Thejo says two Middle East units missed H1FY27 profit reporting

Thejo Engineering Limited said its two Middle East subsidiaries were the only group entities not reporting profit in H1FY27, as geopolitical disruption delayed supplies and order execution, while unaudited consolidated revenue from operations increased about 30% to Rs 375.95 crore. The two entities were Thejo Hatcon Industrial Services Company and TE Global FZ-LLC.

Which Thejo subsidiaries did not report H1FY27 profit?

Thejo said Thejo Hatcon Industrial Services Company and TE Global FZ-LLC were the only subsidiaries that did not report profit in H1FY27. The presentation does not disclose individual revenue, profit or loss figures for either Middle East entity, so it does not quantify their financial outcome for the six-month period.

All other subsidiaries reported profit during H1FY27, according to Thejo's consolidated highlights. This identifies the Middle East operations as the exception within the group, rather than indicating a loss at the consolidated level: Thejo reported unaudited consolidated profit after tax of Rs 33.12 crore for H1FY27.

The distinction is relevant because the statement concerns profit reporting at subsidiary level in H1FY27. Thejo's standalone H1FY27 results were audited, while consolidated results were unaudited, and the presentation does not provide an entity-by-entity reconciliation between the two reporting bases.

How did Middle East disruption affect Thejo's operations?

Thejo attributed the H1FY27 pressure on its Middle East subsidiaries to the geopolitical situation in the Middle East and Gulf regions, which caused supply-chain disruptions and deferrals in order execution. The company did not quantify delayed orders, supply-chain costs, or the portion of its approximately Rs 347 crore order book, as of 30 September 2026, related to the affected regional units.

One affected contract was TE Global FZ-LLC's steel cord pipe conveyor belt replacement work at a government establishment in the United Arab Emirates, or UAE. The customer had deferred the work in previous quarters because of the geopolitical situation, indicating that the disruption affected both customer scheduling and the subsidiary's work execution.

Thejo said execution of the UAE government project commenced in Q3FY27, after the H1FY27 reporting period. The restart is an operational development rather than a disclosed revenue or profit forecast, because the presentation provides no project value, completion date, margin or expected recognition schedule.

How did Thejo's H1FY27 financial performance change?

Thejo's consolidated revenue from operations increased about 30% to Rs 375.95 crore in H1FY27, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased about 42% to Rs 59.39 crore. Consolidated EBITDA margin rose to 15.64% from 14.31% in H1FY26 despite the two Middle East subsidiaries not reporting profit.

The consolidated comparison shows that profit after tax increased from Rs 23.87 crore in H1FY26 to Rs 33.12 crore in H1FY27, while profit before tax increased from Rs 33.30 crore to Rs 46.17 crore. These are unaudited consolidated figures, and Thejo did not isolate the Middle East subsidiaries' contribution to either period.

Standalone revenue from operations rose about 31% to Rs 311.53 crore in H1FY27, and standalone EBITDA rose about 31% to Rs 54.44 crore. The standalone EBITDA margin was 17.34%, compared with 17.31% in H1FY26, a reported increase of 0.03 percentage points.

What actions has Thejo disclosed for overseas operations?

Thejo disclosed new operating leadership at its UAE and Brazil subsidiaries while the deferred UAE project entered execution in Q3FY27. Mr. Jens Hamacher joined TE Global FZ-LLC, a wholly owned UAE subsidiary, as general manager, while Mr. M J Shaji joined Thejo Brasil Comercio E Servicos Ltda, a wholly owned Brazilian subsidiary, as chief executive officer.

Thejo said Hamacher has held senior management positions with leading European manufacturers and has expertise in vulcanising presses, conveyor belt solutions, splicing technology and industrial applications. His appointment concerns TE Global FZ-LLC, one of the two Middle East subsidiaries that did not report H1FY27 profit, although the presentation provides no performance target linked to the appointment.

Shaji has been associated with Thejo for more than three decades and has experience in corporate planning, commercial operations, supply-chain management and finance, according to the company. The presentation disclosed his Brazil appointment alongside the UAE management change, but did not identify the Brazilian subsidiary as affected by the Middle East and Gulf disruption in H1FY27.

Thejo also said expansion of its existing manufacturing facilities at Ponneri was in its final stages and was expected to be completed by Q4FY27. Together with the approximately Rs 347 crore order book reported at 30 September 2026, the UAE project and the Ponneri expansion are the principal disclosed execution items, without associated revenue targets.

Conclusion

The H1FY27 update shows that geopolitical disruption left two named Middle East subsidiaries outside Thejo's group-wide subsidiary profit outcome, while consolidated revenue from operations rose about 30% and EBITDA rose about 42%. The movement in consolidated EBITDA margin, from 14.31% to 15.64%, occurred alongside deferred regional order execution rather than after its full resolution.

The next disclosed operational markers are execution of the UAE steel cord pipe conveyor belt replacement project in Q3FY27 and expected completion of the Ponneri manufacturing expansion in Q4FY27. Thejo has appointed leaders for its UAE and Brazil units, but has not disclosed regional profit targets, the UAE contract value, or a timetable for resolving Middle East supply-chain disruption.