John Cockerill - John Cockerill

📊 BSE: 500147 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for 9M CY25 was INR 255.53 Cr, a 19.2% decrease from INR 316.39 Cr in 9M CY24. However, Q3 CY25 revenue grew 27.5% YoY to INR 96.98 Cr, indicating a sharp recovery in execution.

Geographic Revenue Split

India and Southeast Asia are identified as the primary growth regions. The company is expanding its geographic footprint by acquiring entities in China (JC Beijing, JC Langfang), Germany (JC UVK), and the USA (JC Industry North America) to diversify from its current concentration.

Profitability Margins

Gross Margin improved significantly to 52.2% in Q3 CY25 from 34.6% in Q3 CY24 (up 1760 bps). 9M CY25 Gross Margin stood at 49.9% compared to 35.5% in the previous year, driven by better project mix and operational discipline.

EBITDA Margin

EBITDA margin for 9M CY25 turned positive at 5.0% (INR 12.81 Cr) compared to -1.0% (INR -3.31 Cr) in 9M CY24. Q3 CY25 EBITDA margin reached 11.7%, reflecting a sharp turnaround from a -11.4% margin in Q3 CY24.

Capital Expenditure

The company has approved a major strategic acquisition of John Cockerill Metals International SA for up to EUR 50 Mn (~INR 500 Cr). This includes an upfront cash payment and a deferred interest-free loan from the promoter over five years.

Credit Rating & Borrowing

CARE Ratings downgraded the company to CARE BBB; Stable / CARE A3+ in April 2025 from CARE BBB+; Stable / CARE A2. In December 2025, the ratings were placed on 'Rating Watch with Developing Implications' due to the proposed global metals business acquisition.

⚙️ Operational Drivers

Raw Materials

Engineering components and steel-related inputs. Raw material costs accounted for 50.1% of total revenue in 9M CY25 (INR 127.93 Cr).

Capacity Expansion

While specific MTPA capacity is not disclosed for this engineering firm, the order backlog reached INR 1,100 Cr in September 2025, nearly doubling from previous levels and providing strong visibility for FY2026.

Raw Material Costs

Raw material costs were INR 127.93 Cr in 9M CY25, representing 50.1% of revenue. The company is exposed to input cost volatility due to the fixed-price nature of its long-term engineering contracts.

📈 Strategic Growth

Expected Growth Rate

28%

Growth Strategy

Growth will be achieved through the acquisition of the global metals business of the John Cockerill Group, consolidating operations in India as a global hub. The company is also focusing on new technologies like Hydrogen-based steel processing, expected to hit the market commercially in 18-24 months.

Products & Services

Cold Rolling Mills, Galvanizing Lines, Color Coating Lines, Pickling Lines, Acid Regeneration Plants, and Chemical Equipment for the steel industry.

Brand Portfolio

John Cockerill.

New Products/Services

Hydrogen-based industrial solutions and sustainability-driven steel equipment are expected to contribute significantly to future margins due to lower competition.

Market Expansion

Targeting global expansion through the acquisition of subsidiaries in the USA, China, and Germany, positioning India as the operational and strategic center for the Group's metals business.

Strategic Alliances

Wholly owned subsidiary of John Cockerill SA (Belgium), which provides directional guidance and technical expertise.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Green Steel' and energy transition investments. While Europe faces energy pressure and China remains subdued, India and SE Asia are growing at a sustained momentum.

Competitive Landscape

Intense competition and pricing pressure from cheap steel imports, particularly from China, affect the capex decisions of the company's primary clients.

Competitive Moat

Durable advantages include a 200-year engineering legacy (since 1817), proprietary technology in steel processing, and the global network of the John Cockerill Group.

Macro Economic Sensitivity

Highly sensitive to the capital expenditure cycles of the global and domestic integrated steel industry, which are influenced by steel prices and GDP growth.

Consumer Behavior

Industrial customers are increasingly shifting demand toward sustainable, energy-efficient, and carbon-neutral manufacturing equipment.

Geopolitical Risks

Geopolitical tensions have previously led to a cash loss in CY24 by delaying project finalizations in export-driven markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by pollution norms and import/export restrictions on steel, which dictate the timing and scale of client capex projects.

Environmental Compliance

The company is aligning its product portfolio with global ESG standards, focusing on sustainability-driven solutions to help clients meet tightening pollution norms.

⚠️ Risk Analysis

Key Uncertainties

The cyclicality of the steel industry and the fixed-price nature of contracts are the primary risks, with potential margin impact of 2-5% if raw material prices spike.