AJAX Engineering Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript AJAX Engineering Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
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.
Numbers mentioned
Total revenue: INR475 crores (Q1 FY27)
p. 6
“Coming to the financial performance for Q1 FY27, total revenue for the quarter stood at INR475 crores, registering a growth at 1.7% over Q1 FY26.”
Ketan Phanse, page 6 of the filed PDF · View the filing
SLCM revenue: INR388 crores (Q1 FY27)
p. 6
“SLCM revenue for Q1 FY27 stood at INR388 crores, growing marginally over Q1 FY26.”
Ketan Phanse, page 6 of the filed PDF · View the filing
Non-SLCM revenue: around INR48 crores (Q1 FY27)
p. 6
“Non-SLCM revenue in Q1 FY27 stood at around INR48 crores, growing by 6.4% year-on-year led by healthy growth in the pumps segment.”
Ketan Phanse, page 6 of the filed PDF · View the filing
Spares and services revenue: INR39 crores (Q1 FY27)
p. 6
“Spares and services revenue grew by 6.2% year-on-year to reach INR39 crores in Q1 FY27.”
Ketan Phanse, page 6 of the filed PDF · View the filing
EBITDA: INR59 crores (Q1 FY27)
p. 6
“EBITDA for Q1 FY27 stood at INR59 crores compared to INR61 crores in Q1 FY26.”
Ketan Phanse, page 6 of the filed PDF · View the filing
EBITDA margin: 12.5% (Q1 FY27)
p. 6
“EBITDA margin for the quarter dropped by 70 basis points and came in at 12.5%.”
Ketan Phanse, page 6 of the filed PDF · View the filing
Profit after tax: INR55.6 crores (Q1 FY27)
p. 6
“Profit after tax for Q1 '27 stood at INR55.6 crores, growing by 5% year-on-year.”
Ketan Phanse, page 6 of the filed PDF · View the filing
SLCM and retail market share: 75.1% (Q1 FY27)
p. 4
“Our SLCM and retail market share expanded to 75.1% during Q1 FY27, increasing from about 69% in Q1 FY26 and 73.5% during the full year FY26.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
Cash balance: exceeding INR1,100 crores (as of June 2026)
p. 6
“Our balance sheet continues to be a key source of strength with cash balance exceeding INR1,100 crores as of June 2026, providing us with ample flexibility to pursue future growth opportunities, including inorganic opportunities.”
Shubhabrata Saha, page 6 of the filed PDF · View the filing
Export share of revenue: 9% (Q1 FY27)
p. 9
“So I think 9% is the share of the export revenue in FY27 Q1, obviously as you alluded to on the sale of pavers.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
UDAAN units sold: about 121 units (Q1 FY27)
p. 12
“So last year we sold some 202 units, this year in the first quarter about 121 units and if you add the June, July numbers, it will be close to about 35-37 numbers.”
Shubhabrata Saha, page 12 of the filed PDF · View the filing
Non-SLCM business volumes: 129 machines (Q1 FY27)
p. 9
“I think if you look at it, our business volumes in Q1 FY27 is about 129 machines against the Q1 FY26 of about 153 odd machines.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Price increase — within this quarter
stated conditionally by Shubhabrata Saha
p. 13
“and some of those actions I think we want to begin sometime in within this quarter itself.”
Shubhabrata Saha, page 13 of the filed PDF · View the filing
EBITDA margin — below 12.5% · Q2 FY27
stated conditionally by Shubhabrata Saha
p. 14
“Definitely 12.5%, looks challenging at this point in time from a second quarter perspective.”
Shubhabrata Saha, page 14 of the filed PDF · View the filing
EBITDA margin — about 12.5% · Q3 FY27
stated conditionally by Shubhabrata Saha
p. 14
“As we move into the third quarter and hopefully as the volumes see some improvement, I think some of that will start playing out and we'll get back to the corridors of about 12.5%.”
