Ajax Engineering Ltd Management Discussions

Ajax Engineering Limited (formerly known as Ajax
Engineering Private Limited) is one of Indias leading
concrete equipment manufacturing companies.
Over more than three decades, Ajax has grown from
a domestic innovator into a globally recognized
concrete equipment manufacturer, with a presence
across 56 countries as of March 31, 2026.

We hold a leading position in the Indian concrete
equipment industry, with a market share of
approximately 73.5% in the Indian Self-Loading
Concrete Mixer (SLCM) segment. Beyond SLCMs,
we are the second-largest concrete equipment
manufacturer in India, reflecting the breadth and
depth of our product portfolio.

We provide a wide range of products, services and
solutions across the entire concrete application
value chain, from production and transportation to
placement and advanced construction technologies.
With over 140 equipment variants, we offer end-
to-end concrete application solutions designed
to address diverse customer requirements. Our
products serve diverse requirements across
infrastructure and real estate projects, including
roadways, waterways, irrigation, renewable energy
applications, airports, railways, and residential and
commercial construction.

PRODUCT PORTFOLIO

We offer a diversified product portfolio across four key
categories:

- Production: The Self-Loading Concrete Mixer,
our flagship product marketed under the Argo
series, together with a comprehensive range of
Batching Plants, forms the foundation of our
production equipment offering

- Transportation: Transit Mixers support the
reliable and efficient movement of ready-mix
concrete from the production point to the job
site

- Placement: Concrete Pumps and Self-Propelled
Boom Pumps enable precise placement of
concrete, serving both standard and high-rise
applications

- Advanced Technologies: We are the only
Indian company to have developed a Slip-Form
Paver entirely in-house, achieving this in 2019. In
2023, we became the first Indian manufacturer
to commercialize an in-house developed 3D
Concrete Printing machine

TECHNOLOGY AND INNOVATION

Our innovation-led approach is supported by
our in-house design, engineering and product
development capabilities, backed by a dedicated
team of approximately 66 professionals with expertise
across hydraulics, welding and product engineering.
This engineering-led foundation enables us to
continuously develop solutions aligned with evolving
construction requirements.

We have introduced several industry-first innovations,
including the integration of Load Cell Technology
in our Self-Loading Concrete Mixers for improved
concrete quality and accuracy, the patented Self-
Propelled Boom Pump for enhanced mobility and
concrete placement, Indias first indigenous Slip-Form
Paver, and the countrys first in-house developed
commercial 3D Concrete Printing machine.

Our technology-led assembly and manufacturing
processes are supported by lean manufacturing
practices, including Andon, Just-in-Time production,
Kaizen, Poka-Yoke and online traceability systems,
enabling operational efficiency, product consistency
and continuous improvement across our
manufacturing operations.

Innovation is further strengthened through The Ajax
School of Concrete (TASC), our dedicated platform
for research, development and skill development.
TASC focuses on advancing concrete application
technologies and material science while delivering
industry-certified training programs for equipment
operation, maintenance and repair, contributing to
capability building across the concrete ecosystem.

MANUFACTURING FACILITIES

We operate our assembly and manufacturing
facilities in Karnataka, at Bashettihalli, Gowribidanur
and Obadenahalli, and are expanding capacity with
an upcoming facility at Adinarayanahosahalli. Our
manufacturing facilities are dedicated to specific
product categories, with the Obadenahalli facility
ranking among the worlds largest Self-Loading
Concrete Mixer manufacturing plants by area.
Together, these facilities support our focus on quality,
innovation and timely product delivery.

DISTRIBUTION NETWORK AND CUSTOMER
EXCELLENCE

On distribution, we have built one of the most extensive
networks in the concrete equipment industry. Our
domestic network comprises 68 dealers and 132

customer touchpoints across the country. We serve
approximately 23,000 end customers, ranging from
individual contractors and small construction firms
to large government construction agencies, rental
companies and infrastructure project developers,
and have sold over 33,000 concrete equipment units
in the last 10 years.

