**Thejo Engineering Limited** is a premier, integrated engineering solutions provider specializing in bulk material handling, mineral processing, and corrosion protection. The company operates a recurring, relationship-driven business model that synergizes in-house **R&D** and manufacturing with high-skill onsite technical and maintenance services. Following its migration from the **NSE SME Platform** to the **Main Board** in **October 2023**, Thejo has positioned itself as a global player serving the mining, steel, cement, power, and chemical sectors. --- ### I. Integrated Business Model & Revenue Streams Thejo’s competitive advantage lies in its vertical integration: manufacturing proprietary components and cross-selling them through long-term **Operation & Maintenance (O&M)** contracts. This creates high entry barriers and ensures a steady stream of recurring revenue. | Segment | Core Activities & Offerings | Revenue Contribution | | :--- | :--- | :--- | | **Services** | High-skill technical support: conveyor installation, belt scanning, splicing, and shutdown management. | **56% – 65%** | | **Manufacturing** | Design and production of rubber and polyurethane-based products: conveyor belt cleaners, impact systems, and **Ball Mill Liners**. | **35% – 44%** | | **O&M** | **24/7** plant upkeep under **KPI-based** long-term rate contracts, including manpower, spares, and inventory management. | *Included in Services* | --- ### II. Specialized Product Portfolio & Technical Capabilities The company focuses on **Special Purpose Products** designed for **Import Substitution**, characterized by **Low Volume / High Tech** specifications that enhance the life of industrial assets. * **Bulk Material Handling:** Belting, conveyor care, **Pulley Lagging**, transfer chutes, **Belt Trackers**, and impact cradles. * **Comminution & Screening:** **Mill Liners**, pulp lifters, screen panels, trommels, and filter plates. * **Lining & Flow Control:** Pre-cured/un-cured rubber, polyurethane coating, and fabricated rubber-lined pipes/vessels. * **Proprietary Equipment:** Thejo designs its own field equipment, including **Belt Monitoring systems**, **Splicing Machines**, and **Rubber Removal Rigs**. --- ### III. Strategic Manufacturing Expansion & R&D To meet surging demand in the steel and mining sectors, Thejo is executing a significant brownfield expansion to nearly double its production capacity. * **Capacity Target:** Increasing from **3,600 tonnes p.a.** to **6,200 tonnes p.a.** * **Investment:** **₹40 Crore** capex, primarily funded through **internal accruals**. * **Timeline:** Expected completion by **Q2/Q3 FY2027**. * **Innovation Pipeline:** The company operates a **DSIR-registered R&D center** in Chennai. * **Patents:** **27 product patents** granted; **42 product patents** and **3 design protections** applied for as of **February 2026**. * **R&D Spend:** Consistently maintained at **0.62%** of turnover (**₹269.31 Lakhs** in FY25). --- ### IV. Global Footprint & Subsidiary Consolidation Thejo has transitioned to a "full control" model for its international operations, recently buying out minority partners to streamline global strategy. * **Australia (100% Owned):** Facilities in **Perth, Kalgoorlie, Port Hedland, and Bunbury**. Completed the buyout of **Bridgestone’s 26% stake** for **₹7.21 crore** in **March 2025**. * **Saudi Arabia (51% Owned):** Operating via **Thejo Hatcon**; a new facility is under construction at **MODON Industrial Area 3** to leverage **Vision 2030** mining growth. * **Brazil & Chile:** Now **wholly-owned** following the acquisition of remaining stakes in **Q4FY25**. * **UAE (100% Owned):** **TE Global FZ-LLC** established in Ras Al-Khaimah as a hub for Europe and Africa. --- ### V. Financial Performance & Order Book The company maintains a robust financial profile with a **CRISIL A/Stable** rating and a **Net Debt-Free** status. **Consolidated Financial Summary:** | Metric (₹ in Crore) | H1 FY26 | FY 2024-25 | FY 2023-24 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **288.66** | **552.74** | **559.40** | | **EBITDA Margin** | **14.3%** | **16.78%** | **18.50%** | | **Net Profit (PAT)** | **23.87** | **49.89** | **55.64** | | **Order Book** | **326.90** | **186.00** | **207.00** | **Key Financial Highlights:** * **Return on Equity (ROE):** Improved to **20.73%** (Standalone) in FY25. * **Gearing Ratio:** Effectively **Nil** as cash and equivalents (**₹61 crore**) exceed total debt. * **Interest Coverage:** Strong at **19.35 times**. * **Accounting Change:** Shifted from **WDV** to **Straight Line Method (SLM)** for depreciation as of **April 1, 2025**, resulting in a **₹5.32 crore** lower charge for the 9-month period. --- ### VI. Sustainability & ESG Integration Thejo integrates environmental parameters into its core operations, focusing on circular economy principles. * **Sustainable Sourcing:** **19%** of raw materials are natural rubber; uses agricultural waste (groundnut/rice husk briquettes) for boilers. * **Waste Management:** Operates a **25 KLD** Sewage Treatment Plant to maintain **Zero Liquid Discharge**. * **Product Stewardship:** **90%** of products provide guidelines for recycling or safe disposal; **Zero** product recalls recorded. --- ### VII. Risk Profile & Mitigation | Risk Category | Description | Mitigation Strategy | | :--- | :--- | :--- | | **Market Cyclicality** | Exposure to mining and steel sector downturns. | Diversification into **Uranium (UCIL)** and international markets. | | **Working Capital** | High **GCA of 192 days** due to large PSU client base. | Balanced mix of short-term debt and strong internal accruals. | | **Raw Materials** | Volatility in synthetic rubber and carbon black prices. | Procurement policies and price-pass-through in long-term contracts. | | **Geopolitical** | Shipping costs and trade fragmentation (Red Sea crisis). | Regional hubs (UAE/Saudi) to localize supply chains. | | **Regulatory** | Impact of **New Labour Codes** on gratuity liabilities. | Recognized a one-time exceptional charge of **₹2.73 crore** in Q3 FY26. | --- ### VIII. Future Outlook Thejo is pivoting toward **"Value-Added" O&M** to counter the commoditization of manpower services. With a consolidated order book of **₹326.90 Crore** (as of Oct 2025) and major contracts with **Mahanadi Coalfields** and leading steel plants, the company is well-positioned to capitalize on India's infrastructure push and the global transition toward specialized mineral processing.