JNK — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

JNK India delivered a strong Q3 FY26, with revenue growing 112.8% YoY to ₹206.23 crores and PAT increasing 534.1% YoY to ₹18.02 crores. The company maintains a healthy order book of ₹1,700 crores and is actively pursuing new opportunities in the Middle East and domestic clean fuel projects. Strategic initiatives like the Chemdist JV are on track, though challenges remain in areas like CBG project deployment and slow progress on Russia orders.

Highlights

  • Strong revenue growth of 112.8% YoY to ₹206.23 crores, reflecting robust performance across key verticals.

  • EBITDA increased by 202.8% YoY to ₹29.51 crores, with margin expansion to 14.3%.

  • Profit after tax surged by 534.1% YoY to ₹18.02 crores, demonstrating significant profitability improvement.

  • Healthy opening order book of ₹1,700 crores provides strong revenue visibility for the next 2-2.5 years.

  • Strategic joint venture with Chemdist Group is progressing well, with an order book of ₹100 crores and expected to contribute 10-15% of standalone revenue in the coming years.

Concerns

  • Impact of new labor code recognized at ₹0.926 crores for Q3 and 9MFY26.

  • Russia orders are progressing extremely slowly in finalization.

  • CBG projects face technology and stabilization issues, hindering broader deployment.

Key financials

  1. Revenue ₹206.23 Cr +112.8%YoY
  2. Operating Profit ₹56.02 Cr
  3. Operating Profit Margin 27.2%
  4. EBITDA ₹29.51 Cr +202.8%YoY
  5. EBITDA Margin 14.3%
  6. PAT ₹18.02 Cr +534.1%YoY
  7. PAT Margin 8.7%
  8. New Labour Code Impact ₹0.926 Cr

What they filed

Q1 FY27: revenue up 65.7%, net profit up 1300.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue103 94 189 99 178 +73%179 +90%300 +59%164 +66%
EBITDA12 7 15 3 17 +42%25 +257%42 +180%17 +467%
Net profit7 3 13 1 14 +100%18 +500%32 +146%14 +1300%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,700 Cr

as of 2026-01-01 quantified

Execution

execution time frame takes on an average of, say, 2-2.5 years

Composition

  • BPCL Bina (from JNK Global) (project) ₹1,050 Cr
  • JV (Chemdist Group) (subsidiary) ₹100 Cr

Pipeline

qualified rfp

Remaining BPCL Bina orders, Middle East opportunity, domestic clean fuel project, Dangote refinery

Cancellations & deferrals

  • deferred: Russia orders are progressing extremely slowly in finalization.
The company has a healthy order book and significant pipeline opportunities, particularly in the Middle East and for the Dangote refinery, which are expected to materialize in the coming quarters/years.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A Chemdist Group (JV) Joint venture · Integrated

    Strengthens global market position, combines engineering expertise with Chemdist's technology and IP, supports India's hydrogen mission.

    Generated ₹2.3 crores revenue in Q3 FY26. Order book of ₹100 crores as of Dec 2025. Expected to generate 10-15% of JNK India standalone revenue in the first 2-3 years. Margins expected to improve from Q4 onwards.

    Our joint venture with founders of Chemdist Group, which we had announced earlier this year, continues to be a critical part of our long-term growth strategy. ... Yes even in the first quarter there has been a revenue of about Rs. 23 crores from the subsidiary in the consolidated results, yes. ... Yes, there's order book, is about Rs. 100-odd crores as on 1st of January. ... No, it will definitely improve. It's just the first quarter of operation, and there are also a lot of expenses in terms of the starting up and things like that. But this Q4 onwards, we definitely look for similar margins as ours at least. ... See, as on December 2025, their order book size was about Rs. 100-odd crores. And as I said, in the first two, three years, we are looking their revenue or their order book to the extent of about 10% to 15% of our JNK India standalone part, yes.
  • Liquidity Cash ₹70 Cr Non-fund-based limits (bank guarantees) utilized to the extent of ₹470 crores, mainly due to the Reliance contract. Total non-fund-based limits are about ₹500 crores, and fund-based limits are about ₹100 crores. Support from JNK Global for bank guarantees on large contracts like BPCL Bina reduces direct burden.
    See the non-fund-based limit in terms of the bank guarantees like utilizes to the extent of almost Rs. 470 crores or so, mainly because of the Reliance contract, which is whatever the progress payments we receive we have to give the bank guarantee. So that would free in a couple of quarters per se. But yes, as of now, the limit utilizes around Rs. 470 crores. And in the cash limit, yes, it just varies. So it's about Rs. 70 crores as of now. ... In terms of the non-fund-based limits, we have almost like around Rs. 500 crores or so and fund-based limit is about Rs. 100 crores. So that is sufficient for the execution of the existing contracts. Obviously, the advantage what we have is with JNK Global taking this, say, BPCL contract like BPCL Bina, which is a large contract, what happens is they could give bank guarantees from Korea. So the bank guarantee burden does not come on us directly, so that also gives us a bit more leverage in terms of taking up the new contracts as well.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 13-14%
    Actually, the last quarter, our original margin was 15% plus in terms of EBITDA. But obviously, because of the new labor code we had to take care of this thing to the extent of almost Rs. 9.26 million, so that's how it has come down to 14.3%. But yes, we would like to maintain the margin what we had given the guideline last year as of now, because yes, we do have the Q1 which was there a bit lower, so just to ensure to take care of the complete year.

