John Cockerill India Ltd (BSE: 500147) Q3 2026 Earnings Call dated Feb. 26, 2026
Corporate Participants:
Operator
Francois David Martino — Chairman
Analysts:
Unidentified Participant
Anand Shah — Analyst
Venkatesh Subramanian — Analyst
Anand Vyas — Analyst
Presentation:
Operator
Ladies and gentlemen, we apologize for the delay and appreciate your patience. Good day, and welcome to the Q4 and Full Year 2025 Earning Conference Call of John Cockerill India Limited. [Operator Instructions].
Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Francois David Martino, Chairman of John Cockerill India Limited. Thank you. And over to you, sir.
Francois David Martino — Chairman
Good afternoon, everyone and thank you for joining us. I am joined today by Frederic Martin, our Managing Director; and Marc Dumont, our Chief Financial Officer. I want to use today’s call differently from a typical results briefing. And yes, we will cover the fiscal year 2025 financials, and they will generally positive story of turnaround and recovery. But what I really want to focus on is what comes next.
JCIL has spent the last 12 months restructuring, repositioning and rebuilding. That work is done. What you are investing in today is not the company we were, it is the company we have become. And the growth potential ahead of us is the most compelling it has been in a decade. Let me take you through the story, beginning with where we are, then turning to where we are going on, and how we intend to get there.
Fiscal year 2025 was the turnaround being delivered. The numbers matter. So, let me cover them quickly. First, the order book. Fiscal year 2025 order entries reached INR862 crores versus last year INR300 crores orders, ending the year with the backlog close to INR11.9 billion, after a sharp acceleration in the second half. This is 74% compared to previous year increase. This is not only a record level, it is the strongest forward revenue visibility we have had in many years.
Second, value services growth. Revamps, spare parts and services expanded materially and importantly with structurally better economics, higher margin, faster cash cycles and more recovering demand versus one-off project cycles. This segment is becoming a stabilizing pillar of JCIL. Revenue reached INR357 crores level, profit after tax INR10 crore, and this is a full return to profitability after the loss of INR5 crores in 2024. And critically in revenue terms, every quarter of 2025 was better than the one before.
Our balance sheet was strengthened. Cash and balance grew from INR62 crore to INR226 crores, nearly four times in a single year. Totally equity no cents [Phonetic] at INR210 crores and we enter 2026 with financial firepower, not financial constraints. And behind these headlines numbers, the improvement of ’24 to ’25 is visible across every key driver in a very deliberate sequence. EBIT operating profitability recovered meaningfully year-on-year with an EBIT improving to around 6% in 2025 from around minus 3% the previous year. This is supported by an execution discipline and the growing contribution of value services.
Fourth, fixed cost and overhead control. While we restructured, we did not allow structural costs to drift. Cost discipline remained tight, overheads were controlled and the operating base is now leaner and more scalable.
Fifth, cash position. Cash and equivalent strengthened sharply year-on-year with operating cash generation improving by over INR2.2 billion versus 2024, and an overall cash improvement of roughly INR750 million.
Sixth, the working capital. We improved billing and collections, reduced and build revenue as project moves towards billing milestones and strengthened advance receipts on new projects, all of which materially improved the quality of our operating cash conversion. Two non-recurring items in the financial reserves REIT context, a one-time non-cash charge of INR11 crore from revised labor code regulations effective November 2025, industry-wide regulatory entirely non-recurring, provisioning normalizes from 2026.
An arbitration notice from Santander received in February 2026, disclosed to the stock exchange and under active legal review. We will provide a full update once the review is completed. Excluding these items, our underlying operating performance is stronger still and provides a clean, solid base for the growth ahead. One more signal that speaks louder than any number the Board is recommending a dividend for 2025, after a year in which no dividend was paid. This is a deliberate statement of restored financial confidence and the beginning of a progressive approach to shareholder returns.
