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Kolkata: Net profits surging 1,080% and revenues leaping 7% ion a quarter is no joke. This is precisely what JNK India has registered in Q2FY26. JNK India is an engineering company. It has got a lot going for it -- a strong order book, rising margins and big projects. Let's have a look at the stock.
It is a company that is active in the domain of thermal designing, engineering, manufacturing, supplying, installing and commissioning process fired heaters, reformers and cracking furnaces. It has customers both in India and overseas. Seven of the 12 oil refining companies in India are their customers. It is also active in the renewable energy sector. India is the third most attractive renewable energy market in the world and the company has stepped into it is FY22. It is building capabilities in renewable sector with onsite hydrogen production and Solar PV-EPC.
Q2FY26 (July-September) was a period for JNK India to celebrate. It performed significantly on almost every parameter -- revenue jumped from Rs 103 crore to Rs 184.2 crore on a quarter-on-quarter basis, PBT rocketed from Rs 2 crore to Rs 17.8 crore, PAT jumped from Rs 1.1 crore to Rs 13 crore, EBITDA margin increased from 7% to 12.1% and PAT margin increased from 1.1% to 7.1%. On a year-on-year basis, revenue jumped 72%, PAT surged 67% and PBT also leaped 51%. Margins remained a bit under pressure, strong revenue and profit growth marked the performance.
The JNK India stock was trading at Rs 290, up Rs 6.25 or 2.20%, at the end of the session on Nov 17. It jumped from Rs 279.85 to Rs 310, a gain of nearly 11% on Friday (Nov 14), although it later declined. The company's market cap rose to about approximately Rs 1.62k crore.
The order book of JNK India also jumped in the first half of the current dinancial year. It rose from Rs 1,311 crore in H1FY25 to Rs 1,849 crore in H1FY26, which marks a growth of more than 40%. This includes the largest order in the company's history. It paves the way for a strong foundation for growth of both revenue and growth in the following one-two years.
Heating equipment still constitutes the lion's share of the revenue of JNK India. It contributes as much as 80.3% of the revenue while 11.8% originates from process plants and 8% from flares, incinerators, and other systems. As much as 89.4% of the business originates from clients within the country, while 10.6% comes from exports. Of the user sectors, petrochemical industry contributes the 59.2% of the revenue while 33.4% comes from oil and gas and 7.4% comes from steel.
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