AIA Engineering Reports 7.7% Profit Growth in Q2 FY2026

AIA Engineering , a leading manufacturer of high chrome mill internals, has announced its financial results for the second quarter of fiscal year 2026, demonstrating solid growth in both revenue and profitability.

Financial Highlights

Particulars (₹ in crores)	Q2 FY2026	Q2 FY2025	YoY Change
Revenue	1,050.00	1,040.00	+1.0%
EBITDA	297.00	275.00	+8.0%
EBITDA Margin	28.34%	26.40%	+194 bps
Net Profit	280.00	260.00	+7.7%

Revenue Growth

AIA Engineering reported a modest increase in revenue, which rose to ₹1,050.00 crores in Q2 FY2026 from ₹1,040.00 crores in the same period last year, marking a 1.0% year-over-year growth. This growth demonstrates the company's ability to maintain its market position in the current economic environment.

Profitability Improvement

The company's profitability showed significant improvement:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 8.0% to ₹297.00 crores, compared to ₹275.00 crores in Q2 FY2025.
The EBITDA margin expanded by 194 basis points to 28.34%, up from 26.40% in the corresponding quarter of the previous year, indicating enhanced operational efficiency.
Net profit grew by 7.7% to ₹280.00 crores, up from ₹260.00 crores in Q2 FY2025, reflecting the company's ability to translate revenue growth into bottom-line results.

Conclusion

AIA Engineering's Q2 FY2026 results showcase the company's resilience and operational strength. The substantial improvement in profitability, despite only a modest increase in revenue, indicates effective cost management and operational efficiency. As the company continues to navigate the market conditions, investors and stakeholders will likely keep a close eye on its ability to maintain this growth trajectory and further enhance its market position in the high chrome mill internals sector.

The company's board meeting to approve these results was held on November 7, 2025, as per the LODR (Listing Obligations and Disclosure Requirements) filing, ensuring compliance with regulatory requirements and maintaining transparency with investors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.88%	+0.19%	+2.62%	+4.20%	-11.45%	+89.64%

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:

Metric	Amount (in Crores)	Percentage of Total
Turnover	84.50	1.97
Net Worth	39.72	0.57

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.