Ladies and gentlemen, good day and welcome to the JNK India Q2 and H1 FY 2026 earnings call. As a reminder all participant lines will be on 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Akshit Gangwal from IIFL Capital. Thank you, and over to you, sir.
Thank you, Shlok. Good afternoon, everyone. On behalf of IIFL Capital, I welcome everyone to JNK India's 2Q FY 2026 earnings call. We have with us today Mr. Arvind Kamath, Chairperson and Whole-Time Director, Mr. Pravin Sathe, Chief Financial Officer, and Ms. Annie Varghese, Senior Manager, Investor Relations. Without further delay, I will now hand over the call to the management for their opening remarks, which will be followed by Q&A. Over to you, sir.
Good afternoon, everyone, and thank you for joining us today for JNK India's Q2 FY 2026 earnings call. I am Arvind Kamath, Chairman and Whole-Time Director. We appreciate your continued interest and support as we progress through another strong quarter. I am pleased to report that Q2 FY 2026 has been a resilient quarter for JNK India, with a total revenue of INR 1,842.1 million, reflecting a 71.6% year-on-year growth. Our operating profit and EBITDA for this quarter also reflect a stable performance with significant improvement in both. We are pleased with our ability to maintain our margin despite the challenges in the broader market. For H1 FY 2026, we achieved INR 2,871.8 million in total revenue, reflecting a 44.9% year-on-year increase for the first half year.
During this quarter, we also secured an ultra mega order from JNK Global Company Limited for providing design, engineering, supply, and construction for a cracking furnace package at a petrochemical project in India. This is the largest single order win for JNK India till date, contributing to the expansion of our order book to INR 18,499 million as of September 30th, 2025. This order is particularly significant as it strengthens our position in the critical combustion equipment and the upcoming petrochemical sector, which continue to experience strong growth driven by both Indian demand and infrastructure expansion. This petchem project is expected to contribute to JNK India's long-term revenue stream while also enhancing our capabilities in executing complex, high-value projects.
With rising demand in these sectors, this order reinforces our market position and the trust in our engineering excellence, further strengthening our order book and providing strong revenue visibility for the future. In addition to securing key contracts, we also made important progress in expanding our business into the clean energy sector. During Q2 FY 2026, we formed JNK Chemdist Technologies Private Limited, a joint venture with the founders of Chemdist Group. This company will focus on green hydrogen technologies and sustainable chemical and fuel solutions. By combining JNK India's engineering expertise with Chemdist technology in green hydrogen and sustainable chemicals, this joint venture, a subsidiary of JNK India, will significantly enhance our product portfolio, enabling us to offer cutting-edge sustainable solutions. The JV not only strengthens our position in the green energy space, but also gives us access to international expertise and a growing market of clean energy projects.
The combination of our growing order book and the formation of our strategic joint ventures provides us with the unique opportunity to capitalize on both traditional and emerging sectors. 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 long-term success. With a strong pipeline of projects in the refinery, petrochemical, fertilizer, and green energy sectors, we are confident in our ability to drive a sustained growth. The company will continue to focus on centering its market presence, expanding its capabilities, and delivering value through innovation and operational excellence, ensuring long-term growth and success. With that, I would now like to hand over to our CFO, Mr. Pravin Sathe, to take you through the financial performance for Q2 and H1 FY 2026. Thank you very much.
Thank you, Mr. Kamath. Good afternoon, everyone. I'm Pravin Sathe, CFO of JNK India Limited. I will now take you through the financial performance for the quarter two FY 2026 and H1 FY 2026. Starting with Q2 FY 2026, we are pleased with the strong performance driven by the strong revenue growth and improved operational efficiency. Total revenue for the quarter was INR 1,842.1 million, reflecting a 71.6% year-on-year growth. This growth was primarily driven by the strong performance in our core sectors, particularly the heating equipment. The revenue from heating equipment remains the largest contributor, making up approximately 80.3% of our total revenue in Q2 FY 2026. While the process plant and flares, incinerators, and others contributed 11.8% and 8% respectively.
Our operating profit for the quarter two FY 2026 was INR 454 million, representing a 34.6% year-on-year increase, with an operating margin of 24.6%. Our EBITDA for the quarter was INR 223.4 million, reflecting a 44.7% year-on-year increase, and the EBITDA margin was 12.1%, up from 7% in Q1 FY 2026. Profit after tax for Q2 FY 2026 was INR 130.2 million, reflecting a 68.1% increase year-on-year with a PAT margin of 7.1%. The strong performance in Q2 FY 2026 was driven by significant revenue growth across key sectors such as heating solutions and petrochemicals, supported by higher order inflows. Additionally, improved project execution helped drive higher profitability. While the strong order book provides continued revenue visibility for the future growth.
