Jasch Industries Ltd (500220)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Jasch Industries' revenue was ₹75.3 Cr (+79.7% year on year, -3.5% on the previous quarter), and net profit ₹3.8 Cr (+72.5% year on year); the operating margin was 8.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹75.3 | +79.7% | -3.5% |
| Operating profit | ₹6.3 | +55.0% | -35.1% |
| Net profit | ₹3.8 | +72.5% | -40.2% |
| EPS (₹) | 5.61 | +72.6% | -40.2% |
| Operating margin | 8.4% | — | — |
📢 Recent Corporate Announcements
Jasch Industries shareholders approved the appointment of Rishit Garg as Executive Director (whole-time) for a 3-year term effective August 21, 2026, at its 40th Annual General Meeting. Rishit Garg (25 years), who holds a B.S. in Materials Science and Engineering from the University of Washington, has been with the company since June 2022 in R&D. Additionally, shareholders approved the appointment of two Independent Directors—Shyam Karan Garg and Aakash Goel—for 5-year terms. These appointments reflect planned leadership continuity and board-level compliance.
- Rishit Garg appointed as Executive Director (whole-time) for a period of 3 years effective August 21, 2026
- Rishit Garg (age 25) holds a B.S. in Materials Science & Engineering from University of Washington and has been Manager (R&D) since June 2022
- Shyam Karan Garg appointed as Independent Director for a 5-year term with over 37 years of electrical engineering experience
- Aakash Goel appointed as Independent Director for a 5-year term with over 7 years of legal and secretarial compliance experience
Jasch Industries reported a strong year-on-year performance for Q1 FY27, with standalone revenue growing 54% to ₹75.26 Cr compared to ₹48.85 Cr in Q1 FY26. Net profit increased 72% YoY to ₹3.81 Cr, primarily fueled by a 158% surge in the Synthetic Leather - PU segment revenue. However, on a sequential basis, PAT declined 40% from ₹6.38 Cr in Q4 FY26, as total expenses rose significantly to ₹70.24 Cr. The company maintains a stable financial position with zero defaults on its ₹44.19 Cr outstanding loan facilities.
- Revenue from operations increased 54% YoY to ₹75.26 Cr from ₹48.85 Cr.
- Net profit (PAT) grew 72% YoY to ₹3.81 Cr, though it fell 40% sequentially from ₹6.38 Cr.
- Synthetic Leather - PU segment revenue surged 158% YoY to ₹45.57 Cr from ₹17.65 Cr.
- Cost of materials consumed rose 89% YoY to ₹57.42 Cr, impacting quarterly margins.
- Earnings Per Share (EPS) improved to ₹5.61 from ₹3.25 in the corresponding previous year quarter.
Jasch Industries reported a strong year-on-year performance for Q1 FY27, with revenue from operations jumping 79.7% to ₹75.26 Cr compared to ₹41.89 Cr in Q1 FY26. Net profit followed suit, rising 72.4% YoY to ₹3.81 Cr, driven primarily by a massive 158% surge in the Synthetic Leather - PU segment revenue. However, on a sequential basis, net profit declined from ₹6.38 Cr in Q4 FY26, and material costs rose sharply by 89% YoY, indicating some margin pressure despite the top-line growth.
- Revenue from operations grew 79.7% YoY to ₹75.26 Cr, representing 33% of the previous TTM revenue.
- Net Profit increased 72.4% YoY to ₹3.81 Cr, though it declined 40% sequentially from Q4 FY26.
- Synthetic Leather - PU segment revenue surged to ₹45.57 Cr from ₹17.65 Cr in the year-ago period.
- Cost of materials consumed rose significantly to ₹57.42 Cr from ₹30.34 Cr YoY, outpacing revenue growth.
- Earnings Per Share (EPS) for the quarter stood at ₹5.61, up from ₹3.25 in Q1 FY26.
