Ajax Engineering Limited hosted its Q2 and H1 FY27 earnings conference call on November 6, 2026. The company detailed its financial performance, highlighting revenue growth driven by volumes and prices. Key discussions included market share gains in the SLCM segment, expansion in non-SLCM business, raw material cost management, and strategies for future growth across various product lines and geographies. Management addressed investor queries on demand trends, margins, exports, and product strategy.
Ajax Engineering Limited: Q2 & H1 FY27 Earnings Conference Call Highlights
On November 6, 2026, Ajax Engineering Limited conducted its conference call to discuss the financial results for the second quarter (Q2) and the first half (H1) of the Financial Year 2027. The call provided an in-depth look at the company’s performance, strategic initiatives, and outlook amidst prevailing market conditions.
Financial Performance Overview
For Q2 FY27, Ajax Engineering reported a total revenue of INR487 crore, marking a growth of 9.5% over Q2 FY26, attributed to both volume and price increases. The company’s SLCM (Self-Loading Concrete Mixer) revenue stood at INR395.8 crore, up 5.9% year-on-year, primarily driven by volumes. Non-SLCM revenue saw a significant jump of 64.7% to INR55.8 crore, led by concrete pumps, batching plants, and boom pumps. Spares and services revenue, however, declined by 4.7% to INR35.4 crore. Despite increased raw material costs, gross margins improved by approximately 20 basis points, supported by a recent price hike. EBITDA grew by 13.7% to INR51.5 crore, and Profit After Tax (PAT) surged by 30.4% to INR50.9 crore.
In the first half of FY27 (H1 FY27), total revenue reached INR961.5 crore, a 5.5% increase over H1 FY26. SLCM revenue grew by 3.3% to INR783.5 crore, supported by volume growth and a prior price increase. The non-SLCM segment demonstrated robust growth of 31.5%, contributing INR103.5 crore. Spares and services revenue remained stable at INR74.6 crore. EBITDA for H1 FY27 stood at INR110.6 crore, a 3.7% increase, with a marginal decrease in EBITDA margin to 11.5% from 11.7% in H1 FY26. Profit after tax for H1 FY27 was INR106.5 crore, up approximately 16% year-on-year. The company maintained a healthy working capital cycle of 22 days, with ROCE at 19% and ROE at 14%.
Market Dynamics and Strategic Focus
Management highlighted that infrastructure development continues to be a key driver for India’s economic growth. Despite near-term headwinds such as payment delays and slower project execution in some states, Ajax is well-positioned due to its brand equity and distribution network. The company is focusing on urban regions and private sector projects, accelerating the adoption of its UDAAN series for wider mechanization. The upcoming launch of the ARGO 4000 is expected to fill a gap in the SLCM portfolio.
Ajax is also strengthening its non-SLCM business, particularly batching plants and pumps, through its B2B channel initiative. Operational excellence, including supply chain resilience and lean manufacturing, remains a priority. To combat rising raw material costs, the company is diversifying its supplier base and optimizing its cost structure. Price increases of approximately 2% in Q4 FY26 and 1% in September FY27 have been implemented, with further calibrated actions planned.
The SLCM retail market share increased to 75.5% in H1 FY27, up from 70.7% in H1 FY26. Exports are also a growing segment, with revenue increasing by 47% year-on-year in H1 FY27, driven by traction in Africa and Southeast Asia.
Outlook and Q&A Highlights
The company anticipates an improvement in demand in the second half of the year, with top 10 states contributing significantly to SLCM volume. Challenges in states like Maharashtra and Madhya Pradesh due to pending contractor payments were noted. Management expressed confidence in navigating the current environment and sustaining growth, with approximately 60%-65% of annual revenue typically generated in the second half (H2).
During the Q&A session, questions focused on early signs of demand improvement in October-November, potential targets for the second half, margin sustainability amidst commodity cost volatility, the performance and outlook for the UDAAN series, drivers of non-SLCM growth, export market strategies, pricing actions to mitigate inflation, and the shift towards turnkey concreting solutions. Management confirmed ongoing efforts to improve the spares and services segment, citing reduced machine running hours as a factor for the recent weakness.
The company also addressed its export performance, noting that 65% of export revenue comes from SLCM, with key markets in Africa. Plans are underway to expand into South America. Regarding paver sales, efforts are being made to increase unit sales in export markets. Management reiterated that pricing actions are calibrated and phased, with further increases planned. The UDAAN series is being positioned as a cost-effective solution for contractors, with a focus on reducing manpower costs and enabling machine paybacks within three years.
The discussion also touched upon the maturity of SLCM products in rural housing and road segments, indicating that while mechanization is growing, the market is still far from mature. Shifts in application segments were noted, with a move away from roads towards factories, buildings, and urban infra, reflecting a private sector-led growth. The company emphasized its commitment to both SLCM and non-SLCM segments, aiming to grow the latter significantly in the coming years.
Financiers have not shown any challenges for wholesale or retail financing for Ajax, with the company maintaining an ‘A-rated’ portfolio. The fleet size estimation for SLCMs and non-SLCMs was discussed, with a projected market band of 30,000-35,000 machines. Management expressed confidence in the company’s ability to adapt to market dynamics and continue its growth trajectory.
Source: BSE
