John Cockerill India Q1 FY27 earnings call

The global steel market remains mixed, with Europe facing challenges due to high energy costs and weak industrial sentiment, alongside new tariff-quota regimes. China is transitioning towards a 'green steel pivot' and higher-value products, with finished steel exports declining by 9.2% in April 2026 while sector value added increased by 1.8%. The US steel industry is experiencing a revival, with capacity utilization at 82% in July 2026 and over USD 14 billion in expected investments. India continues to be a strong growth market, targeting 300 million tons of steel production by 2030, supported by major infrastructure programs and production-linked incentives.

John Cockerill India Limited completed the consolidation of its Chinese, German, and Belgian entities under its umbrella. This strategic move aims to create a more integrated and agile organization, enhancing efficiency and customer responsiveness. The consolidation brings together technology expertise, manufacturing capabilities, and execution strengths from across these regions. The company is also strengthening its local presence in key markets, including a new office in Shanghai and a planned workshop in China for machine assembly in Q3 CY26.

For Q2 CY26, John Cockerill India Limited reported a standalone revenue of INR 149 crores, marking an 82% year-on-year growth. Consolidated revenue reached INR 299 crores, an 18% year-on-year increase. However, revenue was lower on a sequential basis compared to Q1 CY26, primarily due to the project cycle and the timing of^📎 revenue recognition, as several older projects neared completion in the previous quarter. Profitability was impacted by the early execution stages of newly secured orders, upfront costs for organizational building, and one-time^📎 costs associated with the group restructuring.

The company secured new orders worth approximately INR 1,200 crores during Q2 CY26, bringing its total consolidated order book to INR 4,500 crores as of June 2026. This robust order book provides strong visibility for future growth. Management noted a healthy customer inquiry pipeline and a strong pace of order wins, driven by increasing demand for advanced processing technologies, electrical steel, and plant modernization. Customers are investing to improve productivity, reduce energy consumption, enhance product quality, and meet sustainability and decarbonization objectives.

John Cockerill is actively investing in new technologies, with a significant focus on Jet Vapor Deposition (JVD). JVD offers advantages such as high-speed processing, precise zinc coating, and substantial cost savings for customers, potentially ranging from INR 1,000 to 20 times that figure per case. The company is in advanced discussions to close one JVD project in Asia, hopefully^💬 within CY26, despite the longer 'investment process validation' phase. They are also working on Volteron technology, which is currently in R&D with plans for pilot plant validation.

To enhance its service capabilities and customer proximity, John Cockerill India Limited inaugurated an Advanced Coating facility at Taloja, India, in June. This facility is now operational, undergoing testing, and handling trial orders, poised to support customers with advanced coating solutions. Furthermore, the company has opened a new office in Shanghai and plans to establish a workshop in China during Q3 CY26 for the assembly of special machines and equipment. These investments aim to strengthen local capabilities and improve responsiveness to customer requirements.