JNK India Limited: Fueling Growth with Record Orders and Green Energy Ambitions

JNK India Limited, a prominent player in the combustion equipment sector, has reported a robust financial performance for the second quarter and first half of fiscal year 2026. The company, specializing in process-fired heaters, reformers, and cracking furnaces, showcased significant growth driven by strategic initiatives and a burgeoning order book. For Q2 FY26, JNK India recorded a total revenue of Rs. 184.21 crore, marking an impressive 71.6% year-on-year increase. The operating profit for the quarter stood at Rs. 45.40 crore, up 34.6% YoY, while Profit After Tax (PAT) reached Rs. 13.02 crore, reflecting a substantial 68.1% YoY increase. The first half of FY26 also demonstrated strong momentum, with total revenue at Rs. 287.18 crore, a 44.9% YoY growth, and PAT at Rs. 14.15 crore.

This strong financial showing is underpinned by JNK India's core capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning complex combustion equipment. The company's diverse product portfolio includes waste gas handling systems like flares and incinerators, and it is actively expanding into renewable energy solutions such as hydrogen production and distribution systems, and solar PV EPC. With a manufacturing facility in Mundra, Gujarat, operating as a multi-product SEZ unit with proximity to a deep-draft port, JNK India is well-positioned for both domestic and international projects. The strategic partnership with JNK Global, a leading South Korean manufacturer, further enhances JNK India's global reach and technical prowess.

Financial Highlights: A Quarter of Strong Performance

The Q2 and H1 FY26 results underscore JNK India's operational efficiency and market demand. Despite an 88.5% increase in operating expenses in Q2, the company managed to maintain its margins due to strong revenue growth and efficient project execution. The EBITDA for Q2 FY26 was Rs. 22.34 crore, a 44.7% YoY growth, with an EBITDA margin of 12.1%. For H1 FY26, EBITDA was Rs. 29.51 crore, with a margin of 10.3%. The company's cash conversion cycle saw a significant improvement, reducing to 76 days in H1 FY26 from 232 days in H1 FY25, reflecting enhanced working capital management.

Here is a summary of the key financial figures for H1 FY26:

Strategic Initiatives and Diversification

A pivotal development in Q2 FY26 was the securing of an 'ultra-mega' order from JNK Global Co., Ltd. for a cracker furnace package at a petrochemical project in India. This is the largest single order win in JNK India's history, significantly boosting its order book to Rs. 1,849.9 crore as of September 30, 2025. This record order book provides robust revenue visibility for the coming quarters and strengthens the company's position in the critical combustion equipment and petrochemical sectors.

In a strategic move towards clean energy, JNK India formed JNK Chemdist Technologies Private Limited, a joint venture with the founders of Chemdist Group. This new entity will focus on green hydrogen technology and sustainable chemical and fuel solutions. The JV aims to manufacture critical equipment like evaporators, separators, and reactors, and specialized technologies for green hydrogen and sustainable chemicals and fuels. This partnership is expected to add 10-15% to JNK India's top line in the next one to two years, enhancing its product portfolio and positioning the company to capitalize on emerging opportunities in the rapidly expanding green energy sector.

The company's diversification efforts are also evident in its product-wise revenue composition. While heating equipment remains the largest contributor, accounting for 74.8% of H1 FY26 revenue, flares, incinerators, and others contributed 11.2%, and process plants contributed 14.0%. Geographically, domestic projects account for 96.1% of the total order book, showcasing JNK India's strong presence in the Indian market, while exports contribute 3.9%.

Market Outlook and Future Growth Trajectory

JNK India's management remains optimistic about the future, citing a strong pipeline of projects in the refinery, petrochemical, fertilizer, and green energy sectors. The company is actively bidding for green hydrogen projects and sustainable aviation fuel, aligning with global trends towards cleaner energy solutions. Management anticipates significant export opportunities in the Middle East, Africa, and Russia, with a pipeline estimated between Rs. 2,000 crore and Rs. 2,500 crore, expected to conclude within approximately one year. Domestically, there are 1-2 very large opportunities in the petchem, fertilizer, and sustainable fuel sectors expected to finalize soon.

The company's strategy to diversify its product line and sectors, including through the Chemdist joint venture, is aimed at ensuring more uniform and sustainable growth and reducing the cyclicity inherent in the heating equipment business. This endeavor is slowly paying off, as the company gains acceptable criteria and track record for executing larger, technology-based projects. The management expects the bid pipeline for the next two to three years to remain very strong, supporting sustained growth.

Conclusion: Strategic Clarity and Sustained Growth

JNK India Limited's Q2 and H1 FY26 performance reflects a company in a strong growth phase, strategically expanding its capabilities and market reach. The record order book, coupled with proactive diversification into the green energy sector through the JNK Chemdist Technologies Private Limited joint venture, positions JNK India for long-term success. Despite some margin adjustments due to larger project complexities, the improved cash conversion cycle and robust project pipeline highlight disciplined execution and a clear vision for market leadership. The company's focus on operational efficiencies and innovation ensures it is well-equipped to capitalize on emerging opportunities in India's energy infrastructure and renewable systems.