Ladies and gentlemen, good day and welcome to the JNK India Q4 FY 2026 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Abhinav Malviya from ICICI Securities Limited. Thank you, and over to you, sir.
Thank you, Rutuja. Good afternoon, everyone. On behalf of ICICI Securities, I welcome everyone to the JNK India Q4 FY 2026 earnings call. From the management team, we have Mr. Arvind Kamath, Chairperson and Whole-time Director; Mr. Anand Agarwal, Interim CFO; and Ms. Annie Varghese, Senior Manager, Investor Relations. Without further delay, I will now hand over the call to management for the opening remarks, which will be followed by Q&A. Thank you, and over to you, sir.
Good afternoon, thank you for joining JNK India's Q4 and FY 2026 earnings call. I'm Arvind Kamath, Chairperson and Whole-time Director, and I'm happy to report a set of strong numbers since our listing, reflecting the effectiveness of our business model and disciplined execution. These results underscore the progress of our strategic initiatives and our continued focus on creating sustainable value for all the stakeholders. We appreciate your ongoing engagement and trust as we move forward in the next phase of growth. For Q4 FY 2026, the company delivered a strong quarter. The total revenue of INR 344.6 crore, representing a 69.2% year-on-year increase. Operating profit is INR 86.6 crore, up 80.9% compared to Q4 FY 2025, with the operating margin expanding by 162 basis points to 25.1%. EBITDA stood at INR 52.3 crore, reflecting an 89.9% year-on-year increase, with the margin improving by 165 basis points to 15.2%.
Profit after tax amounted to INR 33 crores, making an exceptional 149.5% increase, with the PAT margin rising by 309 basis points to 9.6%. Building on this quarterly momentum, the company delivered strong results for the full fiscal year. Total revenue for FY 2026 reached INR 838 crores, up 68% over FY 2025, supported by continued demand across the company's key business verticals and disciplined execution alongside focused strategic initiatives. From a profitability perspective, operating profit reached INR 212.3 crores, reflecting a 45.3% year-on-year increase. EBITDA increased to INR 111.3 crores, up 71.6% compared to FY 2025, with the EBITDA margin improving to 13.3%. Profit after tax amounted to INR 64.8 crores, marking a remarkable 114.6% year-on-year increase, with the PAT margin expanding by 163 basis points to 7.7%. The company also reported order inflows of INR 1,694.4 crores during the year, contributing to a total order book of INR.
INR 1,961.4 crore as of 31st March 2026. The company's improved financial performance was further reflected in key efficiency metrics. Return on equity increased to 12.1%, while return on capital employed improved to 19.1% in FY 2026 compared with the previous year. As part of its strategic initiatives in FY 2026, JNK India also advanced its long-term growth strategy through the formation of a joint venture focused on green hydrogen and sustainable chemical and fuel technologies, enhancing its capabilities and positioning JNK India to capitalize on emerging opportunities in the clean energy sector. I am pleased to share that in its first year of operation, JNK Chemdist Technologies contributed approximately 7% to the group's revenue, making an important step in building the company's presence in clean energy and sustainable technologies with about six months of operation only.
Looking ahead from FY26, JNK India is focused on executing its project pipeline and strengthening its presence in key sectors including refining, petrochemicals, fertilizers, and renewable energy. The company will continue to advance its strategic initiatives, including the green hydrogen and sustainable chemicals joint venture, to expand technological capabilities and participating in emerging clean energy opportunities. Hence, we expect a revenue growth of around 25%-30% in FY 2027. With operational efficiency, project execution expertise, and an expanding presence in both Indian and select international markets, JNK India is well-positioned to meet evolving industry demands. The company remains committed to leveraging its engineering strength and strategic partnerships to drive sustainable growth, enhance market presence, and deliver long-term value to stakeholders. Thank you.
Thank you, Arvind sir, and good afternoon, everyone. I am pleased to take you through the detailed financial and operational performance for quarter four and financial year 2026. During quarter four FY 2026, the company recorded total revenue of INR 344.6 crore, a 69.2% increase over INR 203.6 crore in the same quarter of FY 2025. On the profitability front, operating profit for quarter four FY 2026 was INR 86.6 crore, reflecting a growth of 80.9% year-on-year with an operating margin of 25.1%. EBITDA for the quarter stood at INR 52.3 crore, showing a remarkable 89.9% year-on-year increase with an EBITDA margin of 15.2%. Profit after tax for quarter four FY 2026 was INR 33 crore, reflecting an exceptional 149.5% year-on-year growth with a PAT margin of 9.6%.
