Jyoti CNC Automation Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Jyoti CNC Automation reported strong Q3 and 9M FY26 results, driven by robust revenue and EBITDA growth. The company is aggressively expanding capacity in India and France, supported by a healthy order book of ₹4,585 crores. While increased finance costs and high inventory impacted PAT and operating cash flow, management expects significant improvements as new capacities come online and working capital optimizes, guiding for 25-30% revenue growth in the coming fiscal years.

Highlights

  • Q3 FY26 Consolidated Revenue grew by 28.1% YoY to ₹576 crores, indicating strong demand.

  • EBITDA margin expanded by 180 bps YoY to 26.8% in Q3 FY26, reflecting operational efficiency.

  • The current order book stands at a robust ₹4,585 crores, offering 1.5 to 2 years of revenue visibility.

  • Capacity expansion from 6,000 to 16,000 machines by September 2026 is on track, with ₹200+ crores already spent.

  • Management provided guidance for 25-30% revenue growth for both FY27 and FY28, indicating strong future outlook.

Concerns

  • PAT growth in Q3 FY26 was lower at 10.3% YoY, primarily due to increased finance costs associated with capacity expansion.

  • Operating cash flow remained negative despite net profit, attributed to high inventory requirements for ongoing capacity expansion and long production cycles.

  • Order book growth for 9M FY26 was 5.5%, slower than 26.4% in 9M FY25, as new orders are constrained by current 90% capacity utilization.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹576 Cr
    YoY +28.1%
  • EBITDA
    ₹155 Cr
    YoY +37.3%
  • EBITDA Margin
    26.8%
    YoY +1.8%
  • PAT
    ₹89 Cr
    YoY +10.3%

9M FY26

  • Revenue
    ₹1,494 Cr
    YoY +20.3%
  • EBITDA
    ₹379.4 Cr
    YoY +21.1%
  • PAT Growth
    18.5%
    YoY +18.5%

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

SegmentAerospace and DefenseAuto and Auto ComponentGeneral Engineering
9M FY26 Revenue Mix42%28%22%
9M FY26 Order Intake Mix46%30%17%
Current Order Book Composition41%18%19%

Order book

high confidence

Total value

₹4,585 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹1,661 Cr

Execution

executable over 1.5 to 2 years, with customers not willing to wait more than 18 months

Composition

Mix 5 industries
  • Aerospace and Defense 41%
  • General Engineering 19%
  • Auto and Auto Component 18%
  • EMS 14%
  • Other Sectors 8%

Share of order book by industry

The current order book of INR4,585 crores is healthy and well diversified, providing 1.5 to 2 years of revenue visibility, but current capacity utilization of 90% is constraining new order intake for longer delivery periods.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹200 Cr this quarter · ₹400 Cr (FY26) planned partially from Union Bank term loan
    • Capacity expansion from 6,000 to 16,000 machines
    So basically this year, you know that we have earlier announced that we are going to do INR400 crores to INR450 crores capex and we are behind that very aggressively to finish as early as possible because today our growth are being constrained based on the capacity today now. So we have used that almost INR200-plus crores from Union Bank and we will use this financial year aggressively as soon as possible to finish the capex over there.
  • Debt Debt disclosed
    Lower growth in PAT is largely attributed to increased finance cost on account of capacity expansion plans.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 25-30%
    Yes. Absolutely FY '27, you can consider same numbers for FY'27 as well as FY'28.

    — Parakramsinh Jadeja

  • Revenue Growth Revenue · FY28 · High confidence >30%

    — Parakramsinh Jadeja

Margin

  • EBITDA Margin Margin · Ongoing · Medium confidence 25-27%
    I'm always giving you 1 simple answer. So yes, there is possibilities are there. We will improve the margin. But I would like to be very, let's say, conservative over here and I'll not like to guide you that from 25% to 30%. We'll be in a range in between 25% to 27%.

    — Parakramsinh Jadeja

Capacity

  • Manufacturing Capacity Capacity · September 2026 · High confidence 16,000 machines

    From 6,000 machines today

    we are undertaking a large capacity expansion in India, increasing our manufacturing capacity from current 6,000 machines to 16,000 machines by September this year.

    — Parakramsinh Jadeja

Operations

  • US Sales Office Operations Operations · Within 2-3 months (Q1 FY27) · High confidence Started
    within Q1 now we are, let's say, appointing all our sales team and our tech centers and all. Hopefully, this operation will be started within the next 2 to 3 months.

    — Parakramsinh Jadeja

Product Development

  • Commercial Semiconductor Product Launch Product Development · Within next 2 years · High confidence Launched
    So I think we are seeing that in the next 2 years definitely we will come with the commercial product to be launched there.