For the first half year of FY 2026, our total revenue was INR 2,871.8 million, showing a 44.9% year-on-year growth. Operating profit for H1 FY 2026 was INR 696.3 million, with an operating margin of 24.2%. EBITDA for the first half year of FY 2026 was INR 295.1 million, reflecting a margin of 10.3%.
Profit after tax for H1 FY 2026 was INR 141.5 million, reflecting a margin of 4.9%. As of 30th September, the order book stands at INR 18,499 million, up from INR 13,116 million in H1 FY2025, reinforcing strong revenue visibility for the coming quarters. Our operating expenses increased by 88.5% year-on-year in Q2. Despite these increases, we were able to maintain our margins on account of strong revenue growth and project execution efficiencies. I'm also happy to report that our cash conversion cycle has significantly improved to 76 days in H1 FY2026 from 232 days in H1 FY2025. We remain committed to executing on our order book efficiently, while also leveraging the opportunities arising from the green hydrogen sector. Both efforts will drive sustained growth and ensure JNK India's continued evolution as a leader in engineering solutions pertaining to combustion equipment and sustainable energy. Thank you.
Thank you very much, sir. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. The first question comes in on the line of Kamlesh Bagmar from Lotus Asset Management. Please go ahead.
Yeah. Thanks for the opportunity and congrats for excellent performance. I have one question for Mr. Kamath. Sir, how do we see our order pipeline going forward? We have INR 1,800 crore or around INR 1,900 crore of orders in hand. How do we see next six months, let's say, of this financial year in terms of order inflow?
Yeah. Hi, Kamlesh. Thanks. Basically, we still have some part of the petchem job, which JNK Global is executing. That order inflow would also be expected in next six months or so. Other than that, in terms of the big pipeline, exports mainly, and also to some extent on domestic, both are quite strong, even on a near term of, say, about six months to a year. We do have at least three to four firm projects which are going on in Africa and Middle East, and also Russia. Even domestic petchem. Now some projects are announced in fertilizer sector as well. Considering all this, I think in terms of big pipeline, we see a very good visibility going ahead as well.
Great, sir. Sir, if you can guide in next six months or nine months, whenever these projects come in or they firm up, let's say, what order book we see? As of now, we have INR 1,900 crore of order book, which is suffice to have, let's say, for next three years, at current run rate, at least three years of order book which we have. What level of order book which we see, let's say it would be significantly higher from the current levels, let's say from INR 1,900 crore levels. Where do we see ourselves or our company in terms of order book, which we see at the end of this fiscal year? If you can quantify that would be very helpful, sir.
Exactly quantifying becomes a bit challenging because these projects it takes some time to finalize per se, because even as you said, the current order book which will be executed in this fiscal year, next fiscal year, and also might a little bit spill over to the next to next fiscal year as well. Kind of exactly quantifying ways, how much we will be at the end of this fiscal year would become a bit subjective, though. Because the current order book itself is quite healthy for us with definitely a revenue visibility of next almost two years, I think we are in a very good wicket as on now.
Okay. In terms of bidding pipeline or whatever the pipeline orders are, which are there, are we seeing a significant increase in the activity? We had heard that some delay is there in case of ordering for refineries. Are we seeing significant jump in the ordering activity? How are we seeing over the last couple of months?
I mean, it is steady, yeah, we are seeing some improvement in terms of the fertilizer market as well. Petchem market already seeing a good growth even domestically, as another two to three projects are already announced and have started working on. Now going ahead, we also have come across at least two to three firm fertilizer projects as well, which also has a very good opportunity for us.
Okay. Last thing, sir, on this INR 1,900 crore of order book, what margin now we are guiding, sir? If you can elaborate on that.
The margins we have always guided on our normal margins the company has always tried and performed is in the region of EBITDA of around 13% - 16%. We kind of are confident of maintaining these margins.
Great, sir. Thanks a lot, and best of luck, sir.
Thank you. The next question comes from the line of Jainam Doshi from KRIIS Portfolio. Please go ahead.
Yes, sir. Congratulations on a good set of numbers. First would be what portion of our total order book contains the legacy orders? If it is a substantial portion of the number, then what is the execution timeline for the same which we are anticipating?
In terms of the very old orders, Jainam, you mean to say the legacy means the old pending orders?
Yeah, old pending, referring to.