What we built, the restructuring, and what it means. Before I talk about where we are going, I want you to understand what we have built, because the restructuring is the foundation for everything that follows. Over the past 12 months, the John Cockerill Group executed a fundamental transformation of its global metals business. The international methods activity acquired from John Cockerill SA, spanning India, Europe and China and with the United States to be added in a future phase, has been integrated and consolidated into a single fortress business anchored in JCIL. This was not a cosmetic reorganization, it was a round up rebuilding of how this business is structured and governed and run.
Europe and USA will primarily be the center of technology competence, whereas India and China will function as a manufacturing hub, which will lead to consolidated operations, consolidated results in removal of duplication, clarifying accountability and accelerating decision-making. Technology governance centralized a single pipeline for R&D product development and technology transfer from Group to India. Procurement unified consolidated buying power across geographies, reducing lead times and improving cost competitiveness. Project governance strengthened, tighter controls, cleaner microns management and faster client billing.
JCIL established as the Group’s global metal hub, the listed India-based platform to reach the entire metals business will be growing. The restructuring cost us time and complexity in 2025, but we have solved that. What we have built in return is an organization that is cleaner, faster, more integrated and structurally positioned to capture value at a scale we could not reach before.
Third point, the growth roadmap. We have identified five engines one direction, so what those growth looks like from here. Let me walk you through our five growth engines, each one a direct product of the restructuring and each one with clear near same visibility. Before I move into our five growth engines, let me frame the steel industry context for 2026.
In 2026, the global steel landscape remains uneven. Europe continues to face structural pressure from energy cost and trade dynamics, while investment momentum in India and increasingly across China and broader APAC remains focused on value-added downstream capacity, efficiency upgrades and decarbonization-linked modernization. That is exactly where JCIL is positioned.
Engine number one, India’s chill boom, our home advantage. India is the world’s second largest and fastest growing major steel market. Infrastructure investment is surging under Prime Minister, Gati Shakti, and the national infrastructure pipeline. Automotive demand is expanding. Renewable energy buildout is accelerating. The national steel policy is driving capacity upgradation across the value chain, and every one of these trends directly drives demand for the processing lines, equipment and lifecycle services that JCIL supplies.
We are not selling into a commodity market. We are the technology and engineering partner that India’s steel producers need to compete in a more sophisticated, more sustainable and more demanding global market. While Europe and China face structural headwinds, our customers in India are investing confidently at scale and with increasingly technical ambition. That is our home market. That is our structural advantage. And the restructuring has made us sharper and more capable of capturing.
Engine number two, record order book. Revenue visibility we have not had before. Our order book entering 2026 is at a record high. Order intake accelerated sharply through H2 2025 and has continued into early 2026 with major wins across India’s leading steel producers, Tata Steel, JSW, AMNS, JCIL and others. Let me be direct about timing. Projects secured in H2 2025 and 2026 are in early engineering, mobilization and procurement phases. Recognition of revenue builds progressively as execution milestones are achieved. So we expect Q1 and Q2 of 2026 to represent a subdued start, not because demand is weaker, but because the backlog we build takes time to convert into recognized revenue under our project accounting and good policy.
From Q3 2026 onwards, we expect improvements to become clearly visible as multiple large projects move into active execution and bidding. The other book we have built is the revenue and profitability of the quarters ahead, and it is the strongest forward pipeline we have held in a decade. The quality of the order book has also shifted. We are bidding selectively, prioritizing technically differentiated projects, better margins and long-term partnerships. The new order book is not just larger, it is also better.
Engine number three, Value Services. The high margin growth flywheel, perhaps the most powerful structural change in JCIL’s business model is the rise of Value Services. Our event payer and service services segment is a direct product of the restructuring. This is the logic that makes this such a compelling growth story. JCIL has been supplying and commissioning steel processing equipment in India for decades. Every line, every furnace, every mill, we have ever installed is a potential Value Services customer.
As India still producers, modernize, decarbonize and expand demand for revamps, upgrade and genuine OEM spares growth, and it is recurring, not project dependent. Value Services delivers higher gross margins than new projects, faster cash cycles and more predictable revenue. It stabilizes the business and fund’s growth simultaneously. With the restructuring, we now have Tidal Group technology integration, meaning we can offer more comprehensive lifecycle solutions backed by the full depth of John Cockerill’s global engineering capabilities.
