Jash Engineering Navigates Tariffs and Targets Growth

Ashwin Thakker

— 1 min read

Key Facts:

  • FY26 Revenue Outlook: Rs. 860 crore (conservative).
  • FY26 PAT Outlook: Rs. 80-110 crore, dependent on US tariff resolution.
  • Consolidated Order Book: Strong at Rs. 875 crore.
  • New US Plant: Houston facility expected by 2026 to mitigate tariff impact.
  • Strategic Acquisitions: WesTech and a UK company to drive segment growth.

Jash Engineering Limited's Q1 FY26 earnings call revealed a robust forward-looking strategy despite immediate challenges. The company projects a conservative Rs. 860 crore revenue for FY26, navigating US tariff uncertainties with strategic expansions and acquisitions. This outlook signals a confident path to sustained growth and improved profitability.

Jash Engineering faced Q1 FY26 challenges from increased US tariffs, now at 50% on certain Indian exports, impacting fixed-price orders. This may cause a $1-2 million (Rs. 8-15 crore) profit hit on existing contracts. To counter this, Jash is accelerating its US manufacturing. The new Houston plant, now due by 2026, and expanded capacity in Orange, aim to increase Rodney Hunt's US-based revenue contribution to 65-70%. New orders are quoted with the tariff factored in, preserving future margins.

"The biggest problem we are currently facing is the US tariff uncertainty...as of two days back, this has become 50% already." (Page 4)

Strategic Acquisitions and Future Growth

Jash Engineering is expanding through key acquisitions. The pending 90% stake in WesTech aims to double its process equipment division's revenue to Rs. 200 crore in three years. A UK acquisition positions Waterfront to become the UK's largest sluice gates manufacturer within 3-4 years. The robust Rs. 875 crore consolidated order book supports a conservative FY26 revenue target of Rs. 860 crore. Jash aims for an Rs. 1100 crore order book by March 2026, demonstrating commitment to diversified growth despite market complexities.

"We are expecting to touch Rs.860 plus something. Rs.860 I had informed then too it is a conservative figure, so we are still maintaining the guidance." (Page 10)

Jash Engineering's Q1 FY26 call highlights its proactive approach to global market dynamics. Despite US tariff impacts, the company's aggressive capacity expansions, strategic acquisitions in the US and UK, and strong order book position it for sustained growth. The management's confidence in achieving FY26 revenue targets and long-term doubling goals, coupled with careful tariff management, reflects a resilient outlook in a complex environment.

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