Yeah. The old pending orders, it's almost diminishing now because most of them we executed in last couple of quarters. In terms of the percentage, it could be around, say, 5%, 6% of the order book. That's it. We would complete in next one or two quarters, those whatever the completion.
Okay. We'll have all the new orders or the recent orders which we have received left for the execution, right? The legacy will be completed. The legacy orders will be completed, yeah.
Yeah. That's correct. Yeah.
Okay.
Now also, we are, I think, executing more than 50% of which are the new orders only. Yeah.
Okay. Got it. Can you throw some light on the products or the solutions which we are looking for developing for the JV which we have done with Chemdist? What would be the addressable market size of such products?
Yeah. Currently, as far as JNK India is concerned, last year was the first cracking furnace order which we received, and now we have received one more order for the cracking furnace. This kind of giving us good references and good strength in terms of cracking furnace orders, which are the most high-end in terms of the heating equipment. We had not received the direct order for cracking furnace till last year. Other than the crackers, we have also gone into flares and incinerators, which you're aware of, which we received the orders last year. We are also bidding for some of the opportunities. Other than this, we are also bidding for some of the green hydrogen projects, and also like a sustainable aviation fuel and technology-based EPC project like what we're executing for HPCL.
In terms of the joint venture, which is Chemdist, JNK Chemdist, basically they are into manufacturing of some of the critical equipment, like evaporators, separators, reactors, and also some of the specialized technologies like green hydrogen and sustainable chemicals and sustainable fuels. It is a bit difficult to quantify the addressable market for Chemdist because it is quite diverse. They're also more focused into chemical and pharma, which gives us a good diversification in terms of the sector. In terms of the emerging technologies, how they will and which technology will catch up and to what extent is what we have to see. Definitely, this year and maybe one or two years, we are expecting that this JV will add at least about something like 10%-15% to our top line.
Okay. Good to know that. Lastly, are we looking at any other such collaborations for diversification or entry into other products or something like that?
We are open to any of the inorganic growth opportunities as well. We do keep evaluating in the similar space or adjacent technologies which we can add value in terms of our existing strength and giving the kind of opportunities what we can have. Even with Chemdist, we are kind of having a lot of opportunities in export market as well.
Okay, got it. Thank you. That's it from my end.
Thank you, Jainam.
Thank you. The next question is on the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes. Good afternoon, sir, thanks for the opportunity. My first question is, sir, what was the overall order value to the JNK Global? Out of which, I'm trying to figure out what percentage of order has accrued to our order book we have.
Hi. Good afternoon, Mohit. Basically, JNK Global received the contract value of around INR 2,600 crores, and what we have received till date is about INR 1,050 crores.
Understood. Sir, I understand that, of course, JNK Global was L1 at two places, right? Two places. One was BPCL Bina and the other was IOCL Paradip expansion, right? The other one, is it fair to assume that the other one is of similar size? Is it a fair assumption?
No, Mohit. In IOCL Paradip, the tender is yet to be floated. They have announced the project, and the inquiry has not yet come.
This one is BPCL, right?
Yeah, this is only BPCL. Yeah, correct. What JNK Global has received. Yeah.
Understood, sir. My second question is on the execution of this particular order. I understand that the project has to be completed by February 2028, somewhere around that, right? How the execution will happen over next three years? It will be lower in the first year, it'll be higher in the second and third year. Is that the way one should look at?
Generally, this happens in like our other projects. Initially for the first year, it would be a bit on the lower side because there wouldn't be more dispatches, and it would be a bit heavy on the second year because there will be lot of dispatches. Again, it will taper down on the third year, depending on the site completion and construction that way. Because we have now gone for the input revenue recognition method, this gives us a bit more uniformity in terms of the revenues on a quarterly basis and also margins on a quarterly basis.
Understood, sir. Thank you. All the best. Thank you.
Thank you, Mohit.
Thank you. The next question comes from the line of [Sagar Mehta] from Alpha Capital. Please go ahead.
Hello, sir. Thank you for taking my question. Sir, my first question is on the execution part in the second half of this year. Earlier we were guiding on 40% growth in this year. We were also saying that Q2 would not be that good. Q2 has come quite good. How are we expecting the second half? Because second half is generally better for ours?
Yeah. Hi, [Sagar]. Basically, the overall annual guidance, what we have given, so we are in line with that. Q2 yes, in terms of the revenues, it has come out all right. What we meant was the EBITDA margins. We still feel that we could go to our conventional, back to whatever guidance we had given. That's why we said it may not be that good. Yeah, I think next going Q3 and Q4, we should be able to do better. That's what we meant. Yeah.
