Jash Engineering Reports 12% Revenue Growth Amid Margin Pressures in Q2FY26

Jash Engineering Limited , a leading manufacturer of water control gates and equipment, reported a 12% year-on-year revenue growth in Q2FY26, despite facing significant margin pressures. The company's performance was impacted by several factors, including U.S. tariffs and project-specific challenges.

Key Financial Highlights

Metric	Value
Revenue growth	12% year-on-year
Revised annual revenue guidance	Lowered from INR 860.00 crores to INR 825.00 crores
Profit expectations	Maintained at INR 75.00-85.00 crores

Margin Pressure Factors

U.S. Tariffs: The implementation of 50% tariffs on imports to the United States has prevented Jash Engineering from dispatching materials to higher-margin American markets.
Project-Specific Issues: The company faced design challenges on certain projects, which impacted profitability.

Strategic Moves

To address these challenges and diversify its market presence, Jash Engineering announced two key acquisitions:

WesTech: This acquisition aims to strengthen Jash's position in the industrial process equipment business.
Penstocks UK: This move is intended to expand the company's presence in the UK market and reduce dependency on the U.S.

Management Commentary

Pratik Patel, Chairman and Managing Director of Jash Engineering, stated during the earnings call, "We have achieved a growth of around 12%. However, on the bottom line, the performance has not been as good, mainly because of the tariff. We have not been able to dispatch materials to the US where margins are generally higher compared to domestic sales."

Future Outlook

Despite the current challenges, the management remains optimistic about the company's future prospects:

H2 Performance: The company expects a considerable improvement in bottom-line figures in the second half of the fiscal year.
Order Book: As of Q2FY26, the consolidated order book stands at INR 890.00 crores, indicating a strong pipeline for future revenue.
Geographical Expansion: Jash Engineering plans to set up a plant in Saudi Arabia by mid-2027 to target the Middle East market.
Product Development: The company continues to focus on new product development, including high-pressure knife gate valves for the Canadian Oil Sands market and HDPE knife gate valves for chemical industries.

Conclusion

While Jash Engineering faces short-term challenges due to geopolitical factors and project-specific issues, the company's strategic acquisitions and expansion plans demonstrate its commitment to long-term growth and market diversification. The management's focus on maintaining profitability, with targeted EBITDA margins of 22-25% and PAT margins of 12-14%, underscores its confidence in the company's future performance.

Investors and stakeholders will be closely watching how Jash Engineering navigates these challenges and capitalizes on its strategic initiatives in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.33%	-3.70%	-6.36%	-12.83%	-21.02%	+967.61%

Jash Engineering Limited , a leading manufacturer of varied engineering products for water, wastewater, and bulk solids handling industries, has reported mixed financial results for the second quarter of fiscal year 2025-26. The company saw an increase in revenue but experienced a decline in profitability compared to the same period last year.

Financial Highlights

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue	₹1.57 billion	₹1.40 billion	↑ 12.14%
Net Profit	₹111.60 million	₹160.00 million	↓ 30.25%
EBITDA	₹203.00 million	₹245.00 million	↓ 17.14%
EBITDA Margin	12.88%	17.56%	↓ 468 bps

Jash Engineering's consolidated revenue from operations for Q2 FY2025-26 increased to ₹1.57 billion, up from ₹1.40 billion in the corresponding quarter of the previous year, marking a 12.14% year-over-year growth. However, the net profit for the quarter decreased to ₹111.60 million, compared to ₹160.00 million in Q2 FY2024-25, representing a 30.25% decline.

Profitability Pressure

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹203.00 million, down from ₹245.00 million in the same period last year. The EBITDA margin compressed significantly to 12.88% from 17.56% in the previous year's corresponding quarter, indicating increased cost pressures and potentially challenging market conditions.

Management's Perspective

The Board of Directors reviewed and approved the Unaudited Standalone & Consolidated Financial Results along with the Auditor's Limited Review for the Quarter & Half Year ended 30th September 2025 during their meeting held on November 13, 2025.

Strategic Developments

Jash Engineering announced several strategic initiatives:

Proposed Acquisition: The Board has approved the proposed acquisition of M/s. Wes Tech Process Equipment India Private Limited (WesTech).
Potential UK Acquisition: The company's UK subsidiary, Waterfront Fluid Controls Limited, has entered into an agreement/LOI to acquire Penstocks (UK) Limited, Leicestershire, UK.
Merger Process: The company has initiated the regulatory process for the merger of Shivpad Engineers Private Limited, a wholly-owned subsidiary, with Jash Engineering Limited.

Outlook

While Jash Engineering has shown robust revenue growth, the decline in profitability metrics suggests that the company may be facing challenges in maintaining its margins. The strategic acquisitions and merger initiatives indicate that the company is actively pursuing growth opportunities and operational efficiencies.

Investors and stakeholders will likely be watching closely to see how these strategic moves impact the company's financial performance in the coming quarters, particularly in terms of improving profitability and leveraging growth opportunities in the engineering products sector.