AJAX Engineering Ltd — earnings calls

AJAX Engineering reported Q1 FY27 revenue of Rs 475 crore, up 1.7% year-on-year, with EBITDA margin declining 70 basis points to 12.5% amid lower volumes and adverse operating leverage. Management said SLCM and retail market share expanded to 75.1% in Q1 FY27 from about 69% a year earlier, even as industry registrations fell 27% and AJAX's own registrations declined 21%. The company highlighted rising steel and fuel costs, ongoing evaluation of a further price increase following the roughly 2% hike taken in Q4 FY26, and continued investment in non-SLCM, exports, and spares and services.

AJAX Engineering reported FY26 total revenue of about INR2,103 crores, a modest increase over INR2,074 crores in FY25, with EBITDA declining to INR266 crores from INR318 crores as margins compressed to 12.6% from 15.3%. Management attributed the margin decline to higher production costs from the CEV4 to CEV5 emission transition and a calibrated pricing approach, while noting SLCM volumes fell about 4% versus an estimated 11% industry decline. Q4 FY26 showed a turnaround with revenue flat at INR758 crores, gross margin up 170 bps to 25.8%, and EBITDA margin improving to 15.1%, supported by a 2% price increase taken in the quarter and cost reduction initiatives.