Got it, sir. Sir, on margin side, I wanted to understand, in last, excluding the FY 2025, from FY 2021 - 2024, we were making 18%-20% of EBITDA margins. Can we go back to those numbers or something has changed in the industry, so we will not be able to reach those 18%-20% margins?
Yeah. Basically, see that time, we were following the output method. There was a bit of a difference in terms of the margin recognition. We were comparatively executing the smaller jobs. It was more product-oriented jobs, and the execution was more in terms of just supply than supply and construction. That is why in our guidance throughout, we just generally guided a margin of around 13%-16%, because as we execute a larger project, and also the more site construction, there are a lot of variables which cannot be completely controlled by us. As the project size goes up, there are many in terms of the complexities and variables. Also the time frame which goes on the project execution goes for about two years and three years.
This is the reason why we are kind of conservatively guiding a bit, whereas our endeavor is to do better. Let's see how we can reach.
Sure, sir. Given we have won such a big order, are we looking for winning more similar orders, both domestically as well as globally? Are we happy with what we have and now focusing on execution? What is our thinking, sir?
We are definitely looking for more opportunities as well, and we are capable, along with JNK Global, we are qualified and we are capable to execute similar projects. This order itself gives us also more reference and more capability in terms of getting qualified for further larger projects in the upcoming as well.
Is there any peak revenue potential? Do we talk about that, or peak potential, how much we can do annually?
In our business, there is as such no kind of specific number we can put, because these are depending on so many factors. Mainly we look at how is the finance availability to execute the contracts and the manpower availability.
Sure, sir. I also wanted to ask, given our stock price has fallen a lot, are we thinking in terms of any buyback or any thoughts on buying?
Nothing specific as such as on now.
Got it, sir. Thank you and all the best for more orders and more better execution.
Thank you.
Thank you. As a reminder, participants who wish to ask their questions may press star and one on their touch-tone phone. The next question comes from the line of Amitabh Vatsya from Sadhan Ventures. Please go ahead.
Thanks for the opportunity. Sir, my question is with respect to the cracking furnace order which we have recently won, since this is the second order which we are doing. What are the pipelines, if I talk about next two, three years for India or for, let's say, Middle East, where JNK Global also operates, where we have a right to win, where JNK India has a reach. How many more such order? I'm not trying to quantify the amount, but the number of projects which you can see in the pipeline.
Yeah. Basically, in India, in terms of such projects, in petchem, there are at least about two projects which are announced and which they have started working on in terms of finalizing the consultancy and licensors and things like that. In terms of the exports in Middle East and Africa and Russia, there are opportunities in the fertilizer sector. Not exactly in the petchem sector, but fertilizer sector, but the similar kind of significance in terms of the order. They will be reformers, basically, instead of cracking furnaces.
Okay. If I may ask you one question with respect to the one housekeeping question that you said, the cash conversion cycle has drastically improved. What is the reason? Is it just because of the phase in which we are operating in the legacy project, so that's why this has improved, or any structural reason for this?
Definitely, it was our endeavor to improve the cash conversion cycle. It doesn't happen like that. It is a conscious effort to reduce that. Definitely, the change in revenue recognition method and other things have also contributed. Since the legacy projects are getting over and more projects are towards the new revenue recognition method, this is also a positive effect on the cash conversion cycle.
Okay. It will literally mean a working capital saving, interest saving for you.
Yes, certainly.
Okay, sir. Thank you for the opportunity.
Thank you. The next question comes from the line of [Anshul J.T.] from LKP Securities. Please go ahead.
Hi. Hello, sir. Congratulations on a great set of numbers. My question was regarding working capital as well. I believe from the last two quarters, there has been some pressure in the working capital side from the PSU receivables accumulation, right? If you could throw some light on it, how is it right now?
As I answered the earlier question, since our cash conversion cycle has improved, the pressure on working capital has definitely come down. As the old projects are phasing out, the new projects are majorly Reliance and HPCL, which are very good in terms of cash conversion. Practically, the pressure which was there earlier on the working capital is now phasing out.
Okay, sir. Could you quantify what are the PSU receivables as of September 2025?
Quantify PSU receivables?
Not readily available with me right now. I can get back to you later.
Okay. No issues. If you could just quantify me the aging or what are the trade receivables greater than six months per age.
Greater than six months is not significant.
Not significant. Okay, sir. Thank you. That's all.