During FY 2026, the company recorded total revenue of INR 838 crore, a 68% increase over INR 498.7 crore in financial year 2025. For FY 2026, heating equipment contributed 72.7% of the revenue, process plant contributed 17.4% of the revenue, and special fabricated equipment contributed 3.1%, and flare, incinerator and other segments contributed 6.3% of the revenue. As of 31st March 2026, our order book remains strong, standing at INR 1,951.4 crore with a well-diversified composition. Geographically, 97.5% of our current order book is driven by Indian customer requirements, and 2.5% of the order come from international market. In terms of the vertical, heating equipment remains the largest contributor to our order book, accounting for approximately 94% of the total order value. The process plant sector follows with a contribution of 3.5%, while our new segment, special fabricated equipment, contributes 1.3%.
Flare and incinerator account for around 1.2% of the total order book. JNK India's financial performance in FY 2026 reflects strong capital efficiency and disciplined management. The company delivered a return on equity of 12.1% and a return on capital employed of 19.1%, underscoring effective utilization of equity and overall capital to drive profitability. Looking ahead, JNK India will continue to emphasize financial discipline and capital efficiency in FY 2027 as well. The company is focused on sustaining profitability, enhancing operating margins, and generating strong cash flow to support its ongoing operations and strategic priorities. With continued emphasis on cost management and efficient utilization of capital, JNK India is well positioned to deliver consistent returns and create long-term value for its shareholders. Thank you.
Shall we begin with the question- and- answer session?
Yes, please.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Bijal Shah from ICICI Securities. Please go ahead.
Yeah. Thank you for the opportunity, and congratulations on a great set of numbers. My first question is on the margin front. The EBITDA margin has been expanding sharply sequentially as well as the YOY. How much of this was driven by the project mix shift when we compare higher service component versus supply? What is the new normalized run rate for EBITDA? That is my first question.
Yeah. Hi, Bijal. Thanks. Basically, as you think quarter-on-quarter, I think we've been doing better in terms of EBITDA in the last year, and we had also projected this during our earlier calls as well. In the Q1, EBITDA was about 7%, Q2 was 12%, Q3 was about 14%, and Q4 we've crossed more than 15%. I would say more than the service and the goods mix, it's more to do with the project mix because the old projects which we had to execute, which did most of the part in the Q1 and Q2 would be completed in Q3 onwards, more onwards, the new project which we had also on the input accounting methods which we are accounting on. That has been coming to the picture.
14%-15% is what basically is the normal EBITDA, what we, going forward also, we expect in this range.
Okay. Basically, it was attributable to closure of legacy orders and pursuing of high margin orders, right?
Yeah. Correct.
Okay. My second question is on the Dangote Phase II refinery opportunity, which was mentioned in Q3 when you expected inquiries beginning for one or two quarters and order finalization around Q3 if I'm not wrong. Has EIL issued any RFQs, and are you pre-qualified for both the pyrolysis heater as well as reformer packages?
Yeah. Basically, we have received both the inquiries, and we have basically pre-qualified for both and also for some more players as well. The pyrolyser requirement is expected to get finalized in this Q1 of this financial year, FY 2027, and the reformer may be Q2 or Q3.
Okay, sir. It's very helpful. I'll join back with you. Thank you.
Thank you.
Thank you. The next question is from the line of Aman Shah from Axis Asset Management. Please go ahead.
Good afternoon, sir. First question is, can you give an update on the waste handling package which you were expecting to get close to INR 200 crore, INR 250 crore and also on the clean fuel project, similar value?
Yeah. Hi, Aman. Basically, the waste gas handling opportunity at the export should get finalized any time, and we are almost in the final commercial discussions, et cetera, and it's maybe a week or two. That's what we're expecting to get closed. I think you're talking of the clean-
Fuel project.
..clean aviation fuel project. That, indeed, price bid has been opened, and we have lost that opportunity. We are not the lowest one.
Okay, sir. Second question is, a couple of domestic projects are coming online, where feasibility study is starting or almost started. BPCL is the big one and Haldia MRPL, IOCL. Could you give some project timelines roughly where, when do you see the bid pipeline opening up for these three, four projects?
Yeah. Basically, as far as the domestic market is concerned, there are certain opportunities in terms of the green initiatives as on now, which certain inquiries are already out, we expect it to pick for that soon. On the energy market or in terms of the petchem and the oil and gas, what you're mentioning about the BPCL Andhra or the other of IOCL, Paradip and Haldia, et cetera, I think it would take some time, because considering the current situation and also the crude oil pricing, which is affecting the Indian refiners a bit. We expect it would take a bit of a time for these projects to come online, maybe something like six months to a year or so. I think that's good for us because we have a lot of export opportunities now, mainly in Africa and Middle East and also Russia.
I think we have export opportunities to the tune of about INR 4,000 crore or so, which we would be bidding and which would get finalized in about maybe two to three quarters or so.
Sure, sir. My next question is in terms of our execution capability. If we have orders for, say, INR 2,000 crore, INR 2,500 crore to execute in a year, do we have that capability?
