Jinkushal Industries IPO Q2 FY26: ₹386 Cr Revenue, ₹19 Cr PAT, 5% Margins – Sherlock Finds the Backhoe Loader Mafia
1. At a Glance
A Raipur-based exporter of backhoe loaders and refurbished JCB cousins is marching to Dalal Street with a ₹116 crore IPO. Promoters want to expand working capital, margins are thinner than a cutting chai glass, and PAT grew just 3% despite a 59% revenue jump. Suspicious? Elementary, my dear Watson.
2. Introduction
Imagine you’re in Raipur, sipping chai outside CM House, and you see a convoy of shiny backhoe loaders labeled “HexL.” That’s Jinkushal Industries — a company that’s basically India’s construction machinery courier service to the world.
Started in 2007, the Jain family has built a trading empire exporting new, used, and refurbished construction machines to over 30 countries. UAE, Mexico, Netherlands, South Africa, Australia, UK — basically, wherever there’s a road being built, you’ll find Jinkushal sneaking in a refurbished machine.
But IPOs aren’t about selling machines, they’re about selling dreams. So here’s the dream: “We’re global, we’re diversified, and we’re launching our own brand HexL.” Reality check? Revenue up 59% in FY25, but PAT almost flat. It’s like running harder on the treadmill but still weighing the same.
And yet, they’re asking you to pay 24x earnings post-IPO. For a smallcap refurbisher with 90 employees and interns? Now that’s a detective-worthy puzzle.
3. Business Model – WTF Do They Even Do?
Jinkushal runs on three verticals:
Export of new machines – Tailored backhoe loaders and accessories for specific country needs. (Think: a backhoe that can survive Dubai heat or Australian dust.)
Export of used/refurbished machines – Buy second-hand, revamp in Raipur, and export. Basically, “OLX for JCBs with ISO certification.”
HexL brand machines – Their own branded loaders. A desi attempt at going Caterpillar-lite.
Secret sauce? Their refurbishment facility with 48 employees who breathe new life into rusting machines. And to scale up, they tie up with third-party refurb centers that follow their SOPs.
Narrator Verdict: A legit trading-plus-brand play. But will HexL become the next JCB, or remain the “Splendor+” of backhoe loaders?
4. Financials Overview
Source table
Metric
FY25 (₹ Cr)
FY24 (₹ Cr)
YoY %
Revenue
385.81
242.80
59%
EBITDA
28.60
27.57
4%
PAT
19.14
18.64
3%
EPS (₹)
6.43 (Pre)
6.26
3%
Detective Commentary:
Revenue grew like Virat Kohli’s fanbase. Profit? Grew like KL Rahul’s strike rate in Tests.
PAT margin: 5%. One wrong shipment to Mexico and that’s wiped.
EPS shrinks post-IPO dilution (from ₹6.43 to ₹4.99).
👉 Question: Would you pay 24x earnings for a company where profit barely moves despite revenue fireworks?
