Jaykay Enterprises Limited has announced its financial results for the quarter and half-year ended September 30, showcasing robust growth despite facing challenges in one of its subsidiaries.

Financial Highlights

The company reported a significant increase in its financial performance for Q2:

The company's revenue for the quarter stood at ₹63.06 crore, marking a substantial 105% year-on-year growth. For the half-year, revenue reached ₹118.52 crore, representing a 147% increase compared to the same period last year.

Operational Highlights

JK Defence & Aerospace Limited

• Secured major defence orders worth ₹110 crore from BrahMos Aerospace Private Limited and Bharat Dynamics Ltd.
• Increased effective stake to approximately 93% in Allen Reinforced Plastics Limited, strengthening its position in advanced materials and composite technologies.

JK Phillips LLP

• Awarded a ₹139 crore order from IRCON International Ltd., boosting its footprint in the infrastructure and engineering segment.

JK Digital & Advanced Systems Private Limited

• Completed Transfer of Technology (ToT) from CSIR-CSIO for 3D Printed Medical Implants.
• Registered its own brand, "Neobone," for medical implants.
• Nearing completion of manufacturing facility in Bengaluru for bespoke and bulk medical implant markets.

Digital Services Segment (JK Tech)

• Revenue from operations increased by 7% in Q2, with EBITDA margins at 20%.
• AI-driven platform "JIVA" gaining traction in US and UK/Europe markets.
• Honored with the Silver Globee® Award for Company of the Year in Artificial Intelligence at the 17th Annual Globee® Business Awards.

Challenges and Concerns

Despite the overall positive performance, the company faces a significant challenge:

• Auditors issued a qualified opinion due to misappropriation of funds and trade receivables worth ₹152.99 lakhs by an ex-director of subsidiary Neumesh Labs Private Limited.
• The company has filed an FIR and believes the amount will be recovered without requiring provisions.

Management Commentary

Abhishek Singhania, Chairman and Managing Director of Jaykay Enterprises Ltd., commented on the performance: "Jaykay's second quarter results underline the strength of our diversified portfolio and the progress across all strategic segments. Our strong order inflows in Defence & Aerospace, expansion in medical technology, and steady growth in digital services are positioning the company for sustained performance. The outlook for the remaining year appears robust and should continue the momentum in revenues & profitability."

Regulatory Compliance

The company's financial assets constitute more than 50% of total assets, potentially bringing it under Section 45-IA of the Reserve Bank of India Act. However, management believes registration is not required as the company is primarily engaged in digital manufacturing and aerospace sector operations.

Jaykay Enterprises continues to demonstrate strong growth across its diverse business segments, with significant developments in defence, medical technology, and digital services. While facing challenges related to fund misappropriation in a subsidiary, the company remains optimistic about its future performance and market position.

Jaykay Enterprises Limited has reported robust financial results for the second quarter, demonstrating significant growth across key financial metrics.

Financial Highlights

The company's consolidated performance for Q2 shows remarkable improvement:

The company's revenue doubled to ₹63.06 crore in Q2 FY2025-26, compared to ₹30.81 crore in the same quarter last year, marking a significant 105% year-over-year growth. The EBITDA saw a substantial increase to ₹10.63 crore from ₹3.10 crore, resulting in an EBITDA margin expansion from 9.93% to 17.49%.

Notably, the consolidated net profit surged to ₹8.77 crore, a remarkable increase from ₹0.42 crore in the corresponding quarter of the previous year, representing a growth of over 1,987%.

Half-Yearly Performance

For the first half of FY2025-26, Jaykay Enterprises continued its strong performance:

• Revenue stood at ₹118.52 crore, a 147% increase from ₹47.95 crore in H1 FY2024-25.
• EBITDA rose to ₹17.92 crore, up from ₹2.93 crore in the previous year's first half.
• PAT grew significantly to ₹28.97 crore, compared to ₹5.61 crore in H1 FY2024-25.

Business Highlights

JK Defence & Aerospace Limited

• Secured major defence orders worth ₹110 crore from BrahMos Aerospace Private Limited and Bharat Dynamics Ltd.
• Increased effective stake to approximately 93% in Allen Reinforced Plastics Limited, strengthening its position in advanced materials and composite technologies.

JK Phillips LLP

• Awarded a ₹139 crore order from IRCON International Ltd., enhancing its footprint in the infrastructure and engineering segment.

JK Digital & Advanced Systems Private Limited

• Completed Transfer of Technology (ToT) from CSIR-CSIO for 3D Printed Medical Implants.
• Products developed and ready for test license approval.
• Manufacturing facility in Bengaluru nearing completion, set to cater to both bespoke and bulk medical implant markets.
• Registered its own brand, "Neobone," for medical implants.

Digital Services Segment (JK Tech)

• Revenue from operations increased by 7% in Q2 FY2025-26, with EBITDA margins at 20%.
• AI-driven platform "JIVA" gaining traction in US and UK/Europe markets.
• Honored with the Silver Globee® Award for Company of the Year in Artificial Intelligence at the 17th Annual 2025 Globee® Business Awards.
• JIVA recognized in the Everest Group PEAK Matrix® Report, underscoring the company's commitment to empowering businesses with transformative Data & Analytics solutions.

Management Commentary

Mr. Abhishek Singhania, Chairman and Managing Director of Jaykay Enterprises Ltd., commented on the performance: "Jaykay's second quarter results underline the strength of our diversified portfolio and the progress across all strategic segments. Our strong order inflows in Defence & Aerospace, expansion in medical technology, and steady growth in digital services are positioning the company for sustained performance. The outlook for the remaining year appears robust and should continue the momentum in revenues & profitability."

The company's strategic investments and diversification into high-growth sectors such as defence, aerospace, and digital technologies appear to be yielding positive results, as reflected in the strong financial performance for Q2 FY2025-26.