Why did the shares of Jash Engineering skyrocket 19% in today’s session?

Synopsis: Shares of Jash Engineering jumped 19% after the NCLT approved the merger of Shivpad Engineers with the company, a move expected to streamline operations and strengthen its corporate structure.

The shares of this manufacturer include a wide range of equipment for Water Intake Systems, Water and Waste Water Pumping Stations and Treatment Plants, and other process plants are in the spotlight after it rose by 19% in today’s session following the Scheme of Arrangement for the merger.

With a market capitalisation of Rs. 2,620 cr, the shares of Jash Engineering Ltd were trading at Rs. 416.55 per share, increasing 19% in today’s market session, making a high of Rs. 453.15, up from its previous close of Rs. 382.05 per share.  The stock posted a 22% decline last year, is down 4% year-to-date, and has fallen 27% over the past six months. 

Reason for the surge 

Jash Engineering Limited has informed that the Hon’ble National Company Law Tribunal (NCLT), Indore Bench, has sanctioned the Scheme of Arrangement for the merger of Shivpad Engineers Private Limited with Jash Engineering Limited. The approval has been granted through an order dated January 30, 2026. 

The certified copy of the NCLT order was made available on the NCLT website on February 2, 2026, and the company has duly intimated both the National Stock Exchange of India Limited (NSE) and BSE Limited.

Jash Engineering further clarified that the order contains a typographical error relating to the appointed date of the scheme, and the company has already initiated the process to obtain a corrected copy from the tribunal. Once the revised and corrected order is received, the same will be submitted to the stock exchanges for record purposes. The merger is expected to streamline operations and strengthen the company’s overall corporate structure.

Jash Engineering Ltd manufactures a wide range of equipment for water and seawater systems, pumping and treatment plants, desalination, hydropower, and various industrial sectors including power, steel, cement, petrochemicals, and fertilizers. With operations across four continents, the company earns over 60% of its revenue from international projects. 

The company remain firmly on course to achieve the targeted revenue milestone of Rs. 1,000 crore by FY27. For H1FY26, its revenue was primarily driven by Water Control Gates, which contributed 60%, followed by Screening Equipment (15%), Valves (14%), and Hydropower & Pumping, Process Equipment, and others (11%). 

Geographically, the company earned 45.9% of its revenue from India, 31.3% from the USA, with the remaining coming from Europe & Africa (11.7%), Far and Southeast Asia (10.5%), and the Middle East (0.7%). As of 1st November 2025, the order book stands at Rs. 890 cr.

It has shown strong financials with a ROCE of 25% and ROE of 22.4%, a low debt-to-equity of 0.25, and a PEG ratio of 0.86. The company has delivered robust profit growth, with 34.2% CAGR over five years and 40% CAGR over three years.

Sales of the company rose from Rs. 128 cr in Q1FY26 to Rs. 158 cr in Q2FY26. Operating Profit increased from a loss of Rs. 4 cr to a profit of Rs. 20 cr. Net profit also rose to Rs. 11 cr from a loss of Rs. 5 cr.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Why did the shares of Jash Engineering skyrocket 19% in today’s session? appeared first on Trade Brains.