KUALA LUMPUR: Ajiya Bhd, a leading building materials provider, delivered a strong surge in profitability, with profit after tax and minority interests (PATAMI) jumped 76.4% year-on-year to RM9.8 million for Q1 ended March 31, 2026 (FY26).
Profit before tax (PBT) increased 44.1% to RM11.7 million, reflecting disciplined cost control and a focus on margin optimisation across operations.
Alongside the strong profitability delivered during the quarter, the group operated in a more measured revenue environment.
Revenue for the quarter amounted to RM57.3 million, compared to RM81.0 million in the same quarter last year, reflecting a deliberate moderation in sales volume across the group’s operating segments.
Compared to Q4 FY25, revenue contracted 19.1% lower than the RM70.8 million recorded, in line with prevailing market conditions.
Aijya’s financial position strengthened further during the quarter, underscored by total equity of RM66.7 million as of March 31, 2026 and a 43.3% reduction in total borrowings to RM7.3 million.
Strong working capital management remained a key driver of cash generation during the quarter.
A RM33.3 million reduction in trade receivables contributed to the operating cash flow of RM16.7 million, lifting the group’s net cash position to RM83.5 million.
Net tangible asset (NTA) per share increased by 9% quarter-on-quarter to RM1.20, reflecting both balance sheet strengthening and earnings growth.
Executive director Ng Wai Luen said the group entered FY26 with a clear focus on protecting margins, strengthening balance sheet liquidity, and maintaining disciplined capital allocation.
“The revenue moderation in the quarter reflects a highly selective operating environment. Rather than pursuing volume at the expense of profitability, our priority has been to preserve earnings quality, keep costs tight, and ensure our operations remain resilient.
“While near-term operating conditions remain challenging, Ajiya’s strong net cash position and investment portfolio provide a strong earnings cushion.
“Reducing borrowings to RM7.3 million and growing NTA to RM1.20 per share, places the group in a highly secure position to navigate the year ahead and act decisively when the market conditions improve,” he said.
Looking ahead, Ajiya expects the near-term operating environment to remain challenging amid cautious market sentiment and ongoing cost pressures across the construction and building materials sector.
The group will remain focused on prioritising operational efficiency, cost discipline, and prudent capital management within its core businesses.
The group will also continue to pursue opportunities to enhance structural earnings from its investment activities, while maintaining a conservative balance sheet to preserve financial flexibility and resilience.