AIA Engineering Limited conducted its Q2 and H1 FY27 earnings conference call on November 3, 2026. Management discussed sales volumes, financial results including EBITDA and PAT, and addressed factors impacting performance such as increased export freight costs. Key strategic initiatives like the NGDS plus liner-based solutions and potential for growth in the mining sector were highlighted.
AIA Engineering Holds Q2 and H1 FY27 Earnings Call
On November 3, 2026, AIA Engineering Limited hosted its earnings conference call to discuss the financial results for the second quarter (Q2) and the first half (H1) of fiscal year 2027. The call featured insights from Mr. Kunal Shah (Executive Director, Corporate Affairs) and Mr. Sanjay S. Majmudar (Non-Executive and Non-Independent Director).
Financial Performance and Operational Highlights
Mr. Majmudar reported that the company achieved sales of approximately 61,500 metric tons in Q2 FY27, with production at about 63,600 metric tons. For the first half, sales reached around 126,000 metric tons, a slight increase year-on-year. The top-line revenue for Q2 was approximately INR1,093 crores, with other operating income contributing around INR19.5 crores. The first half top-line stood at approximately INR2,246 crores, augmented by other operating income of about INR34 crores, primarily from export benefits.
EBITDA for Q2 was reported at approximately INR361 crores, and for H1 FY27 at around INR786 crores. Profit After Tax (PAT) for Q2 was approximately INR249 crores, and for H1 FY27 was around INR550 crores. A slight decline in both EBITDA and PAT was noted year-on-year, primarily attributed to a steep increase in the cost of export freight, which grew by over 3.5% in Q2 and H1 FY27.
Strategic Outlook and Growth Prospects
The management indicated a strategic shift towards a value-added focus with NGDS (Non-Grinding Media Solutions) and liners as a package. While current volumes are described as flat, the company is working on plans for 25,000 to 30,000 tons of growth annually starting from FY28 and FY29. Trials for NGDS are ongoing, with positive internal conviction about potential future results. The company is also considering reactivating geographical expansion for Ghana and China.
Challenges related to freight costs and geopolitical uncertainties were discussed, with an expectation that freight costs would normalize to a more sustainable 7-8% of sales. The company also commented on the Mexico tariff situation, noting it is not a material market and does not significantly impact their operations. Recent large orders have boosted the order book, reflecting long-term contracts.
The transcript also touched upon the capex incurred, with INR86 crores in the first half, and plans for an additional approximately INR250 crores in H2 FY27. The management expressed confidence in meeting future expectations and returning to a growth track.
Source: BSE
