Summary
JNK India Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 10, 2026, 01:30 PM
Event Participants
Executives 3 Anand Agarwal (AVP, Accounts and Finance), Arvind Kamath (Chairperson and Whole-Time Director), Annie Varghese (Senior Manager, Investor Relations)
Analysts 7 Amit Agicha, Ankur Kumar, Anukool, Deepak Purswani, Kamlesh Bagmar, Paresh G. Raja, Ram Modi
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Order Book | ₹1,700+ crores | As of Jan 1, 2026; includes ₹1,050 crores from BPCL Bina project. |
| Total Revenue | ₹206.23 crores | +112.8% YoY; growth driven by strong performance across all key verticals. |
| Operating Profit | ₹56.02 crores | Reported with a margin of 27.2%. |
| EBITDA | ₹29.51 crores | +202.8% YoY; Margin at 14.3% (impacted by ₹0.93 crore labor code charge). |
| PAT | ₹18.02 crores | +534.1% YoY; Margin at 8.7%. |
| Material Cost | 74% of Revenue | Improved from 78% QoQ; management targets 70-75% range depending on service mix. |
Geographic & Segment Commentary
- Refining & Petrochemicals: Remains the core growth driver with massive upcoming opportunities like the Dangote refinery expansion in Nigeria. The company is now qualified for large-scale cracking furnace contracts, significantly expanding its addressable market size for future domestic petchem projects.
- Green Hydrogen & Renewables (Subsidiary/JV): The JV with Chemdist Group contributed ₹23 crores in Q3 revenue with an order book of ₹100 crores. Focus remains on R&D for carbon capture and sustainable fuels, with a pilot “Hydrogen Valley” project expected to commence soon.
- Flares & Incinerators: Demand is largely driven by regulatory compliance and retrofitting existing plants to meet cleaner emission standards. While smaller than heaters, these segments provide steady environmental-compliance-led business.
Company-Specific & Strategic Commentary
- Accounting Policy Shift: The company transitioned from the “output method” to the “input method” for revenue recognition. Management noted this will lead to more uniform margins and cash flows compared to the previous bulkier, end-loaded execution cycles.
- Strategic Partnership: The JV with Chemdist Group combines JNK’s execution expertise with Chemdist’s IP in green hydrogen. Management expects this to contribute 10-15% of total revenue within the next 2-3 years as technologies commercialize.
- Asset-Light Execution: JNK utilizes approved third-party fabrication shops near project sites rather than relying solely on its Mundra facility. This minimizes logistics costs and allows for scalable execution without immediate capex.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | ~40% YoY for FY26 | Management reaffirmed the growth range provided at the start of the year. |
| EBITDA Margin | 13% - 15% | Guidance maintained; normalized margins are returning as legacy “output method” projects conclude. |
| BPCL Bina Execution | 50% - 60% of value in FY27 | Only 3-4% of the ₹1,050 Cr order to be booked in Q4 FY26; bulk shifts to next fiscal. |
| New Order Wins | ₹400 - ₹500 crores | Expected in Q4 FY26 from two specific bids (one domestic clean fuel, one Middle East waste gas). |
Risks & Constraints
| Risk | Context |
|---|---|
| Labor Regulations | Management recognized a ₹9.26 million impact in Q3 due to the new labor code, which pressured net margins. |
| Working Capital | Non-fund-based limits are 94% utilized (₹470Cr of ₹500Cr), largely tied up in bank guarantees for the Reliance project. |
| Execution Delays | Projects in Russia have seen slow finalization, and Reliance project completion has spilled over into Q1 FY27. |
Q&A Highlights
Order Pipeline & Dangote Opportunity
- Question: What is the scale of the upcoming Dangote opportunity? (Sahil Sanghvi)
- Answer: 10 years ago, the fired heater contract was $140 million; prices have nearly doubled since. Additionally, there are four fertilizer streams with reformers worth ~$30-40 million each (Arvind Kamath).
BPCL Bina Revenue Recognition
- Question: How much revenue from the ₹1,050 crore Bina order will hit in Q4? (Ankur Kumar)
- Answer: Very little, approximately 3-4%. The majority (50-60%) will be booked in FY27 as the project enters the peak execution phase (Arvind Kamath).
Subsidiary Performance (Chemdist)
- Question: When will the hydrogen subsidiary start contributing meaningfully? (Ram Modi)
- Answer: It already contributed ₹23 crores this quarter. We expect it to represent 10-15% of our standalone business size in 2-3 years (Arvind Kamath).
Working Capital Limits
- Question: Are current limits sufficient for new large bids? (Deepak Purswani)
- Answer: We have ₹500Cr non-fund limits. While currently tight at 94% utilization, the Reliance project completion will free up limits soon. JNK Global (Korea) also provides bank guarantee support for large international contracts (Arvind Kamath).
Key Takeaway
JNK India delivered a robust Q3 FY26, characterized by a 112.8% YoY revenue surge and a significant turnaround in profitability as legacy contracts concluded. The company is successfully transitioning its revenue recognition to the input method, which management believes will stabilize margins in the 13-15% range. Strategically, the company is moving beyond traditional heaters into high-value cracking furnaces and green hydrogen through its Chemdist JV, which already boasts a ₹100 crore order book. While current non-fund-based limits are highly utilized at ₹470 crores, the expected completion of the Reliance contract in early FY27 will provide the necessary headroom for major upcoming bids, including the massive Dangote refinery expansion. JNK India remains well-positioned to achieve its 40% growth guidance for FY26 while building a multi-year execution tailwind for FY27.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: