AJAX Engineering Ltd

Financial Performance

• Total revenue for Q1 FY27 was INR 475 crores, up 1.7% YoY.
• Q1 FY27 SLCM revenue was INR 388 crores, up marginally YoY.
• Non-SLCM revenue in Q1 FY27 was around INR 48 crores, up 6.4% YoY.
• Spares and services revenue was INR 39 crores in Q1 FY27, up 6.2% YoY.
• EBITDA for Q1 FY27 was INR 59 crores, vs INR 61 crores in Q1 FY26.
• EBITDA margin for Q1 FY27 was 12.5%, down 70 bps YoY.
• PAT for Q1 FY27 was INR 55.6 crores, up 5% YoY.
• Cash balance exceeded INR 1,100 crores as of June 2026.
• Export revenue share in FY27 Q1 was 9%.

Operating Update

• SLCM market share rose to 75.1% in Q1 FY27.
• Gujarat volumes grew 40%; market share rose to 82%.
• Maharashtra and MP volumes declined, but market share improved.
• Exports contributed 9% of revenue; first slip-form paver shipped.
• UDAAN volumes: 121 units in Q1 FY27; last year 202 units.
• ARGO 4000 launch planned in Q2 FY27.

Balance Sheet & Liquidity

• Cash balance exceeded INR 1,100 crores as of June 2026.
• Balance sheet remains a strength with healthy return ratios.
• Cash reserves provide flexibility for inorganic opportunities.

Outlook and Guidance

• Q2 FY27 is expected to be seasonally soft.
• H2 revenue expected to improve; full-year outlook remains uncertain.
• Calibrated price increases are being considered; timing and quantum to be determined.
• Exports expected to grow at up to 30% CAGR over three years.
• Non-SLCM growth driven by large buyers and B2B channels.
• ARGO 4000 launch to strengthen the portfolio in Q2 FY27.

Q&A Highlights

• Demand by state discussed; Gujarat growth; Maharashtra/MP declines but shares up.
• Q2 margins likely to be challenging; offset via cost controls and calibrated price actions.
• Non-SLCM volumes in Q1 around 129 machines vs 153 in Q1 FY26.
• UDAAN: 121 units in Q1 FY27; June–July 35–37 units.
• Exports to Africa/Nigeria gaining repeat buying; 9% of revenue in Q1.

Resolution: Appointment of Non-Executive Nominee Director

• Purpose: Ordinary resolution to appoint Sachin Rajkumar Nandgaonkar as Non-Executive Nominee Director.
• Promoter group abstained; votes polled 57.182%, in favour 99.8496%, against 0.1504%.
• Outcome: Ordinary Resolution approved by requisite majority; deemed passed on 7 August 2026.
• Governance impact: Board size increased with appointment of Non-Executive Nominee Director.
• Notice: Postal Ballot notice dated June 30, 2026; cut-off July 3, 2026.

Meeting details

• Date and time: Aug 6, 2026 at 11:00 IST.
• Type and mode: group virtual audio conference call.
• Event/organiser: analysts/investors conference call.
• Key company participants: Company Secretary and Compliance Officer.
• Purpose: discuss results with analysts/investors.
• Availability: audio recording uploaded on the company website under corporate announcements.

Financial highlights

• Total revenue from operations for Q1 FY27 was ₹4,746 million, up 1.7% YoY.
• SLCM revenue ₹3,877 million, up 0.8% YoY.
• Non-SLCM revenue ₹477 million, up 6.4% YoY.
• Spares & Services revenue ₹392 million, up 6.2% YoY.
• EBITDA ₹591 million; margin 12.5%, down from 13.2%.
• Profit After Tax ₹556 million; margin 11.7%, up from 11.3% YoY.

Market, liquidity and outlook

• Retail SLCM market share rose to 75.1% in Q1 FY27 from 69% in Q1 FY26.
• Cash balance above ₹11,000 million as of June 2026.
• Outlook: demand momentum expected to improve in H2 FY27; evaluated on annualised basis.
• Price increase of ~2% implemented in Q4 FY26 supported growth.
• Management: cash flow generation and disciplined working capital management.