Year-on-year, we're building the capability because our order backlog itself currently stands at INR 1,961 crores, which itself is almost INR 2,000 crores, which we have to execute over a period of two years. Most of these projects, whichever we bid or in case we get as well, because the execution period generally is about two years or so. We do have a decision period of time in terms of the engineering procurement and the construction at site. As the projects unfold, we would be increasing our capability. We are already doing that for last two years or so, and we have also reached to a pretty decent stage. That's why we are forecasting a growth of around 25%-30% in this year itself.
My question was, say, for example, we have to execute Bina project, which is quite big this year, and say we get some big portion in Dangote also. FY 2028, can we do INR 1,500 crore-INR 2,000 crore sales in terms of if we get the orders, obviously?
Yeah. Basically, we will have to, in the sense, we also have to balance between our capabilities and what the market opportunities are there and a kind of a uniform growth, which basically mainly from a perspective of the handling capability and also the working capital in terms of the requirements. We will also have to look into that aspect so that what growth is possible to achieve. As we are looking, around 25%-30% year-over-year increase looks quite feasible.
Sure, sir. Final question from my side. Any major play we have in coal gasification project? A lot of things are about to happen in next one, two years. I believe we don't have any plain boiler, but any other process heater which is required in coal gasification or any other big off our products?
From the product perspective, in coal gasification, there is not really much. In terms of heaters requirement is there. However, in case of technology-based project execution or those aspects, we can look into. One more thing is even after coal gasification, basically downstream, people are looking at ammonia and urea because once you have gas, they also have to look at what other options they can do with carbon dioxide and gas. They are also looking at producing ammonia, where we will have a play in terms of reformers or also building the complete plant.
Yeah, sure.
These were my questions. Thank you.
Thank you. The next question is from the line of Shobhit Tiwari from DSP Mutual Fund. Please go ahead.
Hi, sir. Sir, one question. Sir, operating cash flow in the last three years has been negative. This year, although that has improved significantly, any guidance when can we see that turning positive?
Yeah. Hi, Shobhit. If you see from the last year, we have improved a lot in terms of the operating cash flow. I think this improvement will continue further in terms of we are working on the working capital improvements on a day-to-day basis to improve this overall cash flow position for the operations. It also depends on the project actually, Shobhit, because earlier we had more orders, majority from the PSUs, where the payment terms are quite skewed. Most of the payments are towards the end, whereas now the projects are more also with the private customers, and if it is from exports then basically the better payment terms in terms of the down payment and things like that. That helps in improving our cash flows. Yeah, we are consciously trying to achieve.
Sir, can we see that number turning positive in FY 2027?
What is the positive number, the cash flow?
Yeah. Operating cash flow you're talking?
Yes, sir.
Yeah, it is positive. Not in a larger scale, but yes, it is positive at least.
Got it. Thanks, sir.
Thank you. The next question is from the line of Darshan Zaveri from Crown Capital. Please go ahead.
Hello. Good afternoon, sir. Thank you for taking my question, sir. Firstly, congratulations on a really great performance in Q4, sir. Sir, just wanted to understand, what is the seasonality in our business, right? Is Q4 the heaviest, or how does that work, sir?
Hi, Darshan. Yeah, generally, the Q4 has been the heaviest because of various reasons in terms of also the supplies from the suppliers and essentially how it turns out in these industries. We are trying it to a not fully extent possible. I think ideally Q1 I would say the revenue would be lower and Q4 would be the highest, and Q2 and Q3 would be moderate.
Q1 would be ideally the lowest, sir. Sir, I just wanted to understand with the war and the geopolitical situation, has that impacted the higher cost of goods for us, or how is that like? Do we have the ability to pass it on, sir? How would that factor into our EBITDA margin, sir?
Basically, Darshan, in terms of last quarter, it has not impacted us much, except maybe in terms of few delays in terms of the export shipment or the import shipment. Other than that, it didn't impact. There could be a little bit of issues in terms of the commodity pricing basically. That's how we also don't want to do too much of a positive side on the EBITDA margin. We're doing a bit conservative approach as well.
No, that's really fair, sir. Just when we have a lot of, I think we were talking about INR 4,000 crores order book, like order bidding. Ideally for the year, what is the inflow we are targeting, sir? Will any of that new inflow get converted to revenue in current year itself? whereas we've given a guidance of around INR 2,000 crores, but if we get new orders, we can over-perform, I think, right? Sorry, our 20% growth. we can, I think, over-perform that if we get new orders, or how would that ramp up be of new orders, sir?
Yeah, basically, we have kind of projected a 25%-30% revenue growth for the next year. In case of any new orders do come, however, new orders, they do take some time. Generally, for the first two quarters, the revenue booking will not be there or will be very minimal. Third quarter onwards in any of the large orders, the revenues do start booking. Yes, if we do get any sizable order in the Q1, we could see some visible revenue in Q4 also. There is a chance to outperform Expected Revenues in the next year as well, in case we get some good orders in the Q1.
