Thank you, Shlok. Good afternoon, everyone.

On behalf of IIFL Capital, I welcome everyone to JNK India's 2Q FY '26 Earnings Call. We have with us today Mr.

Arvind Kamath, Chairperson and Whole-Time Director; Mr. Pravin Sathe, Chief Financial Officer; and Miss 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 '26 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 '26 has been a resilient quarter for JNK India, with a total revenue of ₹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 '26, we achieved ₹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 ₹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.

The 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 '26, 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's 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 venture 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 a 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 strengthening 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 '26. 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 2 FY '26 and H1 FY '26. Starting with Q2 FY '26, we are pleased with the strong performance driven by the strong revenue growth and improved operational efficiency.

Total revenue for the quarter was ₹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 remained the largest contributor, making up approximately 80.3% of our total revenue in Q2 FY '26, while the process plant and flares, incinerators, and others contributed 11.8% and 8%, respectively. Our operating profit for the quarter 2 FY '26 was ₹454 million, representing a 34.6% year-on-year increase, with an operating margin of 24.6%.

Our EBITDA for the quarter was ₹223.4 million, reflecting a 44.7% year-on-year increase, and the EBITDA margin was 12.1%, up from 7% in quarter 1 FY '26. Profit after tax for Q2 FY '26 was ₹130.2 million, reflecting a 68.1% increase year-on-year, with a PAT margin of 7.1%.

The strong performance in Q2 FY '26 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 '26, our total revenue was ₹2,871.8 million, showing a 44.9% year-on-year growth. Operating profit for H1 FY '26 was ₹696.3 million, with an operating margin of 24.2%.

EBITDA for the first half year of FY '26 was ₹295.1 million, reflecting a margin of 10.3%. Profit after tax for H1 FY '26 was ₹141.5 million, reflecting a margin of 4.9%.

As of 30th September, the order book stands at ₹18,499 million, up from ₹13,116 million in H1 FY '25, 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 am also happy to report that our cash conversion cycle has significantly improved to 76 days in H1 FY '26 from 232 days in H1 FY '25.

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.

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 1,800 or around 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 be expected in next six months or so. Other than that, in terms of the bid pipeline, exports mainly, and also to a certain extent on domestic, both are quite strong even on a near term of, say, about six months to an 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, and now some projects are announced in fertilizer sector as well.

Considering all this, I think, in terms of bid 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 form up, let's say what order book we see?

Because as of now, we have 1,900 crore of order book, which is sufficed to have, say, for next three years of at current run rate, at least three years of order book which we have. What level of order book which we feel, say, it would be significantly higher than the current levels, let's say from 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, that would be very helpful, sir. See,

exactly quantifying becomes a bit challenging because 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 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 so we are in a very good wicket as of 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?

Because 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?

It is steady, but, yeah, we are seeing some improvement in terms of the fertilizer market as well. In petchem market has seen 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.

Lastly, sir, on this 1,900 crore of order book, what margin now we are guiding, sir? If you can elaborate on that.

Our normal margins the company has always tried and performed is in the region of EBITDA of around 13% to 16%. We kind of are confident of maintaining these margins.

Great, sir, and thanks a lot, and best of luck, sir.

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 order, Jainam, you mean to say the legacy means the old pending orders?

Old pending, correct.

The old pending orders, it's almost diminishing now because most of them we executed in last couple of quarters. In terms of the, say, 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. Then we will have all the new orders or the recent orders which we have received left for the execution, right?

The legacy orders will be completed, yeah.

That's correct, yeah.

Already

now also, we are I think executing more than 50% of which are the new orders only, yeah.

Got it. Also, 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?

Currently, as far as JNK India is concerned, last year was the first cracking furnace order which we received, and now we've received one more order for the cracking furnace. This kind of giving us a good references and good strength in terms of the cracking furnaces orders, which are the most high-end in terms of the heating equipment, because 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 are aware of, which we have 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 are executing for HPCL. In terms of the joint venture, which is JNK Chemdist, basically they are into manufacturing of some of the critical equipments 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, and they are 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% to 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? See,

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 kind of a opportunities what we can have.

Because even with Chemdist, we are kind of having a lot of opportunities in export market as well.

Got it. Thank you, that's it from my end, yes.

Thank you, Jainam.

Good afternoon, sir, and thanks for the opportunity. My first question is, sir, what was the overall order value to the JNK Global, and out of which I'm trying to figure out what percentage of order has accrued to our order book?

Hi, good afternoon, Mohit. Basically, JNK Global received the contract value of around ₹2,600 crores, and what we have received till date is about ₹1,050 crores.

Understood, sir. Sir, I understand that, of course, the JNK Global was L1 in one 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. 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?

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 Feb 2028, somewhere around that, right? How the execution will happen over next three years?

