AIA Engineering shares surge as Street cheers 38% profit jump; company to pay ₹16 dividend

Shares of AIA Engineering Ltd. rose as much as 6% on Tuesday, May 26, after the company reported a strong rise in March quarter earnings, along with a good operating performance and margin expansion, while also announcing a dividend of ₹16 per share for FY26.

The company reported a 38% year-on-year rise in consolidated net profit to ₹393.3 crore for Q4FY26, from ₹285 crore in the corresponding quarter last year. Revenue increased 9.4% YoY to ₹1,266.3 crore from ₹1,157 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 20.2% to ₹362.5 crore from ₹301.5 crore a year ago, while EBITDA margin expanded to 28.6% from 26%. Profit before tax stood at ₹468.4 crore during the quarter, compared with ₹363.1 crore in the year-ago period.

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For FY26, consolidated revenue from operations rose to ₹4,419.9 crore from ₹4,287.4 crore in FY25, while annual net profit increased to ₹1,268.9 crore from ₹1,060.1 crore a year ago. EBITDA for the year stood at ₹1,581.1 crore, compared with ₹1,356.7 crore in FY25.

The board recommended a final dividend of ₹16 per equity share for FY26. The company has fixed September 5, 2026, as the record date for determining shareholder eligibility for the dividend, which will be paid on or before October 14, 2026, subject to shareholder approval at the upcoming annual general meeting.

AIA Engineering said it continues to operate as a single business segment focused on manufacturing high chrome mill internals used in cement, mining and thermal power industries.

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The company also highlighted that anti-dumping and countervailing duties imposed by the United States on certain high chrome grinding media imports from India remain effective from June 12, 2025. The duties include a 3.16% countervailing duty and 6.91% anti-dumping duty.

Separately, the board approved the reappointment of Bhadresh Kantilal Shah as Managing Director for a further term of five years beginning October 1, 2026, subject to shareholder approval.

Shares of the company were up nearly 3% at ₹4,086 as of 3.24 pm. The stock has increased by over 21% in the last year.