John Cockerill — Q1 FY26 earnings call

Call held 30 Jul 2025

Management summary

John Cockerill India reported a mixed Q2 CY25, with a 12% YoY revenue decline but strong sequential growth and a significant improvement in profitability, with EBITDA doubling YoY. The company's order book stands at ₹640 crores, supported by a robust pipeline. Management highlighted a focus on innovation with JVD and Volteron technologies, expansion of value-added services, and strategic partnerships to capitalize on India's growing steel sector and decarbonization efforts, despite ongoing market volatility.

Highlights

  • Revenue for Q2 CY25 stood at ₹82.1 crores, a 12% decline YoY but a 7.4% sequential growth.

  • Q2 CY25 EBITDA was ₹3.9 crores, double the amount from the same quarter last year.

  • The company reported a Q2 profit of ₹1.7 crores, contributing to a H1 net profit of ₹0.59 crores.

  • Order book as of June 30, 2025, is approximately ₹640 crores, providing significant revenue visibility.

  • The order book pipeline for the remaining year is ₹4,600 crores, with overall pipeline exceeding ₹40,000 crores.

  • Value services currently constitute 20-25% of the order book, with a target to grow to 30-35%.

  • Partnership with Advanced Coating for a new Rolls Coating facility is expected to be operational by end of December 2025/early January 2026.

Key financials

3 periods

Headline

  • Revenue
    ₹82.1 Cr
    YoY -12% QoQ +7.4%
  • EBITDA
    ₹3.9 Cr
    YoY +100%

Q2

  • Profit
    ₹1.7 Cr

H1

  • Net Profit
    ₹0.59 Cr

What they filed

Q1 FY27: revenue up 18.2%, net profit down 106.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue76 72 221 253 97 +28%228 +215%345 +56%299 +18%
EBITDA-9 -0 -1 -26 11 +231%-20 −4067%8 +900%-27 −4%
Net profit-7 -1 -3 -15 9 +219%-9 −512%7 +333%-31 −107%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹640 Cr

as of 2025-06-30 quantified

Execution

good visibility for the upcoming quarters; majority of current projects to be completed by end of the year, beginning of next year

Composition

  • Value Services (product) 25%

Pipeline

deal pipeline tcv

Strong order book pipeline for the remaining year, with overall pipeline exceeding ₹40,000 crores and inquiries for value services between ₹9,000-10,000 crores.

The company anticipates a healthy pickup in order inflows going forward, with a strong pipeline and good visibility for upcoming quarters.

Source: Prepared remarks

Capital allocation

medium confidence
  • M&A Advanced Coating Joint venture · Announced

    To establish a state-of-the-art rolls coating facility, fill a critical market gap, and enhance after-sales value proposition.

    We are establishing a state-of-the-art rolls coating facility at our Taloja plant in collaboration with a Belgium company Advanced Coating, which is a leader in thermal spray coating, grinding and finishing services in Western and Northern Europe.

Guidance & targets

Product Development

  • Volteron first pre-industrialized plant sale Product Development · 2026 · Medium confidence Hopefully in 2026
    Regarding the Volteron and JVD contracts. So, as we mentioned, we expect the first pre-industrialized plant to be sold, hopefully in 2026.

    — Francois-David Martino

  • First JVD order registration Product Development · CY25 · Medium confidence This year
    And regarding JVD, we are in a very deep discussion currently with customers. And it could be that we register the first JVD order this year.

    — Francois-David Martino

Operational

  • Rolls Coating facility operation Operational · Q4 CY25/Q1 CY26 · High confidence End of December, early January
    And the idea is to be operating, let's say, by end of December, early January. So towards the end of the year, we are confident that we will be able to process the first rolls for which we already have first orders in hand from Indian customers for refurbishment.

    — Michael Kotas

Market Share

  • Value services share of order book Market Share · Ongoing · Medium confidence 30-35%

    From 20-25% today

    So, right now, we are already well advanced into seeing value services 20%-25% of the overall order book. And I think this is also a percentage that we like to continue to see, if not growing up to maybe 30%-35% if possible.

    — Michael Kotas

What to watch in Q2 FY26

Volteron first pre-industrialized plant sale

by 2026
Current Development accelerated, pilot plant showing good results
Target First plant sold

Why it matters

Successful sale of the first Volteron plant would validate the green steel technology and open a significant new revenue stream.

Regarding the Volteron and JVD contracts. So, as we mentioned, we expect the first pre-industrialized plant to be sold, hopefully in 2026.

Risks & concerns

  • Global geopolitical tensions, economic uncertainties, and election period in India leading to demand volatility

    medium

    These factors challenged the steel industry, leading to a cautious approach in fresh investments.

    Management acknowledged

  • Excess capacities and influx of low-cost steel from China

    medium

    Hurt profitability of domestic steel makers and led to a cautious investment environment.

    Management acknowledged

  • Uncertainty in client board approvals for final investment decisions

    medium

    Despite a strong pipeline, final investment decisions from clients can introduce uncertainty.

    Management acknowledged

  • Temporary delays in project approvals

    low

    Contributed to slower order inflows for JCIL in past quarters.

