Jyoti CNC Automation Limited — Q4 FY25 earnings call

Call held 26 May 2025

Management summary

Jyoti CNC reported a strong finish to FY25, characterized by significant margin expansion and a record order book of ₹4,346 crores. The company is successfully diversifying into high-margin segments like Aerospace & Defense while preparing for a major capacity leap from 6,000 to 16,000 machines. Management is focused on backward integration through in-house electronics (HUMA) and improving working capital efficiency.

Highlights

  • Consolidated Revenue for Q4 FY25 reached ₹576 crores, a 28% YoY growth compared to ₹450 crores.

  • EBITDA Margin expanded to 30.9% in Q4 FY25 from 29.7% in Q4 FY24.

  • Full Year FY25 PAT surged 109% to ₹316 crores from ₹151 crores in FY24.

  • Total Consolidated Order Book stands at a robust ₹4,346 crores as of March 31, 2025.

  • Aerospace and Defense remains the largest segment, contributing 39% to the total order book.

  • Inventory days significantly improved, reducing from 234 days in FY24 to 181 days in FY25.

  • Capacity expansion of 10,000 additional machines per annum planned with a capex of ₹400-450 crores.

  • Huron subsidiary reported revenue of ₹253 crores with a PAT of approximately ₹8 crores for the full year.

Concerns

  • Skilled Manpower Shortage

Key financials

  1. Revenue ₹576 Cr +28%YoY
  2. EBITDA Margin 30.9%
  3. PAT ₹109 Cr +9%YoY
  4. Order Book ₹4,346 Cr
  5. Inventory Days 181 days -22.6%YoY

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

SegmentOrder Book ShareQ4 Revenue Contribution
Aerospace and Defense39%44%
Auto and Auto Components17%23%
General Engineering19%23%
EMS (Electronics Manufacturing Services)16%—

Guidance & targets

Margin

  • Sustainable EBITDA Margin Margin · Sustainable · High confidence 25%
    Always, I have told in my past call also, we will maintain the margin around 25%, and that will be sustainable over there.

    — Parakramsinh Jadeja, CMD

Capacity

  • Additional Machine Capacity Capacity · by June 2026 · High confidence 10,000 machines
    Further enhancement of additional 10,000 machines per annum will be completed in the next 2 years... Maybe in June, we'll be ready in '26 there.

    — Parakramsinh Jadeja, CMD

Capex

  • Expansion Capex Capex · Next 2 years · High confidence ₹400-450 crores
    It's close to INR400 crores to INR450 crores capex are going to be on this additional 10,000 machines of capacity to be built over here.

    — Parakramsinh Jadeja, CMD

Other

  • Inventory Days Other · FY26 · Medium confidence 150-160 days

    Previously 181 days → 150-160 days

    And we are anticipating to touch -- this is going to be around 150 to 160 days in the next coming year there.

    — Parakramsinh Jadeja, CMD

Market context

  • Cash Flow Status Debt · End of FY26 · Medium confidence Positive

    From Negative today

    And we have targeted positive cash flow in the end of this financial year of '26.

    — Parakramsinh Jadeja, CMD

Risks & concerns

  • Skilled Manpower Shortage

    high

    Identified as the 'biggest challenge' to the growth path; company has established a center of excellence to train staff.

    Management acknowledged

  • Negative Operating Cash Flow

    medium

    Growth in long-cycle projects has led to a sharp increase in trade receivables and other financial assets.

    Analyst acknowledged

  • Capacity Bottlenecks

    medium

    Current capacity is at 90% utilization; new capacity won't be fully operational until June 2026, potentially limiting growth in the interim.

    Both acknowledged

Areas of evasion (1)

  • Specific details on the 'confidential agreement' regarding the Tachyon product for a Taiwanese customer.

Q&A highlights

3 direct
Negative Operating Cash Flow and Rising Receivables Direct
We are growing on a very long-term manufacturing cycle on large machines on aerospace and defense... you will see this as being cooled down in coming days.

Explains the working capital drag caused by the shift toward complex, long-cycle aerospace projects.

Asked by Manish Ostwal

Zero Revenue Execution in EMS Segment Direct
Our delivery been asked of this order book is starting from this financial year on second half... because all the plant is under construction at customer site there.

Clarifies that the lack of EMS revenue is due to customer readiness, not company execution issues, with a clear H2 FY26 start date.

Asked by Mayank Chaturvedi

High Inventory Levels (₹800 crores) Direct
We are fully vertically integrated manufacturing company, from castings to machining to assembly... we are on a very good improvement stage from 234 days to come down to 181 days today.

Justifies high absolute inventory as a function of vertical integration while demonstrating improving efficiency metrics.

Asked by Harshil Sheth

2 min read 5 chapters

Detailed narrative

Aerospace and Defense Driving High-End Growth

The Aerospace and Defense segment has become the primary growth engine, accounting for 44% of Q4 revenue and 39% of the ₹4,346 crore order book. Management highlighted that these projects involve long manufacturing cycles and high-precision 5-axis machines, which command higher realizations. The acquisition of Huron in France continues to provide the technological backbone for this segment, with Huron's capacity set to increase to $80 million worth of production.

Aggressive Capacity Expansion to 16,000 Machines

With current utilization at 90% for its 6,000-machine capacity, Jyoti CNC is embarking on a major expansion to add 10,000 machines per annum by June 2026. This expansion will require a capex of ₹400-450 crores. Management expects this to be a 'one-go' operationalization rather than phased, as they are integrating high levels of automation into the new assembly lines.

Backward Integration via HUMA and Electronics

A key strategic shift is the company's move into mechatronics and electronics. Jyoti has patented 'HUMA,' its own Human Machine Interface, and is developing in-house CNC controllers, servo motors, and drives. This backward integration is expected to reduce costs significantly, as controllers currently account for 10% to 25% of a machine's total cost depending on the segment.

Inventory Efficiency and Working Capital Management

Despite a high absolute inventory of ₹800 crores, the company has successfully reduced inventory days from 234 to 181 in FY25. Management has set a further target to reach 150-160 days in FY26. While operating cash flow was negative in FY25 due to the ramp-up of large projects, the company targets turning cash flow positive by the end of FY26 as dispatches stabilize.

EMS and Semiconductor Opportunities

The EMS segment represents 16% of the order book, though revenue execution has been delayed until H2 FY26 due to customer site construction. In the semiconductor space, Jyoti is currently in the product design phase with 2-3 manufacturers. A complete roadmap for semiconductor equipment manufacturing, including plant expansion needs and revenue potential, is expected by Q3 FY26.

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