JNK India Ltd

Financial Performance

• Consolidated Q1 FY27 revenue: INR 186 crores; YoY growth 80.6%.
• Q1 FY27 consolidated EBITDA: INR 21.9 crores; margin 11.8%.
• Standalone EBITDA margin: 14% in Q1 FY27 (vs 7% in Q1 FY26).
• Q1 FY27 PAT: INR 9.6 crores; PAT margin 5.2%.

Operating Update & Pipeline

• Order book on 30-Jun-2026: INR 1,801 crores.
• Chemdist: 8.8% of Q1 FY27 group revenue; Q1 operating loss INR 3.6 crores.
• Pipeline > INR 6,000 crores; domestic/international ~50:50.
• Export markets: Africa (Nigeria, Ethiopia); Middle East.
• BPCL Bina: significant revenue recognized in FY27 and FY28.
• Dangote order canceled June 8, 2026; no material cash loss.
• Iraq: planned registered sales office; potential orders in oil & gas, refining, petchem.
• Chemdist hydrogen order ~INR 50 crores; completion this year; spillover to next year.

Balance Sheet & Cash Flow

• Unbilled revenue at end-Q1: around INR 200 crores (Annie: 200–221 crores).
• No significant debt raising planned for next 4–6 quarters.
• Payment terms: favorable with Reliance and BPCL Bina; supports cash flow.
• Exports via JNK Global provide back-to-back payments.

Projects & Capex

• BPCL Bina: significant revenue recognized in FY27 and FY28.
• Chemdist: Q1 revenue share 8.8% of group revenue; Q1 operating loss INR 3.6 crores.
• Chemdist hydrogen: current order ~INR 50 crores.
• Diversification into offshore/metals; tied up with 3–4 technology partners.
• Iraq entry: registered sales office planned; potential to add engineering/execution later.

Guidance & Outlook

• Revenue growth guidance of around 20% to 25% remains intact.
• Full-year EBITDA margin guidance of about 12% to 14% remains.
• Hit rate expected to be similar to 20–25% for the year.
• Pipeline update: INR 6,000+ crores; ~50:50 domestic/international.

Q&A Highlights

• New non-heating segments: initial hit rate expected around 10–12%.
• Iraq presence: sales office first step; further engineering/execution later based on orders.
• JNK Global: domestic orders on standalone basis; export orders back-to-back via JNK Global.

Issue overview

• IPO of equity shares (fresh issue) under Initial Public Offer.
• Net proceeds revised downward during the quarter ended March 31, 2026 due to higher expenses.
• Objectives: funding working capital and general corporate purposes.

Utilisation of proceeds

• Utilisation aligned with offer document; MA states 'Yes'.
• No material deviations or changes in allocation observed.
• Funding working capital fully utilised; General corporate purposes fully utilised; total unutilised: Nil.
• Rs 0.25 million earmarked against bank guarantees.
• Rs 2.40 million transferred from SBI FD to ICICI cash credit.
• Total net proceeds utilisation period extended to fiscal 2027 vs 2026.
• Delay noted for working capital object; actual end-2027.
• No unutilised funds; no further investments beyond stated objects.

Governance and compliance

• Approvals: not explicitly indicated; management undertaking cited.
• Material events: none reported; no adverse factors disclosed.
• Conflict of interest: MA notes related-party links possible, but no conflict identified.
• Delay in implementation noted with plan vs actual dates.

GCP

• GCP object: utilized Rs 170.49 million for GCP.
• Board approval for allocation not explicitly stated in MA.
• Note: no changes in GCP allocation beyond initial plan.

Meeting Details

• Date and time: August 12, 2026 at 12:00 PM.
• Type and mode: earnings call; audio recording (virtual).

Participants

• No specific management participants named.

Purpose

• Purpose: announce audio recording of Q1FY27 earnings call.

Additional Notes

• Recording uploaded on company website; transcript information not provided.

Business Overview

• Engineering combustion equipment and process plants for refineries and petrochemicals.
• JV with JNK Global enables global design and EPC execution capabilities.
• Chemdist Technology (49%) focuses on hydrogen and ethanol-to-chemicals.
• Diversification into offshore, metals & minerals, and renewable energy.
• Green hydrogen and renewable energy projects underway with Chemdist collaboration.

Operational Highlights

• Q1FY27 consolidated income Rs 186.0 cr, up 80.6% YoY.
• EBITDA Rs 21.9 cr; margin 11.8%.
• PAT Rs 9.6 cr; margin 5.2%.
• Order book Rs 1,801 cr as of 30 Jun 2026.
• Bidding pipeline ~ Rs 6,000 cr across domestic/export markets.
• Export order cancellation on 8 Jun 2026; isolated, no costs.
• Mundra fabrication hub supports exports; 5,000 MT capacity.

Financial Performance

• Consolidated income Rs 186.0 cr; YoY growth 80.6%.
• Consolidated EBITDA Rs 21.9 cr; margin 11.8%.
• PBT Rs 14.6 cr; margin 7.9%.
• PAT Rs 9.6 cr; margin 5.2%.
• Standalone income Rs 170.1 cr; PAT Rs 13.5 cr.
• Standalone EBITDA Rs 23.8 cr; margin 14.0%.
• Consolidated basic EPS Rs 2.05; standalone Rs 2.42.

