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    Macpower CNC Machines Q4 FY26 earnings call

    MACPOWER
    Capital Goods·28 May 2026
    Management Summary

    Macpower CNC reported its highest-ever quarterly and annual performance in Q4 and FY26, driven by strong revenue and PAT growth. The company is aggressively expanding capacity with an interim 13-acre leased land while awaiting government land. Despite a Q4 margin dip due to strategic marketing and inventory build-up, management guided for 28-30% revenue growth in FY27, focusing on high-end NEXA products and operational efficiency.

    Highlights

    5

    • Q4 FY26 Revenue of ₹100.29 crores, up 25.34% YoY, marking highest-ever quarterly performance.

    • FY26 Revenue of ₹333.18 crores, up 27.26% YoY, achieving highest-ever annual performance.

    • FY26 PAT of ₹33.87 crores, up 33.13% YoY.

    • Closing order book of ₹406 crores, with 23% YoY growth, and a pipeline of ₹1,029 crores including domestic and tender bids.

    • Strategic investment in a 13-acre leased land (₹30-35 crores) to de-bottleneck current capacity and add 1,000-1,500 machines in Phase 1.

    Concerns

    3

    • Q4 FY26 EBITDA margin dipped to 16.19% from increased marketing costs and higher job work expenses.

    • Delay in securing 60-acre government land due to local elections and policy changes, pushing back long-term capacity expansion plans.

    • Increased finished goods inventory (80 machines) led to higher expenses without immediate revenue realization in Q4.

    What Changed1

    vs Q1 FY27

    Guidance items4 → 5 (+1)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹100.29 Cr+25.3%YoY
    2. 02EBITDA₹16.24 Cr+13.6%YoY
    3. 03EBITDA Margin16.2%
    4. 04PAT Margin10.1%
    5. 05Revenue₹333.18 Cr+27.3%YoY

    Order Book

    high confidence

    Total Value

    ₹ 406 crores

    as of 2026-03-31

    quantified
    23.0% YoY

    Composition

    NEXA series(product)
    40.0%

    Pipeline

    other

    Domestic bid, tender bid, and other included

    "The company has a robust order book with strong demand in the pipeline, particularly from the NEXA series, which contributes 40% of the pending orders."

    Source:
    Prepared remarks

    Capital allocation

    3
    medium confidence
    CategoryHeadline
    Capex

    ₹30 crores

    mix of internal accruals, supplier credit, and term loan

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Operating cash flow for the period was INR14 crores. The company uses long-term credits from suppliers for inventory and has some money in banks/short-term funds.

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Revenue Growth
    28-30%
    		High
    Margin
    EBITDA Margin
    maintain or improve 1-2%
    		High
    Capacity
    Capacity Utilization
    90%
    		High
    Capacity
    New Capacity from 13-acre plant
    1,000-1,500 machines
    		Medium
    Market Share
    Domestic Market Share
    10%
    		Medium

    What to watch in Q1 FY27

    5

    60-acre Government Land Policy & Acquisition

    within 3-4 months
    CurrentDelayed, new policy expected in 3-4 months
    TargetNew policy announced and land acquisition process resumed

    Why it matters

    Resolution of this delay is crucial for the company's long-term capacity expansion and aspirational margin targets.

    Right now they are offering in the 50% government rate. Now the new policy is 25%. So, we are waiting. So, we have information that it will take three to four months to complete the procedure for the new policy. After that, we'll sign to acquire the land.

    Risks & concerns

    3
    RiskSeverity

    Delay in 60-acre government land acquisition

    Local elections and policy changes have delayed the acquisition of 60-acre government land, impacting long-term capacity expansion plans. — Management acknowledged

    medium

    Increased working capital intensity from inventory build-up

    Higher finished goods inventory (80 machines) and import component inventory (1 year supply) have increased expenses without immediate revenue realization, though management views it as strategic. — Management acknowledged

    medium

    Q4 margin pressure

    EBITDA margin dipped in Q4 due to increased marketing costs and higher job work expenses to meet production targets. — Management acknowledged

