Indian Stock Results

Ajax Engineering has reported its Q3FY25 results, showcasing strong revenue growth and stable financials despite industry challenges. Let’s break down the key insights from the latest earnings report and understand what it means for investors.

Revenue & Profitability: A Strong Quarter

• The company posted revenue of ₹548.2 Cr, marking a 37% YoY growth from ₹399.3 Cr in Q3FY24.
• Net profit (PAT) grew 26% YoY to ₹68.1 Cr, reflecting steady profitability.
• EBITDA stood at ₹88.1 Cr, up 32% YoY, demonstrating efficient cost management.

This performance was fueled by increased government capital expenditure and a rebound in demand post-monsoon.

Historical Performance: A Growth Story

• Over the last three years, Ajax’s revenue has expanded at a CAGR of 51%, reaching ₹1,741.4 Cr in FY24 from ₹763.3 Cr in FY22.
• EBITDA margins have improved, touching 15.8% in FY24, up from 11.9% in FY22.
• Profitability has also strengthened, with PAT margins rising from 8.6% in FY22 to 12.6% in FY24.

Segment-wise Performance

• SLCM (Self-Loading Concrete Mixers) remained the key revenue driver, growing 37% YoY to ₹470.5 Cr in Q3.
• Non-SLCM segment saw significant expansion, up 71% YoY to ₹43.6 Cr.
• Spares & Services business grew 14% YoY, contributing ₹34.1 Cr.

Balance Sheet Strength & Institutional Holdings

• Cash reserves stood at ₹50.6 Cr, ensuring liquidity strength.
• Inventory levels rose to ₹560.6 Cr, indicating increased production or slower turnover.
• Promoter, FII, and DII holdings remained stable, signaling continued institutional confidence.

Future Outlook & Investment Takeaways

✅ Positives:
✔ Market leadership in the concrete equipment sector.
✔ Expanding presence in Non-SLCM segments.
✔ Strong balance sheet with low debt.

⚠ Concerns:
⚠ Margin compression due to rising raw material costs.
⚠ Expected demand softness in H1FY26 due to regulatory changes.

Final Verdict: A Stock to Watch

Ajax Engineering continues to showcase robust growth and financial stability. While short-term challenges persist, the long-term outlook remains promising, especially with increasing infrastructure development in India. Investors should consider a medium-to-long-term approach to benefit from the company’s leadership and expansion strategies.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investors are advised to conduct their own research before making any investment decisions.