Strategic Priorities & Outlook

• Sustain EBITDA margin around current level while scaling.
• Expand into offshore, metals & minerals, and renewables.
• Grow renewable energy via Chemdist to drive growth.
• Convert strong pipeline into orders; expand internationally.

Risks & Mitigation

• Export order cancellation due to licensor approvals; not material.
• Diversified bidding across domestic and export markets to mitigate risk.

Governance & Leadership

• Chairman & WTD: Arvind Kamath; CEO & WTD: Dipak Bharuka.
• Independent Directors include Sudha Bhushan, Balraj Namdeo, Mohammad Habibulla, Raman Govind Rajan.

Business Overview

• Core business: design, EPC, and manufacturing of combustion equipment and process plants.
• Diversifying into offshore, metals & minerals, and renewable energy via JNK Chemdist.
• JNK Global Korea collaboration provides access to global expertise and project execution.
• Over 15 years of experience underpins an engineering-led growth platform.

Operational Highlights

• Q1FY27 total income Rs 186.0 cr, up 80.6% YoY.
• EBITDA including other income Rs 21.9 cr; PAT Rs 9.6 cr.
• EBITDA margin 11.8%; PAT margin 5.2%.
• Order book as of 30 Jun 2026: Rs 1,801 cr.
• Bidding pipeline ~Rs 6,000 cr; 50:50 domestic/export.
• Export order cancellation on 8 Jun 2026; isolated, no costs.
• JNK Chemdist contributed revenue; pursuing renewable energy projects.

Financial Performance

• Consolidated Total Income Rs 186.0 cr; YoY growth 80.6%.
• Gross profit Rs 50.1 cr; margin 26.9%.
• EBITDA Rs 21.9 cr; margin 11.8%.
• PBT Rs 14.6 cr; margin 7.9%.
• PAT Rs 9.6 cr; margin 5.2%.
• Standalone Total Income Rs 170.1 cr; PAT -0.8 cr.
• Consolidated EPS Rs 2.05; Standalone EPS Rs 2.42.

Capital Structure & Liquidity

• No capital raisings disclosed in this quarter.
• Finance cost Rs 4.4 cr; up from Rs 3.6 cr YoY.
• No material debt actions disclosed.

Strategic Priorities & Outlook

• FY27 start strong; pipeline Rs 6,000 cr across domestic/export.
• Diversification into offshore, metals & minerals and renewables; green hydrogen focus.
• Export-oriented Mundra fabrication hub enables modularization and global delivery.
• Fabrication campus: 5,000 MT capacity; 20,243 sq m area.

Risks & Mitigation

• One large export order canceled due to licensor approvals; isolated, no costs.
• High entry barriers; management notes pipeline remains robust.

Governance & Leadership

• Board includes Chairman Arvind Kamath and CEO Dipak Bharuka; independent directors listed.
• Board includes five independent directors: Sudha Bhushan, Balraj Namdeo, Mohammad Habibulla, Bang Hee Kim, Raman Govind Rajan.

Financial highlights

• Total income for Q1FY27: Rs 186.0 crore, up 80.6% YoY.
• EBITDA Rs 21.9 crore; EBITDA margin 11.8%.
• PAT Rs 9.6 crore; PAT margin 5.2%.
• Order book Rs 1,801 crore as of June 30, 2026.
• Bidding pipeline ~Rs 6,000 crore across domestic and international markets.

Strategic and operational developments

• Diversifying into offshore, metals & minerals; renewable energy focus.
• JNK Chemdist JV to develop green hydrogen; 51% equity.
• Strategic partnership with JNK Global to broaden global reach.
• Mundra facility ~20,000 sq m SEZ unit near deep-draft port.
• Expansion into renewables expected to broaden addressable market.

Outlook and management commentary

• EBITDA margin maintained at 11.8% in Q1FY27.
• Strong order inflows visibility with a ~Rs 6,000 cr pipeline.
• Focus on sustaining discipline while scaling the business.
• Executing existing projects to convert pipeline into orders.

Operational footprint

• Mundra fabrication facility ~20,000 sq m SEZ unit near port.

Financials & Audit

• Board approved unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Auditors' review by PG Bhagwat LLP; no material misstatement identified.
• Annexures A to C accompany disclosures; board meeting held Aug 11, 2026.

MOA amendments & new lines

• Amendment to Main Object Clause to include heavy industrial engineering and EPC lines.
• Ancillary Objects add marine/offshore operations, heavy-lift logistics, and project contracting.
• Shareholder and regulatory approvals required; MOA amendments are subject to approvals.
• New lines include BOO/PPP-type contracts and SPV structures.
• Initial capex to be funded via internal accruals and borrowings.

Overseas expansion

• Subject to approvals, setting up overseas Branch Office in Iraq.

Senior management changes

• M. Pravin Pulujkar designated Senior Management; appointment effective Aug 11, 2026.
• Mr. Prasad Phatak designated Senior Management; appointment effective Aug 11, 2026.
• Ravikumar Mudali Vallathur ceased to be Senior Management from Aug 11, 2026; remains employed.

Meeting Details

• Date: August 14, 2026
• Time: Not disclosed
• Mode: Physical
• Event/organiser: EmkayGlobal Conference
• Location: Mumbai

Participants

• Company participant: Company Secretary and Compliance Officer

Purpose

• Purpose: Analyst/institutional investor interaction
• Discussion basis: Publicly available information

Additional Notes

• No UPSI intended to be discussed