Jinkushal Q2 revenue rises 82.5% as PAT margin falls to 0.42%

Jinkushal Industries Limited reported consolidated revenue of Rs 132.86 crore in Q2 FY27, up 82.5% year-on-year, but profit after tax (PAT) fell to Rs 55.73 lakh and the PAT margin declined to 0.42% from 6.11%. Higher execution, employee, distribution and finance costs accompanied the expansion in international equipment activity.

What drove Jinkushal’s Q2 FY27 revenue growth?

Jinkushal’s consolidated revenue from operations increased by Rs 60.05 crore year-on-year to Rs 132.86 crore in Q2 FY27, compared with Rs 72.82 crore in Q2 FY26. The company attributed the increase to higher export execution, its construction and mining equipment portfolio, established customer relationships and overseas operating capabilities.

Standalone revenue grew 69.5% year-on-year and 72.6% sequentially to Rs 88.54 crore, from Rs 52.23 crore in Q2 FY26 and Rs 51.29 crore in Q1 FY27. The sequential increase of Rs 37.25 crore shows that Q2 accounted for a substantially larger share of first-half standalone execution than Q1.

Jinkushal said infrastructure and mining requirements supported demand across international markets. It also said geopolitical tensions, shipping-route disruption and elevated logistics costs affected transit times and working-capital cycles, even as it maintained execution momentum during the quarter ended September 30, 2026.

Why did Jinkushal’s consolidated PAT margin decline?

Jinkushal’s consolidated PAT margin declined to 0.42% in Q2 FY27 from 6.11% in Q2 FY26, while consolidated PAT fell from Rs 4.45 crore to Rs 55.73 lakh. Thus, revenue rose Rs 60.05 crore year-on-year, but reported profit after tax was Rs 3.89 crore lower.

The company said the margin moderation primarily reflected a higher operating cost base and investment in capabilities for a larger international business. Consolidated employee benefit expense rose 99.1% to Rs 4.63 crore from Rs 2.32 crore, reflecting spending on international sales, procurement, logistics, operations and business-development teams.

Consolidated other expenses increased by Rs 8.10 crore to Rs 23.49 crore in Q2 FY27 from Rs 15.39 crore a year earlier. Jinkushal identified higher sales and distribution costs as the primary reason, while also saying higher employee and finance costs limited margin expansion despite the increase in revenue.

Consolidated finance costs rose approximately 24.8% to Rs 1.97 crore from Rs 1.58 crore. Jinkushal said greater borrowing utilisation supported increased execution, overseas inventory and longer working-capital cycles, linking the higher cost to the funding needs of its expanded business activity.

How did standalone profitability and other income change?

Jinkushal’s standalone PAT declined to Rs 2.73 crore in Q2 FY27 from Rs 3.55 crore in Q2 FY26, and its standalone PAT margin fell to 3.09% from 6.79%. This occurred despite standalone revenue increasing by Rs 36.31 crore year-on-year to Rs 88.54 crore.

Direct expenses in the standalone business rose by Rs 4.31 crore, or approximately 573.4%, to Rs 5.06 crore from Rs 75 lakh in Q2 FY26. The company said higher equipment execution, shipment and handling requirements, international freight volatility and geopolitical disruption contributed to this increase.

Other income was also lower on a sequential basis. Standalone other income declined 81.7% to Rs 98 lakh in Q2 FY27 from Rs 5.35 crore in Q1 FY27, while consolidated other income fell 79.4% to Rs 1.14 crore from Rs 5.52 crore. Jinkushal said this lower contribution, alongside the higher operating cost base, materially affected sequential reported profitability.

What does Jinkushal’s first-half performance show?

Jinkushal reported consolidated revenue of Rs 189.43 crore for H1 FY27, up 55.7% from Rs 121.64 crore in H1 FY26. Standalone revenue rose 56.2% to Rs 139.83 crore from Rs 89.55 crore, indicating growth across both the parent business and the consolidated group over the six-month period.

However, consolidated H1 FY27 PAT was Rs 2.76 crore, down from Rs 10.95 crore in H1 FY26, and the margin was 1.46% versus 9.01%. Standalone H1 PAT declined to Rs 6.04 crore from Rs 7.31 crore, while its PAT margin reduced to 4.32% from 8.16%.

Jinkushal said its construction and mining equipment business is cyclical and project-driven, influenced by infrastructure and mining investment, capital-expenditure cycles, customer procurement and project schedules. Management therefore said half-yearly and annual trends provide a more representative view of scale and growth than a single quarter, given variable execution patterns.

How is inventory affecting Jinkushal’s working capital?

Jinkushal’s consolidated inventory stood at Rs 92.55 crore on September 30, 2026, down Rs 4.25 crore from Rs 96.80 crore on June 30, 2026. It remained Rs 40.07 crore above the Rs 52.48 crore reported on March 31, 2026, following an expansion in international inventory positioning.

The company said inventory positioned closer to overseas markets supports customer proximity, equipment availability and execution readiness. At the same time, Jinkushal disclosed that shipping disruption and longer working-capital cycles affected operations, and said its higher borrowing use during Q2 supported overseas inventory as well as business execution.

Jinkushal also said it continued product development, international marketing and dealer engagement for HexL, its proprietary construction equipment brand. Its stated priorities include scaling execution, strengthening customer relationships, improving operating efficiency and maintaining disciplined capital allocation, supported by international teams across sales, logistics, procurement and operations.

Conclusion

Jinkushal’s Q2 FY27 results show a sharp increase in consolidated revenue to Rs 132.86 crore, driven by international equipment execution, alongside a pronounced reduction in reported profitability. Distribution, employee, direct execution and finance costs increased, while other income was substantially lower sequentially, resulting in a 0.42% consolidated PAT margin.

The next results will show whether Jinkushal can improve operating efficiency while supporting overseas inventory of Rs 92.55 crore and longer working-capital cycles. Management’s disclosed plan is to scale international execution, expand HexL product and dealer activity, strengthen customer relationships and maintain disciplined capital allocation as the business grows.