Ajax Engineering Limited has informed the Exchange regarding a press release dated August 02, 2025, titled "Ajax Engineering Reports Steady Q1 FY26 Performance Amid Transition to CEV-5 EmissionNorms".
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Ajax Engineering reported steady but margin-pressured Q1 FY26 results, with revenue largely flat at ₹466 crores versus ₹469 crores in Q1 FY25 (-0.6% YoY). Profit after tax declined 21% YoY to ₹53 crores, while EBITDA fell 23% to ₹61 crores, dragging EBITDA margins down 390 basis points to 13.2%. The company attributed the margin dip to a product mix shift and higher costs from transitioning fully to CEV-5 emission-compliant products, along with muted demand from rains and delayed infra execution. Non-SLCM (concrete batching plants, pumps, etc.) volumes grew a healthy 25% YoY, spares and services revenue rose 8% to ₹37 crores, while the core SLCM (self-loading concrete mixers) business held flat at ₹385 crores. Management expects business momentum to pick up from H2 FY26, supported by commissioning of a new plant at Adinarayanahosahalli and continued B2B channel expansion in top metros.
Mixed quarter for shareholders — top line was stable but profitability took a notable hit from the CEV-5 transition and weaker demand, which may weigh on near-term sentiment. However, the company remains debt-free with a healthy cash balance, growth in non-SLCM and spares segments is encouraging, and management's H2 FY26 recovery guidance provides a positive medium-term outlook.