    — Parakramsinh Jadeja

Revenue Mix

  • Export Revenue Share Revenue Mix · Next couple of years · High confidence 35-40%
    So Jenish bhai, we are very much focused to be maintained around 35% to 40% is to be exports and 60%, 65% is to be domestic. And this is in line we are looking for the next couple of years, it is going to be maintained similarly like this.

    — Parakramsinh Jadeja

  • Domestic Revenue Share Revenue Mix · Next couple of years · High confidence 60-65%

    — Parakramsinh Jadeja

What to watch in Q4 FY26

Huron Sales Contribution

Q1 FY27 onwards
Current Q3 FY26 sales of ₹80 crores; material traction expected from FY27
Target Increased positive contribution to consolidated revenue

Why it matters

Huron's ramp-up is key to global expansion and high-end machine sales, impacting overall revenue and profitability.

Growth from Q1 (next FY) onwards due to longer manufacturing time. Good numbers from Q1.

Risks & concerns

  • Increased Finance Costs

    medium

    Increased finance costs due to capacity expansion plans are impacting PAT growth, though expected to be absorbed as new capacity comes online.

    Management acknowledged

  • Working Capital Intensity

    medium

    Long production cycles and high inventory requirements for capacity expansion are leading to negative operating cash flow, despite net profitability.

    Analyst acknowledged

  • Order Book Execution Delays

    low

    Current high capacity utilization (90%) and customer unwillingness to wait beyond 18 months are temporarily constraining new order intake, despite strong demand.

    Management acknowledged

Q&A highlights

5 direct
Order Book Growth & Capacity Constraints Direct
Basically if I get any new orders,very bulk orders and all, my delivery period is going to be more than 18 months there. No customers are willing to wait for 2 to 3 years there. So INR4,000, let's say, if you look at that, 18-month order book is a very happy order book for our industries there.

Clarified that slower order book growth is due to existing capacity constraints and customer unwillingness to wait for longer delivery periods, rather than lack of demand.

Asked by Manish Ostwal

Operating Cash Flow & Inventory Management Direct
Once the scale-up has reached on an economical scale has reached that, that our inventory days also will reduce there. So you will see quarter-on-quarter very significant improvement from the next year. Even you will look at that end of the year, you will see positive operating cash flows to be there. We have very much worked on that and we are on line with that.

Addressed concerns about negative operating cash flow, linking it to inventory build-up for capacity expansion and promising improvement from next year.

Asked by Shrenik Mehta

Huron Revenue & Inter-company Transactions Partial
No, it's not decline. I'll tell you one thing. It's because of a consol level. I told you that we are now increasing the new inventories and everything there. So in a consol level, there are more material being dispatched from Jyoti to there. So in a consol, it has been reduced there basically. Otherwise, right now there is a almost it is little bit higher than the Q2 numbers to Q3 numbers there.

Clarified that perceived decline in Huron's revenue was a consolidation effect due to inter-company material transfers and inventory build-up, not an actual operational decline.

Asked by Aniket Jain

Proprietary Controllers & PLI Scheme Direct
So basically the Electronic Component Manufacturing Scheme, what you have already the government has expanded the budget also from INR20,000 crores to INR40,000 crore. So we are eligible over here to be on a capital subsidy over there and there is a specific mark out there for capital subsidy.

Provided details on how the PLI scheme supports their development of proprietary controllers, drives, and motors, aiming to reduce import costs and enhance margins.

Asked by Balasubramanian

Semiconductor Manufacturing Machines Direct
Basically in the semiconductor side, you are right there, it's required nano precision. And based on our this experience at Huron as well as Jyoti, we are now entering into nano precision over there. We are going to create the infrastructure to produce the nano precision over there. And particularly we are targeting to equipment to build semiconductor chips there.

Confirmed the company's strategic entry into the high-precision semiconductor equipment market, leveraging existing expertise and targeting chip-building equipment.

Asked by Balasubramanian

EU/US Trade Deal and Competition Direct
Basically I'll let you know that in machine duty today, the machines are coming from EU. This duty was only 7.5%. And all these machines our customers were importing against the exports license there. So almost every customer today, what the machines are coming from Europe and U.S.A., it is in machine tool industries are almost at 0 duty there. So there is no significant change in terms of competition over there. Rather, we are feeling little bit better there now because all our import content like we were importing the controller from Siemens, Germany and all; our duty was 7.5%. This is going to be 0 for us.

Clarified that reduced tariffs from EU/US trade deals would not significantly increase competition but rather provide a cost advantage for Jyoti due to lower import duties on components.

Asked by Aniket Jain

2 min read 6 chapters

Detailed narrative

Strong Financial Performance and Growth Momentum

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%.

Aggressive Capacity Expansion and Order Book Strength

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.

Strategic Focus on Proprietary Technology and Semiconductor Segment

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.

Huron Operations and Global Market Expansion

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.

Working Capital Optimization and Margin Outlook

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.

Diversified Revenue Streams and Future Growth Outlook

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.

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