Ajax Engineering Limited has informed the Exchange about Transcript
AJAXENGG · price
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Ajax Engineering reported FY25 revenue of Rs. 2,074 crores, up 19% year-on-year, with SLCM volumes at 5,506 units (19% growth) and a 75.1% retail market share. EBITDA stood at Rs. 318 crores (15.5% growth) with margin of 15.3%, slightly down from 15.8% in FY24 due to one-off legal, branding, and exhibition costs. PAT grew 15.5% to Rs. 260 crores, and the company remains debt-free with Rs. 690 crores in cash and liquid investments. Management flagged near-term softness for the next couple of quarters due to the CEV-4 to CEV-5 emission norm transition, early monsoon, and slower on-ground execution of infrastructure projects. New facility at Adinarayanahosahalli is expected to commission by end of Q2 FY26, with revenue contribution starting from H2 FY26. Management acknowledged margin pressure in the short to medium term as the full cost increase from CEV-5 transition cannot be passed on to customers at once.
Near-term headwinds from emission norm transition, weak project execution, and guided margin pressure are likely to cap upside in the stock. However, the debt-free balance sheet, dominant 75% SLCM market share, strong cash position of Rs. 690 crores, and expected H2 FY26 demand recovery provide a cushion for long-term investors.