Our customer relationships are supported by a
comprehensive after-sales service network and spare
parts availability, reinforcing customer confidence
throughout the equipment lifecycle. This customer-
centric approach, together with a diversified
customer base, supports a scalable business model
with minimal customer concentration risk.
Internationally, we are present in 56 countries,
supported by 28 international distributors. Our
operations are further supported by a robust and
localized supplier ecosystem, with strategic supplier
proximity enhancing supply chain responsiveness
while maintaining relatively low dependence on
imported materials. We remain debt-free, which
provides us with significant strategic and financial
flexibility.

KEY FACTORS INFLUENCING FINANCIAL AND
OPERATIONAL PERFORMANCE

1. Overall Global Economic Overview and
Outlook

The global economy remained resilient through
much of 2025-26 despite elevated trade barriers,
persistent geopolitical tensions and heightened
policy uncertainty. Corporate investment,
technological innovation and adaptive supply
chains helped sustain economic activity even
as growth moderated across several major
economies. However, this resilience was tested
by the outbreak of conflict in the Middle East
in late February 2026, which introduced fresh
uncertainty into global markets. According
to the IMFs World Economic Outlook (April
2026), global GDP growth is projected at 3.1% in
2026, moderating from 3.4% recorded in 2025,
reflecting the impact of ongoing geopolitical
tensions and evolving trade dynamics.

While economic activity has remained resilient,
the conflict has heightened concerns around
energy security, commodity-price volatility
and supply-chain disruptions, contributing
to a modest increase in global inflationary
pressures. Global construction demand growth

is projected to 3.92% in 2027, with emerging
markets expected to outpace advanced
economies. Developing regions particularly
South Asia, Southeast Asia, and MENA benefit
from policy-backed infrastructure commitments
that provide a clearer pipeline, offering a more
resilient demand base for concrete equipment
manufacturers with established presence in
these high-growth geographies.

(Source: IMF World Economic Outlook (April
2026): Global Economy in the Shadow of
War, gminsights, Construction Equipment
Market Size, Forecast Report 2026-2035 World
Construction Network, Global construction
outlook 2026: Split, squeezed and selective,
March 2026)

The global concrete machinery market is
estimated at USD 20.80 Billion in 2026 and is
projected to reach USD 28.11 Billion by 2033,
registering a CAGR of 4.4%.

Concrete mixers are expected to remain the
largest product segment with a 45.6% market
share in 2026, followed by concrete pumps
at 30.8%. Regionally Asia-Pacific is projected
to account for 45.2% of the market, while the
Middle East is expected to emerge as the fastest-
growing region.

2. Indian Economy Overview and Outlook

India remained among the fastest-growing
major economies in 2025-26, with the expansion
led by government capital spending and steady
urban and rural consumption even as global
trade softened. The real annual GDP growth for
2025-26 is estimated at 7.6%, higher than the 7.1%
recorded in 2024-25, reaffirming Indias standing
as a structural outperformer among the worlds
major economies.

A key feature of Indias growth trajectory
continues to be the strength of capital formation.
Government-led infrastructure investment,
complemented by increasing private sector
participation, supported activity across
transportation, urban infrastructure, industrial
development and housing. Gross Fixed Capital
Formation remained robust, underscoring
continued confidence in the countrys long-term
growth prospects.

India is expected to remain a leading contributor
to growth among emerging market economies
over the medium term, supported by

infrastructure creation, urbanization, a widening
manufacturing base and the structural reforms
of recent years. According to the governments
projections, the economy is set to become the
worlds third-largest, reaching about USD 7.3
Trillion by 2030.

