JNK

JNK India reported a total revenue of ₹1,030 million for Q1 FY26, marking a 13.5% year-on-year growth. However, profitability saw a significant decline, with EBITDA at ₹72 million, translating to a 7% margin, down from 13.4% in Q1 FY25 and 13.8% in Q4 FY25. Profit After Tax (PAT) stood at ₹11 million, representing a 1.1% margin. This margin compression was primarily attributed to legacy projects under execution, which incurred higher costs and faced delays, a situation expected to persist into Q2 FY26.

As of June 30, 2025, the company's order book was strong at ₹9,828 million, providing significant revenue visibility. The order book composition was dominated by heating systems at 79.4%, followed by process plants at 12.8%, and flares, incinerators, and other renewables at 7.8%. Domestic orders constituted a substantial 90.9% of the total order book, reflecting strong demand from India's refining and petrochemical industry. The current order book is expected to be executed up to Q1 FY27.

Post-quarter, JNK India entered into a joint venture with Mr. Sunil Dhole and Mr. Tushar Wagh, founders of Chemdist Group, to develop green hydrogen and other sustainable fuel technologies. JNK India will hold a 51% equity stake in this new entity, with an initial equity investment of ₹51 lakhs and a further ₹10 crores in preference capital. The JV aims to expand JNK India's offerings beyond conventional combustion equipment into clean energy process infrastructure, with an expected revenue contribution of 8-10% in FY26 and 10-12% EBITDA profitability.

While Q1 FY26 did not see significant new order inflows, management anticipates two major order finalizations in Q2 FY26, including the BPCL Bina project, potentially valued between ₹2,000-3,000 crores (for JNK Global, with JNK India receiving a share). Two more finalizations are lined up for Q3 FY26. Historically, JNK India's hit rate for finalized orders has been around 25%. The company maintains its full-year guidance of 40-50% revenue growth and 12-13% EBITDA margins, expecting stabilization from Q3 FY26 due to a new input-based revenue recognition model for newer projects.

The company is focused on disciplined execution, cost control, and aligning internal systems for timely delivery. Employee costs, net of ESOP expenses, increased by 15.5% year-on-year in Q1 FY26. This rise was attributed to annual increments given in the first quarter and the addition of manpower to support ongoing project execution and prepare for the new order pipeline. Management stated that employee costs would be optimally managed and kept within industry standards.