Ajax Engineering Q2 FY27 results: net profit up 30.3% to ₹50.91 crore, revenue up 9.5%

How did Ajax Engineering perform in Q2 FY27?

Ajax Engineering reported standalone revenue of ₹487.03 crore for Q2 FY27, up 9.5% from ₹444.81 crore in Q2 FY26 and 2.6% from ₹474.60 crore in Q1 FY27. Total income was ₹506.85 crore, up 11.4% year on year and 2.9% sequentially. These were standalone figures; the company’s filing did not provide consolidated quarterly figures.

EBITDA was ₹51.46 crore, up 13.7% from ₹45.26 crore a year ago but down 13.0% from ₹59.14 crore in the previous quarter. The EBITDA margin was 10.6%, compared with 10.2% in Q2 FY26 and 12.5% in Q1 FY27, while the PAT margin was 10.5%, compared with 8.8% and 11.7% in those periods.

PBT rose 29.6% year on year to ₹68.22 crore, while PAT increased 30.3% to ₹50.91 crore and basic EPS rose 30.5% to ₹4.45. Against Q1 FY27, however, PBT fell 8.2% to ₹68.22 crore, PAT fell 8.4% to ₹50.91 crore and EPS fell 8.4% to ₹4.45.

What changed in Ajax Engineering's costs and profit?

Cost of materials was ₹350 crore in Q2 FY27, up ₹62.28 crore or 21.6% from ₹287.72 crore in Q2 FY26. Total expenses increased ₹36.35 crore or 9.0% to ₹438.63 crore, and other expenses rose ₹6.12 crore or 18.5% to ₹39.21 crore. Depreciation increased ₹0.36 crore or 13.5% to ₹3.02 crore.

Employee cost fell ₹1.21 crore or 4.2% to ₹27.27 crore, while finance costs fell ₹0.03 crore or 42.9% to ₹0.04 crore. Other income rose ₹9.73 crore or 96.4% to ₹19.82 crore. There was no exceptional item in either quarter.

Tax expense was ₹17.31 crore, up ₹3.76 crore or 27.7% from ₹13.55 crore in Q2 FY26. Management said higher steel-linked costs and freight were partly offset by price hikes, and the presentation stated that H1 FY27 construction-equipment manufacturing cost increased approximately 6-7% YoY, largely due to steel.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹961.63 crore, up 5.5% from ₹911.33 crore in H1 FY26. Total income rose 7.0% to ₹999.65 crore from ₹934.02 crore, while the investor presentation attributed H1 revenue growth to volumes and price hikes.

H1 PBT increased 15.4% to ₹142.53 crore from ₹123.56 crore, and PAT rose 15.9% to ₹106.52 crore from ₹91.94 crore. EPS increased 15.8% to ₹9.31 from ₹8.04. Management said H1 gross margin remained largely stable as price hikes offset higher raw-material costs, while the company reported H1 EBITDA margin of 11.5%.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,793.91 crore, compared with ₹1,751.69 crore at 31 March 2026. Total equity increased to ₹1,504.08 crore from ₹1,392.22 crore, while cash fell to ₹53.35 crore from ₹165.90 crore. There were no borrowings at either balance-sheet date.

Inventories were ₹166.30 crore, compared with ₹165.24 crore at 31 March 2026. Trade receivables increased to ₹193.08 crore from ₹178.74 crore, while trade payables fell to ₹191.22 crore from ₹245.38 crore.

H1 FY27 operating cash flow was ₹5.50 crore, compared with ₹17.29 crore in H1 FY26. Investing cash flow was negative ₹117.89 crore, against negative ₹29.80 crore, while financing cash flow was negative ₹0.17 crore, against negative ₹0.20 crore. Capital expenditure was ₹9.55 crore, compared with ₹18.85 crore in the earlier half.

How has Ajax Engineering done over the last 8 quarters?

Revenue reached its highest level in Q4 FY26 at ₹757.66 crore and its lowest in Q3 FY26 at ₹433.55 crore. It rose to ₹474.60 crore in Q1 FY27 and ₹487.03 crore in Q2 FY27, while year-on-year revenue and profit each rose in the last three quarters.

PAT was highest in Q4 FY26 at ₹94.96 crore and lowest in Q3 FY26 at ₹38.24 crore. It rose to ₹55.60 crore in Q1 FY27 before falling to ₹50.91 crore in Q2 FY27. The EBITDA margin followed a similar direction, moving from 15.1% in Q4 FY26 to 12.5% in Q1 FY27 and 10.6% in Q2 FY27.

What else did the company announce?

The Board approved the unaudited financial results for the quarter and half year ended 30 September 2026 on 6 November 2026, along with the limited review report of S. R. Batliboi and Associates LLP. The auditors issued an unmodified opinion, and the Audit Committee had reviewed and recommended the results. The company also filed an investor presentation and an earnings-call invitation.

The Board recommended the regularisation of Shishir Joshipura as a Non-Executive Independent Director and approved a postal ballot seeking shareholders’ approval for his appointment. The same-day filings did not announce a dividend, a fund raise or another appointment.

What did Ajax Engineering's management say?

Management said, “We expect customer sentiment and demand momentum to improve in the second half of the year.” It identified delayed state-capex execution and contractor payments as factors affecting project execution and equipment demand. The presentation said state-capex utilisation was 77.2% in FY26 against 80.2% in FY25, while highway construction fell 19% YoY in H1 FY27.

Management said, “We have also implemented a further 1% price increase in September and will evaluate additional calibrated hikes over the coming quarters.” It also said CE manufacturing cost rose approximately 6-7% YoY in H1 FY27, largely due to steel, and that freight costs were rising. The company’s priorities included scaling the UDAAN SLCM series, increasing private-sector penetration, expanding Non-SLCM operations and improving cash generation and working-capital discipline.

Management said its new assembly facility, with planned capacity for 216 Batching Plants and 480 Transit Mixers, was expected to become operational in H2 FY27. The company was “preparing to launch the ARGO 4000 to address a key gap in our product portfolio and strengthen our overall value proposition.” The presentation did not record a specific analyst question and answer in the supplied excerpts.

How did Ajax Engineering shares react?

Ajax Engineering’s shares were up 0.6% five minutes after the filing appeared, and were up 0.3% after both 15 and 30 minutes. The price was ₹557.40 at the time of those moves, against the previous close of ₹564.80. Reaction-day, next-day and five-day closes, as well as the industry median comparison, were not available.

Earlier results-day reactions were mixed. The shares fell 5.9% on 5 August 2026 and 4.8% on 12 February 2026, while they rose 8.1% on 18 May 2026 and 8.2% on 13 November 2025. The company’s 2 August 2025 result had followed a 7.3% fall.