(Source: Press Information Bureau (PIB),

Summary of Union Budget 2026-27, February
2026, Press Information Bureau (PIB): Indias
Growth Story Strengthens, November.2025)

3. Infrastructure Development and Policy
Support

Infrastructure Growth Agenda

The Government of India has allocated a
public capital expenditure (Capex) outlay of
12.22 lakh crore toward infrastructure

development and asset creation. The key
initiatives include:

- An allocation of 2.78-2.85 lakh crore will
support Bharatmala Phase I, expressways
and economic corridors

- A capital outlay of 2.93 lakh crore has been
allocated to accelerate the development
of Dedicated Freight Corridors, modernize
railway stations, and enhance the overall
railway infrastructure

- An allocation of 10,000 crores will
strengthen multimodal logistics
infrastructure and connectivity

- The allocation of over 80,000 crores

under PMAY (Urban and Rural) will support
affordable housing, metro expansion and
urban infrastructure

These initiatives support Indias Viksit Bharat
2047 vision, with targets including expanding
the national highway network to 2 lakh km,
increasing operational airports/heliports to
220, and developing 35 Multimodal Logistics
Parks (MMLPs) under PM GatiShakti. Innovative
financing through PPPs, municipal bonds and
result-linked incentives is expected to accelerate
infrastructure development and project
execution.

(Source: PIB Press Release, FY2026-27, PIB Press
Release, February 2026, Summary of Union
Budget 2026-27)

Indias Concrete Equipment Market Overview

Indias position as one of the largest cement
producers globally continues to support the

growth of downstream construction and
concrete-related industries. At the same time,
India has emerged as the worlds third-largest
construction equipment market and is targeting
to become the second-largest globally by
2030, supported by sustained infrastructure
investments, increasing localization and
growing export competitiveness. The Indian
construction equipment industry sold 1,36,995
units during 2025-26 and is expected to grow to
approximately 2,50,000 units by the end of the
decade, reflecting the strength of long-term
infrastructure and construction demand.

Indias cement industry is expected to add
160-170 Million metric tonnes of grinding capacity
between 2025-26 and 2027-28, supported by
a healthy demand outlook and high-capacity
utilization. Of this, 70-75 Million metric tonnes are
expected to be commissioned in 2025-26, which
may temporarily moderate capacity utilization.
The Indian cement industry continued to
witness healthy demand in 2025-26, with
industry volumes estimated at approximately
460-465 MMT, reflecting 6-7% year-on-year
growth, supported by sustained infrastructure
investments, urbanization, affordable housing
initiatives and industrial corridor development.

In parallel, rising exports of Indian-manufactured
construction equipment to more than 125
countries are strengthening Indias position as
a global manufacturing hub and enhancing the
industrys long-term growth prospects.

(Source: S&P Global, 2025, Redseer Research,
ETManufacturing, Indias construction equipment
industry targets worlds No.2 spot, May 2026)

MARKET TRENDS
Infrastructure Development

- Investments in roads, railways, metros,
and urban infrastructure continue to drive
demand for concrete equipment

- Despite temporary execution delays and the
CEV Stage V transition in 2025-26, long-term
growth fundamentals remain strong

Housing, Urbanization and Modern
Construction Activity

- Rising housing construction and urban
development are increasing concrete
consumption

- Growing adoption of ready-mix concrete
(RMC) and precast construction is boosting
demand for mechanized concreting
solutions

Technology, Automation and Sustainability

- Automation and digital technologies are
improving construction efficiency and
equipment productivity

- Stricter emission norms and sustainability
initiatives are accelerating the shift toward

energy-efficient and low-emission concrete
equipment

(Source: I MARC Group, India Concrete

Equipment Market: Industry Trends, Share, Size,
Growth, Opportunity and Forecast 2026-2034)
Ajaxs Strategic Positioning in a Growing
Market

With a diverse and customized portfolio
of concrete equipment, Ajax Engineering
continues to address the evolving requirements
of the construction industry.

