Ajax Engineering Limited (AJAXENGG) Q3 25/26 earnings summary

Executive summary

• Revenue for nine months FY26 was INR 13,449 million, up 2% year-over-year, but Q3 FY26 revenue declined due to a high base and muted sales in key states.

• Profitability declined in Q3 and 9M FY26 due to higher costs, one-time marketing and labor code expenses, and challenging market conditions.

• Spares and services revenue grew 14% year-over-year for nine months and 11% in Q3.

• Introduction of new CEV-5 machines and expansion of dealer network to deepen market penetration.

• Long-term growth prospects remain strong, supported by government infrastructure focus and mechanization trends.

Financial highlights

• Q3 FY26 revenue was INR 4,335.48 million, down from INR 5,481.78 million in Q3 FY25; net profit for the quarter was INR 382.41 million, compared to INR 681.26 million last year.

• Adjusted EBITDA for 9M FY26 was INR 1,544 million (11.5% margin), down 26% year-over-year; Q3 FY26 adjusted EBITDA was INR 480 million (11% margin), down 46% year-over-year.

• Gross margin for 9M FY26 was 25.0%, down 390 bps year-over-year; Q3 FY26 gross margin at 25.0%, down 170 bps.

• Cash balance, including investments, stood at INR 810 crore.

• Total income for the nine months ended December 31, 2025: INR 13,808.25 million; net profit: INR 1,301.82 million.

Outlook and guidance

• Management expects continued infrastructure push from government spending and mechanization to drive demand and volume growth.

• Price hikes are being calibrated and are expected to largely offset cost increases by Q1 FY27, barring major commodity price shocks.

• Volume growth is anticipated in FY27 as pent-up demand in key states is released and project execution accelerates.

• Long-term outlook on growth and profitability remains intact.

• Fifth manufacturing facility to be commissioned in Q1 FY27 to support long-term growth.