AIA Engineering , a leading manufacturer of high chrome mill internals, has announced its financial results for the quarter ended September 30, 2025, demonstrating substantial growth in revenue.

Financial Highlights

Revenue Growth

AIA Engineering reported a significant increase in revenue from operations, which rose to ₹989.79 crores in Q2 FY2026 from ₹603.27 crores in the previous quarter, marking a substantial 64.1% quarter-over-quarter growth. This growth demonstrates the company's strong market position and ability to capitalize on demand for its products.

Profitability

The company's net profit for the quarter stood at ₹277.44 crores, compared to ₹305.02 crores in the previous quarter, representing a 9.0% decrease. Despite the slight decline in net profit, the significant revenue growth indicates the company's focus on expanding its market share.

Half-Year Performance

For the half-year period, AIA Engineering's total revenue reached ₹1,792.53 crores, compared to ₹1,717.01 crores in the corresponding period last year, showing a year-over-year growth of 4.4%.

Business Segment and Operations

AIA Engineering primarily operates in the manufacturing of high chrome mill internals. The company's Board of Directors has decided to discontinue manufacturing operations at the Nagpur unit. However, this closure is not expected to adversely affect production, business operations, or profitability.

Regulatory Challenges

The company faces new regulatory requirements in the United States. Effective from June 13, 2025, AIA Engineering is subject to cash deposit requirements for:

• Countervailing Duty at 3.16%
• Anti-Dumping Duty at 6.91%

These duties apply to certain high chrome iron grinding media imported from India, following a determination by the U.S. Department of Commerce.

Conclusion

AIA Engineering's Q2 FY2026 results showcase the company's strong growth trajectory, particularly in terms of revenue. The substantial increase in quarterly revenue, despite challenges such as the closure of the Nagpur unit and new U.S. import duties, indicates the company's resilience and adaptability in a dynamic market environment. As AIA Engineering continues to navigate these challenges, investors and stakeholders will likely monitor its ability to maintain this growth momentum and manage profitability in the face of regulatory pressures.

AIA Engineering Limited has announced a significant development concerning its subsidiary, Welcast Steels Limited (WSL). The Board of Directors of WSL has decided to permanently close its manufacturing facility in Bengaluru, effective December 15, 2025. This decision, made on October 15, 2025, marks the end of operations for a plant that has been in existence since 1972.

Facility Details and Closure Rationale

The facility, located at Plot No. 15, Phase-1, Peenya Industrial Area, Bengaluru - 560058, specializes in the production of hi-chrome grinding media, primarily used in cement, mining, and thermal power plants. The closure decision stems from several factors:

• Outdated technology
• High production costs
• Declining capacity utilization
• Economic unviability of operations

Modernization of the plant was deemed unfeasible due to high investment requirements and space constraints.

Financial Impact

The closure of this facility is expected to have a limited impact on AIA Engineering's overall operations. Here's a breakdown of the facility's contribution to the company's financials:

Company's Stance

AIA Engineering has assured stakeholders that the closure will not adversely affect its operations. The company stated that it has sufficient surplus capacity to meet its requirements, indicating a strategic realignment of its manufacturing capabilities.

Closure Timeline

The permanent closure of the Bengaluru facility is scheduled for December 15, 2025, allowing for a transition period of approximately two months from the announcement date.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, AIA Engineering has duly informed the stock exchanges about this development. WSL, being a listed company on the BSE, has also made the necessary disclosures.

This closure represents a strategic move by AIA Engineering to streamline its operations and potentially improve overall efficiency. While the immediate impact on financials appears limited, the long-term implications of this decision on the company's market position and operational strategy remain to be seen.