Okay. Fair enough, sir. What is the order inflow target for this year? What do you feel out of the business? What would be our win rate, sir? How much could we convert, sir?
See, generally our conversion rate has been 25%- 30% of whatever the big pipeline we bid. From that perspective, we are able to get somewhere around INR 1,300 crore- INR 1,500 crore of order book. That also would be good enough for the growth, what we are anticipating for next, say, two years or so.
Okay. For this, will we need any more CapEx, sir? How is our utilization in that term like?
Per se, to achieve this expected revenue growth for next year, that way, we don't really need much of a CapEx. Yes, we are trying to see, establish maybe a comparatively smaller facility domestically as well, just to do some critical work. Whichever is the more critical fabrication and have some critical item storage kind of a thing. We are looking at that option because currently our facility is mainly meant for the export.
Okay. How much would that CapEx entail, sir? Just going a bit beyond that. By FY 2028 we would be near full utilization, right? Any plan, either organically or inorganic type of growth that we would want to do in terms of CapEx?
No, it will not be a much amount per se. Comparatively, it will be just a smaller amount even if we do certain investment, per se.
Okay. Fair enough. I'll get back in with you on more questions but yeah.
INR 10 crores, INR 15 crores. Yeah.
Okay, fair enough, sir. Thank you.
Thank you. The next question is from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.
Yeah. Thanks for the opportunity and strong set of numbers. Just one question on the part of Dangote. I know that entire street is excited about that only. With regard to that, how is the competition there? Like, say earlier we used to hear the name of KTI only. Now we are also hearing that Technip Energies and various other bidders are also there this time around. How is the competition there? You have highlighted the timelines for that, but can you brief just about the competition there?
Hi, Kamlesh. Thanks. What we are seeing is Dangote, obviously EIL being a consultant, so EIL approval list also is there. Generally they do go as per the EIL acceptance, though Dangote is a price-conscious customer. What we have seen is they do accept only very reputed suppliers in terms of these critical items, this being very critical equipment. Though there are some bidders from China or not so reputed bidders from Europe. We don't think that Dangote would consider them. In terms of your specific question about KTI do not quote for EPC projects nowadays because they do not, and mainly in a country like Nigeria. That is the reason there are a couple of other reputed European players in competition with us at Dangote this time.
We are quite sure the way things are, the competition will be very fair and only with very reputed players only.
Yes. Okay. Sir, apart from that, this fertilizer project is also there. What timeline do we see there, sir?
Yeah. That is exactly I mentioned about the reformers. Reformers is for the fertilizer project which is coming up, where we have already received the inquiry. The bid submission would happen in the Q1 and we expect the finalization either in Q2 or Q3.
Okay. With the refinery part, the bids have been put in. It's just a matter of time who is the winner there.
Yeah. There I think the refinery part, the way situation is, I think it would get finalized in Q1. Apparently it looks like that. Maybe few weeks here and there.
Okay.
In Q1.
Thanks, sir. Thanks a lot, sir. Thank you.
Thank you. The next question is from the line of Anshul Reddy from LKP Securities Limited. Thanks. Please go ahead.
Hello, sir. First of all, congratulations on the numbers. Just one question to add on the cash flow. We have seen a good set of growth in revenues and profit, but cash flow from operations was still negative. A major article driven could be an increase in unbilled revenue this time, and if yes, what's the conversion period of this unbilled revenue into cash flow?
Conversion period for this unbilled is basically mainly the new projects which we are doing at this point of time, like I mean, in the cracking furnace and the process plants. Okay. These are expected to convert in another three months time. These are expected to convert into cash.
Okay. These are private tender contracts only, right?
Sorry?
These are not from PSU. That's what I mean.
These are primarily from the private customer only.
Okay. Other question is, what's the current exposure of JNK Global in our order book of INR 1,960 crores as of now?
As of now, it is about INR 1,600 crore or so.
Got it.
That's mainly because of BPCL Bina, which is a main project.
Yeah. Sir, just one last question on the margins front. We saw a big compression of margins last year due to change in accounting policies, et cetera, and due to old execution of old legacy orders as well. Can we pretty much assume these are the normal margin levels that will be continued, and any sort of guidance for the margins going ahead in FY 2027?
Anshul, I think our endeavor is to keep the margin around similar lines, what we have achieved in Q3 and Q4. That is about 14% and 15%. I think we'll be quite hopeful that we should be able to achieve that.
Okay, sir. All the best. Thank you.
Yeah. Thank you. Thank you, Anshul.
Thank you. The next question is from the line of Jainam Doshi from Chris PMS. Please go ahead.
