Company Overview
Ajax Engineering Limited (BSE: 544356 | NSE: AJAXENGG) disclosed its comprehensive FY26 financial results and annual report, highlighting mixed performance amid regulatory transitions.
Financial Performance
Revenue from operations reached ₹21,025.37 million, showing 1.4% YoY growth from ₹20,739.15 million in FY25. However, PAT declined 13.4% to ₹2,251.45 million (from ₹2,600.96 million) and EBITDA fell 16.4% to ₹2,658 million. Margins compressed with EBITDA margin at 12.6% (vs 15.34%) and PAT margin at 10.5% (vs 12.29%). The decline was primarily attributed to increased material costs from the CEV-V emission norm transition, which added 400+ basis points to costs.
Operational Highlights
The company maintained its market leadership in SLCM with 73.5% market share, recovering from a ~70% dip in Q1 FY26. Export revenue grew 39% to ₹1,031.43 million across 56 countries. The non-SLCM portfolio showed strength with 6.6% growth to ₹1,934 million, while spares and services revenue grew 8.7% to ₹1,517 million. The company remains debt-free with cash and investments of ₹11,208 million and achieved operating cash flow at 142% of EBITDA.
Capital Structure & Corporate Actions
Authorized share capital increased by 500,000 shares to accommodate ESOP grants. Promoter holding stands at 75.64%, primarily through various trusts. The ESOP 2024 scheme shows 4,03,808 options outstanding under Scheme I and 11,53,100 under Scheme II, with total share-based payment expense of ₹95.13 million for the year. No dividend was recommended for FY26 as the company prioritizes growth investments.
Contingent Liabilities & Compliance
Total contingent liabilities amount to ₹331.27 million, primarily comprising customs disputes (₹189.12 million) and KIADB land price revision demands (₹78.78 million). The company completed CEV-V transition ahead of schedule and compounded FEMA contraventions with RBI regarding delayed bonus share reporting. Unspent CSR obligations of ₹33.93 million were transferred to a separate account.
Management & Governance
The Board consists of 7 directors (3 executive, 4 non-executive independent). Several management changes occurred during FY26, including CFO transitions and director resignations. The 34th Annual General Meeting is scheduled for September 28, 2026, via video conferencing to adopt financial statements and re-appoint key management.
Forward Outlook
Strategic priorities include maintaining SLCM leadership, scaling non-SLCM portfolio, expanding exports, and pursuing disciplined inorganic growth. The company is expanding manufacturing capacity with a new facility at Adinarayanahosahalli expected in H1 FY27.