Value Services contributed meaningfully to our improved margin in 2025. We are investing aggressively to accelerate its growth, expanding our service teams, deepening customer engagement and building dedicated facilities. The commissioning of our Rolls Coating facility at Taloja in 2026 is the clearest demonstration of this strategy. HP-HVAF technology, the first of its kind in India in collaboration with Advanced Coatings SA, a Belgium company European coating quality will be available on the Indian market north. A high margin recurring revenue stream from a captive customer base. This is a value services at its most powerful phase.
Engine number four, Global Consolidation. Turning the Group into one integrated business. The restructuring has created something that did not exist before, a single coherent metals business with India as its center. European technology at the core and global rich shook group entities. In 2026, this consolidation advances to its next major step. The proposed acquisition of the US Space Group entity targeted for completion by December 31st, 2026.
What does the US acquisition mean for JCIL’s growth potential? Access to North American engineering expertise and project management capabilities directly under the JCIL platform. Participation in major North American steel industry projects like ArcelorMittal Calvert and other like, where JCIL’s technology is already deployed. Export revenue opportunities for Indian manufactured equipment and components flowing through the consolidated group.
A genuinely global GCL able to serve customers from India to Europe to North America from a single integrated platform. Every phase of this consolidation is governed by full board oversight, independent due diligence and shareholder transparency. We will move deliberately and responsibly, but the destination is clear, a listed Indian entity with global scale.
Engine number five, Greenfield Technology position for the next decade. Steel manufacturing is undergoing its deepest structural transformation in generations from carbon intensive high volume production towards precision processing, advanced high strength steel and progressively lower carbon intensity. This is not a trend. It is a structural shift that will define capital investment in the steel sector for the next 20 years. JCIL is not of 70 ships. We are positioned to lead it through our own technology portfolio and through the Group’s broader innovation pipeline.
Jet Vapor Deposition developing partnership with ArcelorMittal, superior coating quality, lower environmental impact, enabling steel producers to meet tomorrow’s sustainability requirements today. Volteron, the Group’s electrochemical iron making initiative, targeting CO2 reduction at the upstream end of the value chain, positioning John Cockerill Metals as a partner in the fundamental decarbonization of steel.
Electrical steel processing, our project for JSW JFE Electrical Steel Nashik marked our entry into a high growth, high technology segment CRGO T4 transformers a market previously dominated by imports. I know being localized in India for the first time. Our ambition is clear and deliberate to evolve from a world-class downstream technology partner into a Tier 1 steel making solution company, offering our customers the technology they need not just for today’s production, but for the decarbonized digitally managed steel industry of the next generation.
The synergy roadmap was the restructuring and loss and when. Let me be specific about the synergies from restructuring and when investors should expect to see the materialize in our financials. Revenue step up new projects from H2 2025 order intake move into active execution, multiple large site billings simultaneously. Q2 2026 is the expected inflection point for revenue acceleration.
2026 H1 Rolls Coating revenue. As mentioned, Taloja facility is commissioning the current project. Third time margin recurring coating services revenue begins flowing a new business line with structural growth potential for day one.
2026 full year procurement synergies. Consolidated group purchasing across India, Europe and China delivers measurable cost savings on materials and components. Margin improvement visible in project growth margin. In 2026 full year, technology transferred velocity. Faster mobilization of Group technology into Indian projects reducing engineering lead times improving proposal quality and enabling us to build on more technically complex higher margin projects.
2026 H2 US entity consolidation. Proposed acquisition completion by December 31st, 2026. North American engineering capability under the JCIL platform. New revenue dimensions from cross border project participation.
2027 lifecycle service scale. Value services grow from a meaningful contributor to a major revenue pillar powered by the growing installed base, group engineering integration and Rolls Coating ramp up.
2027 greenfield revenue, JVD, Volteron and electrical steel technologies begin contributing to a structurally differentiated premium margin revenue stream as decarbonization investment accelerates globally. The restructuring has created a platform. The existing order book has confirmed the demand. The technology portfolio has established the differentiation. What comes next is execution and that is what we do best.
