Jasch Industries FY26: A ₹78 Cr Quarter Lands, and ₹55 Cr of It Is Still Sitting in Receivables

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1. At a Glance

Jasch Industries closed FY26 with revenue of ₹228.68 crore and PAT of ₹13.25 crore — a profit that nearly doubled off FY25’s ₹7.49 crore. The March quarter did most of the heavy lifting: ₹77.96 crore of sales, the largest quarter in the file, with operating margin snapping back to 12.49% after a year spent in single digits.

The headline is loud. The balance sheet underneath it is louder. Receivables climbed from ₹33.46 crore to ₹55.16 crore in twelve months, borrowings jumped from ₹22.39 crore to ₹42.01 crore, and capital work-in-progress swelled from ₹5.48 crore to ₹23.38 crore. A company that grew profit spent the year handing out credit and pouring concrete.

The market pays 13.6x earnings for all of this, against a textile peer median near 23x. That gap is the whole story — a business growing fast, priced as though the market has questions. This entry walks the numbers that raised them.

2. Introduction

Jasch is a Sonipat-based maker of coated fabrics — PVC and PU synthetic leather — plus polyurethane resins. It sells into automotive interiors, footwear, upholstery and sports goods, with named clients including Puma, Mahindra, Bata and Liberty. In FY25 the company disclosed it had begun supplying Hyundai Kia, replacing previously imported coated fabrics in car interiors, and had launched a lamination adhesive under its existing PU resin capacity.

The corporate structure was reshaped recently. Under an NCLT-sanctioned Composite Scheme of Arrangement, the gauges business was demerged into a wholly owned subsidiary, Jasch Gauging Technologies. Equity share capital dropped from ₹11.33 crore to ₹6.80 crore in FY23 as part of that reorganisation — a detail worth holding onto, because it reprices every per-share figure before and after.

FY26 itself was a year of expansion. The company bought three acres in Sonipat, ordered four imported (used) PVC/PU coated-fabric lines at an estimated ₹28 crore, and on 26 May 2026 approved a further 10 lakh metres of PU coated-fabric capacity for ₹141 lakh, of which ₹131 lakh was already spent. Everything about the year points in one direction: more capacity, more receivables, more debt to fund both.

3. Business Model: WTF Do They Even Do?

Strip the jargon and Jasch coats fabric. It takes cloth, applies PVC or PU, and sells the result as synthetic leather to anyone who needs a durable surface that isn’t an actual cow. Car seats, shoes, sofas, cricket balls, medical furnishings — the same coated roll dressed for different buyers.

The revenue splits two ways: PVC synthetic leather at 59% and PU synthetic leather at 41% of the segment total. The March quarter showed why the split matters. PU segment revenue leapt to ₹48.34 crore against ₹28.68 crore in the prior quarter, and PU segment profit before interest and tax hit ₹11.03 crore for the full year versus PVC’s ₹8.67 crore. The higher-value polymer is carrying the results, which explains why the fresh capacity being bolted on is specifically PU.

There is also a resin business — polyurethane resins feeding the leather line, with a lamination adhesive added in late 2024 under existing capacity. Under a royalty-based technical licensing agreement with a foreign company, Jasch produces PU resins and tapes and pays royalty on the revenue those generate. So a slice of every rupee from that product line walks back out the door to a licensor. It’s a coating company that licenses part of its own chemistry — an efficient way to sell product you didn’t fully invent.

4. Financials Overview

Figures are standalone, in ₹ crore.

Revenue grew 56.6% year-on-year and profit 149% — the sharpest quarter in the dataset by a distance. Operating margin of 12.49% is the highest since the December 2023 quarter, and it arrived alongside the PU segment’s revenue surge noted above. Every line moved the same way at once, which is rarer than it sounds for a company whose quarterly margin bounced between 3.6% and 17% over the prior three years.

Is a single blowout March quarter a new operating level or a batch of shipments that happened to clear before year-end? The full-year OPM of 9.9% sits well below the quarter’s 12.5%, so the answer lives in whether FY27’s early quarters hold the