Jinkushal Industries reported a consolidated net profit of ₹220.05 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a significant decline from the ₹650.56 lakh recorded in the same period last year. The drop represents a 66% fall compared to the previous quarter’s profit of ₹1,167.36 lakh, which included balancing figures from the audited FY26 results.

Consolidated revenue from operations increased by 16% year-on-year to ₹5,656.55 lakh, up from ₹4,882.41 lakh in Q1FY25. This growth was primarily driven by a rise in the purchase of machines for trade and refurbishment, which surged to ₹8,593.58 lakh from ₹3,110.88 lakh in the prior year’s corresponding quarter. Despite the revenue uptick, operating margins contracted significantly, with the adjusted EBITDA margin falling to 14.12% from 17.92% in Q1FY25.

Financial Performance Overview

The company’s standalone results showed a similar trend of declining profitability despite revenue growth. Standalone net profit fell 12% year-on-year to ₹330.94 lakh, compared to ₹376.32 lakh in Q1FY25. Standalone revenue from operations rose 37% YoY to ₹5,129.42 lakh. The standalone net profit margin stood at 6.45%, down from 10.08% in the previous year.

What the Numbers Show

A notable divergence exists between the company’s top-line growth and bottom-line performance. While revenue expanded substantially due to increased inventory purchases for trade, the net profit margin compressed sharply from 13.32% in Q1FY25 to 3.89% in Q1FY26 on a consolidated basis. This suggests that the current revenue mix involves lower-margin trading activities rather than high-margin manufacturing or services. Additionally, other income contributed ₹551.89 lakh to total consolidated revenue, accounting for nearly 9% of total revenue, highlighting a reliance on non-operational gains to support overall financial health.

Balance Sheet and Strategic Moves

The company’s interest service coverage ratio improved to 3.08 times in Q1FY26, up from 6.67 times in Q1FY25, indicating better ability to meet interest obligations from operating earnings. However, the debt service coverage ratio remains unreported for the current quarter.

In a strategic expansion move, Jinkushal Industries’ subsidiary, Hexco Global FZCO, incorporated Hexco Global Machines L.L.C. – S.P.C. in Abu Dhabi, UAE, in August 2026. With a paid-up capital of AED 100,000, this step-down subsidiary is yet to commence commercial operations and will be consolidated in subsequent reporting periods. The Board of Directors approved these unaudited financial results on August 14, 2026, following a limited review by statutory auditors Singhal & Sewak.

Jinkushal Industries has incorporated a step-down wholly-owned subsidiary, Hexco Global Machines L.L.C. - S.P.C., in Abu Dhabi, United Arab Emirates, to expand its international business activities in the Middle East region. The new entity was established on August 3, 2026, by Hexco Global FZCO, a direct subsidiary of Jinkushal Industries Limited, marking a strategic move to deepen the group’s presence in trading heavy equipment, machinery, spare parts, and allied activities.

The incorporation complies with Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As per the disclosure submitted to BSE Limited and National Stock Exchange of India Limited, the new entity operates as an indirect (step-down) wholly owned subsidiary of Jinkushal Industries Limited. The company secretary and compliance officer, Manish Tarachand Pande, signed the intimation on August 4, 2026.

Hexco Global FZCO funded the incorporation entirely from its own resources, with no direct investment or remittance made by Jinkushal Industries Limited into the new entity. The paid-up capital stands at AED 100,000, subscribed 100% by Hexco Global FZCO in cash through applicable banking channels. Consequently, Hexco Global Machines L.L.C. - S.P.C. is now classified as a related party to Jinkushal Industries Limited due to its status as an indirect subsidiary.

The newly incorporated entity is currently in the initial commercial establishment stage and has not yet commenced revenue-generating operations or business transactions. Its primary objective is to support and expand the group’s international business activities relating to the trading of heavy equipment, machinery, machinery spare parts, and equipment rental in the Middle East. No further government approvals are required for its incorporation under the laws of Abu Dhabi, UAE.

Key Details of Incorporation

Strategic Implications

The establishment of Hexco Global Machines L.L.C. - S.P.C. signals Jinkushal Industries’ intent to scale its overseas operations without directly deploying capital from the Indian parent company. By leveraging its existing Dubai-based subsidiary, Hexco Global FZCO, the group can manage regional risks and operational complexities through a localized structure. This step-down subsidiary model allows for greater flexibility in managing cross-border transactions and compliance within the UAE jurisdiction while maintaining full control through the corporate chain. Future developments requiring disclosure under applicable laws will be intimated in due course.