Congratulations on a great set of numbers, sir. Just wanted to ask about the Chemdist opportunity going ahead, and as it currently contributes around 7% of the total turnover of the company in just six months of operation. How do we see it inching up going ahead? Also, if you could highlight how's the order book shaping up there and bit pipeline. Just a qualitative color on this.
Yes. You know things are, I think, we definitely feel it's such a good kind of a JV, the startup for us, and we're quite bullish and quite confident about the way things are going. For your information, they've already received a green hydrogen project from Pune Hydrogen Valley in the last financial year, which will be executed in this financial year. Yes, as you said, the revenue was about 7% by six months of operation. This year onwards, for first couple of years, we confident of adding about 10%-15% of revenue to our books from Chemdist.
More than that, I think we could see some technological good opportunities in terms of green hydrogen or clean fuels, because they have a different kind of technology, not a typical electrolyzer or the normal technologies which are there in the market. Which we feel could add value as we go ahead more and more.
Got it. Thank you for the detailed explanation. That was it from my side. Yeah.
Thank you.
Thank you. The next question is from the line of Maitry Shah from Sapphire Capital. Please go ahead.
Yeah. Hello. Now audible?
Yeah.
Hello.
Yeah.
Sorry for the basic questions. I'm new to the company. Firstly, on the capacity side. You said our current capacity is only executing export orders, and our order book has close to 2.5% of export orders. Most of our domestic orders are being kind of done outsourced. Are we manufacturing them with outsourcing facilities? How is the capacity working?
Yeah. Yes, Maitry. I mean, basically, ours is the products what we have has a strong design and engineering background. More focus is on the thermal engineering and mechanical engineering, which is completely done in-house. We have about 120 engineers who are into the engineering aspect of it. That's the core technological advantage what we have. As far as the manufacturing is concerned, the fabrication can always be done outside because it's pretty complex and large structure. It is easier if you are able to do it more closer to the site, considering the logistic issues in India. That's how we, depending on the projects or where the orders may be had, we select a suitable or approved fabrication shop. We could also do the certain work at site as well. This is how we execute the projects.
Also there are a lot of specialized bought out components which we buy from approved suppliers from India.
Okay, that is great. Secondly, on the JV that we have, you mentioned that we want to grow to a 10%-15% revenue contribution from there. Do you have a specific order book for that, or is it currently included in our INR 1,900 crore backlog?
Currently, the order backlog from there is about INR 70 crore or so. That's included in the consolidated order book, what we have .
Okay. Are we bidding for more orders, or what sort of bids do we have right now on this side?
In the JV or in the main company, may I say?
No, in the JV.
In the JV. Yeah, in the JV there are many opportunities, and they do have a big pipeline of almost something like INR 200 crores, mainly in chemical, pharma, and water-related projects for the equipment and technological projects.
Since these are, you said, with unique technologies, do you get a better margin on these, upwards of 15%-17%? How does the margin scale-up happen on your end? Also for the JV decision?
Yeah. Basically, currently, the technologies are not yet commercially, completely proven. We just have one first project from Pune Hydrogen Valley, which will be implemented this year. It will take maybe a couple of years more where the technologies, what they have in the R&D and in the certain TR stage will get approval in which to commercialize. Only after that we could see a margin improvement with Chemdist. As of now, we're doing more projects on a competitive basis.
Understood. Okay. Perfect. Any CapEx number you would mention for the specific you said you are going to put some smaller CapEx plant?
Yeah, correct.
As a complement.
Yeah, that's the only plan what we have as of now.
Any quantification on how much you are investing?
That could be about INR 10 crores-INR 15 crores or so.
INR 10 crores-INR 15 crores. Okay. For FY 2028 as well, we are expecting a 25%-30% growth. Is this us being on a conservative side, or are we seeing all the interest coming in on the later half of this year, so them being executed in FY 2029?
Yeah. Considering our current order book and the big pipeline what we have, growth of around 25%-30% for the next two years is what looks quite practical and achievable.
Okay. Yeah, that's it from my side. Thank you all.
Yeah, thank you.
Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. The next question is from the line of Amitabh Vatsya from Southern Ventures LLP. Please go ahead.
Congratulations on a great set of numbers, sir. My question is with respect to the Dangote, where we are bidding for the project. Is it a combined bid with JNK Global, or it is a standalone bid in both the packages?
Hi, Amitabh. It will be a combined bid because, basically, the first project of refinery phase one was executed through JNK Korea. They were the prime bidder at that time. That was about eight to nine years back, and we were quite small at that time. It could be a combined bid. JNK Global would be the main bidder.
Okay. Most of the project management will be done at our end.
As of now, yeah. That's the plan. Most of the execution, engineering, management, everything will be handled from India.
Okay. I have one small question with respect to green hydrogen. When we are talking about green hydrogen this time, do we have any pipeline? Can you just share some contour of kind of projects which we are looking at? Although it would be very small, but can we draw where our equipment or Chemdist equipment would be used? Are we seeing some action on solar EPC side also because in the past we have referred to that also?
