Jash Engineering: Navigating Tariffs for Growth Ahead

Ashwin Thakker

— 2 min read

Key Facts:

  • Sales Outlook: Targeting Rs. 860 crore revenue for FY26, with confidence to exceed slightly.
  • Profit Margin Outlook: Projecting Profit After Tax (PAT) between Rs. 80-110 crore for FY26, highly dependent on US tariff resolution.
  • Tariff Impact: Current 50% US tariff could impact PAT by $1-2 million; however, new orders factor in tariffs, and rupee depreciation provides some offset.
  • Capacity Expansion: New Houston plant in the US is targeted for completion by 2026, contributing to an overall production capacity aim of Rs. 1300-1500 crore.
  • Strategic Acquisitions: Progressing with acquisitions of WesTech (India) and a UK company to diversify portfolio and enhance market reach.

Jash Engineering Limited, despite a 'subdued' Q1 FY26, maintains a robust financial outlook. The recent earnings call highlighted strategic guidance, emphasizing resilience against escalating US tariffs, planned capacity expansions, and key acquisitions to secure future growth and enhance market diversification, setting a clear path for the fiscal year.

Jash Engineering's Q1 FY26 performance was acknowledged as subdued, primarily due to deferred deliveries to the US market caused by tariff uncertainties. Tariffs on Indian exports to the US have escalated to 50%, impacting fixed-price orders already taken. However, the management clarified that new orders are now being quoted with the increased tariffs factored in. Jash Engineering maintains its FY26 consolidated revenue guidance of "Rs. 860 crore" and anticipates a "PAT profile within Rs. 80-110 crore". The company acknowledged a potential "$1-2 million" hit on profit if the 50% tariff persists, but noted that a depreciating rupee could partially offset this for overall exports.

Strategic Expansion and Acquisitions for Future Strength

To counter ongoing tariff risks and expand its manufacturing capacity, Jash Engineering is actively implementing several strategic initiatives. The company is building a new plant in Houston, US, expected to be completed by 2026, and is also increasing capacity at its existing Orange facility. These efforts aim to significantly boost Rodney Hunt’s US-based revenue, reducing reliance on Indian exports affected by tariffs. Furthermore, Jash is progressing with two key acquisitions: a 90% stake in WesTech, a profitable entity, and another company in the UK, with the ambition to become the largest sluice gates manufacturer there. These moves bolster Jash's market presence, diversify its product portfolio, and support its long-term goal to "double the top line in 4-5 years."

Jash Engineering Limited is actively addressing Q1 challenges and tariff uncertainties through strategic expansions in the US and impactful acquisitions. The company reaffirms its robust FY26 revenue and profit guidance, highlighting proactive measures to mitigate risks and capitalize on market opportunities. These calculated steps underscore Jash's commitment to sustained growth and diversified market leadership in the coming years.

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