Q2 Results impact: Ahluwalia Contracts, Ajax Engg shares jump up to 14%, VIP Industries down 3%

Q2 Results impact

The shares of Ahluwalia Contracts and Ajax Engineering surged on November 17 after strong Q2 results announced by the two companies boosted investor sentiment. VIP Industries shares however tumbled in trade.

Ahluwalia Contracts (India) shares jumped nearly 14 percent to trade at Rs 1,005 apiece, while Ajax Engineering shares surged more than 8 percent to trade at Rs 678 apiece. VIP Industries shares dropped nearly 3 percent to Rs 387.15 apiece.

Ahluwalia Contracts Q2 Results:

Ahluwalia Contracts on November 14 reported a net profit of Rs 79 crore for the second quarter of the ongoing financial year 2026. This marks a whopping 106 percent year-on-year (YoY) rise from the Rs 38.36 crore net profit reported in the corresponding quarter of the previous financial year.

The firm’s revenue from operations meanwhile rose over 16 percent YoY to Rs 1,177 crore during the July-September quarter of FY26, from Rs 1,011.5 crore in the same period last year. Expenses rose nearly 12 percent YoY to Rs 1,085.92 crore during the quarter under review, while EBITDA grew to Rs 128.6 crore.

Ajax Engineering Q2 Results:

Ajax Engineering shares extended gains for the second consecutive session, rising nearly 18 percent since releasing its results for Q2 FY26. The company on November 13 reported a net profit of Rs 39.1 crore for Q2 FY26, marking a 15 percent YoY rise from the Rs 34 crore net profit reported in Q2 FY25.

The firm’s revenue from operations meanwhile rose around 48 percent YoY to Rs 444.8 crore during the July-September quarter of FY26, from Rs 300.98 crore reported in the corresponding quarter of the previous financial year.

Reported EBITDA increased 16 percent YoY to Rs 45 crore, but EBITDA margin contracted by 280 basis points to Rs 10.2 percent during the quarter under review.

“After a steady performance last year, the last couple of quarters have been a period of transition. Unseasonal rains, change in emission norms, and slower project execution affected demand temporarily. However, Ajax delivered 48% year-on-year revenue growth in Q2 and 18% in H1 and volume growth remains robust across both SLCM and non-SLCM categories. While increased cost of production and changes in revenue mix impacted margins, operating leverage and efficiency measures are expected to aid profitability in the second half of FY26. We remain confident in the long-term growth trajectory and our leadership position in the concrete equipment industry,” said Shubhabrata Saha, Managing Director & CEO, Ajax Engineering.

Citi Research has upgraded the stock to ‘Buy’ from ‘Neutral’, and increased its target price to Rs 735 per share from Rs 700. The latest target price implies an upside potential of 18.4 percent from the stock’s previous closing price.

The brokerage sees gains for Ajax Engineering from improvement in concrete demand, market share recovery and improved pricing environment

VIP Industries Q2 Results:

VIP Industries reported a consolidated net loss of Rs 143 crore for Q2 FY26, marking a significant rise from the Rs 33 crore net loss reported in the same period last year. The firm's revenue from operations meanwhile dropped over 25 percent YoY to Rs 406 crore during the quarter under review.

Prabhudas Lilladher has cut fiscal year 2027 and 2028 earnings per share estimates by 21 percent and 8 percent, and termed September quarter as a period of "kitchen sinking" for VIP Industries. The brokerage said that normalization in VIP Industries’ earnings will only resume from fiscal year 2027.

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