Ajax Engineering Limited (AJAXENGG) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was Rs 4,870.30 million (+9.5% YoY) and PAT was Rs 509.14 million (+30.4%); H1 revenue was Rs 9,616.27 million (+5.5%) and PAT Rs 1,065.16 million (+15.9%).

• H1 SLCM retail market share reached 75.5%, up from 70.7%; Non-SLCM revenue grew 31.5%.

• Weak public-project execution and higher input costs weighed on performance; private-sector demand, Non-SLCM growth, pricing actions and market-share gains provided support.

Financial highlights

• Q2 EBITDA was Rs 515 million (+13.7% YoY); H1 EBITDA was Rs 1,106 million (+3.7%) and gross profit rose 6.6% to Rs 2,422 million.

• H1 gross margin was 25.2%, up 20 bps YoY; EBITDA margin was 11.5%, down 20 bps. Q2 gross margin improved ~20 bps YoY.

• H1 PAT margin was 11.1%, up 100 bps YoY; Q2 PAT margin was 10.5%, up 170 bps.

• H1 SLCM revenue was INR 783.5 crore (+3.3%); Non-SLCM was INR 103.5 crore (+31.5%); Spares & Services was INR 74.6 crore, up 0.7%.

• Q2 included INR 16 crore of one-time SAP implementation cost; price increases largely offset higher raw-material costs.

Outlook and guidance

• Demand momentum and customer sentiment are expected to improve in H2 FY27, which typically contributes 60%-65% of annual revenue; near-term demand remains soft.

• H2 outlook depends on recovery in Maharashtra and Madhya Pradesh, where delayed contractor payments are affecting execution; other major markets are holding up or growing.

• Management aims to end the year with close to double-digit EBITDA margins; rising steel and commodity costs make the outcome uncertain.

• A 1% price increase took effect in September 2026, with benefits expected from Q3; further calibrated increases will be evaluated over coming quarters.

• A new fungible assembly facility is expected to become operational in H2 FY27.