Jinkushal Industries Limited (JKIPL), a leading non-OEM exporter of construction and mining machinery, has reported a robust financial performance for the second quarter of fiscal year 2026, while also addressing an inadvertent filing error.

Auditor's Report Filing Correction

The company informed stock exchanges that it had mistakenly uploaded the auditor's report for the previous quarter (Q1 FY2026) instead of the correct report for Q2 FY2026 ended September 30, 2025. JKIPL has since submitted the correct auditor's report and confirmed that this filing error does not affect the accuracy of the financial results approved by the Board of Directors on October 24, 2025.

Q2 FY2026 Financial Highlights

Despite the filing hiccup, Jinkushal Industries has posted strong financial results for the quarter:

Half-Yearly Performance

For the first half of FY2026, the company reported:

Key Financial Ratios

• The consolidated operating margin for Q2 FY2026 stood at 11.91%, compared to 19.46% in Q1 FY2026.
• The net profit margin for Q2 FY2026 was 6.11% on a consolidated basis.
• The company's debt-equity ratio improved to 0.36 as of September 30, 2025, from 0.63 on March 31, 2025.

Balance Sheet Strengthening

Jinkushal Industries has significantly bolstered its balance sheet:

• The consolidated networth increased to ₹19,172.91 lakhs as of September 30, 2025, up from ₹8,581.94 lakhs on March 31, 2025.
• Cash and cash equivalents saw a substantial rise to ₹12,611.43 lakhs, compared to ₹506.57 lakhs at the end of the previous fiscal year.

Investor Conference Call

Jinkushal Industries has scheduled an investor conference call on October 29, 2025, at 1:00 PM IST to discuss the H1 FY2026 results in detail.

The company's ability to maintain strong financial performance while quickly addressing the filing error demonstrates its commitment to transparency and robust financial management.

Jinkushal Industries Limited (BSE: 544547, NSE: JINKUSHAL) has announced a significant move into the African market through its subsidiary, Hexco. The company has entered into an exclusive distribution agreement for its 'HexL' brand of construction equipment in South Africa and neighboring Southern African territories.

Key Details of the Agreement

• Signing Date: October 13, 2025
• Distributor: One of the largest African equipment dealers (name withheld for strategic reasons)
• Scope: Exclusive distribution, marketing, and after-sales support
• Territory: South Africa and adjoining Southern African regions

Strategic Implications

This agreement marks HexL's commercial entry into the African market, transitioning from zero revenue in the region to expected meaningful incremental and recurring revenue. The deal is structured with several key components:

• Exclusivity for the specified territory
• Minimum annual sales commitments
• Performance milestones
• After-sales obligations

Financial Impact

Jinkushal Industries anticipates that this strategic alliance will:

1. Generate sales momentum
2. Add directly to the topline and bottomline
3. Strengthen consolidated profitability over the medium term
4. Improve operating leverage through higher volumes

Market Significance

The appointment of an experienced channel partner in Southern Africa is a breakthrough for HexL. The distributor, with its multi-decade operational history and significant market reach, is expected to play a crucial role in establishing HexL's presence in the region.

Disclosure and Compliance

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The decision to withhold the distributor's name is based on strategic and competitive sensitivity, aimed at protecting Hexco's commercial interests and roll-out strategy.

This move by Jinkushal Industries Limited showcases its ambition to expand its global footprint and tap into the growing African construction equipment market.