AIA Engineering Ltd. H1 receivable days rise to 87 days

AIA Engineering Ltd. reported 87 receivable days in H1 FY2026-27, up from 72 days in H1 FY2025-26, while work-in-progress and finished-goods inventory days increased to 79 from 73. Receivables declined sequentially to Rs 965.74 crore in Q2 from Rs 1,113.33 crore in Q1, but remained above the prior-year level.

How did AIA’s working-capital days change in H1?

AIA’s receivable days increased by 15 days year on year to 87 in H1 FY2026-27, while work-in-progress, or WIP, and finished goods, or FG, days rose by six days to 79. Raw-material inventory days also rose, reaching 41 days from 33 days in H1 FY2025-26. The presentation therefore records longer reported holding or collection periods across all three disclosed working-capital measures.

The corresponding balances were higher than a year earlier. WIP and FG amounted to Rs 1,014.94 crore at the H1 FY2026-27 reporting point, compared with Rs 881.59 crore a year earlier, while raw materials rose to Rs 225.25 crore from Rs 169.78 crore. Receivables were Rs 965.74 crore, compared with Rs 793.95 crore in H1 FY2025-26.

Why did AIA’s receivable days remain higher in Q2?

AIA’s receivables fell by Rs 147.59 crore sequentially to Rs 965.74 crore in Q2 FY2026-27 from Rs 1,113.33 crore in Q1, and reported receivable days declined to 87 from 90. The presentation does not state a reason for the quarterly reduction. Even after that decline, Q2 receivables and days were above the Q2 FY2025-26 figures of Rs 793.95 crore and 72 days.

AIA’s Q2 FY2026-27 sales were Rs 1,093.25 crore, compared with Rs 1,029.67 crore in Q2 FY2025-26, while receivable days increased by 15 days. For H1, sales rose to Rs 2,246.49 crore from Rs 2,055.69 crore and income from operations increased to Rs 2,280.79 crore from Rs 2,086.71 crore. The source does not provide customer payment terms, ageing of overdue dues or collection actions.

What changed in AIA’s inventory balances and production?

AIA’s WIP and FG balance rose by Rs 133.35 crore year on year to Rs 1,014.94 crore in H1 FY2026-27, and its associated days rose to 79 from 73. This is the larger of the two inventory categories disclosed. The 79-day measure combines WIP and FG, so the presentation does not provide a separate finished-goods inventory balance or days measure.

Raw-material inventory increased by Rs 55.47 crore to Rs 225.25 crore, with days rising to 41 from 33. Together, the two reported inventory lines totalled Rs 1,240.19 crore at H1 FY2026-27, against Rs 1,051.37 crore a year earlier. This occurred while production declined to 124,952 metric tonnes, or MT, from 128,405 MT in the prior-year half.

Quarterly data show WIP and FG increased by Rs 72.57 crore from Rs 942.37 crore in Q1 FY2026-27 to Rs 1,014.94 crore in Q2, with days rising from 74 to 79. Raw materials increased by Rs 3.11 crore to Rs 225.25 crore, while their reported days remained 41. The income statement recorded a negative Rs 67.43 crore change in inventories of finished goods, WIP and stock-in-trade in Q2 FY2026-27, compared with negative Rs 1.94 crore in Q1.

How did AIA’s sales and profitability compare with last year?

AIA sold 126,152 MT in H1 FY2026-27, up 2,837 MT from 123,315 MT a year earlier, despite lower production. Mining sales rose by 4,173 MT to 78,956 MT, while the Others segment declined by 1,336 MT to 47,196 MT. Higher mining volume therefore more than offset the decline in the Others segment.

AIA’s earnings before interest, tax, depreciation and amortisation, or EBITDA, declined to Rs 786.21 crore in H1 FY2026-27 from Rs 816.01 crore in H1 FY2025-26. EBITDA margin on income from operations declined to 34.47% from 39.11%, while profit after tax after minority interest was Rs 550.84 crore, compared with Rs 582.46 crore. Q2 EBITDA was Rs 361.65 crore and margin was 32.50%, compared with Rs 424.56 crore and 36.35% in Q1.

What other disclosed items provide context for working capital?

AIA disclosed Rs 86 crore of capital expenditure during H1 FY2026-27 and present installed capacity of 436,000 tonnes per annum, or TPA. The presentation does not identify projects funded by that expenditure, their completion dates or expected output. It reports the spending and current capacity without a project-by-project schedule.

AIA reported an order book of Rs 1,071 crore as at 1 October 2026. It also disclosed outstanding foreign-currency forward sales contracts as at 2 November 2026 of US$7.50 million, Australian dollar 1.60 million and euro 1.10 million. The presentation does not provide contract maturities, exchange rates or the share of revenue covered by these contracts.

Conclusion

AIA’s H1 FY2026-27 figures combine higher sales volumes with higher balances and days for receivables, WIP and FG, and raw materials. Receivable days increased by 15 days year on year, WIP and FG days rose by six days, and raw-material days rose by eight days, while EBITDA margin declined by 4.64 percentage points to 34.47%.

The next disclosed markers are execution against the Rs 1,071 crore order book reported on 1 October 2026 and the use of Rs 86 crore of H1 capital expenditure alongside installed capacity of 436,000 TPA. AIA did not disclose working-capital targets or collection guidance, leaving subsequent reported balances and day measures as the available indicators of whether the Q2 receivables reduction continues.