Jay Bee Laminations Limited: Navigating Volatility with Strategic Expansion in H1 FY26

Jay Bee Laminations Limited, a key player in the CRGO silicon steel core manufacturing sector for the power and distribution transformer industry, has reported its performance for H1 FY26. The company demonstrated robust top-line growth, with revenue increasing by 43% year-on-year and volumes growing by 40%. Net sales for the period stood at INR 218.73 crore. However, profitability saw a decline, with EBITDA at INR 10.19 crore (EBITDA margin of 4.66%) and PAT at INR 3.69 crore (PAT margin of 1.68%). This was primarily attributed to the burden of high-priced inventory carried forward from the previous period and persistent volatility in raw material prices.

Management highlighted that despite these challenges, operating costs remained well-controlled, even with pre-operative expenses related to new business initiatives. The company has successfully reduced its inventory by 24%, achieving a leaner inventory position. This move, coupled with softening CRGO steel prices, is expected to pave the way for margin recovery in the upcoming periods. The company's balance sheet remains healthy, with a debt-to-equity ratio of 0.29 and a current ratio of 2.67, indicating strong financial discipline.

Strategic Diversification and Capacity Expansion

Jay Bee Laminations is strategically expanding its operational footprint and product offerings. The company's CRGO processing capacity has been ramped up to 19,740 MTPA, with a utilization of 78% in H1 FY26. Further expansion is underway, targeting a total installed capacity of 24,000 MTPA by the end of CY2025. Unit-III, with a capacity of 1,200 MTPA, has already commenced commercial operations, contributing to the enhanced capacity.

A significant strategic move is the company's diversification into new business verticals: transformer manufacturing and Transmission & Distribution (T&D) EPC projects. Transformers will be marketed under the new brand 'INTELLICORE', aiming to leverage the company's expertise in transformer cores. For H2 FY26, the company targets INR 5 crore in revenue from core coil assemblies and transformers, with an ambitious target of INR 40-50 crore for FY27. In the EPC segment, Jay Bee Laminations has secured its first contracts, projecting INR 40-45 crore in revenue for FY26 with an estimated EBITDA margin of 8-10%. This diversification is aimed at achieving long-term scalability, stability, and margin predictability.

Market Position and Future Outlook

The company continues to strengthen its market position by focusing on CRGO laminations in the power segment and assembled cores in the distribution segment, aligning with its strategy to optimize product mix and enhance margins. Jay Bee Laminations is also pursuing NABL accreditation for its in-house testing laboratory by the end of CY2025, which is expected to bolster its credibility with top-tier clients and improve turnaround times. Furthermore, the company is actively seeking approvals from major end-users like NTPC, Torrent Power, and PGCIL (765 kV class) to expand its market access in the domestic power transformer segment.

Jay Bee Laminations is committed to reducing customer concentration and onboarding new clients, with new customers contributing approximately 10% of total sales in H1 FY26. The company's revenue mix is increasingly driven by core offerings like assembled cores and cut laminations, reflecting a focus on specialized, value-added solutions. Despite the current challenges posed by raw material volatility, management expressed confidence in its pass-through business model and its ability to improve margin profiles in the coming periods, aiming for an optimum gross margin of INR 50-60 per kg once prices stabilize. The company's strategic initiatives and disciplined execution underscore its commitment to evolving into a holistic power-sector player.