Jay Bee Laminations FY26: Revenue Jump, Margin Pressure, and a Fast EPC Entry

Jay Bee Laminations Limited closed FY26 with a sharp increase in scale, but a tougher profit profile. Revenue from operations rose to Rs 547.97 crore in FY26 from Rs 367.46 crore in FY25, supported by a meaningful first year contribution from the EPC turnkey projects business. EBITDA, however, fell to Rs 34.06 crore from Rs 42.99 crore, and PAT declined to Rs 18.26 crore from Rs 25.39 crore.

The split within the year tells a clearer story. H2FY26 revenue was Rs 329.25 crore versus Rs 218.73 crore in H1FY26, a sequential increase of about 51%. H2FY26 EBITDA also improved sharply to Rs 23.87 crore compared with Rs 10.19 crore in H1FY26. Management attributed much of this recovery to the ramp-up in EPC execution, while the legacy CRGO business remained under pressure due to steep raw material price declines.

A three-vertical platform is taking shape

The investor presentation positions the company as an integrated power T&D participant across CRGO cores, transformers and EPC turnkey projects. Historically, Jay Bee has operated as a CRGO silicon steel processing company supplying cut laminations, assembled cores and core coil assemblies to transformer manufacturers. In FY25, it manufactured and delivered its first transformer, and in FY26 it began executing T&D EPC projects.

The segment disclosure shows the step change clearly. In FY26, manufacturing of CRGO products and transformers contributed Rs 406.51 crore of segment revenue, while EPC turnkey projects contributed Rs 141.46 crore. For H2FY26 alone, EPC revenue was Rs 141.46 crore, indicating that the EPC revenue cycle largely commenced in the second half.

Financial summary

The margin compression was largely linked to the CRGO cycle. Management stated that raw material prices fell 30% to 35% from March 2025 to March 2026, creating volatility, impacting gross margins and raising fixed costs as a percentage of sales. It also noted that despite about 25% volume growth in CRGO, revenue growth in that segment was closer to 10% because realizations declined.

CRGO: capacity is ready, but pricing stability matters

The company reported CRGO production growth to 15,554 MT in FY26 from 12,400 MT in FY25 and 9,389 MT in FY24. Installed capacity for CRGO products is stated at 23,340 MTPA, and management indicated monthly utilization around 65%.

Management said it is deliberately not pursuing excessive volume growth at the cost of returns, citing increasing competition and the risk of price wars. For FY27, it indicated a CRGO volume band of 16,000 to 18,000 tonnes, depending on price stability and margin protection.

A key positive for the CRGO franchise is the set of approvals and certifications highlighted during FY26. The presentation notes PGCIL approval up to the 765 kV class for CRGO cores, along with NABL accreditation for its testing laboratory and NTPC vendor approval for CRGO cores. Management linked these milestones to improved order visibility, especially in higher-end power transformer cores.

EPC: strong entry, but receivables need watching

Jay Bee’s EPC move was described in phases: an MoU with ABI Energy Limited in August 2025, order booking in September 2025, and execution beginning October 2025. The presentation cites Rs 267.5 crore of EPC orders, and management stated EPC revenue of about Rs 141.5 crore in FY26.

The rapid Q4 scale-up also drove a sharp rise in receivables. The FY26 balance sheet shows trade receivables of Rs 190.66 crore versus Rs 78.14 crore in FY25. On the concall, management clarified that EPC receivables were about Rs 118 crore, while EPC inventories were negligible. It also indicated EPC payables in the range of Rs 70 crore to Rs 80 crore, though it did not provide a precise figure.

Management acknowledged the importance of disciplined collection in EPC. It said it expects receivables to normalize over the next three to four months as erection work progresses, noting that much of the early phase billing was linked to material procurement and delivery, with a sizable portion of collections linked to erection milestones.

For FY27, management guided that about Rs 100 crore of revenue would be booked from the existing EPC order book, with the remainder expected in FY28.

Transformers: early traction and FY27 target

The transformer business is still small in the reported numbers, but it is a clear strategic step. Management stated that transformer and allied components sales were about Rs 6 crore in FY26, including transformers, core coil assemblies, tanks and individual coils. It also introduced the IntelliCore brand, intended to convey the company’s experience in handling CRGO cores, a critical transformer component.

For FY27, management guided transformer and allied components sales of about Rs 20 crore to Rs 30 crore, supported by developmental or export orders and domestic momentum. It also emphasized that the approach is collaborative rather than competitive with existing customers, positioning itself as a supplier that can help customers scale during a period of strong transformer demand.

What to track next

FY26 shows a company transitioning from a largely manufacturing-led model to a broader integrated platform with EPC services. The upside is visible in scale, approvals and the strong second-half recovery. The constraints are also visible: commodity-linked volatility in CRGO margins, and working capital intensity in EPC.

Management’s stated FY27 priorities are clear: no major capex, focus on utilization, selective order booking to protect margins, and disciplined execution and collections in EPC. If the company can deliver on receivables normalization while sustaining CRGO volumes and ramping transformers toward the stated Rs 20 to Rs 30 crore target, the integrated model highlighted in the presentation should become easier to evaluate on steady-state profitability.