Shubhabrata Saha, page 14 of the filed PDF · View the filing
EBITDA margin — 13% to 15% · longer term
stated as an aspiration by Shubhabrata Saha
p. 17
“On a general basis, I think we've called this out that for the longer term, the 13% to 15% corridor is something that we are very clear about that we will endeavor to make sure that as demand comes back to the economy, that should play.”
Shubhabrata Saha, page 17 of the filed PDF · View the filing
Non-SLCM revenue growth — 10%-15% growth · full year
stated as an aspiration by Shubhabrata Saha
p. 11
“Having said that, I think we would be happy if we are able to drive the non-SLCM business on a lower base to a decent number of about 10%-15% growth over the previous year.”
Shubhabrata Saha, page 11 of the filed PDF · View the filing
Export business growth — 30% CAGR · next three years
stated as an aspiration by Shubhabrata Saha
p. 10
“We anticipate that in the next three years, I think our business should continue to grow at a 30% CAGR, if not more, driven by some of the distribution arrangements, availability of the products, maybe sell a few more pavers into certain markets, grow certain some of our strategic markets and so on and so forth.”
Shubhabrata Saha, page 10 of the filed PDF · View the filing
ARGO 4000 launch — Q2 FY27
stated firmly by Shubhabrata Saha
p. 5
“We are planning to launch the new ARGO 4000 in Q2 FY27, which fills an important gap in our portfolio and further strengthens our product offering and value proposition.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Full-year EBITDA margin — below 12% · FY27
stated conditionally by Shubhabrata Saha
p. 16
“I have indicated that to get to 12%, 12.5% will be challenging in this quarter at this point in time. It's too early for me to say what's going to eventually pan out, but definitely 12% looks challenging.”
Shubhabrata Saha, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management detailed state-by-state market share and volume trends, noting share gains in Gujarat, Odisha, Rajasthan, Karnataka and MP despite volume declines in some states.
Answered by Shubhabrata Saha
Asked by Raghunandhan NL: State-wise demand performance and outlook based on Vahan registration data
p. 7
“Rajasthan, our market share is improved from 66% to 86% despite our volumes coming down by about 21% and if you look at Odisha, our market share is up from 61% to 88%.”
Shubhabrata Saha, page 7 of the filed PDF · View the filing
Management explained lower non-SLCM volumes were partly due to rainfall shifting deliveries and highlighted new B2B customer wins like Ultratech, JSW, ACC and J. Kumar.
Answered by Shubhabrata Saha
Asked by Raghunandhan NL: Non-SLCM volumes for Q1 and new product outlook
p. 9
“The second bit is related to the fact that there are some key customer wins which we did not see as much coming in the past and the B2B team has been able to open some doors.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
Management stated exports were 9% of Q1 revenue and expects roughly 30% CAGR growth over the next three years.
Answered by Shubhabrata Saha
Asked by Raghunandhan NL: Export revenue share and outlook
p. 10
“We anticipate that in the next three years, I think our business should continue to grow at a 30% CAGR, if not more”
Shubhabrata Saha, page 10 of the filed PDF · View the filing
Management said they would be satisfied with 10-15% growth in non-SLCM for the year, with H2 expected to be better than H1.
Answered by Shubhabrata Saha
Asked by Prolin Nandu: Growth expectations for non-SLCM segment given small base
p. 11
“Having said that, I think we would be happy if we are able to drive the non-SLCM business on a lower base to a decent number of about 10%-15% growth over the previous year.”
Shubhabrata Saha, page 11 of the filed PDF · View the filing
Management said it was too early to call full-year volume numbers, citing the 40-60 H1-H2 split and hopes for H2 improvement.
Answered by Shubhabrata Saha
Asked by Parth Thakkar: SLCM volume growth outlook for full FY27
p. 11
“I think it's too early for us to make a call on the full-year numbers at this stage.”
Shubhabrata Saha, page 11 of the filed PDF · View the filing
Management confirmed they are aggressively pursuing inorganic opportunities within defined guardrails.