Jasch Industries' 40th Annual Report reveals a 23.9% YoY revenue increase to Rs 228.84 Cr for FY26, up from Rs 184.66 Cr. Profit Before Tax (PBT) saw a significant jump of 84.9%, reaching Rs 17.99 Cr compared to Rs 9.73 Cr in the previous year. The growth was primarily driven by the PU Synthetic Leather segment, which surged 42% YoY. Despite the improved profitability, the Board has not recommended any dividend for FY 2025-26.
- Total Revenue from operations grew to Rs 228.84 Cr in FY26 from Rs 184.66 Cr in FY25
- PU Synthetic Leather segment revenue increased by 42% to Rs 116.43 Cr
- Profit Before Tax (PBT) rose to Rs 17.99 Cr, an 84.9% increase over the previous year
- Capital expenditure for the year was Rs 20.18 Cr, approximately 6.8% of the current market cap
- Proposed appointment of Shri Rishit Garg as Executive Director for a 3-year term starting August 21, 2026
Jasch Industries has scheduled a board meeting for July 30, 2026, to consider and approve standalone unaudited financial results for the quarter ended June 30, 2026. The company currently maintains a TTM revenue of ₹227 Cr and a PAT of ₹23 Cr, with a healthy ROCE of 26.0%. The trading window for insiders has been closed since July 1, 2026, and will remain so until 48 hours after the results are published. Investors will be monitoring if the company can maintain its OPM of 13.6% despite rising utility and raw material costs.
- Board meeting scheduled for July 30, 2026, at 12:30 hours to approve Q1 results.
- Trading window for insiders closed effective July 1, 2026.
- Company reported TTM revenue of ₹227 Cr and TTM EPS of ₹19.93.
- Production for PU Coated Fabrics grew 6.87% YoY to 22.56 lakh meters in FY25.
Jasch Industries has announced its 40th Annual General Meeting (AGM) is scheduled for August 21, 2026, to be conducted via video conferencing. The company has set July 17, 2026, as the record date to determine which shareholders are entitled to receive the AGM notice and Annual Report. Remote e-voting will be available for a four-day window starting August 17 and concluding on August 20, 2026. The dispatch of electronic copies of the Annual Report is expected to be completed by July 24, 2026.
- 40th Annual General Meeting scheduled for August 21, 2026, at 10:00 IST
- Record date for determining shareholder eligibility for notice fixed as July 17, 2026
- E-voting period to run from 09:00 IST on August 17 to 17:00 IST on August 20, 2026
- Email dispatch of Annual Reports to shareholders to be completed by July 24, 2026
Financial Performance
Revenue Growth by Segment
The PU Coated Fabrics & Allied Products segment revenue grew by 16.1% YoY, increasing from INR 70.63 Cr in FY24 to INR 82.01 Cr in FY25. Historically, the JIL group revenue grew 14.1% from INR 156.64 Cr in FY18 to INR 178 Cr in FY19.
Geographic Revenue Split
The company is primarily domestic-focused; however, earnings in foreign exchange (FOB basis) were INR 0.166 Cr in FY25, a significant 74.8% decrease from INR 0.661 Cr in FY24.
Profitability Margins
Segment profits for PU Coated Fabrics fell by 18.4% from INR 5.77 Cr in FY24 to INR 4.71 Cr in FY25. Operating margins for the group were 9.0% in FY19 but dropped to 6.6% in the first nine months of FY20 due to higher input costs.
EBITDA Margin
Operating margin was 9.0% in FY19, up from 8.4% in FY18. However, recent performance shows margin erosion due to the mandate to use Piped Natural Gas (PNG), which is 300% costlier than conventional fuels.
Capital Expenditure
Expenditure on Capital Goods and Components in foreign currency increased by 386% from INR 1.15 Cr in FY24 to INR 5.57 Cr in FY25, indicating significant investment in machinery.
Credit Rating & Borrowing
CRISIL reaffirmed ratings at 'CRISIL BBB/Stable' and 'CRISIL A3+' in April 2020 before withdrawing them at the company's request. Bank limit utilization was high at 93% as of March 2019.
