Jinkushal Industries Limited, India's largest non-OEM exporter of construction machines, has reported a significant improvement in profitability for the first half of FY26, despite flat revenue growth. The company, which recently listed on the stock exchanges, held its first earnings conference call to discuss its performance and future outlook.

Financial Highlights

For the six months ended September 30, 2025, Jinkushal Industries achieved:

The company's focus on improving profitability and optimizing the operating cycle has resulted in a significant boost to its bottom line, despite relatively flat top-line growth.

Operational Performance

Jinkushal Industries operates through three key segments:

1. Exports of new and customized construction machines
2. Exports of used and refurbished machines
3. Exports of their proprietary brand, HexL

The company reported that backhoe loaders have become their highest-selling product, contributing nearly 40% of total sales compared to 25% last year. HexL, the company's proprietary brand, accounted for approximately 11% of total revenue with 72 units sold to date.

Geographical Presence

The company maintains a strong global presence, with sales across 35 countries in six continents. Key markets include:

• Mexico: 50% of sales
• UAE: 28% of sales
• South Africa: 8% of sales (emerging as the third-largest market)

Financial Position

Jinkushal Industries has significantly improved its debt-to-equity ratio to 0.36x from 0.63x as of March 2025, indicating a stronger balance sheet position.

Future Outlook

The company has set targets for the coming years:

• Revenue target of Rs. 800 crores in the next two to three years
• Focus on PAT growth of 35-40% CAGR

Abhinav Jain, Whole-Time Director of Jinkushal Industries, emphasized the company's strategy: "Our near-term focus remains on maintaining financial prudence while pursuing sustainable and most importantly, profitable growth. We are committed to expanding our global presence, strengthening brand equity, and creating long-term shareholder value."

HexL Brand Expansion

The company plans to expand its proprietary HexL brand, aiming to:

• Establish 50 global distributors for HexL
• Potentially achieve sales of 1,000 HexL machines annually, which could add Rs. 300-400 crores to the turnover

Competitive Advantage

Jinkushal Industries differentiates itself through:

• Competitive pricing (20-40% lower than peers)
• Rapid after-sales service and spare parts delivery
• AI-enabled machines with advanced features
• Low-cost spare parts, reducing total cost of ownership for customers

As Jinkushal Industries continues to leverage its global network and expand its proprietary brand, the company appears well-positioned to capitalize on the growing global construction equipment market, estimated at Rs. 10 lakh crores in 2024 and projected to reach Rs. 16 lakh crores by 2029.

Investors will be watching closely to see if the company can maintain its profit growth while working towards its revenue targets in the coming years.

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.