Jash Engineering Ltd

Audit status

• Independent auditor reviewed standalone and consolidated results for quarter ended 30 June 2026; no audit opinion.

Regulatory actions

• NCLT approved Shivpad Engineers Private Limited amalgamation; effective 26 February 2026, appointed date 1 April 2024.
• Shivpad amalgamation restated in standalone and consolidated results.

Formation and consolidation

• Rodney Hunt Mahr Industries formed in Saudi Arabia; registration obtained; no capital subscribed; consolidation not applicable.

Acquisition

• Penstocks UK acquired by Waterfront UK for INR 677.52 lakhs; becomes wholly owned subsidiary from 2 April 2026.

Financial highlights

• Standalone revenue from operations: 9,829.85 lakh in quarter ended 30 June 2026.
• Consolidated revenue from operations: 14,987.89 lakh in quarter ended 30 June 2026.
• Standalone profit after tax: 1,338.72 lakh; consolidated profit after tax: 508.92 lakh.

Non-reviewed subsidiaries

• Two overseas subsidiaries not reviewed; interims total revenue Rs 1,940.13 lakh, PAT Rs 144.91 lakh.

Financial Performance

• Q1 FY27 revenue Rs.156 crore, up ~17% YoY.
• Q1 PAT turned positive at Rs.5 crore.
• Standalone Jash Eng revenue up 21%; Waterfront profitability up.
• Consolidated order book Rs.932 crore; India Rs.293 crore; outside India Rs.639 crore.
• Total executed orders + current book > Rs.1,080 crore; supports Rs.875 crore target.
• FY27 guidance: Rs875 crore revenue; India Rs320 crore; outside India Rs555 crore.

Operating Update

• Waterfront revenue marginally up; higher profit from profitable orders.
• Jash Eng standalone revenue up 21%; PAT higher; Rodney Hunt improving.
• Order book by entity: Jash Eng Rs559 crore; Rodney Hunt Rs369 crore.
• Waterfront Rs34 crore; Jash Processing Equipment Rs29 crore; total Rs932 crore.
• Pipeline: negotiated orders Rs72 crore; under-negotiation Rs60 crore; more expected this month.

Capex & Projects

• Saudi Arabia plant: land by year-end; plant ready by end of next year; operation by FY28.
• USA plant capex ~$12 million; land acquired; deposits ~$3 million; banks willing to fund.
• Saudi capex ~$4 million; Chennai plant ramp-up underway; new production head from WesTech.
• Mahr Maschinenbau: orders in UK and Iraq; some work in India/UK; Austria manufacturing not planned.

Guidance & Outlook

• FY27 revenue guidance Rs875 crore; PAT Rs100-105 crore; India Rs320 crore; outside Rs555 crore.
• Long-term target Rs1500 crore by 2031; capacity expansion and potential shift-up to meet growth.
• FY28 revenue guidance around Rs1,025 crore.

Q&A Highlights

• Tariff impact: current US tariff 15.6%; budgeting with potential 25%; not a full pass-through.
• Data center vessels: ~Rs30-60 lakh per vessel; 4 orders now; potential 32 more; total Rs25-30 crore.
• Rodney Hunt: mix 40% old orders, 60% new; PAT margin target 8-9%; 13-14% possible this year.
• Export mix: ~70% US; 30% India; U.S. tariff/regulatory changes influence pricing decisions.
• Jash Process Equipment: cost-structure transitions; two-three quarters to stabilize post-acquisition.

Risks & Watchpoints

• Geopolitical risks affecting Middle East shipments and Gulf region order flows.
• Tariff and policy shifts impacting margins; execution risk on large orders.
• Potential deferred deliveries; not all Rs.932 crore book executable in current year.

Meeting Details

• Earnings conference call held on 12 August 2026.
• Mode: audio recording; virtual format.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Intimation under SEBI LODR; recording made available for record.

Additional Notes

• Recording available on company website.

