John Cockerill

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.

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.

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.

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.

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.

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.