John Cockerill

John Cockerill India Limited reported its first consolidated results for Q1 CY26 (January-March 2026), which included operations from China, Belgium, and Germany. Standalone revenue grew significantly by 162% year-on-year to INR 200 crores, while consolidated revenue reached INR 340 crores, a 56% year-on-year increase. Both standalone and consolidated EBITDA turned positive, at INR 11.4 crores and INR 4.9 crores respectively, compared to negative figures in the prior year. However, consolidated EBITDA margins remained low at 1.4%, primarily due to integration costs, upfront expenses for organizational realignment, and a shift in product mix.

The company demonstrated strong order book growth, with the standalone order book reaching INR 1,300 crores as of March 2026, marking a 101% year-on-year increase. The consolidated order book stands at approximately INR 3,300 crores. A significant new order from JSW Steel for a CGL project, valued at INR 440-470 crores, was secured during the quarter. Management anticipates a positive trend in the order pipeline over the next 24 months, driven by the dynamic Indian market, growth in China, and increasing interest in green steel and JVD technology.

Current margins were impacted by several factors, including upfront costs for hiring and organizational realignment, a product mix shift towards larger projects over value-added services, and one-off^📎 expenses related to consolidation. Investments in new technologies also weighed on near-term EBITDA. However, management expects margin improvement from the next quarter, aiming for consolidated EBITDA margins of around 3% in the near term and over 10% within the next three years, driven by operational synergies and increased value services, which are targeted to contribute 30-35% of revenue in the next 3-5 years.

A key strategic milestone was the consolidation of the group's metals business under the JCIL platform, creating one integrated global metals business with India as its operational hub. This move aims to combine technology expertise, manufacturing strengths, and execution capabilities. While global steel markets present a mixed picture with pressures in Europe and selective capex in China, India continues to be a strong investment market. The company is strengthening its presence in China and sees opportunities in advanced processing lines, galvanizing lines, and electrical steel.

John Cockerill is committed to investing in new technologies, including the rolls coating facility at Taloja, which is expected to be commissioned shortly to offer specialized coating capabilities. The company is also developing solutions like Volteron, a green steel technology, and electrical arc furnaces, which are currently impacting costs but are expected to drive future revenue and long-term value creation. Management believes these investments, particularly in upstream steel processes, will open up revenue potential at least 2.5 times more than past performance, with the 'harvest time' expected in the next months to a year.