Financial Performance for Q1 FY27 (Quarter Ended June 30, 2026)

  • Total Revenue: ₹475 crores, representing 1.7% year-on-year growth
  • SLCM Revenue: ₹388 crores, marginal growth over Q1 FY26
  • Non-SLCM Revenue: ₹48 crores, growing 6.4% year-on-year led by pumps segment
  • Spares and Services Revenue: ₹39 crores, growing 6.2% year-on-year
  • EBITDA: ₹59 crores compared to ₹61 crores in Q1 FY26
  • EBITDA Margin: 12.5%, contracting 70 basis points year-on-year
  • Profit After Tax: ₹55.6 crores, growing 5% year-on-year

Operational and Market Performance

  • SLCM market share expanded to 75.1% in Q1 FY27 from 69% in Q1 FY26 and 73.5% in full year FY26
  • Industry registrations declined 27% in the quarter while Ajax volumes declined 21%
  • Price premium maintained over peers despite challenging environment

State-wise Market Performance

Significant variations across states with notable market share gains:

  • Gujarat: Volumes increased 40%, market share improved from 71% to 82%
  • Rajasthan: Volumes declined 21%, but market share improved from 66% to 86%
  • Odisha: Volumes grew 13%, market share improved from 61% to 88%
  • Chhattisgarh: Volumes declined 11%, market share improved from 73% to 91%
  • Maharashtra and MP: Significant volume declines but market share improvements
  • Karnataka: Showing good traction after political changes

Product Performance

  • UDAAN series: Sold 121 units in Q1 FY27, following 202 units sold in previous year
  • 35-40 UDAAN units sold in July 2026
  • New ARGO 4000 planned for launch in Q2 FY27
  • Concrete pumps delivered strong growth with healthy market acceptance

Export Business

  • Export revenue share: 9% in Q1 FY27
  • First slip-form paver exported during the quarter
  • Key markets: Algeria, Morocco, Nigeria (38% of shipments)
  • SLCMs constitute 65% of export volume, non-SLCMs 35%
  • Targeting 30% CAGR growth in exports over next three years

Cost Environment and Pricing

  • Direct material costs increased due to rising fuel and steel prices
  • Internal cost optimization measures accelerated
  • Previous 2% price increase implemented in Q4 FY26
  • Evaluating additional calibrated price hike for implementation in current quarter
  • Steel prices (E250, E350) have increased

Organizational Changes

  • Ketan Pendse joined as Chief Financial Officer in June 2026 with over two decades of experience
  • Manufacturing streamlined under single leader
  • Head of Obadenahalli plant now oversees procurement and supply chain
  • Services and spares functions aligned with strategy and product planning

Cash Position and Capital Allocation

  • Cash balance exceeded ₹1,100 crores as of June 2026
  • Provides flexibility to pursue future growth opportunities, including inorganic opportunities
  • Management actively pursuing multiple inorganic opportunities
  • Prudent capital allocation approach maintained

Business Outlook and Guidance

  • Q2 expected to remain seasonally soft and challenging for margins
  • Expect customer sentiment and demand momentum to improve in second half
  • Nearly 60% of revenue typically generated in H2
  • Business best assessed from annualized multi-year perspective
  • Targeting 10%-15% growth in non-SLCM business for full year
  • Longer-term EBITDA margin corridor target of 13% to 15%

Application Mix Shift

  • Traditional applications (irrigation, railways, bridgeworks, power) muted
  • Urban infrastructure and building-related work increased to 35-40% of business from 15-20%
  • Roads continue to constitute 40-43% of SLCM applications
  • Private sector-led projects driving current demand

Initiatives and Strategy

  • Focus on three value disciplines: customer intimacy, product leadership, operational excellence
  • Strengthening B2B channel initiatives for non-SLCM business
  • Driving process centricity on coverage and conversion at dealerships
  • Focus on increasing share of AMCs in spares and services business
  • Multiple customer engagements and potential contracts progressing well

Conference Call Participants

Management: Shubhabrata Saha (Managing Director and CEO), Ketan Pendse (CFO), SGA (Investor Relations)

Analysts: Representatives from Nuvama Research, Edelweiss Public Alternates, JM Financial, ICICI Securities, Citi Group, Bandhan AMC, Solidarity Advisors, Vaikarya Investment Management