John Cockerill — Q3 FY26 earnings call

Call held 26 Feb 2026

Management summary

John Cockerill India Limited reported a strong financial turnaround in FY25, achieving profitability and significant growth in its order book and cash reserves. The company's strategic restructuring and focus on high-margin value services, coupled with global consolidation efforts and an upcoming US acquisition, position it for sustained growth. While Q1 and Q2 2026 are expected to be subdued due to project execution timelines, management anticipates a clear revenue step-up from Q3 2026 onwards.

Highlights

  • Order entries for FY25 reached INR 862 crores, significantly up from INR 300 crores in the previous year.

  • The year-end backlog stood at INR 11.9 billion (INR 1190 crores), marking a 74% increase year-on-year and a record level of forward revenue visibility.

  • Revenue for FY25 reached INR 357 crores.

  • Profit after tax (PAT) for FY25 was INR 10 crore, a turnaround from a loss of INR 5 crores in FY24.

  • Cash and balance grew nearly four times, from INR 62 crore to INR 226 crores.

  • Total equity increased to INR 210 crores.

  • EBIT improved to approximately 6% in FY25 from approximately -3% in FY24.

  • The board is recommending a dividend for 2025, signaling restored financial confidence.

Key financials

  1. Revenue ₹357 Cr
  2. PAT ₹10 Cr
  3. PAT (Previous Year) ₹-5 Cr
  4. Cash and Balance ₹226 Cr
  5. Total Equity ₹210 Cr
  6. EBIT 6%
  7. Operating Cash Generation Improvement ₹220 Cr
  8. Overall Cash Improvement ₹75 Cr
  9. Non-recurring Charge ₹11 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.

Segment breakdown

  • Value Services
    30% Revenue Portion (Metals Activities)40% Margin Contribution (2024)50% Margin Contribution (Next Year)

Order book

high confidence

Total value

₹1,190 Cr

as of 2025-12-31 quantified

74% YoY

Inflow this quarter

₹862 Cr

Execution

2-3 years for execution, revenue recognition over 3 years average

Composition

  • Indian Companies (client type)

Pipeline

other

Market supporting a larger opportunity pipeline

The company achieved a record order book in FY25, providing strong revenue visibility for the coming years, with a significant portion from Indian companies.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A US-based group entity Acquisition · Proposed

    Access to North American engineering expertise and project management capability, participation in major North American steel industry projects, export revenue opportunities for Indian manufactured equipment.

    New revenue dimensions from cross-border project participation.

    In 2026, this consolidation advances to its next major step: the proposed acquisition of the US-based group entity targeted for completion by December 31st, 2026.
  • Liquidity Cash ₹226 Cr Cash and balance grew from INR 62 crore to INR 226 crores. Nearly four times in a single year. Total equity now stands at INR 210 crores, and we enter 2026 with financial firepower, not financial constraint.
    Cash and balance grew from INR 62 crore to INR 226 crores. Nearly four times in a single year. Total equity now stands at INR 210 crores, and we enter 2026 with financial firepower, not financial constraint.

Guidance & targets

Revenue

  • Revenue Step-up Revenue · Q2 2026 · High confidence Q2 2026
    Q2 2026 revenue step-up is a near-term, high-confidence milestone.

    — Francois David Martino

  • Revenue Improvement Revenue · From Q3 2026 onward · High confidence Clearly visible improvement
    From Q3 2026 onward, we expect improvement to become clearly visible as multiple large projects move into active execution and billing.

    — Francois David Martino

Order Book

  • Backlog Growth Order Book · End of 2026 · Medium confidence Higher backlog than today
    Our expectation for the order book this year is hopefully to increase this order book over the year. So we expect to end the year with a higher backlog than what we have today.

    — Francois David Martino

Value Services

  • Revenue Contribution Value Services · Next year (2026) · Medium confidence 28%

    Previously 30% → 28%

    We expect that to grow next year in absolute value, but in percentage might reach rather a level of 28% roundabout that.

    — Francois Martino

  • Margin Contribution Value Services · Next year (2026) · High confidence 50%

    Previously 40% → 50%

    the contribution in terms of margin of value services is around 40% for 2024 and will represent next year half of the profitability of the group.