    — Arvind Kamath

Revenue

  • FY26 Growth Revenue · FY26 · High confidence Around 40%
    Yes, around that. I think we gave a range so we will definitely be within the range, yes.

    — Arvind Kamath

JV Revenue

  • Revenue contribution from JV JV Revenue · first two, three years · High confidence 10-15% of JNK India standalone part
    And as I said, in the first two, three years, we are looking their revenue or their order book to the extent of about 10% to 15% of our JNK India standalone part, yes.

    — Arvind Kamath

What to watch in Q4 FY26

Finalization of Middle East opportunity

next quarter
Current In advanced stage, expected to finalize in a quarter
Target Order win of ₹200-250 crores

Why it matters

This is a significant near-term order opportunity that would boost the order book.

And in terms of the new prospects, there are a couple of prospects already which are quite in the advanced stage domestically and in export in the Middle East, which should get finalized in a quarter or so. ... The Middle East opportunity which we are currently focusing on, which is likely to get finalized in the quarter, that is about anywhere between Rs. 200 to Rs. 250 crores kind of an opportunity.

Risks & concerns

  • Slow finalization of Russia orders

    medium

    Proposals are there, but progress is extremely slow.

    Management acknowledged

  • Technology and stabilization issues in CBG projects

    medium

    Different raw materials require different technologies, leading to issues in ensuring pure and clean gas, affecting plant stabilization.

    Management acknowledged

  • Impact of new labor code

    low

    Recognized an impact of ₹0.926 crores for Q3 and 9MFY26.

    Management acknowledged

Q&A highlights

6 direct
Dangote Refinery opportunity and timeline Direct
Dangote, this time what we understand as of now is that Dangote would like to go a bit fast because it's more of a repeat basis, the refinery they are planning to build. ... So the inquiries are expected in one quarter or two. And ideally for such kind of a large project, what we expect is the order finalization for a long lead item like heaters or reformers should happen sometime in next two to three quarters, so something like Q3 FY27.

Provides a clear timeline for a significant potential order, indicating a major growth driver for FY27.

Asked by Ram Modi

BPCL Bina remaining order value and timeline Direct
And as you know, this is a contract which goes for almost two and a half years. So there is an order yet to be received, which is in the tune of anywhere between Rs. 400 to Rs. 600 crores, that would be the range. So, I think it should come somewhere in the next two quarters or so.

Clarifies the remaining value and expected timeline for a large existing project, adding to near-term order book visibility.

Asked by Kamlesh Bagmar

JV (Chemdist) margin profile improvement Direct
No, it will definitely improve. It's just the first quarter of operation, and there are also a lot of expenses in terms of the starting up and things like that. But this Q4 onwards, we definitely look for similar margins as ours at least.

Indicates expected margin improvement for the new JV, suggesting better profitability contribution in future quarters.

Asked by Sahil Sanghvi

Middle East and domestic clean fuel project opportunities Direct
The Middle East opportunity which we are currently focusing on, which is likely to get finalized in the quarter, that is about anywhere between Rs. 200 to Rs. 250 crores kind of an opportunity. ... And the other one is more like a clean fuel project in India. So both of here, we are technically qualified and commercial negotiation should happen or commercial or price bid opening from Indian perspective should happen soon. So this is the two opportunities, which we are looking to get finalized in the next two to three months' time. Both are in the range of Rs. 200 to 250 crores each of them, yes.

