Though very early signs but April & May order inflow looks subdued. H1 shouldn’t get impacted much but it’ll be very important to see order inflows in next couple of months to see if there’s any turbulence. They could very well define the course of this year revenue estimates
Disc: No investment advise & biased
Results clearly demonstrate the pain due to uncertainty & that reflects in numbers as well as order inflow too to an extent.
A disappointing set considering that some dispatches were to be recognised in Q1 FY26.
The management concall would make it clear whether earlier estimates given on a conservative basis would be met or this would be an year of weathering the headwinds & building capabilities aside US business which they are already trying to do.
Disc: biased & no buy/ sell recommendation
Edit: Attaching the mgmt commentary also on Q1 results
In all the previous communications from the company, they had mentioned that only 5% of their revenue (9-10 Cr impact) was impacted. They would either pass on cost or refuse order. BABA act was already preparing them for it. Wondering what has changed now for this ‘sub-dued’. Being cognizant that June qrtr is generally slow - nature of the business. Order book and revenue guidance are also close so does not leave much cushion
Attended Jash Engineering Concall & my understanding not deliberating on the numbers etc since it’s futile building any projections in an uncertain environment
Topline guidance remains intact- The guidance remains intact irrespective of headwinds in US. Now Jash management, as I’ve observed since being invested has always been conservative & they changed their stance last year wherein they actually exceeded the guidance except last quarter profitability. So it was a surprise that they are still gunning for 860 crores & above
Conservatism about profits- The management has given their estimate that swings wildly between 80-110 crores annual PAT, leaving the investor with the decision to make keeping in mind the horizon, allocation as well as when one entered. Though they ended the call on a note that there could be a positive surprise which was more on the 80 crores profit.
Building capability- The recent acquisition in India as well as one in UK being eyed with no major debt required would help the company expand its product basket as well as market reach outside of US particularly in UK with Waterfront being there.
Rodney Hunt- The management is expediting capex in US with internal accruals as well as little debt. The facility should be ready in FY 27 & that would take away the tariffs risk to an extent, keeping their geographical presence intact & even make it stronger down the line.
Augmented capacity would keep company ready for next 2-3 years- With US capex & if any other acquisition comes plus with them eyeing Saudi entry they could be sitting at a capacity between 1300-1500 crores by FY27 end.
Order Book Size at end of FY26- The management seemed confident to close the year with an order book of 1050-1100 cr despite headwinds.
All in all the management was candid about everything & no false promises have been made & left on the note that they had 42 investors visiting their new Chennai plant 
In an uncertain environment the management addressed all the queries to best of capability & seems to have its action plan ready. Still do think that 1000 cr by FY27 could be a reality, the margins & rest everything is anyone’s guess & how this year is progressing would be clear by Q2 results too.
Do feel investment in Saudi could be a very good prospect to add on for the company in terms of geographical penetration.
Disc: Biased & not authorised to advise
Indeed, the mgmt gives clear picture, no story building,
Takeaway from my side
Tariff game is real, not everything of the tariff hike will be passed to customers, some will be taken by Jash as well. (not for new orders)
So, we can also expect other companies will face the same challenge in near future with tariffs.
One thing I didn’t understand. Why are they talking about tariffs in the context of production at their US plant? What I mean is, if they really are producing at that plant (and not just importing doing a bit of value add there and then selling) they don’t have to worry about the US tariffs right?
Mr. Pratik talked about Build America Buy America Act (BABAA) and also clarified the point that the material used for production at US plant will be sourced from Mexico or some other place and that itself is under tariff.
A new FAQ document released by the company, laying down their capex as well as revenue plans.
53a57c3c-be1e-473d-8357-fda27007de57.pdf (636.5 KB)
what a banger of a document, I came to share the same.
Haven’t seen such transparent management yet.
Key highlights
Future growth potential
Competitors list for future reference:
Another detail faq on Rodney Hunt
Key Summary
I expect the PAT to be closer to the new guidance than significant over-achievement given they need to stand up a new plant in a greenfield location (lot of up front cost in FY26). Also, the gap in topline is expected to be compensated by more domestic orders which are lower margin than US so double whammy in the short term but solidifies a new market in the long term.
