Ajax Engineering Q2 PAT rises 30.4% as revenue reaches ₹487 crore

Ajax Engineering Limited reported Q2 FY27 revenue of ₹487 crore, up 9.5% year-on-year, while profit after tax rose 30.4% to ₹50.9 crore. The results show continued growth in its core self-loading concrete mixer business and faster expansion in non-SLCM products, despite delayed state spending and higher steel costs.

What did Ajax Engineering report in Q2 FY27?

Ajax Engineering reported revenue of ₹487 crore for Q2 FY27, compared with growth of 9.5% over the corresponding quarter a year earlier. EBITDA increased 13.7% year-on-year to ₹51.5 crore, while PAT rose 30.4% to ₹50.9 crore. Management said quarterly growth was supported by both volumes and pricing.

The core self-loading concrete mixer, or SLCM, business generated revenue of ₹395.8 crore, up 5.9%. Non-SLCM revenue increased 64.7% to ₹55.8 crore, aided by demand for concrete pumps, batching plants and boom pumps. Spares and services revenue declined 4.7% to ₹35.4 crore, as machine running hours fell by about 25%.

How did Ajax Engineering perform in the first half?

Ajax Engineering recorded H1 FY27 revenue of ₹961.5 crore, an increase of 5.5% year-on-year, while PAT rose about 16% to ₹106.5 crore. H1 EBITDA grew 3.7% to ₹110.6 crore, but the EBITDA margin eased to 11.5% from 11.7% in H1 FY26.

SLCM revenue for the first half stood at ₹783.5 crore, up 3.3%, with volume growth of 2.5% and support from an earlier price increase. Non-SLCM revenue grew 31.5% to ₹103.5 crore. The company reported cash of ₹1,151 crore, working capital of 22 days, return on capital employed of 19%, and return on equity of 14%.

Why are SLCM market share and product mix important?

Ajax Engineering's retail SLCM market share reached 75.5% in H1 FY27, up from 70.7% in H1 FY26. This measure is important because SLCMs remain the company's largest revenue contributor, even as it broadens its offering in concrete pumps, batching plants and other non-SLCM equipment.

The application mix has also shifted towards private projects. Roads accounted for around 40% of year-to-date business, compared with 67% in FY26, while factories, buildings and urban infrastructure represented around 39%. The company is expanding its UDAAN range, which is now available in 20 states, and has launched the ARGO 4000 to address a gap in its SLCM portfolio.

What cost and demand pressures did management identify?

Management identified delayed contractor payments and slower project execution in Maharashtra, Madhya Pradesh, Rajasthan and Bihar as near-term demand constraints. These conditions affected project activity in certain markets and contributed to weaker equipment utilisation, which also weighed on the spares and services business.

Steel costs rose from about ₹58 per kg to around ₹70 per kg, and management expects further inflation. Ajax Engineering said it had taken a price increase of around 2% in Q4 FY26, followed by increases of 1% each in September and November. Another increase of about 2% is planned for Q4 FY27. The quarter also included a one-time SAP implementation cost.

What does management expect for the second half of FY27?

Management expects demand conditions to improve in the second half, which historically contributes 60% to 65% of Ajax Engineering's annual revenue. It did not provide quantified revenue or profit guidance, but stated that it aims for a close to double-digit EBITDA margin for the full year.

Exports were a supporting area of growth, with export revenue rising 47% in H1 FY27 and accounting for 7.4% of Q2 revenue. The outlook remains linked to the pace of infrastructure execution, the recovery in affected state markets, private-sector project demand and the company's ability to offset raw-material inflation through pricing and product mix.

Conclusion

Ajax Engineering delivered higher Q2 revenue, EBITDA and PAT, with the strongest growth coming from the non-SLCM portfolio. Its 75.5% SLCM retail market share, cash position and working-capital discipline provide important operating context, while the H1 margin decline shows the effect of cost inflation and softer activity in some regions.

Investors will watch whether the expected second-half improvement materialises, particularly because H2 typically contributes 60% to 65% of annual revenue. Key disclosed factors include state-level project execution, steel prices, the planned Q4 FY27 price increase, exports and the performance of recently expanded product lines.