Jinkushal Industries Limited conducted its Q3 FY26 earnings conference call on February 13, 2026, showcasing strong standalone performance despite strategic shifts in its global operations. The company, India's largest non-OEM exporter of construction and mining machinery, reported significant growth metrics while positioning itself for enhanced international market penetration.

Strong Standalone Performance Drives Growth

The company delivered robust standalone financial results for the quarter and nine-month period ended December 31, 2025. Standalone revenue demonstrated sustained export demand with impressive year-on-year growth across key markets.

Whole-Time Director Abhinav Jain highlighted that standalone revenue grew 27% year-on-year to around Rs. 184 crores for the nine-month period, reflecting sustained export demand across the company's markets spanning more than 35 countries.

Strategic Overseas Inventory Positioning

A key development during the quarter was the company's deliberate decision to build overseas inventory to record levels. The strategic positioning represents a fundamental shift in the company's operating model from predominantly wholesale B2B exports to enhanced retail-oriented distribution.

This inventory build-up was enabled by the company's strengthened liquidity position following its IPO. Management emphasized that positioning inventory closer to end-customers aims to shorten delivery timelines, expand direct end-user and retail sales, increase the share of higher-margin refurbished machines, and enhance revenue realization over time.

Consolidated Results Reflect Accounting Impact

The consolidated financial performance showed different dynamics due to the strategic inventory positioning and standard accounting treatments. CFO Sumeet Berlia explained the consolidated results context during the earnings call.

The consolidated results reflect the impact of strategic overseas inventory positioning and standard inter-company elimination under accounting standards. Margins embedded in overseas inventory are recognized upon sales to external customers, while associated operating costs continue to be expensed as incurred, creating timing differences between cost recognition and profit realization at the consolidated level.

Business Model and Market Positioning

Jinkushal Industries operates through three complementary verticals that reinforce each other to provide end-to-end solutions across price points and customer segments. The company's business model integrates sourcing, refurbishment, customization, logistics, and international distribution through an asset-light approach.

The company has continued investing in its HexL brand, which represents an important long-term growth vertical. HexL products are designed to the company's specifications and supported through its global distribution network, enabling deeper participation in branded equipment sales while maintaining the asset-light operating philosophy.

Geographic Diversification and Market Dynamics

During early December, certain tax-related clarifications in Mexico, historically one of the company's most significant export markets, led to temporary purchase deferrals by some importers at the end of the calendar year. Management emphasized this was a timing-related development rather than a structural demand issue.

In response, the company proactively strengthened execution across markets including UAE, South Africa, and other regions, supporting diversification and reducing concentration risks across geographies. This diversification strategy enabled the company to achieve 27% standalone growth despite temporary challenges in specific markets.

Management Outlook and Strategic Priorities

As the company enters the final quarter of FY26, management outlined focused priorities including monetizing overseas inventory efficiently, strengthening margin mix through higher contributions from refurbished equipment and HexL, maintaining prudent working capital management, and continuing geographic diversification. The company's aspiration to achieve multiple-time revenue growth over the next 2-3 years remains intact, supported by expansion of overseas distribution, growth of refurbished exports, and scaling the HexL brand, with sharpest focus on improving profit after tax and revenue quality rather than pursuing turnover growth alone.

Jinkushal Industries Limited has announced its unaudited financial results for the third quarter of fiscal year 2026, ending December 31, 2025, presenting a tale of two different operational performances. The company's Board of Directors approved these results on February 7, 2026, following recommendations from the Audit Committee. Subsequently, the company conducted its Q3FY26 earnings call on February 13, 2026, to discuss the financial performance with investors and stakeholders.

Standalone Financial Performance

The company's standalone operations demonstrated robust growth and profitability during Q3FY26. Key performance metrics showcase the strength of the core business operations.

The standalone business showed significant revenue growth with operations revenue increasing substantially compared to the corresponding quarter of the previous year. Total expenses for the quarter stood at ₹8,608.57 lakhs, with purchase of machines for trade and refurbishment representing the largest expense component at ₹7,859.31 lakhs.

Consolidated Financial Performance

The consolidated results, which include subsidiaries Hexco Global FZCO and Hexco Global USA LLC, presented contrasting performance metrics that highlight operational challenges at the group level.

The consolidated operations faced significant headwinds with total expenses of ₹5,369.75 lakhs exceeding revenue, primarily due to changes in inventories showing a negative ₹5,873.61 lakhs and higher other expenses of ₹1,285.15 lakhs.

Q3FY26 Earnings Call and Investor Communication

Jinkushal Industries successfully conducted its Q3FY26 earnings call on February 13, 2026, at 05:30 PM IST. The company informed stock exchanges about the earnings call outcome under Regulation 30 of SEBI Listing Regulations. The discussions during the call were based on generally available information and did not involve any Unpublished Price Sensitive Information (UPSI), ensuring compliance with the company's Code of Practices and Procedures for Fair Disclosure.

IPO Fund Utilization

The company reported no deviations in the utilization of Initial Public Offer proceeds during Q3FY26. The IPO, which raised ₹11,615.45 lakhs (fresh issue: ₹10,454.40 lakhs, offer for sale: ₹1,161.05 lakhs), has been utilized according to stated objectives.

Regulatory Compliance and Governance

The financial results comply with Indian Accounting Standards and SEBI regulations. Statutory auditors Singhal & Sewak conducted limited reviews and issued unmodified conclusions for both standalone and consolidated results. The company confirmed compliance with labor code changes effective November 21, 2025, with minimal financial impact assessed. The company operates in machinery, mining, and logistics sectors, with substantially the entire revenue for the nine months pertaining to sales of machines to its overseas subsidiary Hexco Global FZCO in the UAE.