Why JCIL? Why no? Let me close the substantive part of this call with investment case as I see clear direct and grounding in what we have built. Market timing, India is in a multi-decade till investment cycle. We are in the go-to technology partner for advanced processing lines in the market. The timing could not be more favorable. The restructuring is almost complete. The complexity and cost of transformation are behind us. The organization is set up to execute and to scale. The synergies are now ours to capture. Record order book, promising revenue visibility at levels we have not had before.
Q2 2026 revenue step up is a near term high confidence milestone. Value services component, a recurring high margin business growing from a captive installed base with Roll Coatings adding a new dimension in 2026. Global platform in the making. JCIL is becoming a generally global listed entity. India as the hub group technology as the engine and international consolidation as the growth level. Balance sheet strengths from INR226 crore in cash and bank balances, financial firepower to invest in growth resource constraints.
Dividend reinstated. A progressive approach to shareholder returns begins in fiscal year 2025, and we intend to build on it. Safety Culture, zero fatalities, zero LTIs in fiscal year 2025. 4,500-plus consecutive safe days at Taloja. It is an organization that operates with discipline and integrity at every level. JCIL is not a turnaround story anymore. It is a growth story. The turnaround was 2025, the growth is 2026, and beyond. And we are fully committed to deliver it.
Closing, to our shareholders, the restructuring you supported, the patience you showed and the trust you maintained it has built something real. The dividend we are recommending this year is the first return on that trust we intend to keep delivering. To our customers, thank you for choosing us as your technology and engineering partner. We aim to honor that choice on every project, at every site, every day. To our employees, you executed through transformation without missing a bit. The performance we are reporting today and the growth ahead is yours. The best chapter of JCIL story has not been written yet. We are writing it now.
And now, Frederic, Matt and I, are now ready for your questions. Thank you for your attention.
Questions and Answers:
Operator
Shall we begin with the question and answer session?
Francois David Martino
Yes.
Operator
Thank you. Ladies and gentlemen, we’ll begin with the question-and-answer session. [Operator Instructions]. Mr. Naik [Phonetic], you may please proceed right with the question.
Unidentified Participant
Thank you. Am I audible sir?
Operator
Yes, you are.
Unidentified Participant
Thank you for the opportunity. Sir, I have a couple of questions. So, what is the current market share of the company in the downstream steel capex in India? And how do you see in times to come how it is going to be in India? And what is the market share globally of the — the international entity in the steel capex?
Francois David Martino
We are extremely proud of our market share currently in India, which I would estimate being between 15% to 20% market share in the downstream area. Our company is recognized as one of the best money — value for money solution provider in India. And the recent successes we had in the last three years like Tata, AMNS, JSW show the trust that the Indian steel industry has in us.
The perspective is cautiously positive. We expect that the Indian markets will continue to invest and grow especially in downstream. Downstream processes are supporting and helping customers to produce, manufacture and deliver higher quality products. And in fast-growing market industry like automotive, home appliances and construction, these industries require higher quality, better finished products and higher quality of materials. In the rest of the world, I would quickly mention that China, despite the headwinds is expecting to invest as well, because a lot of steel mills need to differentiate themselves from competition and they need to offer high added value products to the market.
Europe is still under, I would say, turning point, which should come end of 2026, when the C-ban [Phonetic], which is the cross border adjustment mechanism for decarbonization, plus the new tariff which will be implemented on 1st of July 2026, will bring the steel producers in Europe to invest again into new lines especially downstream to transform hot-rolled coils which contains low margin to high added value products cold-rolled and coated to offer to their final customers in Europe.
And finally, US is seeing a new wave of investment and large Groups like Hyundai Steel, like US Steel are reviewing largely in a growth way their investments on the market to localize more their production.
Unidentified Participant
Okay. Sir, again, largely you have a presence in the steel capex, the downstream steel capex in India, currently. And after the consolidation, how do we see the upstream and downstream mix on the consolidated entity going ahead beyond calendar year ’26?
