AIA Engineering Limited (NSE: AIAENG) shares traded marginally higher on Friday after the grinding media manufacturer reported a 13.6% rise in third-quarter net profit, aided by operational efficiencies and a surge in other income that offset muted revenue growth.
The stock rose as much as 2.3% to an intraday high of 4,090.90 rupees before paring gains to close at 4,021.80 rupees, up 0.55% on the National Stock Exchange (NSE). The stock has gained approximately 10.4% over the past 52 weeks but trades below its January 8 record high of 4,168.70 rupees.
Financial Highlights: Margin Gains Mask Top-line Stagnation
For the quarter ended December 31, 2025 (Q3 FY26), the Ahmedabad-based company reported a consolidated net profit of 2.94 billion rupees ($34.8 million), compared with 2.59 billion rupees in the same period a year earlier.
Profitability was bolstered by a 101% year-on-year surge in other income to 1.35 billion rupees, driven largely by foreign exchange gains of 517 million rupees.
Revenue: Consolidated revenue from operations remained virtually flat at 10.66 billion rupees, reflecting stable but subdued demand conditions in key mining and cement markets.
Operating Performance: Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 2.5% to 2.90 billion rupees.
Margins: Core operating margins expanded to 27.2% from 26.5% a year ago, underscoring cost control measures despite the lack of volume leverage.
Sales volumes for the quarter stood at 64,500 metric tons, while production was reported at 67,806 metric tons.
Nine-Month Context
For the nine months ended December 31, 2025, consolidated revenue inched up 0.6% to 31.04 billion rupees. Net profit for the period grew 13% to 8.77 billion rupees, tracking the quarterly trend of operational resilience amidst a sluggish top-line environment.
Analyst Sentiment
Market reaction remained cautious as valuations appear stretched relative to near-term growth prospects. Consensus data compiled on January 30 indicates an average price target of 3,706 rupees, suggesting a potential downside of roughly 7-8% from current levels. Investors remain watchful of global mining demand and the sustainability of non-operating income boosts.