AIA Engineering Ltd

Overview

• Standalone BRSR for the year ended March 31, 2026 by AIA Engineering Limited.
• Main business: engineered metal products including grinding media and castings.
• Reporting boundary: standalone; external assurance provided by an independent firm.
• Annexure- C to the Board’s report detailing general disclosures.

Key ESG Risks & Opportunities

• Material risks include energy intensity, GHG emissions, water use, and waste management.
• Opportunities arise from energy efficiency, renewable energy expansion, water circularity, and waste valorisation.
• Mitigations include ISO 45001 OH&S, structured energy management, and renewables capacity of 37.38 MW.
• Circular economy actions: bricks from waste, cement-kiln co-processing, and slag metal recovery.

Governance & Policy Highlights

• Board oversight via ESG Committee; MD chairs, with ESG Working Group supporting implementation.
• Key policies: whistle-blower/vigil mechanism, anti-corruption, human rights, and related-party transactions.
• Independent assurance: reasonable assurance on BRSR Core by Shailesh Haribhakti & Associates.
• No material penalties or non-compliances reported during the year.

Social Responsibility & Workforce

• Total employees 1,324; permanent 1,205 and non-permanent 119; total workers 2,572.
• Board female representation 30%; no female KMPs; overall female coverage remains limited.
• Turnover 2025-26: permanent employees 6.23%; permanent workers 2.48%.
• LTIFR for workers reported as 0.00; total injuries 7; no fatalities.

Environmental Performance

• Total energy 16.27 GJ; renewables 3.18 GJ; non-renewables 13.09 GJ; renewables ~29% share.
• Scope 1 emissions 30,912 MTCO2e; Scope 2 155,036 MTCO2e; Scope 3 134,199 MTCO2e.
• Water: groundwater 188,624 kl; third-party water 56,184; total withdrawal 244,808; consumption 286,636 kl.
• Waste: total 142,789 MT; plastics recycled 331 MT; non-hazardous 122,727 MT; hazardous 61.98 MT.
• 100% ZLD with wastewater reuse; rainwater harvesting and dry cooling towers reduce consumption.
• Renewable energy projects include 11 wind turbines and 3 hybrid installations; 37.38 MW capacity; 8.84 GWh generated.
• ISO 9001/45001/14001 certifications; Waste Management Circular Economy Policy; external energy/GHG assurance.

Stakeholder Engagement & Complaints

• Stakeholders include employees, investors, customers, regulators, communities, and suppliers.
• Engagement channels: email, field engineers, meetings; frequency: as needed; AGM reports to Board.
• Customer complaints: 25 filed; 5 pending; other groups filed zero or few complaints.
• Whistle-blower policy accessible online; grievance committees at units (Moraiya, Kerala).

Other Notable Metrics

• Related-party transactions: purchases from RPTs 2.04%; sales to related parties 65.82%; investments 0.37%.
• Concentration: top 10 trading houses account for 91.20% of purchases; 22 trading houses used.
• 47% of inputs sourced sustainably; 28% of value-chain partners trained on ESG fundamentals.
• Value-chain environmental assessments covered ~37% of partners; 63% upstream suppliers assessed previously.
• No LCA conducted this year; 58,000 bricks produced from waste; 9,000 MT of foundry sand co-processed.
• Slag processing recovered 962 MT of metal; 8,83,77,702 kWh renewable energy generated.

Financial performance

• Revenue from operations: 435,548.28 Lakhs (Year ended 31 Mar 2026)
• Other operating revenue: ₹6,438.12 Lakhs
• EBITDA (Standalone): ₹174,426 Lakhs
• PAT (Consolidated): ₹126,893.14 Lakhs
• Outside-India sales: 64.45% of revenue
• Installed capacity: 436,000 TPA

Capital structure & liquidity

• No external debt outstanding as of 31 March 2026
• Undrawn borrowing facilities: ₹124,217.49 Lakhs
• Debt-to-equity: 0.07

Dividends & capital allocation

• Final dividend proposed: ₹16 per equity share; ₹14,931.26 Lakhs

Financial Performance

• Q1 FY27 revenue 1,153 crores; volume 64,644 tons (vs ~60,000 in Q1 FY26).
• EBITDA 44 crores; PAT 301 crores as stated.
• Tax rate expected to normalize to about 21.5–22% after Q1 normalization.
• Total other income ~124 crores; components include export benefits 14.78 crores, treasury 85.35 crores, FX ~25 crores.
• Working capital at par; no material tonnage update.

