Global Economic Overview
The global economy is entering FY25 under conditions of continued uncertainty, driven by a combination of geopolitical tensions, supply chain disruptions, and inflationary pressures. The International Monetary Fund (IMF) has revised global GDP growth up to 3.0% for FY25, from the previously projected 2.8%. This revision reflects stronger-than-expected front-loading in anticipation of higher tariffs, lower effective US tari_ rates than previously announced, an improvement in financial conditions supported by a weaker US dollar, and fiscal expansion in some major jurisdictions. While advanced economies are projected to experience moderate growth, emerging markets are likely to face heightened volatility due to elevated inflation rates and persistent geopolitical risks.
Global inflation remains a major concern, and it is expected to fall to 4.2% in FY25, gradually easing to 3.6% by FY26. Energy prices continue to be a dominant factor in inflationary pressures, with natural gas, oil, and coal prices seeing significant volatility. Raw materials, including metals and agricultural products, have also faced price hikes, which have directly impacted production costs and consumer prices in both developed and developing countries. Advanced economies, such as the U.S. and Eurozone, are expected to stabilize inflation rates at 2.0% to 3% by the end of FY25. However, emerging economies, particularly India and parts of Africa, may experience inflation rates closer to 5% to 6%, driven by supply chain disruptions, high fuel prices, and currency depreciation in some regions.
The dynamics of global trade have shifted dramatically in recent years, with the US-China trade war continuing to impact the flow of goods across borders. In May 2025, Chinas exports to the U.S. fell by a staggering 43%, underscoring the fragile nature of the global trade environment. However, as a result of these trade barriers, countries in Southeast Asia and Europe are increasingly being viewed as alternatives for global trade routes. This rerouting of trade flows presents both challenges and opportunities, particularly for industries like refining, petrochemicals, and manufacturing, where shifts in the supply chain are significantly altering the competitive landscape.
The oil market remains volatile due to production adjustments by OPEC+ nations attempting to balance supply and demand. Despite these efforts, Chinas oil demand has been fiat, while Indias oil consumption has seen steady growth. This shift in energy demand creates opportunities in Indias refining sector, which is expected to benefit from this growth. The global transition towards renewable energy, however, remains a key factor in shaping the future of oil demand. Solar and wind energy have been at the forefront of the energy transition, representing 96.6% of global renewable energy growth by 2024. As the world moves towards cleaner energy solutions, oil dependency is projected to decrease, especially in developed markets.
The global refining capacity is projected to increase by 2.64.9 mb/d by 2028, with the Asia-Pacific and Middle East regions accounting for the majority of new refining capacity additions. This capacity increase will likely affect the dynamics of global oil demand, particularly for countries like India that rely heavily on oil imports. The refining industry in these regions will also face increased competition from renewable energy solutions and evolving energy consumption patterns in various countries.
Indian Economic Overview
Indias economic resilience continues to outperform many other major economies, buoyed by strong domestic demand, rising government investments in infrastructure, and a transformation in its energy sector. For FY25, Indias GDP growth grew by 6.5%, driven by government reforms, increased investments in critical sectors such as infrastructure, and continued expansion of the manufacturing and services sectors. Indias shift towards sustainability and clean energy is becoming a central focus, positioning the country as a global leader in renewable energy and green hydrogen technologies.
Indias retail inflation has moderated to 4.6% in FY25, down from 5.4% in FY24, largely due to lower food prices. The moderation in inflation is a positive indicator for consumer spending and business growth, as lower food costs relieve pressure on household budgets. Moreover, CPI inflation decreased to 3.3% in March 2025, which is a significant improvement, especially compared to earlier years when food inflation was a major contributor. The Manufacturing PMI for July 2025 reached 59.1, indicating strong demand in manufacturing. Similarly, the Services PMI rose to 60.5, reflecting growth in services driven by the technology, clean energy, and renewable sectors, which are becoming critical drivers of economic expansion.
Indias renewable energy capacity continues to grow, with solar capacity surpassing 105 GW and wind energy exceeding 50 GW by FY25. The governments goal to achieve 500 GW of renewable energy capacity by 2030 is backed by substantial investments in solar, wind, and green hydrogen projects. Indias commitment to sustainability is evident in its focus on clean energy solutions that will help reduce the countrys dependence on fossil fuels and mitigate the adverse effects of climate change. The country is also seeing a shift in industrial consumption patterns, as renewable energy solutions are integrated into more industries, particularly in the manufacturing and chemical sectors.