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Sir, one clarification. Of course, we used to get a lot of order from JNK Global. I don't see that the ordering flow in last three, four quarters has flowed in from the JNK Global. Is it possible to share the outlook? Am I right in my assessment, yeah?
I mean, Mohit, basically, this contract which you have received in just the Q2 is from JNK Global.
My question is primarily from, sir, export order. Yeah.
Yeah, export order. In terms of export orders, also we have received in the Q3 of last year or Q4 of last year as well, a couple of orders from JNK Global for export. One was for Malaysia and one was for U.S.A.
How do you think about for the H2, let's say, as we in the medium term? Do you think that this will pick up? As in sense, will it contribute 20%, 30% of our top line?
Yeah, definitely, Mohit, because as I said earlier, the opportunities in Middle East and Africa, so it possibly would be combined along with JNK Global. Yeah.
Any large order, any large tender which is expecting in the second half from the Indian refineries?
Indian refineries, okay, there are one or two opportunities, but not very large, I would say, in the next half till March.
Understood, sir. Thank you. It is all the best. Thank you.
Thank you. We would like to remind participants, if you wish to ask your questions, you may press star and one on your touchtone phone. The next question comes from the line of Akshit Gangwal from IIFL Capital. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity. Just wanted to check. For the existing orders from Reliance and HPCL, what is the execution timelines that we are looking at?
Yeah.
By when? Yeah.
Good afternoon. The HPCL, we would want to close it by Q4 for this year, and it looks good execution as on now for that. The Reliance, as we always said, would be Q1 of next year in terms of completion. Yes.
Okay, understood. You also mentioned that from the JNK Global, we have some more orders that may come in some more parts. If you have any sense on the size of the orders that you expect to receive going forward?
The opportunities pipeline in terms of the Middle East and Africa is in the region of about INR 2,000 crore-INR 2,500 crore, but that might take about a year to conclude.
Okay, I understand. All right, that's it from my side, sir. Thank you so much.
Okay, thank you.
Thank you. The next question comes from the line of Kamlesh Bagmar from Lotus Asset Management. Please go ahead.
Thanks for the question beyond follow. Sir, let's say our dependent is majorly on the oil and gas sector and petrochemical. Since we are listing, over the last one year, there has been hardly any orders, and we received a large order in this particular quarter or year. Going forward, if you can share from over medium-term or a one-year time period how much orders we are comfortable on, let's say, which we will always be having in hand. I know it's a very cyclical sector, but for our confidence as an investor how do you see, let's say, a sustainable growth story or a sustainable order book over the short to medium term?
Yeah. Hi, Kamlesh. Basically, see what we are also trying in terms of diversifying our product line and diversifying sectors and also the Chemdist joint venture, these are all efforts and areas to ensure that we have a sustainable and a more uniform growth and to reduce the cyclicities of the nature of the business of the, say, just the heating equipment products per se. I would say this endeavor of ours is slowly paying off well. As we get into acceptable criteria and the track record in terms of executing larger projects, our basically opportunities into bidding of various sectors and various opportunities goes broader as well.
Even the HPCL order, which we are executing, is more of a technology-based EPC plan, so that also gives us additional line in terms of the product which we could be more uniform in terms of the growth. Other than this, just to answer your question of what the opportunities are there for next, say, one to one and a half years. Domestically, as we already told, there are at least one or two very large opportunities which would get finalized by this time in petchem and fertilizer and sustainable fuel sector. In terms of the exports, there are opportunities in refinery and fertilizer opportunities. Considering all this, I think next, at least the big pipeline for two to three years looks very good, and we are quite confident of a more uniform and sustainable growth.
We have seen roughly around INR 1,000 crore of order addition in this year. Are we hopeful that we will be having a similar order inflow in the coming year and years as well?
That's what our endeavor is, and we are doing all what we can do to achieve that. Obviously, there are opportunities, and then we are also getting qualified to serve such opportunities.
Okay. Sir, as you were talking about, let's say, currently, we are almost entire in the heating equipment. How do we see that mix improving going forward?
As we get qualified for larger contracts, it becomes more easy to improve the mix because then we also get qualified to execute more larger size in terms of the technology-based projects, whether it is a heating equipment or a related technology-based project. That will give us additional opportunity in terms of executing and getting qualified to bid for such larger opportunities.
Okay. Thanks a lot.
Thank you.
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Akshit Gangwal from IIFL Capital. Over to you, sir.
Thank you, Shlok. On behalf of IIFL Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you, Akshit.
Thank you, sir.
Thank you. Thank you, Akshit.
Thank you.