    — Francois Martino

New Business

  • Rolls Coating Revenue Flow New Business · H1 2026 · High confidence First high-margin recurring revenue begins flowing
    2026 H1 rolls coating revenue: as mentioned, Taloja facility is commissioning the current project. First high-margin recurring coating services revenue begins flowing, a new business line with structural growth potential from day one.

    — Francois David Martino

M&A

  • US Entity Acquisition Completion M&A · H2 2026 · High confidence Completion by December 31st, 2026
    2026 H2, US entity consolidation: proposed acquisition completion by December 31st, 2026.

    — Francois David Martino

Profitability

  • Double-digit Profit Profitability · In over five years · Medium confidence Double-digit profit
    Yes. We are aiming for double-digit profit in over five years.

    — Francois Martino

What to watch in Q4 FY26

Revenue Step-up

Q2 2026
Current Subdued start in Q1 2026
Target Visible acceleration in Q2 2026

Why it matters

To confirm the inflection point for revenue growth as guided by management after a subdued Q1.

So we expect Q1 and Q2 of 2026 to represent a subdued start. Not because demand is weaker, but because the backlog we built takes time to convert into recognized revenue under our project accounting and group policy. From Q3 2026 onward, we expect improvement to become clearly visible as multiple large projects move into active execution and billing.

Risks & concerns

  • Arbitration notice from Santander

    medium

    An arbitration notice from Santander received in February 2026, disclosed to the stock exchange and under active legal review.

    Management acknowledged

  • Subdued revenue recognition in early 2026

    medium

    Q1 and Q2 of 2026 are expected to represent a subdued start in revenue recognition, not due to weaker demand, but because the built backlog takes time to convert under project accounting.

    Management acknowledged

  • Uneven global steel landscape

    medium

    Europe continues to face structural pressure from energy costs and trade dynamics, while India and APAC show investment momentum.

    Management acknowledged

  • Non-recurring charge from revised labor code regulations

    low

    A one-time non-cash charge of INR 11 crore from revised labor code regulations effective November 2025, which is industry-wide and entirely non-recurring.

    Management acknowledged

Q&A highlights

8 direct
Market share in India and global steel market outlook Direct
Yes, and we are extremely proud of our market share currently in India, which I would estimate being between 15% to 20% market share in the downstream area. Our company is recognized as one of the best value for money solution provider in India.

Management provided specific market share data for India and discussed the uneven global steel landscape, including investment trends in Europe, China, and the US.

Asked by Rabindra Nath Nayak

Upstream/downstream mix and technology access post-consolidation Direct
So the consolidation of the entities is supporting John Cockerill India Limited to have direct access to technologies which the entity was enjoying in a collaboration way with the other entities of the group, but also has access to new technologies. And these technologies are from the upstream side as well as downstream.

Clarified how the global restructuring enhances JCIL's access to advanced technologies, including both upstream (electrical arc furnace) and downstream (jet vapor deposition) segments.

Asked by Rabindra Nath Nayak

Margin trajectory and contribution of value services Direct
The revenue portion from value services was close to 30% for the entire metals activities, which is, to be honest, a record year. We expect that to grow next year in absolute value, but in percentage might reach rather a level of 28% roundabout that. So the contribution in terms of margin of value services is around 40% for 2024 and will represent next year half of the profitability of the group.

Provided specific figures for value services' revenue and margin contribution, highlighting its strategic importance and expected growth in profitability.

Asked by Rabindra Nath Nayak

Pro-forma consolidated financials for 2025 (including US entity) Direct
In terms of consolidated revenue 2025, if the business would have been consolidated, the revenue will be close to INR 2,000 crore. INR 2,000 crore and in terms of EBITDA, we would be at I would say level similar to the Indian entity, but I cannot disclose any information on that.

Gave an indicative pro-forma revenue figure for the consolidated entity, providing a glimpse into the potential scale post-acquisition.

Asked by Anand Shah

China market interest in new technologies (JVD, Volteron) Direct
What I can tell you is that cautiously but realistically we expect that China will represent in 2026 a very strong field in terms of order entry for new technologies. So in order to really accompany our Chinese customers in the future, we have decided to open in Shanghai a new office which will be inaugurated next week.

Indicated strong future order potential from the Chinese market for advanced technologies and announced a new office to support this growth.

