AJAX Engineering Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript AJAX Engineering Ltd filed with BSE on 27 May 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 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.
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Numbers mentioned
Total revenue: INR2,103 crores (FY26)
p. 3
“our total revenue for FY26 came in at about INR2,103 crores registering a modest growth over the previous year's number of INR2,074 crores”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
SLCM revenue: INR1,758 crores (FY26)
p. 3
“SLCM revenue for FY26 stood at INR1,758 crores, remaining largely flat versus FY25 despite a decline in volumes.”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
EBITDA: INR266 crores (FY26)
p. 4
“EBITDA for FY26 stood at INR266 crores compared to INR318 crores in FY25.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
EBITDA margin: 12.6% (FY26)
p. 4
“EBITDA margin for the year came in at 12.6% versus 15.3% in the previous year.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
SLCM volume decline: 4% (FY26)
p. 4
“Our SLCM volume degrowth for the year remained limited to about 4% compared to an estimated construction equipment industry decline at about 11%.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
Market share: 73.5% (FY26)
p. 5
“Overall, our market share improved to 73.5% in FY26, recovering from a dip of close to about 70% in Q1 of FY26.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Total revenue: INR758 crores (Q4 FY26)
p. 5
“Total revenue for Q4 FY26 stood at INR758 crores versus INR756 crores in Q4 FY25.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Gross margin: 25.8% (Q4 FY26)
p. 5
“Gross margins of Q4 FY26 stood at 25.8% compared to 24.1% in Q4 FY25, an increase of 170 bps on a Y-o-Y basis.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
EBITDA: INR115 crores (Q4 FY26)
p. 5
“EBITDA for Q4 FY26 stood at INR115 crores, growing by about 4% on Y-o-Y basis.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
EBITDA margin: 15.1% (Q4 FY26)
p. 5
“EBITDA margin in Q4 FY26 improved by about 40 bps and stood at 15.1% compared to 14.7% in Q4 FY26”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
EBITDA to operating cash flow: 142% (FY26)
p. 5
“Our EBITDA to operating cash flow stood at a robust 142% in FY26.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Net working capital: 21 days (FY26)
p. 5
“With liquidation of inventory, our net working capital has come down to 21 days, which is the lowest in the last five years.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Cash balance: INR1,121 crores (March 2026)
p. 5
“Our cash position continues to be extremely strong with a cash balance of INR1,121 crores, as of March 2026.”
Shubhabrata Saha, page 5 of the filed PDF · View the filing
Udaan volumes: 202 numbers (FY26)
p. 9
“About 202 numbers to be precise.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
April market share: 76% (April 2026)
p. 17
“even in the month of April, I know for a fact that we have a 76% market share with that price increase.”
Shubhabrata Saha, page 17 of the filed PDF · View the filing
Price differential vs competitors: 5% to 6%
p. 15
“So if you take an average of about 5% to 6%, that's substantial in this business.”
Shubhabrata Saha, page 15 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.
Revenue growth — mid and early double-digit growth · FY27
stated conditionally by Shubhabrata Saha
p. 7
“I would anticipate at this point in time a mid and early double-digit growth would be a good number to look at”
Shubhabrata Saha, page 7 of the filed PDF · View the filing
Udaan volumes — two times to three times · FY27
stated as an aspiration by Shubhabrata Saha
p. 9
“If we can manage to do two times to three times that number, I think I'd be delighted given the current demand conditions in the country.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
Export growth — 20% to 25% · FY27
stated conditionally by Shubhabrata Saha
p. 8
“a growth of about 20% to 25% should be a good number to look at given how the world order is.”
Shubhabrata Saha, page 8 of the filed PDF · View the filing
Working capital — 25 days to 30 days · FY27, FY28
stated as an aspiration by Shubhabrata Saha
p. 8
“So I would say that, you know, anywhere in the range of about 25 days to 30 days of working capital is a good number, an aggressive number to look at.”
Shubhabrata Saha, page 8 of the filed PDF · View the filing
Dealer inventory days — 35 to 40 days
stated firmly by Shubhabrata Saha
p. 11
“Now, as far as dealer inventory is concerned, clearly I think, in the range of about 35 to 40 days in most of the locations.”
Shubhabrata Saha, page 11 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 said it would not commit to a specific growth number and expects mid to early double-digit growth, anticipating a stronger second half.