Francois David Martino
So the consolidation of the entities is supporting John Cockerill India Limited to have direct access to technologies, which the entity was enjoying in a collaboration way with the other entities of the Group, but also has access to new technologies and these technologies are from the upstream side as well as downstream. In downstream, Jet Vapor Deposition, which is a technology which was contained in the external entity in Belgium will have full effect on the order book and the financials of John Cockerill India Limited onwards.
In terms of upstream, we will be able and we are already offering electrical furnace from the market with our Spanish partner Savaiye. And this agreement or partnership agreement was signed between Belgium and Spain. And this is also something that John Cockerill India Limited has full access to.
Unidentified Participant
Okay. Sir, my last question from my side. So, what do you — how do you see the margins trajectory going? And what is the current service and spare part business in the total revenue currently and how it is going to be in future?
And regarding the date profile is whether when we consolidate there will be some date will be coming to the consolidated entity from the international side, because we are largely debt free right now. And lastly, what would be the employee base of the company in India and outside? Thank you.
Operator
Can you hear us?
Unidentified Participant
Hello? Hello?
Francois David Martino
Yeah. Value Services, the revenue portion from Value Services was close to 30% for the entire metals activities, which is to be honest a record year. We expect that to grow next year in absolute value, but in percentage might reach rather a level of 38%, wonder about that. So, the contribution in terms of margin of Value Services is around 40% for 2024, and will represent next year half of the profitability of the Group.
Unidentified Participant
Okay. Regarding, the debt in terms of debt profile from the —
Operator
Sorry to interrupt you, but you may please rejoin the queue for more questions.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. Yeah, thank you.
Francois David Martino
Yeah. Just to answer your question on the employees. So, we have 378 employees in India. And overall, we have more than 700 employees in metals, worldwide.
Operator
Thank you so much, sir. Our next question come from the line of Anand Shah from Jay Anand Securities. Please go ahead.
Anand Shah
Hi. Good afternoon, sir. Hello? Am I audible?
Operator
Yes, yes. We can hear you. Please proceed.
Anand Shah
Sir, firstly, congrats on good set of numbers. Just wanted to check, sir, can you give an estimate in terms of how would the consolidated revenues if the business which is going to come to the Indian listed entity, if that is consolidated for calendar ’25, what would be the revenues and EBITDA for 2025? Maybe on a pro forma basis, if you can give some indication.
Francois David Martino
Okay. So, thank you for the question and the congratulations. In terms of consolidated revenue 2025, if the business will have been consolidated, the revenue will be close to INR2,000 crore. And in terms of EBITDA, we will be at — I would say, level similar to the Indian entity. But I cannot disclose any information on that.
Anand Shah
Okay. Sir, this includes the US numbers.
Francois David Martino
This includes the US numbers.
Anand Shah
Okay. Okay, sir. Sir, just next question is based on the news which are there on the site. You had some good meetings with Shandong Steel in China. So maybe is there any some positive news from there for JVD or Volteron, maybe that we can look forward to?
Francois David Martino
So the Chinese market is highly interested in cutting-edge technologies. And we had meetings with Shandong Steel, but many other groups to discuss JVD and Volteron as well. What I can tell you is that, consciously, but realistically, we expect that China will present in 2026, a very strong field in terms of order entry for new technologies.
So, in order to really accompany our Chinese customers in the future, we have decided to open in Shanghai, a new office, which will be integrated next week, and where we will be able to put our center of excellence to execute Chinese projects. Our Chinese entity has been successful on the local market, but on the international market, signing contracts with Chinese companies like Yongfeng, but also signing a large contract with the Kazakhstan company Qarmet. This project will be executed out of China.
Anand Shah
Thanks, sir. Thanks a lot. Wish you all the best.
Operator
Thank you. Our next question comes from the line of Venkatesh Subramanian from LogicTree Consultant Private Limited. Please go ahead.
