Ajax Engineering , a leading manufacturer of concrete equipment, reported flat revenue growth and margin pressure in its Q1 FY26 results, as the company navigated through the transition to CEV-5 emission-compliant machines and faced headwinds in infrastructure project execution.

Financial Performance

For the quarter ended June 30, 2025, Ajax Engineering reported:

• Revenue of Rs. 467.00 crores, remaining flat compared to Rs. 469.00 crores in Q1 FY25
• EBITDA declined by 23% to Rs. 61.00 crores from Rs. 80.00 crores in the same quarter last year
• EBITDA margin compressed to 13.20% from 17.10% in Q1 FY25
• Profit After Tax (PAT) decreased to Rs. 53.00 crores from Rs. 67.00 crores in the corresponding quarter

Transition to CEV-5 Machines

A key highlight of the quarter was the successful transition to CEV-5 emission-compliant machines, which comprised 90% of Self-Loading Concrete Mixer (SLCM) sales. However, this transition led to an increase in material costs by approximately 400 basis points, impacting the company's gross margins.

Market Share and Industry Challenges

While the company experienced a temporary decline in overall market share during Q1, it reported a strong recovery in July, with market share reaching above 75%. Ajax Engineering faced headwinds from a slowdown in infrastructure project execution, with PMGSY road construction declining by 37% and highway construction pace reducing by 9% year-on-year.

Management Commentary

Shubhabrata Saha, Managing Director and CEO of Ajax Engineering, commented on the results: "Short-term road bumps like these are typical in our industry, and Ajax has consistently demonstrated the ability to navigate such phases while maintaining steady performance. Structurally, we remain fully confident in the longer-term growth trajectory of our business."

Future Outlook

The management expects early double-digit volume growth for FY26 and plans to increase pricing towards the end of Q2 FY26. Ajax Engineering maintains a robust cash position of Rs. 680.00 crores in cash and investments, providing financial flexibility for future growth initiatives.

Expansion Plans

The company is expanding its dealer network and developing new facilities, including a new plant in Adinarayanahosahalli, expected to be commissioned in the second half of FY26.

Despite the short-term challenges, Ajax Engineering remains optimistic about its long-term prospects, citing India's substantial infrastructure development needs and the shift towards mechanized construction and concreting equipment as key growth drivers.

Note: All figures are in Indian Rupees (INR).

Ajax Engineering , a leading manufacturer of concrete equipment in India, has reported its financial results for the first quarter, revealing a mixed performance amidst operational challenges.

Financial Highlights

• Revenue from operations remained relatively flat at ₹4,665.15 million, compared to ₹4,690.04 million in the same quarter last year, marking a marginal decrease of 0.5%.
• Profit after tax (PAT) declined by 21.1% to ₹528.75 million from ₹669.90 million in the corresponding quarter.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped by 23.4% to ₹614 million from ₹802 million.
• EBITDA margin compressed by 390 basis points to 13.2%, while PAT margin fell by 300 basis points to 11.3%.

Operational Performance

Ajax Engineering faced several challenges during the quarter, including:

• Unseasonal rains
• Changes in emission norms
• Slower pace of project execution

Despite these hurdles, the company reported some positive developments:

• Non-SLCM (Self-Loading Concrete Mixer) volumes grew by 25% year-on-year
• SLCM business remained stable
• The company maintained its market leadership with approximately 69% share in India's SLCM market

Segment-wise Performance

Management Commentary

Mr. Shubhabrata Saha, Managing Director and CEO of Ajax Engineering, commented on the results: "After a strong performance last year, the current quarter has been one period of challenges and transition. Unseasonal rains, change in the emission norms, and a slower pace of project execution, have all had an impact on the business. However, we have remained focused on capability building and execution excellence."

He added, "While we anticipate some pressure on the margins in the near term, we expect to recover the same through operational efficiencies as well as pricing. We remain fully confident in the longer-term growth trajectory of our business."

Future Outlook

Ajax Engineering remains committed to maintaining its leadership position in the SLCM segment while building strong capabilities in the non-SLCM space. The company continues to focus on operational excellence and financial discipline as central elements of its strategy.

As of the reporting period, Ajax Engineering operates through 114 customer touchpoints with 52 dealers across 22 states in India, demonstrating its strong market presence and distribution network.

Investors and analysts will be closely watching how Ajax Engineering navigates the current challenges and capitalizes on its market leadership position in the coming quarters.