Business Overview

• Leading Indian concrete equipment maker; dominant SLCM market with 75.1% share in Q1 FY27, expanding Non-SLCM.
• Diversified product portfolio across SLCM and Non-SLCM concrete equipment.
• Upcoming Adinarayanahosahalli facility to operate in H1 FY27.
• Widest pan-India dealer network: 68 dealers and 132 touchpoints.

Key Operational Highlights

• Q1 FY27 revenue ₹4,746 mn, up marginally YoY, aided by price hikes and mix.
• SLCM retail market share rose to 75.1% in Q1 FY27 from 69% YoY.
• Cash position remained strong at ₹11,192 mn as of June 2026.
• Q1 EBITDA margin 12.5%, down from 13.2% prior year.
• SLCM revenue growth driven by pricing and mix; non-SLCM growth aided by Slip-Form Paver.
• Q2 expected to be seasonally soft; momentum to improve in H2 FY27.

Financial Performance

• FY26 revenue from operations ₹21,025 mn; SLCM ₹17,575 mn; Non-SLCM ₹1,934 mn; Spares ₹1,517 mn.
• Gross margin 25.3%; EBITDA ₹2,658 mn; EBITDA margin 12.6%; PAT ₹2,251 mn; PAT margin 10.7%.
• FY26 cash balance ₹11,208 mn; OCF/EBITDA 108.2%.
• Total assets ₹17,517 mn; equity ₹13,922 mn; borrowings nil.
• FY26 net working capital days 93.

Capital Structure & Liquidity

• Debt: borrowings zero; liquidity strong with cash balances above ₹11,000 mn as of June 2026.
• Cash from operations FY26 ₹4,552 mn; net change in cash ₹1,200 mn for FY26.

Strategic Priorities & Outlook

• Maintain SLCM leadership; grow Non-SLCM with emphasis on quality, not price cutting.
• Pursue inorganic opportunities with strict guardrails.
• Capex: Adinarayanahosahalli facility to operate H1 FY27; Bashettihalli and Gowribidanur expansions underway.
• Pricing: 2% price hike in Q4 FY26; pricing discipline ongoing.
• Industry outlook: India cement/concrete demand growth; mechanized equipment CAGR 24% FY24-29.
• Long-term: 75% SLCM market share; 68 dealers; 132 touchpoints.

Risks & Mitigation

• Headwinds from infrastructure capex and delayed government spending impact cash flows.
• Price hikes and strong distribution mitigate volume pressure.

Governance & Leadership

• MD & CEO: Shubhabrata Saha; Independent Directors; Company Secretary: Shruti Shetty.
• Upcoming H1 FY27 capacity expansions indicate expansion governance.

Financial results and cost auditor appointment

• Unaudited Q1 FY2026-27 results approved; Audit Committee recommended; Limited Review by S.R. Batliboi LLP issued unmodified opinion.
• A. N. Sriram appointed Cost Auditor for FY2026-27; appointment effective August 5, 2026.

Meeting Details

• Q1 FY27 earnings conference call on August 6, 2026 at 11:00 IST.
• Organiser: Strategic Growth Advisors Private Limited.
• Mode: virtual group call.
• Quarter ended June 30, 2026.

Participants

• Company Representatives: MD & CEO; CFO.

Purpose

• Discuss operational and financial performance for Q1 FY27.

Additional Notes

• Intimation will be available on Ajax Engineering's investor relations site.
• Pre-registration required for the call.

Meeting Details

• Board meeting scheduled for August 5, 2026 (time and venue not disclosed).

Key Agenda Items

• Approve unaudited financial statements for the quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026; to reopen 48 hours after the June 30, 2026 results announcement.

Demat/remat activity

• No dematerialisation or rematerialisation requests were received during the period; all shares in electronic form.