Shares of AIA Engineering came under significant pressure on Tuesday, falling to an intraday low of ₹3,306.50, representing a decline of around 11.8% from the day's high of ₹3,747. According to reports from CNBC TV18, the stock touched this low as of 1:40 pm on November 3, reflecting investor concerns over the company's quarterly performance.
The company's consolidated net profit declined 10.2% year-on-year to ₹249 crore in Q2, compared with ₹277.4 crore in the corresponding quarter last year. As reported by CNBC TV18, revenue showed modest growth, rising 6.2% to ₹1,113 crore from ₹1,048 crore a year earlier. However, operating performance remained under pressure with EBITDA falling 4.7% to ₹283 crore, compared with ₹297 crore in the year-ago period.
The most concerning aspect of the quarterly results was the significant contraction in profitability margins. According to CNBC TV18, EBITDA margin contracted to 25.4% from 28.4%, representing a decline of 300 basis points. This margin compression occurred despite the modest revenue growth, indicating pressure on operational efficiency during the quarter.
The Q2 performance represents a significant decline from the company's stronger showing in the March quarter of FY26. As reported by CNBC TV18, in the March quarter, AIA Engineering had reported a 38% year-on-year rise in consolidated net profit to ₹393.3 crore. Revenue for that quarter grew 9.4% to ₹1,266.3 crore from ₹1,157 crore, while operating performance was healthy with EBITDA rising 20.2% to ₹362.5 crore.
AIA Engineering is an Ahmedabad-based manufacturer of high-chrome grinding media and mill liners used in grinding applications across industries such as mining and cement. According to CNBC TV18, the company's products are used in mills to crush and grind materials, including minerals and ores, making it a supplier to the global mining and mineral-processing industry. The company had also announced a dividend of ₹16 per share for FY26.
