Jinkushal Industries Limited (JKIPL) has announced a significant milestone for its subsidiary, Hexco Global FZCO, securing a repeat export order worth approximately ₹42 crore ($5 million) from an existing North American customer. This development marks a substantial boost to the company's international presence and order book.

Order Details

The order comprises 100 units of HexL 420X Backhoe Loaders, with each unit priced at an average of $50,000. Here's a breakdown of the key details:

Strategic Importance

This repeat order carries significant strategic importance for Jinkushal Industries:

1. Market Confidence: It reinforces the market's trust in the HexL 420X model and its performance.
2. Long-term Partnership: The buyer is described as a long-standing partner and an early adopter of HexL machines.
3. Revenue Contribution: The customer continues to be a key revenue contributor within the company's global operations.
4. Export Growth: This order strengthens JKIPL's export order book and enhances the HexL brand's footprint in North America and global construction-equipment markets.

Execution and Impact

The supply of these backhoe loaders will be executed progressively over a three-year period. This extended timeframe, coupled with quarterly price alignments based on prevailing market conditions, provides flexibility and potential for value optimization.

JKIPL expects this order to contribute positively to the company's export revenue and profitability over the execution period. The recurring nature of the order, being a repeat from an existing customer, also indicates strong product satisfaction and potential for future business.

Confidentiality

While the company has disclosed the order details as per SEBI regulations, it has withheld the customer's name citing strategic and competitive sensitivity reasons. This approach aims to protect Hexco's commercial interests and roll-out strategy in the North American market.

This order positions Jinkushal Industries favorably for sustained growth in international markets, particularly in North America. Investors and market watchers will likely keep a close eye on the company's future performance and its ability to leverage this opportunity for further expansion.

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.