Operational Drivers
Raw Materials
Petroleum-based raw materials including PU Resin and PVC, which are critical for synthetic leather production.
Import Sources
Raw materials are imported on a C.I.F. basis, with foreign currency expenditure totaling INR 42.92 Cr in FY25, representing a slight 0.3% decrease from INR 43.07 Cr in FY24.
Capacity Expansion
Current production for PU Coated Fabrics was 22.56 lakh meters in FY25, up 6.87% from 21.11 lakh meters in FY24. Specific planned capacity in MT/MW is not disclosed.
Raw Material Costs
Raw material and consumable imports cost INR 42.92 Cr in FY25. Erratic petroleum prices are cited as a primary factor eroding profitability margins.
Manufacturing Efficiency
Production volume increased by 6.87% YoY to 22.56 lakh meters, though segment assets increased by 24.2% to INR 51.38 Cr, suggesting a push for higher scale despite margin pressure.
Strategic Growth
Expected Growth Rate
16.1%
Growth Strategy
Growth is targeted through expansion into the automotive sector for PU coated fabrics and entry into new product lines within existing segments. The company also leverages its US-based subsidiary, Indev Gauging System Inc, to support its industrial gauge division.
Products & Services
PU/PVC Coated Fabric (Synthetic Leather) and Industrial Gauges (thickness, coating, paint, and moisture measurement systems).
Brand Portfolio
Jasch, Indev Gauging Systems.
New Products/Services
New opportunities are being explored in the automotive sector for synthetic leather, which typically offers higher value-add than the footwear segment.
Market Expansion
The company operates a wholly-owned subsidiary, Jasch North America Company (JNAC), to capture the North American industrial gauge market.
Strategic Alliances
Acquisition of Indev Gauging System Inc (USA) in 2012 to bolster the electronic gauge business.
External Factors
Industry Trends
The synthetic leather industry is seeing a shift toward automotive applications; however, environmental regulations in India (like the PNG mandate) are forcing a transition to costlier clean energy.
Competitive Landscape
The company faces intense competition in both the synthetic leather and industrial gauge segments, which limits its ability to maintain high margins.
Competitive Moat
Moat is based on a diversified product profile (leather and gauges) and an established market position since 1985, though it is challenged by intense competition and high regulatory compliance costs.
Macro Economic Sensitivity
Highly sensitive to petroleum price cycles and regulatory changes regarding environmental fuel mandates in the National Capital Region (NCR).
Consumer Behavior
Demand is driven by the footwear industry's performance and a growing preference for synthetic alternatives to natural leather in automotive interiors.
Geopolitical Risks
Ongoing tariff wars and border hostilities are cited as factors that could impact operations and raw material availability.
Regulatory & Governance
Industry Regulations
Compliance with SEBI (LODR) Regulations 2015 and Section 135 of the Companies Act for CSR. Factories must adhere to strict environmental norms in the National Capital Region.
Environmental Compliance
Mandatory transition to Piped Natural Gas (PNG) as fuel in NCR-based factories has increased fuel costs by 300%.
Legal Contingencies
Pending litigations exist as disclosed in Note 37 of the Financial Statements; however, the specific aggregate INR value of these contingencies is not provided in the summary.
Risk Analysis
Key Uncertainties
Volatility in petroleum-based raw material prices and potential for further environmental regulatory tightening in the NCR region.
Geographic Concentration Risk
Manufacturing is concentrated in Sonipat, Haryana (NCR), making it highly vulnerable to regional environmental mandates.
Third Party Dependencies
High dependency on petroleum refineries and chemical suppliers for PU and PVC resins.
Technology Obsolescence Risk
The industrial gauge division faces technology risks, mitigated by the acquisition of US-based Indev Gauging Systems to stay current with online measurement standards.
Credit & Counterparty Risk
The company maintains adequate liquidity with expected cash accruals of INR 13-14 Cr against repayment obligations of INR 2.0-2.5 Cr per year.