Operations & NGDS Update

• NGDS: new discharge system aims to improve throughput and recoveries; trials across mill sizes; iterative with uncertain timelines.
• Portfolio focus includes grinding media, liners, and NGDS as a complete solution; NGDS pricing linked to kilograms, not standalone.
• Trials in South America ongoing; second mine trial update not shared; progress is work-in-progress.
• Geographic focus: Latin America target 300–400k tons potential; other geographies show slower progress.
• Chile high-chrome grinding media order ~INR 300 crores; supply progressing; ~3k–3.5k tons per quarter anticipated.

Q&A Highlights

• South America trial outcomes remain uncertain; management cautious about sharing specifics.
• NGDS economics: pricing per kilogram; integrated with liners and grinding media; not sold standalone; TAM ~2–2.5 million tons.
• Realizations driven by freight and RM pass-through; no single trend; guidance not tied to a specific realization level.
• Overseas plants (Ghana/China) progress limited; India remains preferred base for manufacturing.
• Chile order supply ongoing; quarterly incremental volume ~3k–3.5k tons; potential further inquiries.

Guidance and Outlook

• Capex guidance raised to INR 350–400 crores for FY27; corporate-house land ~INR 170–200 crores this year, more next year.
• Q1 capex ~INR 30 crores on hybrid solar/wind; balance ~INR 20 crores on maintenance/de-bottlenecking.
• Total capex expansion includes additional land and broader expansion plans; not a fixed annual split disclosed.
• Realization drivers remain mix- and cost-dependent; freight/RM pass-through continues to influence near-term margins.

Capex and Capacity

• Capacity-building approach: current 430–440k tons; plan to retain surplus for conversions and trials.
• Potential to raise utilization as conversions accelerate; near-term capacity expansion to 3–3.5 lakh tons possible.
• Renewable power capex (INR ~30 crores) implemented; benefits expected in coming quarters.

Meeting Details

• No meeting date, time, or format information provided in the filing chunk.

Financial performance

• Total income from operations: Rs 116,802 lacs.
• Sales Rs 115,324 lacs; other operating income Rs 1,478 lacs.
• EBITDA Rs 42,456 lacs; margin 36.35%.
• PBT Rs 39,505 lacs; PAT Rs 30,111 lacs.
• Finance cost Rs 45 lacs in Q1; down from Rs 720 lacs year-ago.

Capex & capacity

• Installed capacity: 436,000 TPA.
• Capex in Q1 FY2027: Rs 50 crores.

Order book & FX exposure

• Order book as of 1 July 2026: Rs 977 crores.
• Outstanding FC forwards: USD 21.0m; AUD 5.2m; EUR 3.1m.

Segment mix & volumes

• Mining volumes: 39,228 MT; Others: 25,416 MT in Q1.
• Total Q1 segment volumes: 64,644 MT.

Working capital & liquidity

• Receivables Rs 111,333 lacs; days outstanding 90.
• Inventories: RM Rs 22,214 lacs; RM days 41.
• WIP & FG Rs 94,237 lacs; days 74.

Standalone results

• Revenue from sale of products: 87,541.12 lakh.
• Total revenue from operations: 89,014.49 lakh.
• Total income: 99,548.70 lakh.
• Profit after tax: 25,290.98 lakh.
• EPS (basic/diluted): 27.10.
• Profit before tax: 33,735.54 lakh.
• YoY standalone revenue growth: ~7%.

Consolidated results

• Revenue from sale of products: 115,324.40 lakh.
• Total revenue from operations: 116,802.30 lakh.
• Total income: 127,853.56 lakh.
• Profit after tax: 30,099.40 lakh.
• EPS (basic/diluted): 32.27.
• YoY: revenue up about 12%, PAT down about 2%.

Segment notes

• Single reportable segment: Manufacturing of High Chrome Mill Internals.

Meeting Details

• Date and time: Wednesday, 12 August 2026 at 16:30 IST.
• Type and mode: Earnings call (virtual) for unaudited results.
• Organizer: AIA Engineering Limited.
• Purpose: Discuss unaudited quarterly results for quarter ended 30 June 2026.