AJAX Engineering reported Q3 FY’26 results amid industry transition challenges, including monsoon impacts and emission norms changes. Nine-month revenue grew 2% YoY to INR 1,345 crores. Q3 revenue was INR 434 crores vs. INR 548 crores last year. Management remains confident in long-term growth, supported by infrastructure spending and the strategic launch of new CEV-5 machines, expecting a stronger FY’27.
Q3 and 9-Month Financial Review
For the 9 months ended December 31, 2025, AJAX Engineering recorded a total revenue of INR 1,345 crores, reflecting a modest 2% growth on a Year-over-Year (YoY) basis. The non-SLCM revenue segment showed resilience, growing by 4.5%, while spares and services revenue increased by 14% YoY.
Adjusted EBITDA for the 9-month period stood at INR 154 crores, down from INR 207 crores in the corresponding period last year, resulting in an EBITDA margin of 11.5%. This compression was attributed to gross margin pressure from the impact of product mix change, notably the absence of high-margin slip form pavers sold last year.
For the third quarter (Q3 FY’26), revenue was INR 434 crores, compared to INR 548 crores in Q3 FY’25. Adjusted EBITDA for the quarter declined to INR 48 crores (from INR 88 crores YoY), with the margin settling at 11%, impacted by one-time marketing costs.
Operational Strategy and Outlook
Management highlighted that the recent period was characterized by operational transition, headwinds from prolonged monsoons, and customer cash flow constraints. In response, the company focused on situational awareness, evidenced by launching the new CEV-5 machines in Q4 FY’25 to gather real-time feedback.
The company maintains strong financial discipline, highlighted by a current cash balance (including debt market investments) of INR 810 crores. Looking ahead, the outlook remains positive, driven by the government’s sustained focus on infrastructure development, including an 11% increase in capital expenditure allocation for FY ’27.
AJAX is steering the business for long-term health, planning to commission its fifth manufacturing facility in Q1 of FY ’27. Management anticipates that volume growth and operating leverage, combined with anticipated price adjustments, will aid profitability from FY ’27 onwards.
Segment Performance and Pricing
Secondary sales remained healthy throughout Q3, indicating underlying demand persistence. Non-SLCM revenue grew 13% YoY in Q3, and spares/services grew 11% YoY.
Regarding pricing, management noted that market share has been maintained at a high level (between 78% and 82% in the last four months). The strategy involves a calibrated approach to pricing, aiming to restore margins, although exact price hike percentages were not specified, with confidence in covering cost increases by Q1 of FY ’27.
In the smaller SLCM segment, states like Uttar Pradesh, Maharashtra, Odisha, and Gujarat are leading demand recovery. The company expects to sell close to 225 to 250 units of the new UDAAN product by the end of the current fiscal year, a product positioned for lower-end applications, including CC roads and small residential structures.
Q4 Momentum and New Initiatives
Management expressed optimism for Q4, anticipating a stronger shift in demand momentum in January that they hope will continue through February and March. However, achieving the high base of Q4 last year (which exceeded 2,000 SLCM units) is considered unlikely due to current conditions.
On other segments, interest in pavers is improving, highlighted by a potential rental contract for a 25-kilometer road in South Tamil Nadu. Furthermore, there is interest from organizations like the Border Roads Organization and Ministry of Defense concerning the potential application of 3D printing technology.
The company confirmed that the new facility targeted for H2 completion is now expected in Q1 of FY ’27, described as a tactical decision related to the non-SLCM portfolio rather than an operational delay.
Source: BSE