Ajax SLCMs are widely deployed across:
Department	Scheme/Project	Description
Semi Urban and Rural Infrastructure Development	Pradhan Mantri Awas Yojna (Gramin)	Scheme aimed at creating affordable housing structures for rural areas in India.
Roadways	Bharatmala Pariyojna	Pivotal scheme focused on enhancing road connectivity across India to improve freight and passenger traffic.
Roadways	Pradhan Mantri Gram Sadak Yojna	Consolidating 1,25,000 km of routes and major rural links.
Urban Infrastructure Development	PM GatiShakti Smart City Mission	Promoting sustainable and inclusive urban development by focusing on city redevelopment, renewal and extension.
Waterways	Sagarmala Project	Initiative aimed at improving connectivity through Indias inland waterway network and creating an affordable transportation system.
Railways	Dedicated Freight Corridor	Create exclusive freight corridors to facilitate faster and more efficient movement of goods across the country.
Public Works Department	Hybrid Annuity Road Project 2 (Phase II and Phase III)	Including the Twin Tunnel Road project connecting the Eastern Freeway to Marine Drive.
Public Works Department	Karjat-Shirur via Bhimashankar Highway Project	This new highway aims to connect Pune, Karjat and Shirur.
Water Resources Department	Mukhyamantri Jal Swavalamban Abhiyan 2	Irrigation initiative aimed at building water harvesting structures and enhancing land irrigability.

4. Extending Growth across the Concrete
Equipment Value Chain

1. Self-Loading Concrete Mixers (SLCM)

The SLCM segment remained the core of the
Companys business, with Ajax maintaining
its position as market leader. Segment
revenue stood at 17,575 Million, broadly
stable against 17,532 Million in 2024-25.
Although SLCM volumes declined by about

4% during the year, revenue held steady,
supported by a favorable product mix and
the price increase taken in the fourth quarter.
The Company outperformed the broader
construction equipment industry, which is
estimated to have declined by about 11%.
Ajax closed the year with a market share of
73.5%, having recovered from a temporary
dip to roughly 70% in the first quarter.

During the year, the Company transitioned
its entire SLCM portfolio to CEV-V emission
norms. The UDAAN Series, the Companys
compact 0.75 cubic meter mixer, recorded
sales of 202 units in 2025-26.

2. Non-SLCM Portfolio

The non-SLCM portfolio, comprising
batching plants, transit mixers and concrete
pumps, continued to strengthen its
contribution to the revenue mix. Segment
revenue reached 1,934 Million, a growth
of 6.6% over 2024-25, driven primarily by
volume growth.

Performance was supported by the
4-series and 7-series pumps, along with
the 38-meter and 44-meter boom pumps.
Demand for higher-capacity batching
plants of 45 cubic meters and above also
improved during the year. The first full year
of operations of the Companys direct B2B
sales channel further supported growth by
deepening engagement with large EPC and
infrastructure players in metro markets.

3. Spares and Services

The spares and services business delivered
steady growth during the year, supported by
the continued expansion of the Companys
service network. Segment revenue stood at
1,517 Million, a year-on-year growth of 8.7%.
This was achieved despite lower average
machine running hours during the year and
was supported by a network of 132 customer
touchpoints, 68 domestic dealers and 28
international distributors.

5. Domestic Distribution Network

Ajax Engineerings domestic distribution
network plays a key role in expanding market
reach, strengthening customer engagement,
and delivering reliable after-sales support. The
Company continues to foster strong dealer
partnerships through regular engagement and
collaborative initiatives, ensuring alignment with
business objectives and a consistent customer
experience across markets.

Supported by an exclusive dealer ecosystem,
the network enables efficient product
availability and responsive service across key
infrastructure, industrial, and real estate markets.
Long-standing dealer relationships and the
Ajax Dealership Excellence framework help
drive operational excellence, service quality, and
customer satisfaction.

The Company continues to enhance its
distribution capabilities through improved
logistics, streamlined delivery planning, and
stronger supply chain coordination. Backed
by a dedicated service team, the network
reinforces Ajaxs customer-centric approach
while supporting market penetration, customer
retention, and long-term growth.

68	26	132	21	75
Dealerships	States Covered	Customer Touchpoints	Dealerships with 5+ Years Association	Dedicated Service Professionals

6. Strengthening Export Performance

Ajax Engineering continues to expand its international presence, driven by rising demand for cost-effective,
technologically advanced concrete equipment across emerging markets. Building on a focused export
strategy initiated over a decade ago, the Company has steadily strengthened its international footprint,
successfully navigating industry disruptions, including the COVID-19 pandemic, while sustaining momentum
through geographic diversification.

