Jyoti CNC Auto.

Jyoti CNC Automation Limited delivered a robust performance in Q3 and 9M FY26. Consolidated revenue for Q3 FY26 reached ₹576 crores, marking a 28.1% year-on-year increase. For the nine-month period, revenue grew by 20.3% to ₹1,494 crores. EBITDA for Q3 FY26 stood at ₹155 crores, a 37.3% YoY growth, with the EBITDA margin expanding by 180 basis points to 26.8%. PAT for Q3 FY26 increased by 10.3% to ₹89 crores, while 9M FY26 PAT grew by 18.5%.

The company is on track with its ambitious capacity expansion plan, aiming to increase manufacturing capacity from 6,000 to 16,000 machines by September 2026. This capex, projected at ₹400-450 crores for FY26, has already seen over ₹200 crores utilized from a Union Bank term loan. Jyoti CNC holds a healthy order book of ₹4,585 crores, providing 1.5 to 2 years of revenue visibility. However, current capacity utilization at 90% is temporarily limiting new order intake for longer delivery periods.

Jyoti CNC is prioritizing R&D and innovation, including the development of proprietary controllers, drives, and motors under the PLI scheme. This initiative aims to reduce import dependencies and leverage government subsidies from the ₹40,000 crore Electronic Component Manufacturing Scheme. The company is also strategically entering the nanometer-precision semiconductor manufacturing equipment market, targeting equipment to build semiconductor chips, with a commercial product launch expected within the next two years.

The Huron facility in France saw its capacity nearly double in November 2025, enhancing capabilities for high-end machines, particularly for the aerospace sector. Assembly operations have commenced, with material traction anticipated from FY27. Q3 FY26 sales from Huron were ₹80 crores. Additionally, the company is aggressively expanding its global footprint, with plans to operationalize a US sales office and tech centers within the next 2-3 months.

Despite strong profitability, the company reported negative operating cash flow, primarily due to high inventory requirements for long production cycles and ongoing capacity expansion. Management is actively optimizing working capital, expecting a positive cash flow trajectory in Q4 FY26 and significant improvement from next year as scale is achieved. The EBITDA margin is projected to be maintained in the 25-27% range, with potential for improvement as new capacities absorb finance costs and enhance overall profitability.

The company's 9M FY26 revenue mix was diversified, with aerospace and defense contributing 42%, auto and auto components 28%, and general engineering 22%. Management expects to maintain an export-to-domestic revenue mix of 35-40% and 60-65% respectively for the next couple of years. They provided strong guidance for 25-30% revenue growth in FY27 and over 30% in FY28, driven by robust demand across all manufacturing sectors and strategic initiatives.