Transcript of Earnings conference call held on May 19, 2026 on audited financial results for the quarter and year ended March 31, 2026.
AJAXENGG · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
AJAX Engineering reported FY26 total revenue of INR2,103 crores (up 1.4% from INR2,074 crores in FY25), with EBITDA falling to INR266 crores from INR318 crores due to higher production costs from CEV4 to CEV5 emission transition and lower volumes. FY26 EBITDA margin was 12.6% versus 15.3% in FY25, as management had guided a 200-250 bps decline. Q4 showed strong recovery with EBITDA margin improving to 15.1% from 14.7% YoY, supported by a 2% price increase taken in January, cost reduction initiatives, and favorable product mix. The company maintained market leadership with 73.5% market share in FY26 (recovering from a dip to ~70% in Q1), despite competitors not taking any price increase. Cash position remains strong at INR1,121 crores with working capital at just 21 days (lowest in 5 years). Management targets medium-term EBITDA margin of 13%-15% and anticipates mid-double-digit growth with stronger H2 performance.
The Q4 margin recovery signals pricing power and cost management effectiveness despite industry headwinds. The strong cash position (INR1,121 crores) and low working capital provide flexibility for growth investments or shareholder returns. Management's medium-term guidance of 13%-15% EBITDA margin suggests gradual margin recovery as volumes improve.