    Management acknowledged

Q&A highlights

5 direct
Volteron plant timeline, capacity, and target market in India Direct
The first construction of a plant of 40,000 tons. Now, 40,000 tons is not the size of a normal Volteron plant, as it will be expected during the full industrialization phase. So the minimum we expect for Volteron plant is 800,000 tons per year.

Clarifies the initial scale and long-term potential of the Volteron green steel technology, indicating a significant market opportunity in India's decarbonization push.

Asked by Manan

JVD zinc coating market size and addressable market in India Direct
30% of 160 is around about 48 million tons, which is cold rolled. And as I said, around about 80% of that, which gives you 35 million tons, is produced through galvanizing coating. Now a galvanizing line can be between, let's say 300,000 tons to maybe 1 million tons. So that means my assessment is that there is round about roughly 100 galvanizing lines in India currently operating.

Provides a detailed breakdown of the addressable market for JVD technology in India, highlighting the significant potential for advanced coating solutions.

Asked by Manan

Details of the MOU with SAIL and potential investment Partial
So at this point of time, we will not disclose too much into detail the content of the MOU, which is highly confidential. And we are pursuing deep dive discussion with SAIL currently on putting in place different partnerships with them. The MOU is basically about helping sites to decarbonize their industrial complexes and developing high quality products.

Management confirms ongoing discussions with SAIL for partnerships focused on decarbonization and high-quality products, but defers specific details due to confidentiality, indicating strategic importance.

Asked by Nitiksha

Timeline for maiden commercial orders for JVD and Volteron technologies Direct
Regarding the Volteron and JVD contracts. So, as we mentioned, we expect the first pre-industrialized plant to be sold, hopefully in 2026. And regarding JVD, we are in a very deep discussion currently with customers. And it could be that we register the first JVD order this year.

Gives specific timelines for the commercialization of key innovative technologies, which are central to the company's future growth strategy.

Asked by Anand Shah

India market size and John Cockerill's market share for its products Direct
On the global market size, the global engineering market for steel is more than EUR 20 billion per year. The addressable market for downstream products, which is basically the scope of supply of John Cockerill India, is EUR 3 billion. So we have currently a market share roundabout of between 8% to 10%.

Provides context on the company's market positioning within the broader steel engineering market, indicating a significant opportunity for growth.

Asked by Kirtan Mehta

Execution timeline for the current order book of ₹640 crores and contribution from value services Direct
most of that by end of the year, beginning of next year, we will see a majority of these projects completed. ... So, right now, we are already well advanced into seeing value services 20%-25% of the overall order book.

Clarifies the short-term execution visibility for the existing order book and the growing importance of value services as a recurring revenue stream.

Asked by Kirtan Mehta

2 min read 5 chapters

Detailed narrative

Q2 CY25 Financial Performance and Operational Improvements

John Cockerill India reported Q2 CY25 revenue of ₹82.1 crores, marking a 12% year-on-year decline but a 7.4% sequential growth, indicating a recovery trend. The company achieved a Q2 profit of ₹1.7 crores, contributing to a H1 net profit of ₹0.59 crores. EBITDA for the quarter stood at ₹3.9 crores, doubling compared to the same period last year, driven by operational efficiencies, disciplined execution, and increased contribution from the revamps and services business. The company also noted improvements in gross margin and cash flows, with a healthier cash position.

Market Outlook and Robust Order Book

Management expressed cautious optimism about the market, noting a steady improvement in customer sentiment and inquiry levels over recent months. The company's order book as of June 30, 2025, is approximately ₹640 crores, providing considerable revenue visibility for the upcoming quarters. Furthermore, the pipeline for the remaining year is strong at ₹4,600 crores, with the overall pipeline exceeding ₹40,000 crores. Management anticipates a healthy pickup in order inflows, reinforcing confidence in capturing future growth.

Strategic Pillars and Innovation in Green Steel

JCIL's long-term strategy is anchored on four pillars: capitalizing on India's growth story, driving innovation in green steel solutions, expanding the revamps, spares, and services business, and establishing a new Rolls Coating facility. The company is introducing Jet Vapor Deposition (JVD) technology for advanced metallic coatings and Volteron, a breakthrough zero-emission iron electrolysis process. These innovations align with global decarbonization trends and India's goal of 300 million metric tons of steel production by 2030.

Expansion of Revamps, Spares, and Services Business

The company sees significant opportunity in expanding its revamps, spares, and services offering across India and internationally, leveraging a growing installed base and rising demand for maintenance and upgrades. This segment is considered a recurring business that deepens customer engagement and offers attractive returns. Value services currently account for 20-25% of the order book, with a target to potentially grow this to 30-35%.

New Rolls Coating Facility and Strategic Partnerships

John Cockerill India is establishing a state-of-the-art rolls coating facility at its Taloja plant in collaboration with Advanced Coating, a Belgian leader in thermal spray coating. This partnership aims to fill a critical market gap in India, enhance JCIL's after-sales value proposition, and is expected to be operational by the end of December 2025 or early January 2026. The company is also in deep discussions with customers for JVD orders and expects the first pre-industrialized Volteron plant to be sold by 2026.

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