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    Macpower CNC

    MACPOWER
    Capital Goods·14 Nov 2025
    Management Summary

    Macpower CNC reported an all-time high in Q2 FY26 revenue, EBITDA, and PAT, driven by strong quarter-on-quarter growth. The company expanded its production capacity to 2,500 machines and has a robust pending order book of ₹350 crores. Strategic initiatives include new product development, international market expansion through the EMO exhibition, and advanced discussions for technology transfer and collaborations, despite a slight dip in order inflow and potential increase in receivable days.

    Highlights

    7

    • Revenue of ₹85.71 crores, up 40.45% QoQ and 20.55% YoY, achieving an all-time high.

    • EBITDA of ₹14.16 crores, up 78.76% QoQ and 11.11% YoY, also an all-time high.

    • PAT of ₹9.38 crores, up 105% QoQ and 12.95% YoY, an all-time high.

    • Production capacity expanded to 2,500 machines from 2,000, effective November 10, 2025.

    • Pending order book stands at ₹350 crores, with total bids submitted at ₹987 crores.

    • Successfully showcased and sold machines at the EMO Germany exhibition, expanding global presence and discussing with foreign dealers.

    • Engaged in technology transfer and collaboration discussions with double-digit companies, shortlisted five, and signed NDAs with three.

    Concerns

    3

    • Order inflow for Q2 FY26 decreased 5% YoY to ₹88 crores compared to ₹93 crores in Q2 FY25.

    • Receivable days may increase due to focus on larger clients and the defence sector, which typically have 90-day payment terms.

    • Exhibition expenses for EMO Germany amounted to ₹1.5-2 crores, impacting Q2 financials.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹85.71 Cr+20.5%YoY
    2. 02EBITDA₹14.16 Cr+11.1%YoY
    3. 03PAT₹9.38 Cr+13.0%YoY
    4. 04Machine Average Price20.19 lakh
    5. 05Depreciation Increase32 lakh

    Order Book

    high confidence

    Total Value

    ₹ 350 crores

    as of 2025-11-14

    quantified

    Inflow this qtr

    ₹ 88 crores

    Composition

    Nexa order book executed(other)
    27.0%

    Pipeline

    L1 awaiting loa

    Domestic bids submitted and tender bids under evaluation

    "Management noted that billing for some orders is jumping to the next month due to customers utilizing PSU/bank loans with subsidies, which affects execution timelines rather than order cancellations."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹8 crores this quarter · ₹125 crores (Phase 1) planned

    Debt from SIDBI or bank, potentially stake for foreign collaboration partner

    Debt

    Debt disclosed

    M&A

    Undisclosed foreign companies

    joint venture · announced

    Liquidity

    Undrawn ₹30 crores

    The company has a ₹30 crore cash credit facility, primarily used for bank guarantees and LCs for import components, and is not fully utilized.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Year-on-year growth
    25-30%
    		High
    Revenue
    Revenue potential from new plant (2,500 machines)
    ₹500 crores
    		High
    Profitability
    EBITDA
    ₹50 crores
    		High
    Capacity
    Machine capacity
    10,000 machines
    		Medium
    Order Book
    Order book closing
    ₹300-330 crores
    		High
    Margin
    Margin trend
    slightly increased
    		Medium

    Land allotment for new plant

    December 2025 / January 2026
    CurrentToken money paid, MOU in place
    TargetLand allotment received

    Why it matters

    Land acquisition is a prerequisite for the new plant construction and capacity expansion, crucial for future growth.

    I informed in my quarter one concall we expected acquire the land by end of December. Now, major approval from the all relevant department have been obtained. So same thing is here in December end, maybe we will receive this land.