Answered by Shubhabrata Saha
Asked by Raghunandan NL: What is the demand outlook for SLCM and non-SLCM in FY27 and can volume growth reach double digits of 15%?
p. 7
“I wouldn't hazard any specific guess about whether it will be double-digit 15%.”
Shubhabrata Saha, page 7 of the filed PDF · View the filing
Management reiterated the medium-term ambition to return to 13-15% margins but said near-term sustaining current margins would be good.
Answered by Shubhabrata Saha
Asked by Vaibhav Shah: How do margins look for FY27 given commodity price inflation?
p. 9
“I think in the near-term, I think if we are able to sustain the current margins, we'll be very good until the volumes really perk up.”
Shubhabrata Saha, page 9 of the filed PDF · View the filing
Management stated no competitor has taken a price increase.
Answered by Shubhabrata Saha
Asked by Nidhi Shah: Have competitors taken any price hikes like AJAX did?
p. 10
“I can say this with conviction as we speak none of our competitors have taken a rupee of price increase.”
Shubhabrata Saha, page 10 of the filed PDF · View the filing
Management pointed to the asset-light business model, lower working capital, and improved margins from the price increase and operating leverage.
Answered by Shubhabrata Saha
Asked by Lakshminarayanan: What drove the improvement in cash flows this year?
p. 11
“The asset-light lean business model that we have remains unchanged. If business volumes perk up, the benefit of operating leverage happens.”
Shubhabrata Saha, page 11 of the filed PDF · View the filing
Management said the price gap versus competitors has widened to 5-6% and expressed confidence AJAX can compete, without committing to specific pricing actions if competitors respond.
Answered by Shubhabrata Saha
Asked by Rishi Chopra: Is there a risk that competitors underprice given macro uncertainty, hurting AJAX's market share?
p. 15
“We'll if there is anything of that nature, we will take our calibrated response without necessarily affecting pricing.”
Shubhabrata Saha, page 15 of the filed PDF · View the filing
Management said market share has held at 76% in April despite the price increase and customers continue to buy despite the price gap.
Answered by Shubhabrata Saha
Asked by Krisha Kansara: Could competitors dump inventory at lower prices forcing AJAX to reverse its price hike?
p. 17
“customers still continue to buy.”
Shubhabrata Saha, page 17 of the filed PDF · View the filing
Management estimated Q4 market share at around 73%.
Answered by Shubhabrata Saha
Asked by Vaibhav Shah: What was SLCM market share in Q4?
p. 19
“Vaibhav, it will be closer to about 73% something if I'm not wrong right now.”
Shubhabrata Saha, page 19 of the filed PDF · View the filing
Risks flagged
Slower than expected government infrastructure spending execution
p. 3
“government spending on infrastructure has yet to fully align with budgeted allocations, resulting in slower than expected execution pace of projects across the country.”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
Delayed government payments causing cash flow constraints for customers
p. 3
“key states such as Maharashtra, Karnataka, Uttar Pradesh, etc have witnessed delays in government payments leading to cash flow constraints for customers, which has affected their ability to place new orders and undertake fresh project investments.”
Shubhabrata Saha, page 3 of the filed PDF · View the filing
Higher production costs from emission norm transition
p. 4
“The transition from CEV4 to CEV5 emission norms led to an increase in the cost of production.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
Lower operating leverage from reduced volumes
p. 4
“Lower volumes in FY26 compared to FY25 also had an impact on operating leverage.”
Shubhabrata Saha, page 4 of the filed PDF · View the filing
Global market uncertainty affecting export regions
p. 8
“most of the markets in Africa, Middle East have their own country challenges, currency challenges, and also the impact of the war all around.”
Shubhabrata Saha, page 8 of the filed PDF · View the filing
Weak demand green shoots in Madhya Pradesh
p. 7
“Right now, I'm a little concerned about Madhya Pradesh because I'm not seeing any specific green shoots in Madhya Pradesh”
Shubhabrata Saha, page 7 of the filed PDF · View the filing
Macro factors including geopolitical issues, steel prices, rainfall and interest costs
p. 7
“given multiple macro factors including geopolitical factors, steel prices, potentially indications of an El Niño year in terms of rainfall, potential increases in terms of interest costs and so on and so forth, I think we need to be a little watchful.”
Shubhabrata Saha, page 7 of the filed PDF · View the filing
Rising fuel prices in export markets
p. 8
“We've seen that the fuel prices in these countries have gone through the roof.”
Shubhabrata Saha, page 8 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.