Ajax Engineering Limited has informed the Exchange about Transcript
AJAXENGG · price
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Ajax Engineering reported flat Q1 FY26 revenue of Rs. 467 crores (vs Rs. 469 crores YoY), with SLCM revenue flat at Rs. 385 crores and non-SLCM volumes up 25% but revenue down 8% due to absence of slip-form paver sales. EBITDA fell 23% to Rs. 61 crores with margin contracting to 13.2% (from 17.1%), and gross margin dropped to 25.8% (from 30.3%) due to ~400 bps direct material cost increase from CEV-5 emission transition and paver mix change. CEV-5 machines accounted for 90% of SLCM revenue (Rs. 310 crores, 883 units) with CEV-4 contributing Rs. 25 crores (93 units). Management guided FY26 volume growth in early double-digits (not 18% CAGR), expects to take pricing actions by end of Q2 FY26 to restore margins, and noted market share has already recovered to over 75% in July after a temporary dip in Q1.
Near-term margin pressure from the CEV-5 transition is visible in the numbers, but management has provided a clear path to recovery through pricing actions from late Q2 FY26. The company remains debt-free with Rs. 680 crores in cash and investments, and is actively evaluating inorganic growth opportunities, which could be a positive catalyst ahead.