Yes, Amitabh. In terms of the green hydrogen, basically, Chemdist has a couple of three different technologies towards green hydrogen. They don't really traditionally have the electrolyzer or such technology. What they do is, from say, green ethanol, they would produce ethyl acetate and hydrogen. Where hydrogen is a by-product, that's where, basically, cost optimization happens. The cost of producing hydrogen works out much less. That is what Hydrogen Valley was impressed, and they awarded that contract to Chemdist. This is the kind of technology they use, which is more based on that they have a special catalyst where in the advantage is you don't have to go through a traditional route of acetic acid for manufacturing ethyl acetate. From ethanol to ethyl acetate, plus you get a hydrogen as a by-product at a lower cost.
There is no kind of a defined market as of now for this, because the technology has to be proven on a commercial scale. With this plant we're putting up in this year, it would be hopefully to ensure that we prove it and run it in next year. After that, there could be larger opportunities for that.
Okay. About any solar work?
Solar work, the intention of doing solar work was for putting up the green hydrogen project. We do get qualified for the green hydrogen project even for an electrolyzer basis. Of the reformer technology, we handle the gray hydrogen. Based on that, we do get approved for green hydrogen projects as well. When we had initially quoted for a couple of projects, we just wanted to have a Solar EPC along with that. As a standalone, we are not keen to do on a Solar EPC because we don't see much of technological value addition and value creation in that area.
Okay, wonderful. Thank you for the answer.
Yeah. Thanks, sir.
Thank you. The next question is from the line of Kumar Saurav from Scientific Investing. Please go ahead.
Hello, am I audible?
Yes, Saurav, you are.
Congrats for a great set of numbers, sir. My question is more on the contract and raw material pricing. Some of these contracts are executed over a two-year plus period. If the raw material prices increase, do we have clauses to pass it to the client or how does it work?
Hi, Saurav. Generally we do not have the clauses to pass it on to the customer. Yeah, there are some PSU customers where those clauses are there, but it's to a very lesser extent. However, what we do is, the direct commodity exposure is not so much. It's quite limited for us. However, what we do is, whatever the exposure is there, we try to place the order immediately within, say, first month or one or two months of we receiving the large contract so that we've done the pricing according, and we also close those contracts immediately.
Okay. sir, my second question is on the total addressable market. In the oil and gas refinery sector, whatever projects are there, is there a ballpark estimate, like 2%-3% of that project cost is what is our target market, if we want to get a sense of it? Second related question is, because bulk of our current revenue is coming from domestic market, are we targeting only domestic or do we have plans for export market also once we reach certain order execution size? What will be the addressable market there, if you can combine the domestic and global addressable market and give some color to it?
Yes, Saurav. Basically, to answer your first question in terms of refineries and petrochem or these kind of projects. They are traditional products only, which is fired heater, reformers, cracking furnace and now on, say, flares and incinerators. Basically, the percentage of the project value what we can target is something like maybe 6%-7% of the total project cost. That's the kind of opportunity what we have. However, what we are also doing is that as we are growing, we are trying to have more diversified but technologically niche product portfolio as well. That's how we've kind of executed couple of other opportunities where in technology-based process plant and also green fuel projects. We're quoting some of these kind of opportunities as well.
We do get qualified for such opportunities and which is pretty niche in nature and has a technology advantage so for us to get into that field as well. In terms of exports and domestics, this is depending on the opportunities, what we have and what kind of advantage we can get going over a period of time. That's what we focus on because we've traditionally done a lot of exports as well. We've done exports to Nigeria, we've done exports to Mexico, and we've also done exports to Algeria and Middle East as well. Yes, currently in last two, three years there's been more domestic because a lot of large opportunities came in India. That's why we're focusing on domestic. However, our big pipeline, as I mentioned earlier, is now more towards exports.
We're quite confident that next two, three years the exports also could be scaled up substantially.
Okay. Sir, margins are similar in exports or is it higher or lower compared to domestic?
It generally depends. In a comparison mode it could be slightly better. There are also certain issues in terms of whether it is including the construction, without the construction, just the engineering and supply and things like that. Also depending on the competition landscape and the type of projects what we have, whether it's just a product base or a large complex project. Some projects could be slightly better, whereas if we really want to enter a country or enter into a new market, we may have to give a bit of a more competitive nature to ensure that we get the orders. That way.
Got it. Sir last question I have, because we get lot of IP and patent support from the parent organization. I'm new to the company, I'm still studying, but is there some kind of royalty structure and if so, what is it? Do you see any change in the royalty structure and all for next two, three years if there is so?