The Company continues to strengthen its footprint across South Asia, Southeast Asia, the Middle East, Africa,
Central America, the Caribbean and Eastern Europe through a scalable distribution network and robust
customer support, enabling it to serve a growing global customer base.

A key milestone during the year was the successful export of Ajaxs indigenously developed Slip-Form
Paver to Saudi Arabia, underscoring the Companys advanced engineering capabilities and the global
competitiveness of its in-house technologies. The Company is also witnessing encouraging traction across
markets such as Russia, Gabon, Belarus and Saudi Arabia, while progressively expanding the international
presence of both its SLCM and non-SLCM portfolio.

Going forward, Ajax remains focused on strengthening its global distribution network, expanding
product adoption across international markets and delivering responsive after-sales support. Supported
by a disciplined market selection strategy, exports are expected to remain a key pillar of the Companys
long-term growth while reinforcing its Make in India proposition in the global concrete equipment industry.

56	28	1,031.43 Million	30%	39%	5 - 6.4%	261
Countries Served	International Distributors	Export Revenue (2025-26)	Export Revenue CAGR (2022-2026)	Export Revenue Growth (2025-26)	Contribution to Operating Revenue	Export Volume (2025-26)

7. Manufacturing Capabilities and Operational
Excellence

Ajax Engineerings asset-light operating
model combines in-house design and
engineering expertise with strategically located
assembly facilities and a collaborative supply
chain. This integrated approach enhances
manufacturing flexibility, product quality and
operational efficiency, while the upcoming
Adinarayanahosahalli facility, designed with
fungible assembly lines, will further strengthen
production agility and support future growth
across domestic and international markets.

Manufacturing operations are driven by a
technology-enabled lean production framework
incorporating the Andon System, Just-in-Time
(JIT) manufacturing, Poka-Yoke and end-to-end
online traceability. Together with a dedicated
design and engineering team, these practices

drive continuous product innovation,
manufacturing excellence and consistent product
quality.

This integrated operating model enables Ajax
to deliver reliable equipment with competitive
lifecycle ownership costs. Strong design and
engineering capabilities, supported by a resilient
supply chain, repeatable assembly processes
and dependable after-sales support, have
enabled the Companys Self-Loading Concrete
Mixers to command the highest resale value in
the industry, reinforcing long-term customer
confidence.

The Bashettihalli and Obadenahalli facilities are
ISO 9001:2015 certified, reflecting the Companys
commitment to quality, process consistency and
continuous improvement. Ajax also continues to
advance its environmental initiatives through the
installation of solar panels at the Obadenahalli
facility while expanding its manufacturing
capabilities to support future demand.

Key Performance Metrics

>90%	66		21 Days		10 - 15%
Localization Level	Design, Engineering and Development Employees		Net Working Capital Cycle		Higher SLCM Resale Value vs. Nearest Competitor
Facility	Year Established	Product Focus		Total Area (Sq. Mt.)	Annual Installed Capacity (Units)
Bashettihalli	1992	SLCMs, Concrete Pumps, Boom Pumps and Slip-Form Pavers		19,340	SLCMs: 96 Concrete Pumps: 180 Boom Pumps: 48 Slip-Form Pavers: 3
Gowribidanur	2014	Batching Plants and Transit Mixers		78,920	Batching Plants: 216 Transit Mixers: 480
Obadenahalli	2018	Self-Loading Concrete Mixers (SLCMs)		39,660	SLCMs: 7,200
Adinarayanahosahalli*	2026-27 (Expected)	Multi-product concrete equipment (fungible

*Expected to commence operations in HI 2026-27.

8. Raw Material Sourcing and Supply Chain
Management

Raw materials remain a key component of Ajax
Engineerings cost structure, making efficient
sourcing and supply chain management critical
to operational performance. The Company
procures steel, engines, axles, hydraulic systems,
and fabrication materials, all of which undergo
stringent quality assurance before production.
Ajax has built a resilient and highly localized
supply chain, supported by a diversified supplier
base and manufacturing facilities strategically
located near key vendors. This enables efficient
procurement, lean inventory management, and
uninterrupted material availability.

