Financial Performance - H1 FY27

Revenue Performance

  • Total Revenue from Operations: ₹9,616 million, up 5.5% YoY from ₹9,113 million in H1 FY26
  • Segment Breakdown:
  • SLCM Revenue: ₹7,835 million, up 3.3% YoY
  • Non-SLCM Revenue: ₹1,035 million, up 31.5% YoY
  • Spares & Services Revenue: ₹746 million, up 0.7% YoY

Profitability Metrics

  • Gross Profit: ₹2,422 million with Gross Margin of 25.2% (20 bps improvement YoY)
  • EBITDA: ₹1,106 million with EBITDA Margin of 11.5% (20 bps decline YoY)
  • Profit After Tax: ₹1,065 million, up 15.9% YoY from ₹919 million
  • PAT Margin: 11.1% (100 bps improvement YoY)

Q2 FY27 Performance

  • Revenue: ₹4,870 million, up 9.5% YoY
  • EBITDA: ₹515 million with 10.6% margin (40 bps improvement YoY)
  • PAT: ₹509 million with 10.5% margin (170 bps improvement YoY)

Operational Highlights

Market Position

  • SLCM Market Share: 75.5% in H1 FY27 (480 bps expansion from 70.7% in H1 FY26)
  • SLCM Volumes: 2,370 units, up 2.5% YoY
  • Non-SLCM Volumes: 303 units, up 12.6% YoY

Export Performance

  • Export revenue grew 48% YoY in H1 FY27
  • Growing traction in Africa and Southeast Asia regions

Cost Environment

  • Manufacturing costs increased ~6-7% YoY in H1 FY27
  • Driven primarily by sharp rise in steel and crude-linked commodities
  • Freight costs increased considerably

Strategic Initiatives

Price Actions

  • Implemented 1% price hike in September 2026
  • Evaluating additional calibrated price hikes in H2 FY27

Product Expansion

  • Scaling up UDAAN Series of SLCMs to democratize mechanization
  • Preparing to launch ARGO 4000 to address product portfolio gap
  • Growing non-SLCM business focusing on Batching Plants and Pumps

Operational Efficiency

  • Enhancing operational efficiency and driving cost optimization
  • Working with suppliers to negotiate better pricing terms
  • Focus on lean manufacturing and supply-chain resilience

Balance Sheet Position (as of September 2026)

Assets

  • Total Assets: ₹17,939 million
  • Current Assets: ₹15,089 million including:
  • Current Investments: ₹10,500 million
  • Inventories: ₹1,663 million
  • Trade Receivables: ₹1,931 million
  • Cash & Cash Equivalents: ₹534 million
  • Non-Current Assets: ₹2,850 million

Liabilities and Equity

  • Total Equity: ₹15,041 million
  • Current Liabilities: ₹2,768 million
  • Non-Current Liabilities: ₹131 million

Cash Position

  • Cash & Cash Equivalents: ₹11,511 million (including current investments)
  • This excludes cash earmarked for CSR purposes
  • Described as "war chest" for growth/inorganic opportunities

Working Capital Management

  • Net Working Capital: 22 days
  • Focus on cash generation and disciplined working capital management

Return Metrics

  • ROCE: 19.0% (annualized)
  • ROE: 14.2% (annualized)

Industry Context

Market Challenges

  • State government capex utilization at 77.2% of budget in FY26 (vs 80.2% in FY25)
  • Apr-Aug '26 capex at 21% of full-year budget
  • Highway construction down 19% YoY in H1 FY27
  • Road capex up only 2% in Apr-Aug '26

Regional Performance

  • Key states for Ajax recorded sub-par capex utilization for Apr-Aug '26
  • Growth in some states offset by regional softness elsewhere

Management Commentary

CEO Outlook (Shubhabrata Saha)

  • Expecting customer sentiment and demand momentum to improve in H2 FY27
  • Infrastructure remains key driver of India's economic growth
  • Near-term challenges include lower state infrastructure spending and delayed contractor payments
  • Company has demonstrated ability to navigate challenging cycles and emerge stronger
  • Track record of mid-to-high teens CAGR over past decade

Growth Strategies

  • Expanding SLCM applications through private-sector engagement
  • Accelerating UDAAN adoption through market activation
  • Leveraging B2B channel, brand equity and distribution network for non-SLCM growth
  • Focus on operational excellence and cost optimization

Historical Performance Context

  • FY22-26 Revenue CAGR: 29%
  • FY22-26 PAT CAGR: 36%
  • Asset Turnover: >7x

Facility Updates

  • Adinarayanahosahalli facility expected operational in H2 FY27
  • Fungible capacity to assemble variety of concrete equipment

Corporate Details

  • Investor Relations handled by Strategic Growth Advisors Pvt. Ltd.