AIA Engineering Q2 FY27 results: net profit down 10.1% to ₹249.43 crore, revenue up 6.2%

How did AIA Engineering perform in Q2 FY27?

AIA Engineering reported consolidated revenue of ₹1,113 crore for Q2 FY27, compared with ₹1,048 crore in Q2 FY26 and ₹1,168 crore in Q1 FY27. EBITDA was ₹283.05 crore, against ₹296.89 crore a year earlier and ₹307.94 crore in the previous quarter. The EBITDA margin was 25.4%, down 2.9 percentage points year on year and 1.0 percentage point sequentially.

Profit before tax was ₹322.61 crore, compared with ₹359.57 crore in Q2 FY26 and ₹388.94 crore in Q1 FY27. PAT was ₹249.43 crore, against ₹277.48 crore a year earlier and ₹300.99 crore in the previous quarter, while basic EPS was ₹26.76. On a standalone basis, revenue was ₹1,032.49 crore and PAT was ₹265.01 crore, with PAT before exceptional items of ₹277.21 crore.

What changed in AIA Engineering's costs and profit?

Total expenses rose 9.6% to ₹861.86 crore from ₹786.53 crore in Q2 FY26. Cost of materials increased ₹31.26 crore to ₹469.17 crore, employee cost rose ₹2.59 crore to ₹49.84 crore, depreciation rose ₹2.59 crore to ₹30.54 crore, and other expenses rose ₹53.22 crore to ₹369.67 crore. Finance costs fell ₹6.09 crore to ₹1.61 crore. There was no exceptional item in either quarter.

Other income fell ₹26.64 crore to ₹71.70 crore from ₹98.34 crore, while total expenses rose ₹75.33 crore, contributing to the lower profit. EBITDA margin fell from 28.3% to 25.4% and PAT margin fell from 26.5% to 22.4%. Tax was ₹80.07 crore, down ₹2.42 crore from ₹82.49 crore in Q2 FY26, and there was no exceptional item in either period.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹2,280.79 crore, up 9.3% from ₹2,086.71 crore in H1 FY26, while total income rose 7.4% to ₹2,463.01 crore from ₹2,293.36 crore. PBT was ₹711.54 crore, down 3.8% from ₹739.36 crore, and PAT was ₹550.43 crore, down 5.5% from ₹582.64 crore. Basic EPS declined to ₹59.03 from ₹62.42.

The investor presentation reported H1 sales of 126,152 MT and PAT after minority interest of ₹55,084 lacs. Management also reported H1 FY27 capex of ₹86 Crores and an order book of ₹1,071 Crores as of 1 October 2026.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹9,103.98 crore, compared with ₹8,538.00 crore at 31 March 2026, and total equity was ₹8,441.31 crore compared with ₹8,034.22 crore. Borrowings were ₹97.33 crore against no borrowings at the previous balance-sheet date, while cash was ₹285.80 crore compared with ₹215.06 crore. Inventories rose to ₹1,381.13 crore from ₹1,256.27 crore, trade receivables fell to ₹965.21 crore from ₹1,168.61 crore, and trade payables were ₹227.81 crore compared with ₹219.52 crore.

H1 FY27 operating cash flow was ₹652.07 crore, against ₹498.45 crore in H1 FY26. Investing cash flow was negative ₹540.18 crore compared with negative ₹936.96 crore, financing cash flow was negative ₹42.11 crore compared with positive ₹380.12 crore, and capex was ₹57.92 crore compared with ₹43.77 crore.

How has AIA Engineering done over the last 8 quarters?

Revenue rose year on year in each of the last seven quarters. Across the available quarters, revenue peaked at ₹1,266.26 crore in Q4 FY26 and was ₹1,112.77 crore in Q2 FY27. The EBITDA margin peaked at 29.5% in Q1 FY26 and fell to 25.4% in Q2 FY27, the lowest margin in the reported sequence.

PAT peaked at ₹393.33 crore in Q4 FY26 and was ₹249.43 crore in Q2 FY27, the lowest quarterly profit in the available sequence. Revenue and PAT both declined in Q2 FY27 compared with Q1 FY27, while the EBITDA margin also moved lower from 26.4% to 25.4%.

What else did the company announce?

AIA Engineering filed its investor presentation for the unaudited quarter and half-year ended 30 September 2026 with the BSE and NSE on 3 November 2026. The presentation reported an order book of ₹1,071 Crores as of 1 October 2026, installed capacity of 4,36,000 TPA and H1 FY27 capex of ₹86 Crores. The company’s board meeting notice said the board would consider and approve the unaudited results on 3 November 2026; no dividend, fund-raising or appointment announcement was provided.

What did AIA Engineering's management say?

Management’s investor presentation said Q2 sales were 61,508 MT and H1 sales were 126,152 MT. It reported Q2 production of 63,614 MT, installed capacity of 4,36,000 TPA and an order book of ₹1,071 Crores as of 1 October 2026. Management also said H1 FY27 capex was ₹86 Crores, while the presentation’s capex and projects section did not state specific additional projects, capacity additions or timelines.

Management identified lower sales and production volumes, a lower Q2 FY27 EBIDTA margin of 32.50% against 37.76% in Q2 FY 2025-26, and higher working-capital days as risks. Raw-material days were 41 against 33, WIP and finished-goods days were 79 against 73, and receivables days were 87 against 72. The presentation also noted foreign-exchange gains of ₹788 lacs in Q2 FY 2026-27 against ₹3,387 lacs in Q2 FY 2025-26, and no guidance was provided.

How did AIA Engineering shares react?

After the filing appeared, AIA Engineering’s share price fell 4.4% in five minutes, 8.8% in 15 minutes and 8.9% in 30 minutes. The stock closed 5.8% below its pre-results close on the reaction day and was down 10.4% from that close by the next trading day’s close. The Castings & Forgings industry median rose 0.5% on the reaction day and 1.8% by the next day’s close, making AIA Engineering’s relative moves 6.3 percentage points and 12.2 percentage points lower.

How did other Castings & Forgings companies do?

Five other Castings & Forgings companies filed for the quarter, with a median revenue growth of 26.2%. Two peers grew slower than AIA Engineering and three grew faster than AIA Engineering. Four of the five peers reported higher profit, based on the profit comparison for five peers.