Q1 2027 AJAX Engineering Ltd Earnings Call Transcript
Key Points
- Ajax Engineering Ltd (NSE:AJAXENGG) expanded its SLP market share to 75.1% in Q1 FY27, up from 69% in Q1 FY26 and 73.5% in FY26, despite a challenging demand environment.
- The company maintained a strong balance sheet with cash balances exceeding INR 1,100 crores as of June 2026, providing ample flexibility for growth and inorganic opportunities.
- Non-SLCM revenue grew 6.4% year-on-year, driven by healthy growth in the pumps segment, with concrete pumps showing strong market acceptance and improved execution.
- Exports are gaining traction, with the third slipform paver exported during the quarter and a 9% revenue share, supported by repeat buying in Algeria, Morocco, and Nigeria.
- The company is proactively managing input cost pressures through internal cost optimization measures and evaluating calibrated price increases to mitigate margin impact.
- Ajax Engineering Ltd (NSE:AJAXENGG) faced a 27% decline in industry registrations for SLCMs in Q1 FY27, with the company's volumes down 21%, reflecting weak demand.
- EBITDA margin dropped 70 basis points year-on-year to 12.5% in Q1 FY27, impacted by adverse operating leverage from lower volumes.
- The company expects Q2 FY27 to remain seasonally soft, with management indicating that achieving 12% EBITDA margin will be challenging in the near term.
- Delays in payments from state governments and slower-than-expected infrastructure project execution continue to dampen customer sentiment and new order placements.
- Direct material costs are inching upwards due to rising steel prices, and the company faces uncertainty in passing on price increases amid a weak demand environment.
(Operator Instructions)
Before we begin, I would like to point out this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company has on date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I will now have the conference over to Mr. Shubhabrata Saha, Managing Director and Chief Executive Officer of Ajax Engineering Limited.
Thank you and over to you, sir.
Thank you.
Good morning and a warm welcome to everyone to the Q1 FY27 Earning Conference Call of Ajax Engineering Limited.
Before we begin, I'm delighted to welcome Mr. Ketan Painsay, who joined Ajax as our Chief Finance Officer in June 2026.
Ketan brings over two decades of industry experience and we are confident that his expertise and leadership will play a valuable role
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