    low

    Q&A highlights

    8

    “Both are the different things. First of all, right now we have a 2,500 capacity. And some of the area, this capacity is for the assembly. We have more than 1,000 different types of components we are using. And right now we have a capacity of spindle, like 150 machines per month. We have a capacity of sheet metal, 110. So, I think we are adding some facility to complete the 2,500 machines. This 60-acre land plan is still in process. We already paid the token amount to government. But because of the local elections in Gujarat, corporation and district administration, it's delayed by government policy. We are waiting for the government new policy. And they suggested that this new policy is more advantageous(advantageable) than the previous one. Right now they are offering in the 50% government rate. Now the new policy is 25%. So, we are waiting. So, we have information that it will take three to four months to complete the procedure for the new policy. After that, we'll sign to acquire the land. But meanwhile, as we and the Board discussed, that we have a huge opportunity of the business for the coming year and next year also. So, why don't we add one another unit? So, this 13-acre land for 25 years long lease with a very token amount, we are almost in the finalization stage and we will announce within a short time. So, we are adding another 3-lakh square foot construction and de-bottlenecking of some of the process.”

    Clarifies the company's dual-track approach to capacity expansion, addressing delays in government land acquisition with an interim leased facility.

    asked by Darshan G

    2 min read7 chapters

    Detailed Narrative

    01

    Record Financial Performance in Q4 & FY26

    Macpower CNC achieved its highest-ever quarterly and annual performance. Q4 FY26 revenue grew 25.34% YoY to ₹100.29 crores, with EBITDA at ₹16.24 crores (up 13.60% YoY). For the full year FY26, revenue increased 27.26% YoY to ₹333.18 crores, and PAT jumped 33.13% to ₹33.87 crores, demonstrating robust top-line and bottom-line growth.

    02

    Strategic Capacity Expansion and Land Acquisition

    The company is pursuing a dual-pronged approach to capacity expansion. While the 60-acre government land acquisition is delayed due to policy changes, Macpower is investing ₹30-35 crores in a 13-acre leased land. This new facility, expected to be finalized soon, will initially de-bottleneck the existing 2,500 machine capacity and later add 1,000-1,500 machines in its first phase, ensuring continuous growth.

    03

    Robust Order Book and Product Mix Shift

    Macpower closed Q4 FY26 with an order book of ₹406 crores, representing a 23% YoY growth. The pipeline, including domestic and tender bids, stands at ₹1,029 crores. A significant portion, approximately 40%, of the pending order book is attributed to the higher-end NEXA series, which commands an average price of ₹29-32 lakhs, indicating a strategic shift towards more value-added products.

    04

    Q4 Margin Dynamics and Strategic Investments

    The EBITDA margin in Q4 FY26 was 16.19%, a dip attributed to increased marketing expenses (roadshows, exhibitions) and higher job work costs due to limited in-house component manufacturing capacity. Additionally, a build-up of 80 finished machines in inventory, whose costs were recognized without immediate revenue, also impacted margins. Management views these as strategic investments for future growth.

    05

    Working Capital Management and Inventory as a Game-Changer

    Despite increased inventory (₹145 crores) and receivables (₹46 crores), management considers inventory a 'game-changer,' especially a one-year supply of import components, mitigating supply chain risks. The company funds inventory through long-term credits and has implemented a new policy to dispatch machines upon bank/NBFC sanction letters to accelerate payment realization, improving cash flow.

    06

    Future Growth Outlook and Market Share Ambitions

    Macpower has guided for 28-30% revenue growth in FY27, aiming to maintain or slightly improve EBITDA margins. The company holds about 1% of India's machine tool consumption and 2% of domestic production, with a vision to achieve 10% market share in the next five years. This growth will be supported by aggressive marketing, new product development, and capacity expansion.

    07

    Focus on High-End Products and Defence Sector

    The company is increasingly focusing on high-end precision and technologically advanced CNC solutions, including new models like Turn Mill Centre and LX 3000. While defence sector revenue is currently single-digit, Macpower plans to increase its market share in this segment in future financial years, with a dedicated defence assembly shop planned for the new 13-acre facility.

    This is an AI-generated summary of a publicly available earnings call transcript.