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Ajax Engineering Posts Stable Q1 Amid CEV-5 Transition

2025-08-05

Ajax Engineering, one of India’s foremost manufacturers of concreting equipment, reported stable financial results for the first quarter of FY26, maintaining momentum after a robust FY25. Despite headwinds such as the complete transition to CEV-5 emission norms, unseasonal rains, and infrastructure execution delays, the company achieved revenues of Rs 4.66 billion and a Profit After Tax (PAT) of Rs 530 million.

Managing Director and CEO Shubhabrata Saha highlighted that Q1 FY26 marks a strategic transition phase following the company’s record revenue milestone in FY25. He noted the stability in the Self-Loading Concrete Mixer (SLCM) business, while non-SLCM volumes recorded a notable 25 per cent year-on-year growth. He also shared Ajax’s continued investments in capability building, particularly in expanding its B2B go-to-market channels across key metro cities. These efforts are expected to drive sustained long-term growth, especially in the non-SLCM segment.

Ajax is on track to commission its upcoming Adinarayanahosahalli plant in the second half of FY26, positioning the company for its next phase of scalable and diversified growth.

Tuhin Basu, Chief Financial Officer, commented that while revenue remained stable compared to the previous year, margins were affected due to the shift in product mix and increased costs from the CEV-5 transition. Despite these challenges, Ajax remains in a strong financial position—debt-free with a solid cash reserve.

He expressed optimism about improved business momentum in the latter half of FY26, in line with industry trends. The company remains committed to long-term investments in leadership, innovation, and capacity expansion to stay ahead in a competitive market.

Ajax successfully completed the sale of all CEV-4 inventory by Q1 FY26 and will operate a fully CEV-5-compliant product portfolio from Q2 onwards. SLCM revenues were reported at Rs 3.85 billion, flat year-on-year, while the spares and services segment rose 8 per cent to Rs 370 million. Exports contributed 5 per cent to total revenues.

The company plans to sustain its dominance in the SLCM segment through new CEV-5 machines with enhanced value propositions. Continued expansion into metro-based B2B channels, rising demand for mechanised concreting, government infrastructure initiatives, and growing adoption of emission-compliant equipment will be the key growth drivers in the upcoming quarters.