    How to verify

    capital_allocation.capex.purposes

    Risks & concerns

    4
    RiskSeverity

    Increased receivable days from larger clients and defence sector

    Focusing on defence sector and larger clients may lead to 90-day payment terms, increasing receivable days, though management is not worried due to available credit facilities. — Analyst acknowledged

    medium

    Challenges in collecting payments from Tier 3/4 customers and direct credit risk

    Management highlighted difficulties in collecting payments from Tier 3/4 clients and avoids direct credit to customers, preferring financial partners to mitigate bad debt risk. — Management acknowledged

    medium

    Execution delays due to customer payment/loan processes

    Customer reliance on PSU/bank loans with subsidies can cause billing to be pushed to subsequent months, impacting execution and revenue recognition timelines. — Management acknowledged

    medium

    Talent, skill, and retention challenges for new technologies

    Management identified talent, skill, and retention as a significant challenge, especially for new technology, automation, and IOT 4.0 initiatives. — Management acknowledged

    medium

    Q&A highlights

    7

    “First of all, selling strategy and selling techniques should not be discussed in public platform, and we are focusing as in my last concalls, you, I think attend all the concalls. First of all, we don't have capacity. So, we are focusing on tier 3 and tier 4. And our market share is just 4.5% right now. Previously, it was just 4%. So we are not focusing the segment we are focusing on the area and client right now.”

    Analyst questioned the strategy to sell a significantly expanded capacity, especially to larger clients, and management clarified their current focus on Tier 3/4 clients and gradual shift to Tier 2 with new capacity.

    asked by Dhaval Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Financial Performance Highlights

    Macpower CNC reported its highest-ever quarterly performance in Q2 FY26. Revenue reached ₹85.71 crores, demonstrating a robust 40.45% quarter-on-quarter and 20.55% year-on-year growth. EBITDA also saw significant improvement, standing at ₹14.16 crores, up 78.76% QoQ and 11.11% YoY. Net Profit After Tax (PAT) surged by 105% QoQ and 12.95% YoY to ₹9.38 crores, reflecting strong operational efficiency and demand.

    02

    Capacity Expansion and Product Development

    The company increased its production capacity from 2,000 to 2,500 machines annually, effective November 10, 2025. This expansion is supported by an ₹8 crore CapEx investment in Q2 FY26, leading to a ₹32 lakh YoY increase in depreciation. Macpower also introduced several new machines, including the TOM Turning Cum Milling machine with Y-axis, MONO 400 XL, GX 100 Super, 1066 APC automatic pallet changer, and a new 5-axis machine design, catering to higher-end product segments and increasing the average machine price to ₹20.19 lakh from ₹18.48 lakh YoY.

    03

    Strategic Collaborations and International Market Expansion

    Macpower actively pursued international growth, participating in the EMO Germany exhibition where it successfully showcased and sold machines, securing new foreign dealer orders. The company engaged in over a dozen MOU meetings for technology transfer and collaboration with European, Japanese, Korean, and Taiwanese firms. Five companies were shortlisted, and NDAs were signed with three, with two delegations already visiting Macpower, aiming to introduce import-substitute products and expand exports.

    04

    Future Growth Plans and Land Acquisition

    The company is planning a total capacity of 10,000 machines over the next five years. Token money has been paid for land acquisition, with allotment expected by December 2025 or January 2026, potentially at the Vibrant Gujarat show. Phase one of the new plant, estimated at ₹125 crores including land, will add another 2,500 machines and incorporate backward integration for components like foundries. Construction is projected to start in April/May of the next financial year, with revenue generation commencing 15-16 months thereafter, targeting ₹500 crores from this new capacity.

    05

    Order Book and Market Strategy

    Macpower maintains a healthy pending order book of ₹350 crores. Total bids submitted amount to ₹987 crores, with ₹627 crores in domestic bids and ₹360 crores under evaluation. While Q2 FY26 order inflow was ₹88 crores, a 5% YoY decrease from ₹93 crores in Q2 FY25, management attributes this to execution pace and potential holiday impacts. The company primarily targets Tier 3 and Tier 4 clients but is gradually expanding to Tier 2, with a current market share of 4.5%.

    06

    Capital Allocation and Funding

    The company remains debt-free and plans to fund the ₹125 crore CapEx for the new plant through debt from SIDBI or other banks, potentially offering a stake to a foreign collaboration partner. Macpower has a ₹30 crore cash credit facility, which is currently underutilized, primarily for bank guarantees and LCs for import components. Management is confident in its ability to manage working capital, even with potentially longer receivable cycles from larger clients in sectors like defence.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.