At a Glance
John Cockerill India (JCI), the Belgian engineering wizard’s Indian arm, reported a Q1 FY26 net profit of ₹1.72 Cr, barely limping back to the black after consecutive losses. Revenue came in at ₹82 Cr (up from ₹76 Cr last quarter). Amid the numbers, the MD resigned, office is moving, and the boardroom drama is more gripping than the profits. Stock trades at ₹4,297—a price that screams “premium” while the balance sheet whispers “meh”.
Introduction
Imagine an engineering company that builds industrial furnaces, pickling lines, and cold rolling mills—basically everything that sounds hot but isn’t sexy. That’s John Cockerill India. Part of the Belgian giant, the Indian arm is stuck in a cycle of volatile profits, low returns, and high receivables. Investors? They’re scratching their heads while sipping on Belgian beer.
Business Model (WTF Do They Even Do?)
- Core Business: Designing, manufacturing, commissioning industrial equipment (for steel, non-ferrous, chemical industries).
- Clients: Heavy industries worldwide—ferrous & non-ferrous majors, chemical plants.
- Revenue Sources:
- Large project orders (high-margin when executed on time)
- Service & maintenance contracts
- USP: Global technology, but execution and cash conversion are slow (debtors at 184 days—ouch).
Financials Overview
- Revenue (Q1 FY26): ₹82.1 Cr (+7.5% QoQ)
- Net Profit: ₹1.72 Cr (vs. -₹0.75 Cr in Q4 FY25)
- EPS: ₹3.48 (positive after 2 quarters of red ink)
- Margins: OPM at 2.3% (still thinner than a Belgian crepe)
Commentary: Tiny profit, huge volatility. Investors are riding a rollercoaster blindfolded.
Valuation
- CMP: ₹4,297
- Book Value: ₹410
- P/B: 10.5x (expensive)
- ROE: -2.5%
- ROCE: -2.2%
Fair Value Range: ₹3,200 – ₹3,800 (unless margins magically expand).
What’s Cooking – News, Triggers, Drama
- MD Michael Kotas resigned (effective July 31).
- Frederic Martin takes over as MD from August 1.
- Office Relocation approved—maybe they hope new vibes fix old problems.
- Global parent’s tech push could drive new orders, but execution risk remains high.
Balance Sheet
| (₹ Cr) | Jun 2025 |
|---|---|
| Total Assets | 570 |
| Total Liabilities | 372 |
| Net Worth | 198 |
| Borrowings | 5 |
Remarks: Almost debt-free, but receivables are a time bomb.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | TTM |
|---|---|---|---|
| Operating | 71 | -66 | -69 |
| Investing | -7 | 2 | 2 |
| Financing | -1 | -5 | -5 |
Remarks: Operating cash is as moody as the MD.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | -2.5% |
| ROCE | -2.2% |
| P/B | 10.5x |
| PAT Margin | 2.1% |
| D/E | 0.03 |
Remarks: Financial ratios scream “avoid unless you love drama.”
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | TTM |
|---|---|---|---|
| Revenue | 484 | 389 | 307 |
| EBITDA | 9 | -4 | -8 |
| PAT | 13 | -5 | -8 |
Remarks: Revenue down, profits down—until Q1 FY26’s tiny bounce.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Kaynes Tech | 2,721 | 293 | 126 |
| Honeywell Auto | 4,189 | 524 | 65 |
| Jyoti CNC Auto. | 1,818 | 323 | 73 |
| John Cockerill | 307 | -8 | — |
Remarks: Peers are innovating; JCI is just surviving.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 75% (Belgian parent fully in control)
- FIIs/DIIs: Negligible
- Public: 25%
- Note: No dilution, no big institutional love.
EduInvesting Verdict™
Past Performance
John Cockerill India has had a decade of volatile profits, weak margins, and inconsistent cash flows. Despite global tech support, execution lags drag performance.
SWOT Analysis
- Strengths: Strong parentage, niche engineering expertise, debt-free.
- Weaknesses: Low margins, high debtor days, volatile profits.
- Opportunities: Steel sector capex, global industrial demand.
- Threats: Order delays, cost overruns, management instability.
Final Word
Q1 FY26’s tiny profit is a relief, but fundamentals remain fragile. The stock trades at luxury valuations without luxury returns. Investors betting here need patience, faith, and maybe Belgian luck.
Written by EduInvesting Team | 29 July 2025SEO Tags: John Cockerill India, Q1 FY26 Results, Industrial Engineering Stocks, Belgian Engineering in India
