1. At a Glance – The Boiler Room Is Heating Up 🔥
JNK India Ltd is currently trading at ₹253 with a market cap of ₹1,411 Cr. The stock has corrected ~46.5% in the last one year and ~9.33% in the last three months. So yes, investors who entered near ₹482 high are probably staring at their portfolio like it’s a half-burnt furnace.
The company delivered Q3 FY26 standalone sales of ₹179 Cr and PAT of ₹18.5 Cr. Quarterly sales grew 91.2% YoY and profit jumped 534% YoY. That’s not growth. That’s combustion.
P/E stands at 30.4 versus industry median of 29.4. ROCE is 14.9%, ROE is 8.63%, Debt to Equity is just 0.05. Sounds safe? Wait till we reach debtor days of 261.
9M FY26 revenue stood at ₹4,934.1 Mn (₹493.41 Cr) with PAT ₹321.7 Mn (₹32.17 Cr) and order book at ₹17,611 Mn.
Is this a turnaround furnace or a capital-guzzling EPC machine? Let’s open the hood.
2. Introduction – The EPC That Wants to Be Elon Musk 🚀
JNK India started in 2010 and decided regular EPC wasn’t cool enough. So they went into “Technology based EPC Contracts and Renewable Energy Solutions.”
In simple language: They build giant industrial heaters, reformers and furnaces for oil refineries and petrochemical plants.
Their client list includes IOCL, Numaligarh Refinery, Tata Projects, Petrofac UAE and more. Basically, if it burns hydrocarbons, JNK wants to install the heater.
But here’s the twist. They are now diversifying into:
- Hydrogen production systems
- Solar EPC
- Flares & incinerators
- Energy storage systems
So from fossil fuel furnaces to green hydrogen dreams. Classic corporate glow-up.
Exports form 11% of revenue. Domestic is 89%. Order book in FY24 was ₹13,116 Mn, now at ₹17,611 Mn as per latest update.
But here’s the real question…
If order book is rising, why did operating cash flow go negative ₹66 Cr in FY25?
We’ll get there.
3. Business Model – WTF Do They Even Do? 🤔
Imagine a refinery. Massive pipes. Flames. Heat exchangers. Noise.
Now imagine someone has to design, manufacture, install and commission those heaters that literally cook crude oil.
That’s JNK.
They specialize in:
- Process fired heaters
- Reformers
- Cracking furnaces
- Waste gas handling systems
- Flare packages
- Hydrogen generation stations
They recently:
- Supplied heaters to Dangote Refinery (Nigeria)
- Delivered methanol reformer to Assam Petrochemical
- Supplied crude heaters to Pemex, Mexico
- Built hydrogen station at IOCL R&D, Faridabad
Revenue mix FY24:
- Heating equipment: ~96%
- Flares & incinerators: ~4%
Sales split FY24:
- Supply: 42%
- Erection & commissioning: 10%
- Works contract: 48%
So almost half revenue is works contract heavy. That explains working capital stretch.
They manufacture at Mundra SEZ facility (20,243 sq. meters, 5,000 MTPA capacity).
Also backed by JNK Global (Korea), which is promoter and global engineering partner.
Sounds solid.
But EPC companies don’t fail because of engineering. They fail because of cash flow.
Let’s check numbers.
4. Financials Overview – Numbers Don’t Lie (But They Sweat)
Since this is Q3, annualised EPS = Average of Q1, Q2, Q3 EPS × 4.
Q1