A robust supplier ecosystem underpins
the Companys manufacturing operations.
Supported by over 450 suppliers, with nearly
two-thirds located within 100-150 kilometres of
its manufacturing facilities around Bengaluru,
the Company benefits from close collaboration
with the vendors across design, engineering
and manufacturing. This proximity enhances
inventory management, accelerates engineering
improvements, enables cost-effective
engineering, strengthens product quality and
reliability, and supports continuous vendor
development.

The Companys localization strategy, with less
than 10% of input materials sourced through
imports, enhances supply chain resilience,

reduces dependence on overseas procurement,
and improves operational flexibility.

Steel remains the primary raw material across
the product portfolio. Supported by disciplined
procurement practices, a lean manufacturing
model, and a robust supplier network, Ajax
continues to optimize costs, ensure supply
continuity, and maintain one of the lowest
breakeven levels in the industry.

454	<10%
Suppliers	Imported Input Materials

9. Regulatory and Emission Standards

The regulatory environment remains an
important factor influencing the Indian concrete
equipment industry. The transition from
CEV-IV to CEV-V emission standards, effective
January 1, 2025, marked a significant milestone
in the industrys shift toward cleaner and
more environmentally compliant construction
equipment.

The transition resulted in an increase in
production costs, with the Company reporting
a blended direct material cost (DMC) increase
of over 400 basis points. Manufacturers were
permitted to produce CEV-IV compliant
equipment until December 31, 2024, with
the sale of existing inventory allowed up to
June 30, 2025, requiring the industry to carefully
manage production planning and inventory.
Ajax demonstrated strong preparedness for this
transition through its technology-led approach

l

and proactive execution. The Company
introduced its CEV-V compliant product
portfolio in Q4 2024-25, enabling it to evaluate
product performance and customer acceptance
well ahead of the regulatory deadline. It also
successfully liquidated its entire CEV-IV inventory
before the prescribed timeline, ensuring
a seamless transition to the new emission
standards.

Road Ahead

Ajax Engineering remains well positioned for long-
term growth, supported by sustained infrastructure
investments, increasing mechanization and
growing demand for advanced concrete
equipment. Backed by its diversified product
portfolio, expanding global presence, strong
distribution network and continued focus on
innovation and operational excellence, the
Company remains committed to delivering
sustainable growth and long-term value creation.

FINANCIAL OVERVIEW

Ajax Engineering has consistently delivered top-line and bottom-line growth driven by robust demand and
deeper market penetration.

Metric	2022-23	2023-24	2024-25	2025-26
Revenue from Operations (Rs Million)	11,511.28	17,414.03	20,739.15	21,025.00
EBITDA (Rs Million)	1,707.41	2,755.46	3,181.35	2,658.00
EBITDA Margin (%)	14.83	15.82	15.34	12.60
Profit After Tax (Rs Million)	1,359.04	2,251.49	2,600.96	2,251.00
PAT Margin (%)	11.59	12.65	12.29	10.50
Basic EPS (Rs)	11.88	19.68	22.73	19.68
Diluted EPS (Rs)	11.88	19.58	22.61	19.55
KEYTRENDS
Particulars	2023-24	2024-25	2025-26	CAGR
Revenue	17,414	20,739	21,025	9.9%
EBITDA	2,755	3,181	2,658	(1.8%)
PAT	2,251	2,601	2,251	0.0%

 

Particulars	2023-24	2024-25	2025-26
EBITDA Margin	15.82%	15.34%	12.60%
PAT Margin	12.90%	12.29%	10.50%

ESC OVERVIEW

Ajax Engineering integrates Environmental, Social
and Governance (ESG) elements into its core strategy,
ensuring sustainable growth and long-term value
creation.

