Ajax Engineering reported mixed financial results for Q3 and 9M FY26, reflecting industry challenges like extended monsoons and new emission norms impact. While revenue grew slightly by 2.0% for 9M FY26, profitability metrics like Adjusted EBITDA declined, primarily due to the increased cost of new CEV-5 machines and one-time marketing expenses. Management remains confident in the long-term growth driven by government infrastructure focus.
Performance Summary and Management Commentary
For the 9 months ended FY26 (9M FY26), Ajax Engineering demonstrated resilience amidst industry-wide challenges. Mr. Shubhabrata Saha, Managing Director & CEO, noted that recent quarters faced headwinds from extended monsoons, emission norm changes, and customer cash flow issues. Despite a temporary impact on near-term performance, the long-term outlook remains firmly intact, supported by sustained infrastructure development spending.
The strategy for the new CEV-5 machines involves closely monitoring real-time performance and tailoring the pricing strategy based on market acceptance to ensure long-term sustainability.
Financial Highlights (Q3 & 9M FY26)
Financial performance comparisons between Q3 FY25 and Q3 FY26, and 9M FY25 and 9M FY26, show the following key trends:
- Revenue from Operations: Grew by +2.0% to ₹13,449 Mn for 9M FY26 (compared to 9M FY25: ₹13,182 Mn). Q3 FY26 revenue saw a -20.9% decline to ₹4,335 Mn, impacted by a strong base last year, though secondary sales remained healthy.
- Adjusted EBITDA: Declined by -25.5% for 9M FY26 to ₹1,544 Mn. Q3 FY26 saw a -45.8% drop to ₹477 Mn. Profitability was impacted by the increased production cost of new CEV-5 machines and one-time marketing expenses.
- Gross Margin: Declined by 390 bps for 9M FY26 to 25.0%.
- Adjusted EBITDA Margin: Dropped to 11.5% for 9M FY26 (from 15.7% in 9M FY25). Excluding one-time marketing costs, the adjusted margin was 11.0% for Q3 FY26 and 11.5% for 9M FY26.
- Reported PAT: Fell to ₹1,302 Mn for 9M FY26 (a -23.0% drop). PAT Margin stood at 9.7%.
Segmental Performance
Revenue contribution shows the continued dominance of SLCMs, although growth slowed:
- SLCM (Self-Loading Concrete Mixer): Remained the core, contributing 80% to 86% of total revenue across the periods. 9M FY26 revenue was ₹11,051 Mn (+0.6% YoY). Volume decreased by -3% to 3,354 units.
- Non-SLCM: Showed better momentum, with 9M FY26 revenue at ₹1,280 Mn (+4.5% YoY).
- Spares & Services: Revenue grew by +14.4% to ₹1,118 Mn for 9M FY26.
Geographically, exports slightly decreased their share from 5% in 9M FY25 to 6% in 9M FY26, while domestic sales constitute the vast majority.
Historical Financial Track Record (FY22-FY25)
Historically, Ajax has demonstrated strong top-line compounding:
- Revenue from Operations: Grew at a 40% CAGR from ₹7,633 Mn in FY22 to ₹20,739 Mn in FY25.
- PAT: Showed robust growth at a 58% CAGR, reaching ₹2,601 Mn in FY25.
- Return Ratios: Return on Assets stood at 17.5% in FY25, while Return on Equity was 22.5%.
Market Leadership and Growth Strategies
Ajax maintains ~73% market share in the Indian SLCM market by volume as of December 2025. The company is focused on five key growth strategies:
- Maintain leadership and grow market share of the SLCM portfolio.
- Strengthen capabilities and increase market share of the non-SLCM portfolio.
- Improve operational efficiencies.
- Increase presence in overseas markets through exports (FY22-25 Exports Revenue CAGR of 27.5%).
- Explore opportunities for inorganic growth.
Product Innovation and Operational Strength
The company highlights its R&D focus, noting it was the only Indian company to develop a Slip-Form Paver entirely in-house in 2019 and the first to commercialize a 3D Concrete Printing Machine in-house in 2023. Operations are supported by four main facilities, with an upcoming fifth site expected to be operational by Q1 FY27. The customer base grew at a 23% CAGR to 21,000 customers by FY25, indicating no customer concentration risk.
Source: BSE