Quantifies specific near-term pipeline opportunities, providing concrete figures for potential new order inflows.

Asked by Deepak Purswani

Working capital limits and utilization Direct
See the non-fund-based limit in terms of the bank guarantees like utilizes to the extent of almost Rs. 470 crores or so, mainly because of the Reliance contract... In terms of the non-fund-based limits, we have almost like around Rs. 500 crores or so and fund-based limit is about Rs. 100 crores. So that is sufficient for the execution of the existing contracts.

Provides clarity on the company's financial capacity to execute current and future projects, highlighting the role of JNK Global in supporting bank guarantees.

Asked by Deepak Purswani

CBG project challenges and technology issues Direct
Absolutely correct, because based on the various raw materials like mud press or vegetable even the paddy straw, so what raw material is we are using. So every raw material, a different type of technology is required to ensure that you are able to get a pure and clean gas. So that's where the issues are. And many of the companies who have put up the plants are facing these issues.

Identifies specific technical and feedstock challenges hindering the growth of CBG projects, which is a key clean energy segment.

Asked by Paresh G. Raja

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

JNK India reported a strong Q3 FY26, with total revenue reaching ₹206.23 crores, marking an impressive 112.8% year-over-year growth. Operating profit stood at ₹56.02 crores with a margin of 27.2%. EBITDA for the quarter was ₹29.51 crores, showing a remarkable 202.8% YoY growth and a margin of 14.3%. Profit after tax (PAT) significantly increased by 534.1% YoY to ₹18.02 crores, achieving an 8.7% margin. The company recognized an impact of ₹0.926 crores due to the new labor code for the quarter and nine months ended December 31, 2025.

Strategic Initiatives and Joint Ventures

The joint venture with Chemdist Group is a critical part of JNK India's long-term growth strategy, making strong progress in green hydrogen and sustainable fuels. This JV generated ₹2.3 crores in revenue during Q3 FY26 and has an order book of approximately ₹100 crores as of December 2025. Management expects the JV to contribute 10-15% of JNK India's standalone revenue in the first two to three years, with margins anticipated to improve from Q4 onwards as startup expenses normalize. This partnership leverages JNK India's engineering expertise with Chemdist's technology and intellectual property.

Regulatory Environment and Budget Impact

The Union Budget projects India's GDP growth at about 7% for FY26-27, with a capital expenditure allocation of around ₹12 lakh crores, focusing on infrastructure, clean energy, and domestic manufacturing. Positive regulatory measures include full excise duty exemption on the biogas component of biogas-blended CNG, enhancing cost competitiveness for renewable fuel adoption. Additionally, ₹20,000 crores incentive for decarbonization and carbon capture utilization and storage (CCUS) further supports clean energy initiatives.

Order Book and Pipeline Outlook

JNK India commenced the year with a healthy opening order book of approximately ₹1,700 crores as of January 1, 2026. The BPCL Bina project has already secured orders worth ₹1,050 crores from JNK Global, with an additional ₹400-600 crores expected in the next two quarters. The company is actively pursuing new prospects, including a Middle East opportunity and a domestic clean fuel project, each valued at ₹200-250 crores, expected to finalize within the next 2-3 months. The Dangote refinery project in Nigeria presents a significant long-term opportunity, with inquiries expected in the next 1-2 quarters and order finalization for long-lead items like heaters and reformers anticipated by Q3 FY27.

Operational Efficiency and Margins

The company's margins have normalized to historical levels, with the recent expansion attributed to a change in accounting methodology from output to input method, rather than pricing power or operating leverage. Material costs are expected to remain in the 70-75% range, though they could be lower if the service component of projects increases. Current capacity utilization, primarily constrained by engineering manpower, is around 70%. The company aims to maintain its EBITDA margin guidance of 13-14% for FY26.

Working Capital and Funding

JNK India is comfortably placed with its working capital limits to execute existing contracts. Non-fund-based limits (bank guarantees) are utilized to about ₹470 crores, mainly for the Reliance contract, out of a total of ₹500 crores. Fund-based limits are approximately ₹100 crores. The company benefits from JNK Global's support in providing bank guarantees for large contracts like BPCL Bina, which reduces the direct burden on JNK India and provides leverage for new contracts. This financial flexibility allows the company to explore additional opportunities.

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