ENVIRONMENTAL INITIATIVES

- Renewable Energy Adoption: Solar panels at
the Obadenahalli manufacturing facility support
energy self-sufficiency and reduce dependence
on conventional power, lowering the facilitys
grid draw and associated emissions

- Sustainable Construction Technology:
Through The Ajax School of Concrete (TASC), the
Company advances indigenous technologies

such as 3D Concrete Printing and Slip-Form
Pavers, which improve construction efficiency
and reduce material wastage at project sites

SOCIAL RESPONSIBILITY
- Workforce and Internal Development

o Structured Upskilling: Ajax continues to
advance its human resources with a focus
on digital enablement and talent retention.
The total workforce stood at 557 as of
March 31, 2026, comprising permanent
employees, contract staff, and trainees

o Internal Capability Building: The Ajax
School of Concrete (TASC) remains central
to internal training efforts, delivering
structured skilling programs and

skill-based assessments that enhance
technical proficiency and ensure targeted
workforce deployment

o Digital Transformation: The adoption of
the Ajax One CRM platform has accelerated
digital enablement, enhancing workflow
efficiency and customer engagement.
Complementing this, the Company is
advancing its Industry 4.0 journey through
initiatives at its SLCM manufacturing facility
in Obadenahalli, strengthening smart
manufacturing capabilities and operational
excellence

- Ecosystem, Partner and Community Impact

o Broader Industry Training: The Ajax School

of Concrete (TASC) serves as the Companys
platform for industry capability building.
It delivers specialized training in concrete
equipment application and material science
to equipment operators, contractor teams,
dealer personnel, and dealer partners
covering both product knowledge and
service delivery to strengthen the broader
construction ecosystem

o National Infrastructure Support: Ajaxs

equipment actively supports large-scale
national infrastructure and affordable-housing
programs, including the Pradhan Mantri
Gram Sadak Yojana (PMGSY) and PM Awas
Yojana-Gramin, directly contributing to rural
connectivity and housing access

COVERNANCE

- Strategic Partnerships: The Company

applies a disciplined, criteria-driven approach
to evaluating inorganic opportunities and
partnerships, assessing them on long-term value
creation, cultural alignment and governance
compatibility

- Ethical Operations: Ajax conducts its

business with fairness and transparency,
with an emphasis on organizational stability,
the protection of stakeholder interests and
long-term competitiveness

OPPORTUNITIES AND CHALLENGES

As Ajax continues to strengthen its leadership

in the concrete equipment industry, it remains
focused on capturing emerging opportunities while
navigating an evolving operating environment.

Continued infrastructure investment, growing
mechanization, product innovation and international
expansion provide significant growth avenues, while
competitive intensity, input-cost pressures and
external uncertainties remain key challenges.

Opportunities

- Infrastructure Growth and Government
Spending: Continued investment in roads,
railways, housing and urban infrastructure is
expected to sustain demand for concreting
equipment. The Union Budget for 2026-27
raised central capital expenditure by about 11%
to approximately Rs 12.2 lakh crore, reinforcing the
long-term outlook for the sector

- Mechanization Trend: The ongoing shift
toward mechanized concreting is supporting
the gradual adoption of concrete equipment, as
construction projects increasingly move towards
more efficient and standardized methods.
This trend is expected to provide steady, long-
term growth opportunities for the concrete
equipment industry

- Product Innovation: The UDAAN 0.75 cubic
meter SLCM enables the Company to address
previously underserved applications, including
small residential projects, brick-making and rural
infrastructure works, expanding its addressable
market

- Advanced Technologies: The Companys

indigenous Slip-Form Paver and commercialized
3D Concrete Printing technology open
opportunities in specialized applications and
new domestic and international markets

- Global Expansion: Ajax continues to strengthen
its presence across South Asia, Southeast Asia,
Africa, the Middle East and Central America,
ending 2025-26 in 56 countries

- Inorganic Growth Opportunities: Supported
by a debt-free balance sheet and a strong cash
position, the Company continues to evaluate
opportunities that complement its capabilities
in design, engineering and supply chain
management

- High Resale Value: The superior resale value
of Ajax machines supports the development of
structured trade-in programs and strengthens
customer retention