Board & Management

• Board comprises 8 members: 3 promoter family, 1 German partner, 4 independent directors.
• Key management includes MD Pratik Patel, Executive Director Suresh Patel, CFO Dharmendra Jain, and COO Bhuvanesh Pandey.

Financial Overview

• 2025-26 consolidated revenue Rs 736 crore; export revenue Rs 409 crore (56%).
• Projected 2026-27 revenue > Rs 875 crore; PAT margins 13-14%; export share 60-65%.

Capex & Expansion

• Capex plan: ~Rs 200 crore across 2026-29 for multiple plants.
• Key expansions include Chennai Unit 5, SEZ Pithampur, Orange USA, Pearland USA; Saudi feasibility.

Acquisitions & Growth

• Acquisitions completed: ShivPad merged; Mahr Austria; Rodney Hunt USA; Waterfront UK; Jash Process Equipment; Penstocks UK.
• Strategy focuses on diversified product base, global distribution, and 60% export revenue target.

Markets & Risks

• Geographic mix: India 40-45%; North/South America 35-40%; Rest of World 20-25%.
• Export-led growth to 60-65% of revenue; India revenue share to moderate.

Business Overview

• Jash Engineering designs and manufactures gate and valve equipment; expanding manufacturing footprint globally.

Q1 FY27 Financials

• Q1 FY27 revenue ₹156 crore; 17% YoY growth.
• EBITDA ₹14 crore; PAT ₹5 crore.
• Gross margin 60.2%; EBITDA margin 9.1%.

Operational Highlights

• Unit 1 expansion commissioned; capacity up over 30%.
• Completed decade-long manufacturing expansion across India.
• Planning global footprint expansion in USA and Saudi Arabia.

Order Book & Pipeline

• Order book on 1 Aug 2026: ₹72 crore.
• India ₹19 Cr; outside India ₹53 Cr.
• Order pipeline: ₹60 crore; India ₹34 Cr; outside ₹26 Cr.

Strategic Outlook

• Aim to expand global manufacturing footprint in USA and Saudi Arabia.
• Robust project pipeline; long-term growth strategy intact.

Cost Auditor appointment

• Board approves appointing M/s. M. P. Turakhia & Associates (Cost Accountants) for FY 2026-27.
• Pursuant to Section 148 of the Companies Act, 2013; term for FY 2026-27.

MD re-appointment

• Re-appointment of Mr. Pratik Patel as Managing Director.
• Term of five years from 01 March 2027 to 29 February 2032.
• Subject to shareholders' approval at the ensuing AGM.

Board approvals

• Board approved standalone and consolidated IND AS unaudited results for quarter ended 30 June 2026.
• Auditor's Limited Review Reports to accompany the results.
• Cost Auditor appointed: M/s. M. P. Turakhia & Associates for FY 2026-27.
• 52nd AGM fixed for 23 September 2026 via VC/OVM.
• MD re-appointment: Pratik Patel for five years from 01 March 2027, subject to shareholder approval.
• ESOP 2019 amendments authorized for NRC to approve and grant options, subject to shareholder approval.

Operational and order updates

• Foundry Unit 1 expansion completed end-July 2026 increases casting production by 50%.
• Cast gate and cast valve capacity expanded in July 2026 by over 30%.
• Saudi approvals enable us to apply for land for proposed Saudi plant.
• July 2026 consolidated orders Rs 75 Cr; Indian Rs 34 Cr, international Rs 41 Cr.
• Major July 2026 contributors include Welspun Michigan Mumbai, Shankarnarayana Bengaluru, and Jardine Eng Corp (HK).
• Order book on Aug 1, 2026: Rs 932 Cr; Indian Rs 293 Cr; overseas Rs 639 Cr.
• Overseas breakdown: US Rs 369 Cr, UK Rs 34 Cr, Austria Rs 31 Cr, rest Rs 205 Cr.
• Negotiated orders not yet received total Rs 72 Cr; Indian Rs 19 Cr, overseas Rs 53 Cr.
• PO issuance after negotiation may take up to two months.