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THEJO - Thejo Engg.

📊 NSE: THEJO 🏢 Engineering 📅 Last Updated: 12/14/2025 14:20

📢 Recent Corporate Announcements

Thejo Engineering to Meet with Kotak Securities Group on March 9, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 04 Mar 2026, 05:35 PM

Thejo Engineering Limited has scheduled a virtual interaction with Kotak Securities and a group of investors on March 9, 2026. This meeting is a routine engagement under Regulation 30 of SEBI (LODR) Regulations, 2015. The company has explicitly stated that no unpublished price-sensitive information (UPSI) will be shared during this session. Such meetings are standard for maintaining transparency with institutional stakeholders and providing general business updates.

Meeting scheduled for March 9, 2026, with Kotak Securities and a group of investors
The interaction will be conducted via virtual mode
Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Company confirmed that no unpublished price-sensitive information will be disclosed

💡 Investors should look for any post-meeting transcripts or presentations on the exchange for insights into the company's growth outlook. No immediate trading action is required based on this routine disclosure.

Thejo Engineering Allots 295 Equity Shares Under ESOP Scheme

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 02 Mar 2026, 12:44 PM

Thejo Engineering Limited has approved the allotment of 295 equity shares to eligible employees under its ESOP 2015 scheme. The shares were issued at an exercise price of Rs. 671.75 per share, which includes a premium of Rs. 661.75. This allotment has marginally increased the company's paid-up share capital to approximately Rs. 10.85 crore. The impact on existing shareholders' equity is negligible due to the very small number of shares issued.

Allotment of 295 equity shares of face value Rs. 10 each under the ESOP 2015 scheme.
Shares were issued at an exercise price of Rs. 671.75 per share, including a securities premium of Rs. 661.75.
Post-allotment, the total paid-up equity share capital increased to Rs. 10,84,74,540.
The total number of equity shares outstanding increased from 1,08,47,159 to 1,08,47,454.

💡 No action is required as the dilution is extremely minimal at less than 0.003% of the total share capital. Investors should focus on the company's operational performance rather than this routine administrative update.

Thejo Engineering Q3 Revenue Rises 18.8% to ₹132.6 Cr; PAT Dips to ₹10.78 Cr on One-time Charges

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 09 Feb 2026, 07:39 PM

Thejo Engineering reported a healthy 18.8% YoY increase in standalone revenue to ₹132.68 crore for the quarter ended December 2025, driven by strong service unit performance. However, standalone Net Profit (PAT) declined to ₹10.78 crore from ₹12.99 crore YoY, primarily due to a ₹2.73 crore one-time exceptional charge related to the New Labour Codes. The company also transitioned its depreciation method from WDV to SLM, which reduced depreciation expenses by ₹1.94 crore this quarter. Additionally, the board approved the grant of 7,236 ESOPs at an exercise price of ₹1,304 per share.

Standalone Revenue from Operations grew 18.8% YoY to ₹132.68 crore in Q3 FY26.
Net Profit (PAT) stood at ₹10.78 crore, down 17% YoY due to a ₹2.73 crore exceptional expense for labour code compliance.
Service unit revenue contributed significantly, rising to ₹86.67 crore from ₹68.06 crore YoY.
Change in depreciation accounting (WDV to SLM) resulted in a ₹1.94 crore lower charge, boosting PBT for the quarter.
Granted 7,236 ESOP options at an exercise price of ₹1,304, a 25% discount to the prevailing market price.

💡 Investors should focus on the robust 18% top-line growth while noting that the profit dip is largely due to a one-time regulatory charge. Monitor if the change in depreciation method continues to mask underlying operational costs in future quarters.

Thejo Engineering Q3 Standalone Revenue Up 18.8% YoY; PAT Declines to ₹10.78 Cr on One-Time Charges

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 09 Feb 2026, 07:35 PM

Thejo Engineering reported a standalone revenue of ₹132.69 crore for Q3 FY26, an 18.8% increase over the previous year. Net profit for the quarter stood at ₹10.78 crore, down from ₹12.99 crore YoY, primarily impacted by a one-time exceptional charge of ₹2.73 crore for new labor code compliance. The bottom line was also influenced by a change in the depreciation method from WDV to SLM, which reduced expenses by ₹1.95 crore. The service segment remains the primary growth driver, contributing significantly to the overall revenue mix.

Standalone Revenue rose 18.8% YoY to ₹132.69 crore, driven by strong performance in Service Units.
Standalone PAT decreased 17% YoY to ₹10.78 crore due to a ₹2.73 crore exceptional labor cost charge.
Change in depreciation method from WDV to SLM resulted in a ₹1.95 crore lower depreciation charge for the quarter, boosting PBT.
Service Units revenue grew 27.3% YoY to ₹86.67 crore, while Manufacturing Units revenue remained relatively flat at ₹60.03 crore.
The Board approved the grant of 7,236 ESOPs to eligible employees at an exercise price of ₹1,304 per share.

💡 Investors should look past the one-time labor charge and the accounting change in depreciation to focus on the strong 27% growth in the service segment. The underlying operational performance remains healthy, though the manufacturing segment's stagnation warrants monitoring.