Foreign direct investment (FDI) inflows in India reached USD 1.07 trillion by March 2025, with FDI equity inflows growing by 13% to USD 50 billion in FY25. This growth in FDI is a positive indicator of investor confidence in Indias long-term economic potential, particularly in sectors such as infrastructure, renewable energy, and manufacturing. Key economic indicators, such as the Index of Industrial Production (IIP), declined to 4.0% in FY25 compared to 5.9% in FY24 due to softening in all sectors barring consumer durables. However, industrial production is expected to be robust in the coming quarters backed by government spending and investment, signalling that industrial output remains strong, further underpinning Indias economic stability. Core inflation increased to 4.1% in FY25, indicating some pressure, though overall inflation remained manageable.
Economic Developments and Government Initiatives
The Indian government continues to implement economic policies designed to drive long-term growth, focusing heavily on sustainability and infrastructure development. The Union Budget for FY26 allocated _11.21 lakh crore for capital expenditure, which amounts to 3.1% of GDP. This substantial allocation is intended to stimulate growth across various sectors, including energy, infrastructure, and manufacturing. The government has also set ambitious targets for the renewable energy sector, which includes the goal of achieving 500 GW of renewable energy capacity by 2030.
The National Green Hydrogen Mission is a key component of the governments energy strategy. The mission aims to produce 5 million metric tons of green hydrogen annually by 2030, with investments totaling _8 lakh crore. This initiative will position India as a global leader in green hydrogen production, aligning with global trends in clean energy while contributing to Indias decarbonization efforts.
The government has also expanded its Ethanol Blending Program, targeting 20% ethanol blending by 202526. This initiative is aimed at reducing Indias dependence on imported crude oil, as well as increasing biofuel production. Additionally, the government is investing in battery storage systems to improve grid integration for renewable energy, addressing challenges such as intermittency in solar and wind power generation.
Infrastructure development continues to be a priority, with major investments in solar power plants, wind farms, and smart grids. The governments green hydrogen infrastructure investments will further enhance Indias ability to transition to a low-carbon energy system and will open up new opportunities for companies like JNK India to contribute to the countrys sustainability goals.
Sector Developments and Industry Trends
Indias refining sector is experiencing steady growth. The refining capacity is expected to increase by 20% by 2028, reaching 309 MMT, and the sector is operating at more than 100% capacity, with utilization rates exceeding 103%. This robust growth is driven by increasing domestic demand for refined products and significant export opportunities. The refining sector is set to continue benefiting from government initiatives that support infrastructure development and energy transition efforts.
Indias petrochemical industry is also poised for continued expansion, with a projected 11% CAGR from FY25 to FY27, reaching USD 100 billion by 2027. The consumption of petrochemical derivativesincluding bulk chemicals, agrochemicals, high-value specialty compounds and polymershas witnessed consistent growth. To address this upward trajectory, the sector is placing greater emphasis on environmentally responsible practices, such as the adoption of bio-based alternatives, renewable feedstocks, and production methods that enhance resource efficiency while adhering to strict regulatory standards. This transition is simultaneously generating considerable prospects for enterprises involved in emissions management, waste treatment, and other sustainability-oriented domains.
JNK Indias _are systems and incinerators are expected to play an important role in controlling emissions in refineries, petrochemical plants, and fertilizer industries, where stricter environmental regulations are being implemented.
The renewable energy sector has demonstrated impressive growth in FY25, with solar capacity reaching 105.65 GW and wind energy capacity surpassing 50 GW. The governments commitment to achieving 500 GW of renewable energy capacity by 2030, coupled with the National Green Hydrogen Mission, will play a pivotal role in decarbonizing Indias industrial sector and reducing its reliance on fossil fuels. JNK India, with its expertise in renewable energy and hydrogen infrastructure, is positioned to be an integral player in the growth of this sector.
Company Overview
JNK India Ltd. is a leader in the design, manufacturing, and installation of combustion equipment. The company specializes in thermal design, engineering, and project execution for industries such as oil and gas refineries, petrochemical complexes, and fertilizer production. Over the years, JNK India has diversified into waste gas handling systems, such as _are systems and incinerators, and has entered the renewable energy sector with a focus on green hydrogen infrastructure.
