Jyoti CNC Automation Limited — Q1 FY26 earnings call

Call held 7 Aug 2025

Management summary

Jyoti CNC delivered a strong start to FY26, characterized by significant PAT growth and a massive order book that provides multi-year visibility. While EBITDA margins saw a slight compression due to proactive hiring for upcoming capacity, the company's expansion into high-margin segments like Aerospace and EMS continues to drive gross margin improvement. Management remains focused on execution and capacity ramp-up to meet the high demand, particularly in the Southern India EMS cluster and European defense markets.

Highlights

  • Consolidated revenue grew 13.4% YoY to ₹410 crores, despite Q1 being a seasonally soft period.

  • Order book remains robust at ₹4,412 crores, with a significant 39% contribution from Aerospace & Defence.

  • Gross margins expanded by 270 bps YoY to 55.9%, driven by a favorable product mix.

  • Profit After Tax (PAT) surged 40.2% YoY to ₹71.2 crores, with PAT margins improving to 17.4%.

  • Capacity expansion to 10,000 machines per year is on track for completion by September 2026.

  • Board approved the purchase of 20 acres of land in Karnataka to set up support and tech centers for the EMS cluster.

  • EBITDA margin stood at 24.4%, slightly impacted by a ₹15 crore increase in employee costs for future capacity readiness.

  • Working capital cycle improved to 175 days, with a target to reach 150-160 days within the current fiscal year.

Key financials

  1. Revenue ₹410 Cr +13.4%YoY
  2. EBITDA Margin 24.4%
  3. PAT ₹71.2 Cr +40.2%YoY
  4. Order Book ₹4,412 Cr
  5. Order Intake ₹451 Cr
  6. Gross Margin 55.9%

What they filed

Q1 FY27: revenue up 36.8%, net profit up 20.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue376 400 529 372 448 +19%530 +33%599 +13%509 +37%
EBITDA95 112 176 99 111 +17%164 +46%191 +9%139 +40%
Net profit70 77 122 72 79 +13%105 +36%135 +11%87 +21%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentAuto & Auto ComponentsAerospace & DefenceGeneral Engineering
Industry-wise Revenue Split36%30%26%
Order Book Breakup17%39%19%

Guidance & targets

Capacity

  • Annual Machine Manufacturing Capacity Capacity · by September 2026 · High confidence 10,000 machines

    From 6,000 machines today

    Our plan to increase capacities to 10,000 machines per year is in progress well and will be completed by September 2026.

    — Parakramsinh Jadeja, CMD

Capex

  • Total Organic Capex Capex · by September 2026 · High confidence ₹400-450 crores
    So basically, our capex, what we have decided is close to INR400 crores to INR450 crores -- INR450 crores. That's the only right now, it's the things are going on there.

    — Parakramsinh Jadeja, CMD

Debt

  • Working Capital Cycle Debt · FY26 · Medium confidence 150-160 days

    From 175 days today

    we are on the way and nicely we are on the way, we are going to touch in between 150 to 160 days over there.

    — Parakramsinh Jadeja, CMD

Volume

  • Capacity Utilization Volume · by end of FY26 · Medium confidence 90%

    From 75% today

    this year, we are expecting to almost 90% utilization and 90% utilization, you can now make and match and all.

    — Parakramsinh Jadeja, CMD

Risks & concerns

  • Execution and Skill Base Risk

    medium

    High-precision manufacturing requires a skilled workforce; management cited the need to impact the skill base first as they increase team size.

    Management acknowledged

  • Geopolitical and Tariff Uncertainty

    medium

    Potential US tariffs and global trade issues are being monitored, though management believes their manufacturing presence in France (Huron) provides a hedge.

    Both acknowledged

  • Seasonality of Order Activity

    low

    Q1 is historically soft due to customer budget cycles; business typically sees a much stronger second half (40-60 split).

    Management acknowledged

Areas of evasion (2)

  • Specific revenue guidance for FY26
  • Exact capex breakdown for the new Karnataka land

Q&A highlights

2 direct
EBITDA Margin Compression and Manpower Costs Direct
And almost INR15 crores of additional the manpower cost we have incurred from last year first quarter to this year first quarter... we are on a track to maintain on an EBITDA level.

Explains that the margin dip was a deliberate investment in human capital to support the upcoming capacity jump from 6,000 to 10,000 machines.

Asked by Kamlesh Bagmar

Growth Rate and Capacity Constraints Partial
The first quarter, I'll tell you one thing... your calculation is a little bit to correct... we are expecting to almost 90% utilization... So you will reach a nice number there.

Management avoids giving a hard revenue target but confirms that higher utilization of existing capacity will drive growth before the new capacity comes online.

Asked by Jay Shah

Huron Facility Progress and Revenue Outlook Direct
from September onwards, we are starting assemblies over there... we see the revenue growth on a last quarter, even for next year first quarter only to be a large growth we are able to see that.

Confirms that the delayed Huron expansion is now operational, which is critical for the high-margin Aerospace and Defence orders.

Asked by Nidhi Shah

2 min read 5 chapters

Detailed narrative

Massive Order Book Underpins Growth Visibility

Jyoti CNC's order book stands at a record ₹4,412 crores, representing a significant multiple of its annual revenue. The mix is increasingly shifting toward high-value segments, with Aerospace and Defence now making up 39% of the total book. Management noted that the order intake in Q1 FY26 was ₹451 crores, showing steady demand even in a seasonally soft quarter.

Strategic Capacity Expansion to 10,000 Machines

The company is aggressively expanding its manufacturing capacity from 6,000 to 10,000 machines per year, with completion targeted for September 2026. This expansion is backed by a planned organic capex of ₹400-450 crores, funded through internal accruals and debt. Current utilization is at 75%, but management expects to hit 90% by the end of the current fiscal year as they ramp up execution.

Margin Dynamics: Gross Expansion vs. EBITDA Investment

Gross margins improved to 55.9% due to a better product mix, particularly from high-end machines which command margins of 55-57%. However, EBITDA margins were 24.4%, a slight dip from the previous year's 26%. This was attributed to a ₹15 crore increase in employee costs as the company hires and trains manpower in advance of the new capacity coming online.

Huron Integration and Global Market Strategy

The Huron facility in France is now fully operational after expansion delays, with assembly starting in September. This facility is crucial for the European Aerospace and Defence market, where Huron already has a strong client base. Additionally, the company is setting up sales and service networks in the US and China to capture global demand while maintaining India as a cost-competitive manufacturing hub.

Focus on EMS and Southern India Cluster

The Board's approval to purchase 20 acres in Karnataka for ₹20 crores marks a strategic move to be closer to the Electronic Manufacturing Services (EMS) cluster. EMS now accounts for 16% of the order book. Management believes that being physically closer to these customers for service and support will help them capture a larger wallet share in this fast-growing segment.

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