Jash Engineering Charts Growth Amidst Tariff Winds

Ashwin Thakker

— 2 min read
  • Sales Outlook (FY26): Rs. 860 crore (conservative, potential to exceed).
  • Profit Outlook (FY26 PAT): Rs. 80-110 crore range (contingent on tariff impact resolution).
  • Current Order Book: Rs. 875 crore (as of Aug 1), target Rs. 1100 crore by Mar 31, 2026.
  • US Tariff Impact: Estimated $1-2 million (Rs. 8-15 crore) hit on existing orders due to increased 50% tariff.
  • Strategic Investments: New Houston plant by 2026, increased US capacity, WesTech (90% stake), and a UK company acquisition.

Jash Engineering Limited projects robust financial performance for FY26, targeting Rs. 860 crore in revenue and Rs. 80-110 crore in profit after tax. Despite a subdued Q1 performance influenced by escalating US tariffs and deferred deliveries, the company is actively implementing strategic measures. These include significant capacity expansions, key acquisitions, and broad market diversification to mitigate risks and ensure sustained long-term growth.

Jash Engineering is proactively managing escalating US tariffs, which recently jumped to 50% on steel and stainless steel. This surge impacts existing fixed-price orders, potentially costing $1-2 million (Rs. 8-15 crore). To counter this and align with "Buy America, Build America" mandates, Jash is significantly expanding its US manufacturing.

"...the biggest problem we are currently facing is the US tariff uncertainty... this has become 50% already."

A new Houston plant, initially set for 2028, is now fast-tracked for 2026. Capacity at its Orange facility is also growing. These efforts aim to boost Rodney Hunt's US-produced output from 30-35% to 65-70% in coming years, with new orders already reflecting higher tariffs.

Diversification Through Acquisitions and Market Reach

Jash Engineering actively diversifies via strategic acquisitions and market expansion. The 90% stake acquisition in WesTech (Rs.55 crore revenue, Rs.4 crore profit) is nearing completion. This move grants entry into high-growth industrial segments like mining, metals, and paper. The WesTech-Shivpad synergy aims to double their combined process equipment division revenue to Rs.200 crore in three years.

"WesTech brings us entry into high growth industrial segments..."

Jash also seeks to become a major UK sluice gates manufacturer via another acquisition. With a robust Rs. 875 crore consolidated order book, the company continuously expands into new global markets, underpinning its growth.

Despite a challenging Q1 FY26 due to US tariffs, Jash Engineering maintains strong full-year guidance for both revenue and profit. The company's proactive strategies, including accelerated US capacity build-up, synergistic acquisitions, and broad market diversification, are designed to mitigate external risks and secure future growth. These initiatives position Jash Engineering to adapt to dynamic global trade environments and sustain its upward trajectory.

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