The company is strategically positioned in Indias refining and petrochemical markets, providing high-quality combustion equipment and waste gas management systems. As demand for clean energy and green technologies rises, JNK India has increasingly focused on renewable energy projects, green hydrogen solutions, and solar energy systems to meet evolving market needs.
Through its partnership with JNK Global, JNK India has expanded its market presence into new regions such as United States of America and Malaysia during FY25 delivering engineering solutions for large-scale industrial projects. This partnership facilitates JNK Indias global expansion, offering growth opportunities through international contracts and collaborations.
Financial Performance and Key Metrics
JNK India has demonstrated steady financial performance in FY25, driven by sustained demand across its core sectorsrefining, petrochemicals, and renewable energy. Total revenue for the fiscal year was 4,950 million, representing a 2.5% YoY increase. The operating profit for FY25 was 1,424 million, reflecting a 22% decline from the previous year, mainly due to rising raw material costs and legacy projects.
EBITDA for FY25 was 649 million, yielding a margin of 13.1%, a 37.9% decrease YoY. This decline reflects the impact of lower-margin projects. Profit After Tax (PAT) for the year was 302 million, a 51.8% decline from FY24, primarily due to margin compression and higher costs. Despite these challenges, JNK India remains optimistic about its future prospects, with a strong order book of 10,819 million, providing significant revenue visibility for the coming quarters.
Key Risks and Mitigation Strategies
JNK India faces several significant risks, including geopolitical instability, commodity price volatility, and regulatory changes related to emissions and decarbonization. To mitigate these risks, the company has diversified its operations across multiple regions, ensuring that its revenue streams are not overly dependent on any single market. The company has also implemented cost control measures, including long-term procurement contracts and investments in green hydrogen and alternative feedstocks.
The company is also investing in clean technologies, such as green hydrogen, energy-efficient systems, and waste gas handling technologies, to comply with future regulations and reduce its environmental impact.
Human Resources and Talent Management
JNK India recognizes that its employees are essential to the companys long-term success, and the company continues to invest in its human capital to drive growth. In FY25, the companys workforce grew by 8%, reflecting the increased demand for its combustion equipment in the petrochemical and refining sector, and pilot process plant in the speciality chemical sector. As the company continues to expand its operations, particularly in international markets, the need for a skilled and adaptable workforce is more important than ever. To support this growth, JNK India increased its training budgets by 15%, focusing on both technical skills and leadership development. This investment in training is designed to equip employees with the skills required to navigate the companys expanding product offerings and evolving industry landscape.
Employee safety remains a top priority for JNK India, with the company implementing regular safety drills and providing certifications in First Aid and Fire Safety. This emphasis on workplace safety ensures that employees work in a secure environment, allowing them to focus on delivering high-quality work. In addition to safety, the company has placed a significant focus on employee well-being and promoting a work-life balance. These initiatives help foster a supportive and inclusive work culture, contributing to high employee engagement and retention.
JNK India also focuses on diversity and inclusion within its workforce, ensuring that employees from diverse backgrounds feel valued and empowered to contribute to the companys growth. The company has introduced various employee engagement programs and mentorship initiatives to promote a collaborative work environment. By aligning its talent management strategy with organizational goals, JNK India aims to build a motivated, skilled workforce capable of driving the companys strategic initiatives and contributing to its long-term success.
Excellence in Modularisation
Companys modularisation facility has been a significant contributor to reducing construction timelines and project costs. By prefabricating components in controlled environments, JNK India has achieved 20% reduction in construction time and 15% cost savings. This modularisation approach enhances quality control, reduces on-site labor, and improves overall project delivery times, making it a competitive advantage in global markets.
Outlook and Conclusion
JNK India remains well-positioned for continued growth in FY25, with a focus on expanding its leadership in the refining, petrochemical, and renewable energy sectors. The companys strong order book, increasing international footprint, and strategic investments in green hydrogen and clean energy will drive its future success.
As the global market continues its transition towards clean energy, JNK Indias renewable energy solutions and hydrogen infrastructure are expected to play a crucial role in the energy transition. With a commitment to innovation, sustainability, and operational excellence, JNK India is poised for long-term growth and profitability.
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