Venkatesh Subramanian
Yes, sir. Thank you for the opportunity. Good afternoon. There are two questions. One is, can you give me some clarity on the numbers in terms of the present order book? And what kind of order inflow would you expect during the current year? I’m talking about both from India as well as overseas. That’s my first question. Order book?
Francois David Martino
Okay. Good afternoon, and thank you for your question. So, in terms of order book, we have mentioned the backlog today, which is INR11.9 billion. And this is the largest backlog and order book we ever had in hand. So, this is represented largely by Indian companies. And our expectation for the order book this year is hopefully to increase this order book over the year. So, we expect to end the year with a higher backlog than what we have today.
So, what I can tell you is that, we have registered orders for more than INR8,600 million in 2025.
Venkatesh Subramanian
Can you repeat the last line, sir? You’re saying we have bid for orders worth INR8,000 million, is that right, sir?
Francois David Martino
Yes. Let’s say, INR860 crores for 2025 in India, and worldwide INR2,000 crore.
Venkatesh Subramanian
Okay, sir. Great. Okay. And —
Francois David Martino
That’s what [Speech Overlap] and we expect more [Indecipherable].
Venkatesh Subramanian
Right, sir. Okay. And what is the typical order execution time, sir, for these orders? Could it be two years or three years?
Francois David Martino
It is — let’s say, two years to three years, depending on the customers. The revenue [Technical Issues] for one project is over three years in average.
Venkatesh Subramanian
Okay, great. Sir, the second question is, I think during the last year, in one of the con calls, it was mentioned that we were also talking to the public sector companies, steel companies in India, to the government, to see, if some of the old plants could be revamped and restructured and new technology brought in, which was a significant order that you’re talking about. Any update on that, sir?
Francois David Martino
Yes, we have been moving significantly with some of our strong partners in India. As you may know, we have signed a minute of understanding with sale on the Indian market to support them to revamp and upgrade their downstream processing lines.
Venkatesh Subramanian
Okay, sir. Super. Last question.
Francois David Martino
We are in the middle of the development of this partnership.
Venkatesh Subramanian
Okay, sir. Okay. Great. Sir, if we complete 2026 reasonably well, and what’s a possible operating margin that one can look forward to in the future, sir? As an internally, what would be a benchmark target you will have for John Cockerill India, say, one year or two years down the line? Operating margin or EBITDA margin, for the entire consolidated entity?
Francois David Martino
We are aiming for double-digit profits in over five years. And for sure, for the consolidated new entity, we are looking for increase in absolute value. There we will see a big difference.
Venkatesh Subramanian
Okay, sir. Thank you very much. Wish you the best.
Francois David Martino
You’re welcome. Thank you.
Operator
Thank you so much. Ladies and gentlemen, due to the time constraint, we’ll take the last question from Anand Vyas from Care Insurance. Please go ahead.
Anand Vyas
Hi, sir. Thanks for the opportunity. My question is what are the orders in pipeline or orders you have bidded for it? And what are the things you are —
Francois David Martino
Good afternoon. Could you ask your question louder, please.
Anand Vyas
Sir, my question is, in — what are the orders in pipeline or orders which you have bidded for it, and what are the stage of development we are in? Hello? Hello?
Francois David Martino
[Technical Issues] what you’re saying. You are asking what we are bidding? What are the products we are bidding? That’s what you’re saying.
Anand Vyas
Yeah, yeah. What is the bidding in pipeline. Yes, what is the bidding — orders bidding in pipeline?
Francois David Martino
So, the order pipeline or the opportunity pattern are the one of the most confidential information of the company, and we cannot give any details. What I can tell you is that the market is supporting a larger opportunity pipeline for us.
Anand Vyas
Okay, thanks.
Francois David Martino
You will be able to find and download on the South Market website, a full presentation of 2025, which we have been uploaded today.
Anand Vyas
Okay, okay. Thank you.
Operator
Thank you so much. That was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you, and over to you team.
Francois David Martino
Thank you very much for your attention. We were extremely pleased and proud to share this positive result for 2025. And we are looking forward for the next Investor call after Q1 2026. Have a good day.
Operator
[Operator Closing Remarks]