Answered by Shubhabrata Saha
Asked by Shubham Borade: Whether AJAX is pursuing inorganic opportunities given strong cash position
p. 12
“I think this context of pursuing inorganic opportunities as part core to our strategy and I can say that we're aggressively pursuing the same”
Shubhabrata Saha, page 12 of the filed PDF · View the filing
Management said Q2 would be challenging for margins but expects a return to around 12.5% by Q3 as volumes improve.
Answered by Shubhabrata Saha
Asked by Raashi: Outlook on margins for Q2 and H2 given the 12.5% EBITDA margin
p. 14
“I think Raashi the second quarter will be a fairly challenging quarter and I think we're trying to see how we can manage both cost-effectiveness with a potential to increase some meaningful price increase etcetera.”
Shubhabrata Saha, page 14 of the filed PDF · View the filing
CFO attributed the rise to higher freight outward costs from diesel prices and exports, plus SAP HANA migration costs.
Answered by Ketan Pendse
Asked by Aditya Shroff: Reason for 17% rise in other expenses on flat revenue
p. 14
“There is increase in the freight outward cost which comes on account of two reasons. Overall, due to the increase in diesel prices as well as export business, we see an increase in marginal freight outward cost.”
Ketan Pendse, page 14 of the filed PDF · View the filing
Management pointed to the 13-15% margin corridor as a longer-term aim tied to demand recovery and pricing power.
Answered by Shubhabrata Saha
Asked by Sanyam Shah: Whether EBITDA margins can return to 15% over the next couple of years
p. 17
“On a general basis, I think we've called this out that for the longer term, the 13% to 15% corridor is something that we are very clear about that we will endeavor to make sure that as demand comes back to the economy, that should play.”
Shubhabrata Saha, page 17 of the filed PDF · View the filing
Management pointed to AJAX's decade-long revenue CAGR of 16-17% and its ability to outgrow the industry during past recoveries, attributing current pressure to cyclical and near-term demand factors.
Answered by Shubhabrata Saha
Asked by Garvit Goyal: Whether recent lack of growth reflects structural issues beyond macro factors
p. 15
“You start from 2014 up till 2026, AJAX's CAGR, revenue CAGR is in the order of about 16%-17%.”
Shubhabrata Saha, page 15 of the filed PDF · View the filing
Risks flagged
Government infrastructure spending remaining below budgeted allocations, slowing project execution
p. 3
“the road bumps encountered over the last year or so in terms of actual government spending on infrastructure projects remaining well below the budgeted allocations, resulting in the slower-than-expected pace of project execution across the country, have broadly remained in place during Q1 of this year as well.”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
Delayed payments to contractors from certain state governments reducing appetite for new equipment orders
p. 3
“Contractors continue to experience delays in payments from some of the specific state governments, leading to cash flow constraints that dampen sentiments and reduce their appetite to place new orders and undertake fresh investments in equipment.”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
Rising direct material costs from fuel and steel price increases
p. 4
“Towards the latter part of Q1, we saw direct material costs inching upwards owing to increase in fuel and steel prices.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
Lower volumes leading to adverse operating leverage
p. 6
“Lower volumes during the quarter compared to the same quarter last year led to adverse operating leverage.”
Ketan Phanse, page 6 of the filed PDF · View the filing
Geopolitical environment affecting commodity costs and currency
p. 11
“there are challenges that are there on the horizon, particularly on the margin front given the fact that the geopolitical environment around us and the implication of that in terms of commodity costs, in terms of currency, I think they are not going to go away anytime soon.”
Shubhabrata Saha, page 11 of the filed PDF · View the filing
Muted traditional application segments such as irrigation, railway, bridgeworks and power
p. 8
“Having said that, in terms of pure applications, I think the traditional applications of irrigation and some of these areas are muted. Railway, bridgeworks, power, all generally muted.”
Shubhabrata Saha, page 8 of the filed PDF · View the filing
Uncertain steel price trajectory tied to geopolitical developments
p. 13
“I only hope that the geopolitical situation hopefully anytime between September and November, especially after the primaries in the US could also have a direct bearing on how the steel prices pan out.”
Shubhabrata Saha, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.