AIA Engineering EXPLODES: Q2 Profit Jumps 8%, Brokerage Upgrades to BUY with Jaw-Dropping ₹3,985 Target!

Shares of AIA Engineering witnessed a significant surge, climbing as much as 4.87% to an intraday high of ₹3,415 on the National Stock Exchange (NSE). This positive market reaction followed the company’s strong financial performance for the second quarter of FY26.

AIA Engineering reported an 8% year-on-year increase in its net profit, which rose to ₹277.4 crore compared to ₹256.7 crore in the same quarter last fiscal. The company’s revenue also saw a modest uptick of 0.3%, reaching ₹1,048 crore from ₹1,044 crore in Q2FY25. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 7.7% to ₹297 crore.

Following these results, brokerage firm JM Financial has upgraded its rating on AIA Engineering shares to 'Buy' from 'Hold'. The firm highlighted attractive valuations at 24 times the estimated FY27 Earnings Per Share (EPS) of ₹137. JM Financial pointed to improving volume growth prospects, supported by a new win in Chile and advanced trials with two other large mines. They anticipate strengthened volume growth from FY27 onwards. Reciprocal tariffs have not impacted US volumes, mitigating potential risks.

Impact This news has a positive impact on AIA Engineering's stock performance and investor sentiment, potentially driving further gains. The brokerage upgrade and new business avenues signal strong future prospects. Rating: 8/10.

Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a measure of a company's operating performance. EPS: Earnings Per Share. It is the portion of a company's profit allocated to each outstanding share of common stock.