Financial Performance

Q2 FY27 Performance

  • Total operational revenue: INR 187.5 crores (3.4% YoY growth from INR 181.4 crores)
  • EBITDA: INR 20.8 crores (6.6% YoY growth)
  • EBITDA margin: 11.1%
  • Profit after tax: INR 13.3 crores
  • PAT margin: 7.1%

H1 FY27 Performance

  • Total operational revenue: INR 370.2 crores (30.4% YoY growth from INR 283.9 crores)
  • EBITDA: INR 39.4 crores (50% YoY growth)
  • EBITDA margin: 10.6%
  • Profit after tax: INR 22.9 crores
  • PAT margin: 6.2%

Management noted temporary execution challenges during Q2 arising from shipment delays and monsoon-related disruptions, estimating approximately INR 30-40 crores of revenue was deferred due to these issues.

Order Updates and Business Development

Recent Order Wins

  • Major Export Order: INR 500 crores from JNK Global for a heater package for a project in Nigeria. Scope includes design, engineering, manufacturing, supply, and transportation with 18-month delivery timeline.
  • Domestic Orders: Two orders aggregating INR 30 crores for flare packages with 16-month execution timeline. First order covers design, engineering, manufacturing, procurement, and supply. Second order includes installation, erection, pre-commissioning, commissioning, performance testing, and final handover.

Order Book and Pipeline

  • Order book as of September 30, 2026: INR 1,662 crores
  • Current bidding pipeline: INR 5,000 crores (excluding recent order win)
  • Pipeline split: 50% domestic, 50% international opportunities
  • Domestic opportunities: Refining, petrochemicals, fertilizers, metals, minerals, and other process industries
  • International focus: Africa (Nigeria, Kenya, Ethiopia) for refining, petrochemicals, and fertilizer investments

Additional Opportunity Details

  • Nigeria project: Potential for additional orders beyond the current INR 500 crores for site erection, commissioning, and supervision (possible in next 2-3 months)
  • Kenya refinery: Similar to Nigeria project, inquiries expected in 2-3 months, order finalization expected in 4-5 months
  • BPCL Vizag refinery: Tenders expected in 6-8 months, ordering expected in 12 months (not included in current INR 5,000 crores pipeline)
  • Non-heater opportunities: Approximately 50% of INR 5,000 crores pipeline includes green hydrogen, sustainable fuels, sustainable chemicals, offshore, metals and minerals

Diversification Strategy

Through JNK Chemdist initiative, the company is expanding into adjacent opportunities including:

  • Green hydrogen
  • Sustainable fuels
  • Sustainable chemicals
  • Current JNK Chemdist order book: INR 20 crores (mainly process equipment)
  • Focus on R&D and technology development, with larger project opportunities expected in approximately 2 years

Outlook and Guidance

Management maintains FY27 guidance:

  • Revenue growth: 20%-25%
  • EBITDA margin: 12%-14% on operational revenue

Historical pattern shows H2 typically contributes 60%-70% of annual revenue, with execution weighted toward second half. Management expects stronger performance in Q3 and Q4 despite slower October and November due to festivals.

Operational Challenges

Q2 faced temporary challenges including:

  • Logistical challenges due to geopolitical situation
  • Severe monsoon impacting fabrication and site erection progress
  • Shipment delays affecting revenue recognition timing

Financial Position and Funding

No immediate plans for additional debt borrowing. Company confident of funding working capital requirements through customer payment terms, reserves, and existing bank limits for both FY27 and FY28.

Risk Factors

  • Commodity price fluctuations (steel, copper, nickel, aluminum) represent business risk
  • Some PSU contracts include steel price variation clauses for compensation
  • Risk mitigation through back-to-back arrangements with sub-vendors, hedging, or pre-booking

Q&A Highlights

  • Bid-to-win ratio: Approximately 30% in heater segment, 10%-15% expected in non-heater segment
  • Non-heater pipeline: INR 2,500 crores total, with INR 1,000 crores already bid and under discussion, INR 1,500 crores to be bid in 1-2 months
  • NTPC project bid due date: November 20, 2026
  • Disclosure policy: Will narrow order value range in future disclosures (currently 300-600 crore range too wide)