I mean, the current arrangement is that any projects they build outside Korea, basically they take our support and most of them are subcontracted to us at agreed price during, before the pre-bid itself what price we quote based on that. There's no royalty for that as well because it's already subcontracted to us. In case we quote outside India, if it's within India there's no royalty as such. However, if we quote outside India and we take the order in our name that is on JNK India for the items which are common with JNK Global, which is fired heater, reformers and cracking furnace. Then we do kind of pay a technical fees to them up to 2% of the order value. It can also be negotiated.
What is the share of such projects in the order book?
Currently, I don't think it is anything significant in terms of what we have taken the orders directly from the exports is not much because most of the market, the orders what we have is domestic, either on JNK India's name or domestic through JNK Global, but on JNK India that way. There's no royalty per se.
Got it. Thanks a lot, sir, and wish you all the best.
Thank you.
Thank you. The next question is from the line of Priyansh Mehra from NGP Family Office. Please go ahead.
Hi, sir. Great set of numbers. I'm also new to this company, sir, tracking it. I just want to understand out of our current order book standing around INR 1,900 crores, what would be our execution timeline, sir, based on our current capacity?
Yeah. It's about two years is what, within, say, next two years, we'll have to execute them. A quarter here and there, depending on the project completion stage and things like that .
Sir, for full year FY 2026, what was our capacity utilization fee?
See, for us, there is no exactly capacity utilization per se because our, as we discussed earlier, it depends. Basically, the two main key factors, what we have is the, one is the manpower, the people who can actually design and do engineering and the procurement and project management in the company. The other is obviously the working capital, which is required to execute the project. Because in terms of actual manufacturing or the site work, that we can also do outsourcing.
Understood, sir. Sir, one more question on the order book. Can you also let me know what is the split between the JV order book percentage versus our legacy business order book percentage?
Out of INR 1,961 crores, JV is about INR 67 crores or so. 1,890 crores is the JNK India order book. Out of INR 1,890 crores, the legacy orders would be about 40, 50 crores, maybe around 40 crores or so. 1,850 crores would be all the new order book.
Understood, sir. One last question, sir. Based on our currently bid pipeline, for the next year ending, what is our tentative or any range of the order book, if you can share, that you could get end in after one year?
That's a very difficult one.
Any rough estimate, sir.
We would definitely like to, the way we're going, say last year, our order book was about say, INR 1,000 crores, and this year it's about INR 1,900 crores. considering what are the possible bid pipeline, what we have, and the kind of execution, what we are expecting in this year, we hope to cross say around INR 2,000 crores order book next year.
Okay. That is it for my end, sir. Thank you. Thank you for this question.
Thank you.
Thank you. The next question is from the line of Krishna Yoga from Family Fund. Please go ahead.
Hi, sir. Thank you for the opportunity. most of my question has been answered. Sir, actually, if you see the order book, majority of the order is actually from the JNK Global. In the last call also, you have mentioned that since our execution is very good, we have proven some
Yeah.
Africa. are we going to bid on our own, like a bigger order? Can we expect the individual company orders in the going ahead?
Yeah. Hi. Thank you for the question. See, basically, we do already bid on our own for bigger orders as well. The one on the cracking furnace order, which we're executing currently in India, is being bid by us directly, and we are executing it on our own, which the total, I mean, there are two orders. The size is about INR 650 crore is what we'll be completing the execution this year. Wherever it is, because these are very technically complex and also the commercial is many requirements the customer has to meet the bidding criteria. It depends on that, whether we do get qualified sometimes, and sometimes we don't. We have to take a support from JNK Global.
The intention is we get qualified for the critical projects so that our qualification criteria improves as we go ahead and we can execute more and do get qualified for more critical projects.
Okay, sir. That's clear. Sir, in the bidding pipeline, you said around roughly 4,000 CR order book, I mean, the pipeline is there. In that, our individual, how much order book is there like in the pipeline from individual bidding without JNK Global?
I would say in the INR 4,000 crores of bid pipeline, there would be about, say, INR 500 crores on individual, on JNK India itself, which we've bid or which we'll be bidding. About two and a half to three thousand crores is what along with JNK Global. it's not only from a, say, criticality from a point of view of the PTR or the proven track record of the technicality. Also from a commercial standpoint, sometimes it does help because in India, the bank guarantee, because these are in the large contracts, the bank guarantee requirements are also quite large. Getting the bank guarantees in India is still a bit of a difficult situation, where in it is comparatively, I would say, easier in Korea.
It also makes our life, to that extent, easier wherein JNK Global is there, so they can submit the bank guarantee and it's easy for the cash flows and the working capital as well.
Got it, sir. Sir, one more question about the margins. You mentioned that 14%-15% range you are going to continue in the going ahead. Previously, two years back, we used to really enjoy very good high margins. Maybe not immediately after two, three years, are we going to go into that kind of number in the future? Like 20 odd EBITDA margins?
