'Buy' AIA Engineering Shares Retains Centrum Amid Mixed Q1 — Here's Why

AIA Engineering eyes volume revival in FY27 amid mixed Q1; Buy call retained despite EPS cut.

AIA delivered mixed performance for Q1 FY26 with 2% YoY sales growth at Rs 10.4 billion.

(Photo:Company website)

AIA Engineering delivered mixed performance for Q1 FY26 with 2% YoY sales growth at Rs 10.4 billion (5% below our estimate), better than expected Ebitda margin at 29.5%, +120 bps YoY, and 18% YoY rise in PAT at Rs 3.1 billion, 17% above our estimate. Mining volumes fell 1% YoY to 36,396 mt while non-mining volumes were flat YoY at 23,760 mt.

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Centrum Broking Report

AIA Engineering Ltd.’s technological leadership in high chrome mill internals, long term growth prospects in mining (only 20% conversion achieved) and superior financial metrics are key business moats.

Conversion of large minesin H2 FY26 and overseas plantsin FY27 remain key growth drivers. Reasonable valuation and high net-cash position (Rs 40.83 billion) provides support.

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Centrum AIA_Engineering_Q1FY26_Results_Update.pdf
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Also Read: Oil India Q1 Review— Production Growth To Remain Key Monitorable; PL Capital Maintains 'Buy'

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