Challenges

- Customer Cash Flow and Payment Delays:

Slower execution of infrastructure projects and
delayed payments have strained contractor
cash flows, leading to deferment of equipment
purchases

- Regulatory Transition Costs: The transition from
CEV-IV to CEV-V emission norms has increased
production and material costs, creating margin
pressure across the industry

- Moderation in Demand Environment: Slower
project execution and softer incremental
demand across the construction sector impacted
equipment demand and constrained the ability
to implement price increases for most part of the
year

- Commodity and Input-Cost Inflation: Volatility
in steel and fuel prices may affect manufacturing
costs and the operating economics of equipment
for customers

- Geopolitical and Macroeconomic Risks:

Geopolitical developments and currency
fluctuations in key international markets may
affect export growth and sentiment

- Environmental Factors: Unseasonal rainfall and
adverse weather can affect construction activity,
machine utilization and demand for equipment
and spare parts

- Shifts In Government Spending: Changes in
government expenditure priorities may affect
the pace of infrastructure investment and, in
turn, demand for concrete equipment

RISK MANAGEMENT

Ajax follows a multi-layered risk governance framework to identify, evaluate and mitigate key business risks. Its
focus on operational discipline, financial prudence and customer-centricity enables it to navigate an evolving
environment while maintaining long-term competitiveness.

Risk Category	Potential Impact	Mitigation Measures
Regulatory Transition (Emission Norms)	Higher material and production costs, and temporary market disruption from competitor inventory liquidation, may affect margins and market share.	Early transition to CEV-V ensured market readiness. The Company applied learnings from previous transitions and adopted a calibrated pricing strategy based on market response and customer acceptance.
Competition and Market Share	Aggressive pricing and unsustainable business practices by competitors may affect market position.	Strong brand equity, a 5% to 6% price premium, superior resale value and an extensive after- sales network of 132 customer touchpoints support customer loyalty and market leadership.
Customer Cash Flow and Liquidity	Delayed purchasing decisions and slower project execution may impact demand.	An asset-light operating model, a debt-free balance sheet and a strong liquidity position, with continued emphasis on cash generation and operational efficiency.
Geopolitical and Export Risks	Country-specific volatility and currency fluctuations in international markets may affect export growth.	A disciplined approach to international expansion; the Company does not assume currency or countrys risk and focuses on selected priority markets.
Commodity Inflation	Rising steel prices and input-cost inflation may pressure margins.	Calibrated price increases, internal cost-optimization initiatives and transparent communication with customers on cost changes.

 

Risk Category	Potential Impact	Mitigation Measures
Operational and Environmental Risks	Adverse weather conditions and lower machine utilization may affect equipment demand and spare parts consumption.	Operational flexibility and readiness to capitalize on improvements in project execution and construction activity.
Strategic Expansion Risks	Inorganic growth initiatives may expose the Company to financial and reputational risks.	Clearly defined guardrails for acquisitions; opportunities evaluated on strategic fit, governance standards and long-term value creation.
Customer Concentration Risk	Dependence on a limited number of customers could affect business performance.	A diversified base of approximately 23,000 customers mitigates concentration risk.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Ajax maintains an effective internal control system, proportionate to the Companys size and complexity, to
provide reasonable assurance of authorized and accurately recorded transactions. Internal audit is conducted by
an external audit firm which performs periodic reviews to ensure that gaps are identified in a timely manner and
internal systems remain robust. Significant audit observations, follow-up actions and recommendations thereon
are reported to the Senior Management and the Audit Committee for their review. We remain committed to
minimising identified risks through continuous monitoring and mitigating actions.

CAUTIONARY STATEMENT

The information and opinion expressed here in this report as well as the Boards Report describing the Companys
objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of
applicable laws and regulations. Actual results might differ substantially or materially from those expressed or
implied. Important developments that could affect the Companys operations include a downtrend in the spend
by the Government in agriculture and infrastructure, significant changes in political and economic environment
in India, volatility in the prices of major raw materials and its availability, taxation laws, exchange rate fluctuations,
interest, and other costs.