Asked by Anand Shah

Order book and expected order inflow for the current year Direct
So, in terms of order book, we have mentioned the backlog today, which is INR 11.9 billion. And this is the largest backlog and order book we ever had in hand. So this is represented largely by Indian companies. And our expectation for the order book this year is hopefully to increase this order book over the year.

Reiterated the record backlog and provided expectations for continued order book growth in the current year, along with FY25 inflow figures.

Asked by Venkatesh Subramanian

Typical order execution time for projects Direct
It is let's say two to three years depending on the customers. The revenue recognition for one project is over three years in average.

Provided clarity on the long-cycle nature of projects, which explains the lag between order intake and revenue recognition, especially for Q1/Q2 2026.

Asked by Venkatesh Subramanian

Long-term operating margin target for the consolidated entity Direct
Yes. We are aiming for double-digit profit in over five years. And for sure for the consolidated new entity, we are looking for increase in absolute value. There we will see a big difference.

Set a clear long-term profitability target for the company, indicating significant margin expansion post-consolidation.

Asked by Venkatesh Subramanian

3 min read 6 chapters

Detailed narrative

FY25 Financial Turnaround and Strengthening Balance Sheet

John Cockerill India Limited achieved a significant financial turnaround in FY25, reporting a revenue of INR 357 crores and a profit after tax of INR 10 crore, a notable recovery from a loss of INR 5 crores in FY24. The company's balance sheet was substantially strengthened, with cash and balance growing nearly four times from INR 62 crore to INR 226 crores, and total equity reaching INR 210 crores. Operating profitability (EBIT) improved meaningfully to approximately 6% in FY25 from approximately -3% in the previous year, driven by an improvement in operating cash generation of over INR 2.2 billion and overall cash improvement of roughly INR 750 million.

Record Order Book and Enhanced Revenue Visibility

The company concluded FY25 with a record backlog of INR 11.9 billion (INR 1190 crores) as of December 31, 2025, representing a 74% increase year-on-year. This backlog provides the strongest forward revenue visibility in many years. Order entries for FY25 reached INR 862 crores in India, with worldwide orders totaling INR 2,000 crores. Management anticipates further growth in the order book for 2026, with project execution timelines typically spanning 2-3 years and revenue recognition averaging over 3 years.

Strategic Shift to High-Margin Value Services

A pivotal structural change in JCIL's business model is the increasing contribution of high-margin value services, including revamps, spare parts, and maintenance. This segment expanded materially with improved economics, faster cash cycles, and more recurring demand. Value services contributed approximately 30% to the total metals activities revenue in FY25, and its margin contribution is expected to increase from 40% in 2024 to 50% of the group's profitability in the next year. The commissioning of the rolls coating facility at Taloja in H1 2026 is expected to further boost this segment with high-margin recurring revenue.

Global Consolidation and US Market Expansion

John Cockerill Group has undertaken a fundamental transformation of its global metals business, consolidating international activities into a single focused entity anchored in JCIL. This consolidation will advance with the proposed acquisition of a US-based group entity, targeted for completion by December 31, 2026. This strategic move aims to provide JCIL with direct access to North American engineering expertise and project management capabilities, enabling participation in major US steel industry projects and creating new export revenue opportunities for Indian manufactured equipment.

Leadership in Green Steel Technology and India's Steel Boom

JCIL is strategically positioned to capitalize on India's steel boom and the global shift towards green steel technologies. The company is focusing on precision processing, advanced high-strength steel, and decarbonization-linked modernization. Initiatives like Jet Vapor Deposition (JVD) and Volteron, along with projects such as the JSW JFE Electrical Steel plant, underscore JCIL's ambition to evolve into a Tier-1 steelmaking solution partner for the next generation of the steel industry. The Indian market, driven by infrastructure and automotive demand, presents significant growth opportunities for JCIL's processing lines and life cycle services.

Outlook for 2026 and Long-Term Profitability Targets

Management expects Q1 and Q2 2026 to be a subdued period for revenue recognition due to the long conversion cycle of projects, rather than weak demand. However, a clear revenue step-up is anticipated from Q2 2026, with significant improvement becoming visible from Q3 2026 as multiple large projects move into active execution. The company aims for double-digit profit for the consolidated entity in over five years and expects China to be a strong market for new technology order entries in 2026, supported by the opening of a new Shanghai office.

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