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    JNK

    JNKINDIA
    Capital Goods·14 Nov 2025
    Management Summary

    JNK India reported a robust Q2 FY26 with significant revenue growth and improved EBITDA margins, driven by strong performance in core sectors. The company secured its largest single order to date, boosting its order book to ₹1,849.9 crores and enhancing revenue visibility. A strategic joint venture was formed to enter the green hydrogen sector, diversifying the product portfolio and positioning the company for long-term success, alongside a notable improvement in cash conversion cycle.

    Highlights

    5

    • Total revenue for Q2 FY26 was ₹184.21 crores (Rs. 1,842.1 million), reflecting a 71.6% year-on-year growth.

    • Operating profit for Q2 FY26 was ₹45.4 crores (Rs. 454 million), a 34.6% year-on-year increase, with an operating margin of 24.6%.

    • EBITDA for Q2 FY26 was ₹22.34 crores (Rs. 223.4 million), reflecting a 44.7% year-on-year increase, and the EBITDA margin was 12.1%, up from 7% in Q1 FY26.

    • Order book expanded to ₹1,849.9 crores (Rs. 18,499 million) as of September 30, 2025, up from ₹1,311.6 crores (Rs. 13,116 million) in H1 FY25, providing strong revenue visibility.

    • Cash conversion cycle significantly improved to 76 days in H1 FY26 from 232 days in H1 FY25.

    Concerns

    2

    • Operating expenses increased by 88.5% year-on-year in Q2, though margins were maintained due to strong revenue growth.

    • Margin guidance is conservatively set at 13-16% due to the increasing complexity and site construction component of larger projects, which introduce more variables.

    What Changed2

    vs Q3 FY26

    Risks discussed3 → 2 (-1)Q&A highlights6 → 8 (+2)
    Key financials

    Metrics

    15

    Periods

    2

    Q2 FY26

    8
    • Revenue
      ₹184.21 Cr
      YoY+71.6%
    • Operating Profit
      ₹45.4 Cr
      YoY+34.6%
    • Operating Margin
      24.6%
    • EBITDA
      ₹22.34 Cr
      YoY+44.7%
    • EBITDA Margin
      12.1%

    H1 FY26

    7
    • Revenue
      ₹287.18 Cr
      YoY+44.9%
    • Operating Profit
      ₹69.63 Cr
    • Operating Margin
      24.2%
    • EBITDA
      ₹29.51 Cr
    • EBITDA Margin
      10.3%

    Segment breakdown

    Heating Equipment (Q2 FY26 Revenue)
    80.3% Share of Total Revenue
    Process Plant and Flares (Q2 FY26 Revenue)
    11.8% Share of Total Revenue
    Incinerators and Others (Q2 FY26 Revenue)
    8% Share of Total Revenue
    List

    Order Book

    high confidence

    Total Value

    ₹ 1,849.9 crores

    as of 2025-09-30

    quantified
    41.0% YoY

    Inflow this qtr

    ₹ 1,050 crores

    Execution

    executable over next 2-3 years

    Pipeline

    other

    opportunities pipeline in terms of the Middle East and Africa

    "Our strong order book ensures a clear pipeline for revenue recognition, while the new venture opens new avenues in the renewable energy market, positioning us for a long-term success."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    JNK Chemdist Technologies Private Limited

    joint venture · Other

    Liquidity

    Liquidity disclosed

    Cash conversion cycle has significantly improved to 76 days in H1 FY26 from 232 days in H1 FY25, driven by conscious efforts, change in revenue recognition method, and phasing out of legacy projects.

    Guidance & targets

    3
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    13% to 16%
    		Medium
    Revenue
    JV Contribution to Top Line
    10% to 15%
    		Medium
    Order Inflow
    Middle East and Africa Pipeline
    Rs. 2,000 crores to Rs. 2,500 crores
    		Medium

    Conversion of Middle East and Africa pipeline into orders

    Within a year
    CurrentPipeline of ₹2,000-2,500 crores identified
    TargetQuantifiable order wins from this pipeline

    Why it matters

    This pipeline represents significant potential for order book expansion and geographic diversification, crucial for sustained growth.

    See, the opportunities pipeline in terms of the Middle East and Africa is in the region of about Rs. 2,000 crores to Rs. 2,500 crores, but that might take about a year to conclude.

    How to verify

    order_book.inflow_this_quarter

    Risks & concerns

    2
    RiskSeverity

    Margin pressure from complex, large-scale projects

    Larger projects with significant site construction components introduce more variables, making it challenging to maintain higher margins, leading to a conservative guidance of 13-16%. — Management acknowledged

    medium

    Cyclicality of the oil and gas sector

    The company's historical dependence on the oil and gas sector exposes it to market cyclicality, which management is addressing through diversification efforts into green energy and other sectors. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “Basically, we still have some part of the petchem job, which JNK Global is executing. So that order inflow would also be expected in next 6 months or so. And other than that, in terms of the bid pipeline, exports mainly and also to some extent on domestic, both are quite strong, even on a near term of, say, about 6 months to a year.”

    Analyst sought quantification of future order book, and management provided qualitative insights into the bid pipeline and expected inflows from ongoing projects.

    asked by Kamlesh Bagmar

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by Robust Revenue Growth

    JNK India delivered a strong Q2 FY26, reporting a total revenue of ₹184.21 crores (Rs. 1,842.1 million), marking a 71.6% year-on-year growth. This performance was supported by a 34.6% increase in operating profit to ₹45.4 crores (Rs. 454 million), with an operating margin of 24.6%. EBITDA also saw a significant rise of 44.7% year-on-year, reaching ₹22.34 crores (Rs. 223.4 million), and the EBITDA margin improved to 12.1% from 7% in Q1 FY26.

    02

    Record Order Book Expansion and Revenue Visibility

    The company secured its largest single order to date during Q2 FY26, an ultra-mega order from JNK Global Company Limited for a cracking furnace package in a petrochemical project, contributing ₹1,050 crores to its order book. This expanded the total order book to ₹1,849.9 crores (Rs. 18,499 million) as of September 30, 2025, up from ₹1,311.6 crores (Rs. 13,116 million) in H1 FY25, reinforcing strong revenue visibility for the next 2-3 years.

    03

    Strategic Entry into Green Energy with New Joint Venture

    JNK India strategically diversified into the clean energy sector by forming JNK Chemdist Technologies Private Limited, a joint venture with Chemdist Group. This new subsidiary will focus on green hydrogen technology and sustainable chemical and fuel solutions, leveraging JNK India's engineering expertise with Chemdist's technology. Management expects this JV to contribute 10-15% to the top line within the next one to two years.

    04

    Improved Operational Efficiency and Cash Conversion Cycle

    Despite an 88.5% year-on-year increase in operating expenses during Q2, JNK India successfully maintained its margins through strong revenue growth and efficient project execution. The company also reported a significant improvement in its cash conversion cycle, which reduced to 76 days in H1 FY26 from 232 days in H1 FY25. This improvement is attributed to conscious efforts, changes in revenue recognition methods, and the phasing out of legacy projects.

    05

    Future Growth Outlook and Diversification Efforts

    JNK India is actively pursuing a robust pipeline of opportunities, particularly in the Middle East and Africa, estimated to be in the range of ₹2,000-2,500 crores, expected to conclude within a year. Domestically, 1-2 large opportunities are anticipated in the petchem, fertilizer, and sustainable fuel sectors. The company is committed to diversifying its product lines and sectors to reduce cyclicity and ensure more uniform, sustainable growth, aiming to maintain EBITDA margins in the 13-16% range.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.