AIA Engineering spurts 9%; hits 52-wk high on strong Q4 show, 800% dividend

AIA Engineering delivered a healthy margin-led performance in Q4FY26 despite modest volume growth, highlighting the strength of its niche high-chrome business model, says ICICI Securities.

AIA Engineering share price

Shares of AIA Engineering hit a 52-week high of ₹4,496.30, as they spurted 9 per cent on the BSE in Wednesday’s intra-day trade after the company reported a healthy operational performance for the January to March 2026 quarter (Q4FY26). 

The stock surpassed its previous 52-week high of ₹4,200 touched on February 4, 2026. It hit a record high of ₹4,940 on August 12, 2024. 

At 11:46 AM; AIA Engineering was quoting 7 per cent higher at ₹4,418.35, as compared to 0.12 per cent rise in the BSE Sensex. A combined nearly one million equity shares changed hands on the BSE and NSE.  CATCH LATEST STOCK MARKET UPDATES LIVE

 

AIA Engineering - Q4 reports, recommends 800% dividend

 

AIA Engineering reported a healthy operational performance in Q4FY26, with sales volume increasing by 2.0 per cent year-on-year (YoY) to 70,138 MT from 68,741 MT in Q4FY25. Consolidated revenue from operations grew by 9.4 per cent YoY to ₹1,266 crore, against ₹1,157 crore in Q4FY25, supported by better realizations and steady volume growth.  

Operating EBITDA rose by 17.4 per cent YoY to ₹371 crore compared to ₹316 crore in Q4FY25. Operating EBITDA margin improved by 200 bps YoY to 29.3 per cent from 27.3 per cent in Q4FY25, aided by favourable product mix, and operating leverage benefits. Profit after tax rose by 37.9 per cent YoY to ₹393 crore compared to ₹285 crore in the corresponding quarter last year. As on April 1, 2026, the company’s order book position was at ₹868 crore. 

Meanwhile, AIA Engineering board recommended dividend of ₹16 (800 per cent) per equity share of face value of ₹2 each fully paid up for the financial year 2025-26 (FY26) subject to the approval of the shareholders of the company. The said dividend, if approved by the shareholders at the ensuing AGM, shall be paid on or before October 14, 2026, subject to deduction of tax at source as applicable, the company said.  READ | Finolex Industries share soars 12% post Q4; profit jumps 59%, dividend announced

Brokerages view on AIA Engineering post Q4 results

AIA Engineering delivered a healthy margin-led performance in Q4FY26 despite modest volume growth, highlighting the strength of its niche high-chrome business model. Revenue growth remained healthy, supported by better realizations, while operating EBITDA margin expanded meaningfully due to favourable product mix, and operating leverage benefits, ICICI Securities said in a note. 

“Overall FY26 performance was ahead of our estimates, positive earnings surprise led by stronger margin performance despite relatively moderate volume growth,” the brokerage firm said. 

AIA Engineering’s Q4FY26 results were a beat across all parameters with EBITDA significantly higher than our estimate (20 per cent beat). A combination of improved product mix (higher castings) and INR depreciation more than offset any operational weakness, analysts at JM Financial Institutional Securities said in the Q4 result update. 

Importantly, AIA Engineering had a breakthrough with a large Latam miner recently in mill liners and could achieve another in a different Latam mine in the coming months. The acceptance of the mill optimisation solution after years of efforts is a key development and can lead to strong volume growth over FY26–30. The brokerage firm raised EBITDA by 4 per cent for FY27E/28E factoring in INR depreciation. “We value AIAE at 30x FY28E EPS of ₹164 to derive our target price of ₹4,915; maintain BUY,” analysts said.  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.