Thejo Engineering's UAE Subsidiary Secures AED 6.6 Million Order for Conveyor Belt Replacement

🟢 POSITIVE ⭐ 6/10

ROUTINE 📅 31 Jan 2026, 12:23 PM

Thejo Engineering's UAE-based subsidiary, TE-Global FZ LLC, has secured a purchase order worth approximately AED 6.6 million from M/s PHB Weserhutte. The contract involves the complete replacement of a steel cord pipe conveyor belt at a government establishment in the UAE. The scope covers methodology preparation, hot splicing, equipment provision, and commissioning support. The project is slated for completion by April 30, 2026, contributing to the company's international service revenue.

Order value of approximately AED 6.6 million from PHB Weserhutte, UAE
Scope includes full replacement of steel cord pipe conveyor belt and commissioning
Project execution deadline set for April 30, 2026
Contract awarded by an international entity for a UAE government establishment

💡 Investors should monitor the company's execution efficiency in international markets as this order strengthens its presence in the Middle East. The steady inflow of service-oriented orders is a positive sign for margin stability.

Thejo Engineering Submits SEBI Regulation 74(5) Compliance Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 03 Jan 2026, 04:57 PM

Thejo Engineering Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The report, provided by Cameo Corporate Services Limited, covers the quarter ended December 31, 2025. It confirms that no securities were received for dematerialization during this period. This is a standard administrative filing required by Indian stock exchanges to ensure the integrity of shareholding records.

Compliance certificate filed for the quarter ended December 31, 2025
Confirmed by Registrar and Share Transfer Agent (RTA) Cameo Corporate Services Limited
Zero securities were received from depository participants for dematerialization during the quarter
No share certificates were mutilated or cancelled as no demat requests were processed
Maintains status quo for the register of members regarding depository names

💡 No action is required from investors as this is a routine regulatory compliance filing with no impact on company fundamentals.

Thejo Engineering Announces Trading Window Closure from Dec 31, 2025

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 23 Dec 2025, 02:52 PM

Thejo Engineering Limited has notified the exchange regarding the closure of its trading window for all designated persons and their relatives starting December 31, 2025. This routine regulatory measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015. The window will remain closed until 48 hours after the announcement of the financial results for the quarter ending December 31, 2025. The specific date for the board meeting to approve these results will be communicated at a later date.

Trading window for designated persons to close on December 31, 2025
Closure is in anticipation of Q3 financial results for the period ending December 31, 2025
Window will reopen 48 hours after the official declaration of financial results
Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015

💡 This is a standard regulatory filing and requires no immediate action from retail investors. Monitor for the upcoming board meeting date to stay informed about the company's quarterly performance.

Thejo Engineering Allots 580 Equity Shares Under ESOP 2015

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 18 Dec 2025, 03:25 PM

Thejo Engineering Limited has approved the allotment of 580 equity shares to employees following the exercise of stock options under the ESOP 2015 scheme. The shares were issued at an exercise price of Rs. 671.75 per share, which includes a securities premium of Rs. 661.75. This minor allotment increases the total paid-up equity share capital to Rs. 10,84,71,590. The dilution effect is negligible as it represents a very small fraction of the total outstanding shares.

Allotment of 580 equity shares of face value Rs. 10 each under ESOP 2015
Exercise price fixed at Rs. 671.75 per share, including Rs. 661.75 premium
Total paid-up equity shares increased from 1,08,46,579 to 1,08,47,159
Paid-up equity share capital stands at Rs. 10,84,71,590 post-allotment
Allotment approved via circular resolution on December 18, 2025

💡 No action is required as this is a routine administrative allotment with minimal impact on share value. Investors should focus on the company's quarterly performance and order book growth.

View All THEJO Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 11.46% YoY to INR 436.46 Cr in FY25 from INR 391.57 Cr in FY24. The growth was driven by a 17.7% YoY increase in the previous fiscal across both product and service segments, though the Australian subsidiary saw a 5% revenue decline in 9M FY25 due to a mining sector slowdown.

Geographic Revenue Split

Thejo operates across India, Saudi Arabia, Australia, Brazil, and Chile. While specific % splits per region are not fully disclosed, the Australian subsidiary is a major contributor, though it faced a temporary slowdown in FY25. The group is expanding its footprint in the Middle East through TE Global FZ-LLC (UAE).

Profitability Margins

Operating margins improved to 18.19% in FY24 from 13.05% in FY23. Profit before tax (PBT) for FY25 stood at INR 67.34 Cr, a 31.37% increase from INR 51.26 Cr in FY24. Margins are expected to stabilize at 16-17% over the medium term due to better fixed cost absorption.

EBITDA Margin

EBITDA margin reached 18.19% in FY24, up 514 bps from 13.05% in FY23. This improvement was driven by the stabilization of raw material costs and strategic focus on high-margin product businesses like mill liners and specialty rubber components.

Capital Expenditure

The company has planned a capital expenditure of INR 40 Cr to expand manufacturing capacity by 2,600 tonnes per annum. This expansion is intended to be entirely funded through internal accruals, maintaining the company's low-debt profile.