Will it be lower in the first year, it will 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 a 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 a lot of dispatches, and 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, and all the best.

Thank you.

Thank you, Mohit.

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 for 40% growth in this year, and 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 ourselves?

Yeah. Hi, Sagar.

Basically, see, whatever the overall annual guidance what we have given, we are in line with that. Q2, yes, in terms of the revenues, it has come out all right, but what we meant was the EBITDA margins, we still feel that we could go back to the whatever guidance we had given.

That's why we said it may not be that good. 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: excluding the FY '25, from FY '21 to '24, we were making 19% to 27—18% to 20% of EBITDA margins.

Can we go back to those numbers, or something has changed in the industry, we will not be able to reach those 18% to 20% margins?

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 a smaller jobs, and it was more product-oriented jobs, and the execution was more in terms of just supply than supply and construction.

Whereas that is why we kind of in our guidance throughout we just generally guided a margin of around 13% to 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, or are we happy with what we have and now focusing on execution?

What is our thinking, sir? No,

we are definitely looking for more opportunities as well. Along with the JNK Global, we are qualified, and we're 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 a specific number we can put, because these are depending on so many factors, but then mainly we look at in terms of the financial 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.

Thanks for the opportunity. Sir, my question is with respect to the cracking furnace order which we have recently won.

Since this is a second order which you are doing, and so 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 if you can see the pipeline?

Basically in India, in terms of say 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 orders.

They will be reformers basically instead of cracking furnaces.

Sir. If I may ask you one question with respect to the one housekeeping question that you said that cash conversion cycle has drastically improved.

What is the reason? Is it just a phase in which we are operating in the legacy project, so that's why it's got 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 a new revenue recognition method, this has also a positive effect on the cash conversion cycle.

Okay. It will literally mean a working capital saving interest saving for you.

Yes, certainly.

Sir. Thank you for the opportunity.

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.

Sir. Could you quantify what are the PSU receivables as of September '25?

Not readily available with me right now. I can get back to you later.

No issues. Or if you could just quantify me the aging, what are the trade receivables greater than six months per age?

Greater than six months is not significant.

Not significant? Sir.

Thank you. That's all.

Sir, one clarification. Of course, we used to get a lot of order from JNK Global, but I don't see that the order inflow 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?

Mohit, basically, this contract which you received in just the Q2 is from JNK Global.

My question primarily from sir export orders.

Yeah. Export order, you mean.

In terms of export orders, also we have received in the Q3 of last year or Q4 of last year as well couple of orders from JNK Global for export. One was for Malaysia, and one was for USA.

How do we think about for the H2 or let's say in the medium term, how do you think about this particular? Do you think that this will pick up as in sense will it contribute 20%, 30% of our top line?

Definitely, Mohit, because as I said earlier, the opportunities in Middle East and Africa, it would possibly be coming combined along with JNK Global.

Any large tender which are expecting in the second half from the Indian refineries?

Indian refineries, okay, there are one or two opportunities, but not very large, would say, in the next half till March.

Understood, sir. Thank you, and all the best.

Thank you. Thank you.

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?

Good afternoon. Basically, the HPCL we would want to close it by Q4 for this year, and it looks good execution as of now for that.

The Reliance, as we always said, would be Q1 of next year in terms of completion, yeah.

Understood. You also mentioned that from the JNK Global, we have some more orders that may come in.

If you have any sense on the size of the orders that you expect to receive going forward? See,

the opportunities pipeline in terms of the Middle East and Africa is in the region of about ₹2,000 to ₹2,500 crores, but that might take about a year to conclude.

Understood. All right, that's it from my side, sir.

Thank you so much.

Thank you.

Thanks for the opportunity on follow-up. Sir, our dependence is majorly on the oil and gas sector and petrochemical.

Since our listing, over last one year, there has been hardly any order, and we received a large order in this particular quarter or year. Going forward, if you can share some over medium term or a year to one-year time period that how much orders we are comfortable on, 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 a sustainable growth story or a sustainable order book over the short to medium term?

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 kind of a more uniform growth and to reduce the cyclicality 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 a 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 a more of a technology-based EPC plant, so that also gives us a 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, in 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 opportunity. 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.

Sir,

we have seen roughly around 1,000 crore of order addition in this year. Are we hopeful that we will be having the 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 we are also getting qualified to serve such opportunities.

Sir. Great, sir.

Sir, as you were talking about say currently we are almost entire in the heating equipment. How do we see that mix improving going forward?

Basically,

as we get qualified for a larger contract, 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 project, whether it is a heating equipment or a related technology-based project. That will give us a additional opportunities in terms of executing and getting qualified to bid for such larger opportunities.

Okay. Great, sir.

Thanks a lot.

Thank you.

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, Akshit.

Thank you.