Actually, 20 odd one was only for a year or so. Basically, earlier we were executing comparatively much smaller product-based orders. The order value was about 50 crores, 100 crores or so. The technological advantage what we had was easier to get a comparatively better margin. As we have now increased our scale and also in terms of the quantum of the order values, now the order values are upwards of 500 crores, and the projects are including the site installation and also very critical and complex nature also goes for a period of, say, two years-three years. Considering all this, we feel the EBITDA margin of 14%-15% is more sustainable and it also makes, I think, more practical to achieve them and guide them for future as well.
Okay. Got it, sir. Present geopolitical conditions, I know you're mentioning 14%- 15%, so even with this current situation, with FY 2027, you are sure about maintaining this margin, 14%- 15%?
That is what, considering the current order book and the current situation, that is what we feel we should be able to achieve.
Okay. Yeah. The last question, if I may. Actually, in the backlog of JNK Global, around 1,000 crores were there. What is the number we are going to expect the remaining backlogs from the JNK Global orders from this year, in this current year? Can we expect another 500- 600 crores of order inflow from the JNK Global?
That depends. It's kind of a bit difficult to exactly answer that between JNK Global and direct. Comparatively in the big pipeline, as I mentioned, the more opportunities are along with JNK Global because these are quite large projects in Nigeria and this thing. Because of which, the order per se inflow could be more from along with JNK Global for the new year as well, in this year as well.
Thank you. Thank you, sir, for answering all the questions. I'm done, sir.
Thank you. The next question is from the line of Aman Rich from Asset Investment Management. Please go ahead.
Yes, sir. My next set of questions will be on export business. You talked about Middle East can be an important piece for us. Could you talk about how big can this business become for us in next one, two years? Also, Russia has been stuck for many years. Is there any change now? On U.S.A., we had won some initial orders, but we haven't heard any repeat orders. Could you update these two, three things on export business? I can talk about next question.
Yeah. Middle East, as I said, even the current, there's an expected kind of order finalization which is in Middle East. Other than that, there are certain investment expected. There's already one project, one fertilizer project, which had a large opportunity. However, it got stuck possibly due to the current situation. That should also open up. Say next two, three years, we do feel there could be an opportunity upwards of say INR 200 million-INR 300 million in Middle East, something like that, depending on the fertilizer and the petchem opportunity. Other than that, in terms of Russia, yes, there were many projects which we had made, but they got stuck for last two years or so. Now one project which is quite in advanced stage of discussion, they're saying that they would finalize in a quarter or two.
We still have to see how does it pans out. In the U.S., we are trying to do some inroads, and the first supply is almost getting completed now, the first order what we had received. We hope that we could get some more opportunities as well.
Yeah. Awesome. My next question is, earlier, sir, H2 used to be dominated by H2. It used to be almost 2x H1. For this year it was almost equivalent, 55/45. Do you expect such ratio to continue for FY 2027?
I don't think we did a 55-45 in H1 and H2 because as I saw, even this year H2 is dominant in comparing to H1.
In terms of revenue?
It is in terms of revenue you're mentioning or?
Yeah.
In terms of revenue, right?
Yes. Maybe 40/60 can take, so
Does that answer your question, Mr. Aman?
No, I think what we did, if I'm not mistaken, we did about a similar fashion. I think we did about 65% in H2 and 35% in H1. I think this is almost H2 was almost double of H1. We will try to see if it could be a bit more uniform. There are a lot of related issues in terms of the supplies and things like that.
Even for this year, whatever we are guiding, 25%, 30% growth, it is mostly, say, 2/3 will be in H2 only. The Bina and the bigger ones deliveries and-
Could be around the 40/ 60 or so. That's the kind of listing what we're looking. Because then what happens, Q4 becomes heavy, then the Q1 becomes a bit on the downside. Based on that, we can anticipate something like 40/60.
Okay, sir. Final question is on cracking furnace side. When do you expect another big order from this side of the business?
It depends. I think it's not only the cracking furnace is a big opportunity, the reformers also is a big opportunity. Currently what we're bidding for, say, fertilizer projects for reformers, that is also almost a very big size of opportunity. Even the fired heaters or the similar projects can also be big opportunities. We do have such opportunities other than the cracking furnace as well, even for this year. Actually, per se, specifically for cracking furnace, I think the opportunity could come sometime in FY 2028.
That you're expecting from the same BPCL Andhra only, right? Or any other project also?
BPCL Andhra is there, and there's also expected cracker in Africa. Also IOCL Paradip also is a bit of a stuck for time being, so that could also come up.
Haldia, we are not active on bidding because that might come.
It could come because we are in the licensor approved, per se. As long as the project moves and there is this thing traction, so we would look at biddings for Haldia as well.
Sure, sir. Leave for my question. Thank you.
Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.
Thank you for all the questions, and you can reach to Ami for any further clarifications on these. Thank you.
Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.