Shares of AIA Engineering came under pressure on Tuesday falling to an intraday low after the company reported a decline in second-quarter profit and operating earnings, along with a contraction in margins.
The stock touched a low of ₹3,306.50, down around 11.8% from the day’s high of ₹3,747, as of 1:40 pm on November 3.
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.
Revenue, however, registered modest growth, rising 6.2% to ₹1,113 crore from ₹1,048 crore a year earlier.
Operating performance remained under pressure. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.7% to ₹283 crore, compared with ₹297 crore in the year-ago period. EBITDA margin contracted to 25.4% from 28.4%, a decline of 300 basis points.
The decline in operating earnings and margins comes despite an increase in revenue, pointing to pressure on profitability during the quarter.
How did AIA Engineering perform in the previous quarter?
The Q2 performance follows a stronger showing in the March quarter of FY26, when AIA Engineering reported a 38% year-on-year rise in consolidated net profit to ₹393.3 crore.
Revenue for the March quarter grew 9.4% to ₹1,266.3 crore from ₹1,157 crore in the corresponding period a year earlier.
Operating performance was also healthy, with EBITDA rising 20.2% to ₹362.5 crore from ₹301.5 crore. EBITDA margin expanded to 28.6% from 26%, while profit before tax increased to ₹468.4 crore from ₹363.1 crore.
The company had also announced a dividend of ₹16 per share for FY26.
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. Its products are used in mills to crush and grind materials, including minerals and ores, making the company a supplier to the global mining and mineral-processing industry.