Credit Rating & Borrowing

Maintains a 'Stable' outlook with CRISIL. Gearing is exceptionally low at less than 0.1 times as of March 31, 2024. Interest coverage ratio is robust at over 16 times, reflecting very low borrowing costs and high debt-servicing ability.

⚙️ Operational Drivers

Raw Materials

Key raw materials include natural and synthetic rubber, steel for conveyor components, and specialized chemicals for linings. Material costs accounted for INR 93.83 Cr in FY25, representing approximately 21.5% of total revenue.

Import Sources

Sourced globally to support subsidiaries in Australia, Brazil, Chile, and Saudi Arabia. Domestic sourcing is centered in India for the main manufacturing hub in Chennai.

Key Suppliers

Not specifically named, but the company utilizes a diverse vendor base for rubber compounds and steel components to mitigate dependency risks.

Capacity Expansion

Current manufacturing capacity is approximately 3,600 tonnes per annum. The company is expanding this by 2,600 tonnes (a 72% increase) to reach a total of 6,200 tonnes per annum within 10-12 months to meet growing demand in core sectors.

Raw Material Costs

Cost of materials consumed rose 5.37% to INR 93.83 Cr in FY25. The company uses backward integration, manufacturing its own conveyor components and rubber molded parts, to control costs and improve margins by 230-300 bps.

Manufacturing Efficiency

Operating leverage benefits are expected to sustain margins at 16-17% as higher order execution allows for better absorption of fixed employee costs (INR 121.25 Cr in FY25).

Logistics & Distribution

Distribution is handled through a global network of subsidiaries. Shifting costs to new plants and hiring new sales teams in overseas markets temporarily impacted margins in FY23 but stabilized in FY24-25.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth will be achieved through a 72% capacity expansion (adding 2,600 TPA), full acquisition of Australian and Brazilian subsidiaries to capture 100% of profits, and aggressive cross-selling of manufactured products through existing Operations & Maintenance (O&M) service contracts.

Products & Services

Conveyor belts, conveyor components, rubber molded components, mill liners, filtration systems, rubber linings, and specialized O&M services for material handling equipment.

Brand Portfolio

THEJO, Thejo Hatcon (Saudi Arabia), Thejo Australia.

New Products/Services

Focusing on high-margin specialty products and machines, including customized equipment for mineral processing, expected to sustain operating margins above 16%.

Market Expansion

Full acquisition of subsidiaries in Australia and Brazil completed in 2025. Target regions include the Middle East (via UAE subsidiary) and deeper penetration in the Latin American mining markets (Chile/Brazil).

Market Share & Ranking

Established player in niche material handling and corrosion protection segments; however, scale remains 'modest' compared to global engineering giants.

Strategic Alliances

Acquired the remaining 20% stake in the Australian subsidiary from Bridgestone in 2025 as Bridgestone exited the conveyor belt business globally.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated service-plus-product models. Thejo is positioned as a one-stop-shop for material handling, moving from just servicing belts to manufacturing the entire component ecosystem.

Competitive Landscape

Competes with large global engineering firms and local niche players. Competitive advantage lies in lower overheads and specialized R&D for rubber-based corrosion protection.

Competitive Moat

Moat is built on 'sticky' O&M contracts and backward integration. By providing on-site services, Thejo creates high switching costs for mines and plants that rely on them for 24/7 material flow efficiency.

Macro Economic Sensitivity

Highly sensitive to the industrial production cycles of core sectors (Steel, Cement, Power). A 1% decline in core sector GDP growth typically correlates with reduced O&M service frequency.

Consumer Behavior

Industrial customers are increasingly outsourcing maintenance to specialized players to focus on core production, benefiting Thejo’s O&M segment.

Geopolitical Risks

Management maintains 'cautious optimism' due to prevailing geopolitical conditions that threaten global supply chains for industrial products.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Section 148 of the Companies Act for maintenance of cost records for manufactured products. Compliant with Regulation 33 of SEBI LODR for financial reporting.

Environmental Compliance

Maintains compliance with pollution norms for rubber manufacturing; no material ESG-related penalties disclosed.

Taxation Policy Impact

Effective tax rate is approximately 25-26%, with FY25 tax expense at INR 17.56 Cr on PBT of INR 67.34 Cr.

Legal Contingencies

No material pending litigations or defaults on statutory dues (GST, PF, Income Tax) were reported by auditors for the period ending March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Susceptibility to cyclicality in end-user segments (Mining/Steel) could impact revenue by 5-10% during economic downturns.

Geographic Concentration Risk

Significant revenue concentration in Australia and India. The Australian mining slowdown is a primary risk factor for consolidated performance.

Third Party Dependencies

Low dependency on any single third-party vendor due to backward integration into manufacturing core components.

Technology Obsolescence Risk

Risk is mitigated by continuous R&D in polymer science and rubber molding to ensure products meet the evolving durability requirements of high-wear mining environments.

Credit & Counterparty Risk

Receivables are generally from large, credit-worthy core-sector companies, though the company monitors working capital closely to maintain its < 0.1x gearing.