Jash Engineering: Revenue Up 22%, Order Book Rs 955 Crore

JASH Jash Engineering (NSE : JASH) makes penstocks, sluice gates and screening equipment for municipal and industrial water infrastructure. It also produces pressure vessels for data centre cooling. Subsidiaries include Rodney Hunt in the US and Waterfront Fluid Controls in the UK. India's water and wastewater treatment market is projected to grow from $3 billion in FY25 to $5.2 billion by FY31. What happened: In Q2FY27, revenue grew 22.2% year on year to Rs 192.51 crore. EBITDA grew 22.5% to Rs 27.31 crore at a 14.2% margin. Net profit fell 8.6% to Rs 10 crore on an exceptional charge. A Rs 4.5 crore US tariff recovery reduced costs. Cash and liquid investments of Rs 123.4 crore exceed gross debt of Rs 77.1 crore, leaving the balance sheet net cash positive. Why it matters: The order book stood at Rs 955 crore on November 1, 2026; total visibility including pipeline is Rs 1,130 crore. International orders are 65% of the backlog. Waterfront UK turned profitable in H1FY27 after a Rs 1.5 crore loss a year earlier. FY27 revenue target is Rs 875 crore; medium-term EBITDA margin target is 21-23%. What I am watching: A new plant in Houston for Rodney Hunt targets commissioning by late 2027. Combined with India and UK, total capacity will reach Rs 1,500 crore. Data centre pressure vessel orders: 4 units in Q1 and 9 in Q2, targeting 20 to 30 annually. A Rs 5.9 crore tariff refund remains pending. My stance: Jash trades at 38.2 times earnings, above its five-year median of 35.1 times and industry median of 33.3 times. ROCE is 17.7% and ROE is 16%. The FY27 target implies a sharp H2 ramp. The premium is a bet on margin expansion and on US capacity not yet in numbers. I do not hold a position in Jash Engineering at the time of writing. This is not investment advice.