q2 FY26 EBITDA was INR 453 million, up 16% year-over-year, but EBITDA margin declined by 280 bps to 10.2%.

• H1 FY26 EBITDA stood at INR 1,066 million, down 11% year-over-year; EBITDA margin contracted by 380 bps to 11.7%.

• Q2 FY26 PAT was INR 391 million, up 15% year-over-year; H1 FY26 PAT was INR 919 million, down 9% year-over-year.

• Spares and services revenue grew 26% in Q2 and 16% in H1 year-over-year.

• Basic EPS for Q2 FY26 was Rs. 3.41, compared to Rs. 2.97 in Q2 FY25.

Outlook and guidance

• Full-year FY26 EBITDA margin expected to decline by 150-200 bps versus FY25 due to emission norm changes.

• Margins expected to improve in H2 FY26 with volume pickup, cost optimization, and potential price adjustments.

• Early double-digit top-line and volume growth anticipated for FY26, below the long-term 18% CAGR.

• Long-term growth and profitability outlook remain positive, supported by infrastructure demand and continued leadership in SLCM.