JKIPL

Jinkushal Industries, rooted in a five-decade family legacy in mining and construction, has evolved into India's largest non-OEM exporter of construction machines, with a footprint across 35 countries. The company operates through an integrated multi-vertical business model, encompassing exports of new and customized machines, used and refurbished machines, and its proprietary HexL brand. This structure allows catering to diverse customer needs, from large infrastructure contractors to equipment rental companies, offering varied price points and performance standards.

For the six-month period ended September 30, 2025 (H1 FY26), Jinkushal Industries reported a turnover of ₹121.6 crores, a slight increase from ₹119.6 crores in H1 FY25. EBITDA significantly increased to ₹16.2 crores from ₹10.3 crores in H1 FY25, with margins strengthening from 4.8% to 9%. PAT saw an impressive 89% growth, reaching ₹11 crores compared to ₹5.7 crores in the prior year. This improvement in profitability, despite steady top-line, reflects a strategic focus on efficiency and margin expansion.

The company's balance sheet showed significant improvement, with the debt-to-equity ratio reducing to 0.36x in H1 FY26 from 0.63x as of March 2025. The current ratio also improved to 2.56x from 1.99x as of March 31, 2025, indicating a strong liquidity position. Management highlighted that the successful IPO fortified the balance sheet and provided enhanced financial flexibility, with more working capital available to support future growth initiatives.

The HexL brand is a major focus area, contributing approximately 11% of total revenue in H1 FY26, with 72 units sold to date. This marks a significant increase from 8 units sold in H1 FY25. Backhoe loaders have become the highest-selling product, accounting for nearly 40% of total sales in H1 FY26, up from 25% last year. The remaining revenue is almost equally derived from new, customized equipment of other brands (₹51 crores) and used/refurbished equipment (₹54-55 crores). The average selling price of used equipment has increased due to improved product mix and stronger demand.

Mexico remains the largest revenue-contributing market at nearly 50% of total sales, followed by UAE at 28% and South Africa at 8%. The company maintains an asset-light approach, partnering with global manufacturers for contract production and refurbishment, while operating a 30,000 sq ft in-house facility in Raipur. The increase in profitability is partly attributed to a higher contribution from used and refurbished machine sales, which yield 12-14% PAT margins, compared to 2-4% for new equipment of other brands. HexL brand is targeted for 12-15% PAT margins.

Jinkushal Industries aims to cross ₹800 crores in revenue within the next two to three years, with a sharp focus on PAT growth over turnover growth. The company targets PAT margins of 7-9% and a CAGR of 35-40% on PAT level over the next three years. Long-term aspirations include 8x to 10x growth in the next seven years. Strategic initiatives include expanding the HexL brand globally, aiming for 50 distributors, and leveraging IPO proceeds for increased working capital and business development.