Jyoti CNC Automation reported a strong performance for Q3 FY’26, with consolidated revenue growing 28.1% for the quarter to INR576 crores. The 9-month consolidated revenue reached INR1,494 crores (up 20.3%). Management highlighted a healthy order book of INR4,585 crores, driven by key sectors like aerospace and defense (46% of intake). Crucially, the major India capacity expansion to 16,000 machines is on track for September 2026.
FY’26 Q3 Performance and Economic Context
Jyoti CNC Automation reported robust figures for the third quarter of FY’26. Consolidated revenue for the quarter stood at INR576 crores, reflecting a strong growth of 28.1% year-over-year. For the first 9 months of FY’26, consolidated revenue grew by 20.3% to INR1,494 crores compared to the previous corresponding period.
Management noted that the Indian economy continues to show strong growth momentum, reinforced by the Union Budget 2026-’27’s focus on long-term investment and structural growth, which directly benefits the manufacturing sectors the company caters to.
Financial Metrics and Margins
EBITDA for Q3 FY’26 grew by 37.3% to INR155 crores, resulting in an EBITDA margin of 26.8%, an expansion of 180 basis points year-on-year. Profit After Tax (PAT) for the quarter was INR89 crores (up 10.3%). Management attributed the lower PAT growth over 9 months (18.5% growth) to increased finance costs associated with ongoing capacity expansion plans.
Order Book and Capacity Strategy
The company’s order intake for the 9M FY’26 was INR1,661 crores. The current order book remains healthy, diversified, and stands at INR4,585 crores. The CEO emphasized that the current order book already represents about 1.5 to 2 years of execution due to capacity constraints, noting that utilization has touched almost 90%.
The key strategic move is the large capacity expansion in India, increasing manufacturing capacity from 6,000 to 16,000 machines by September 2026. Alongside this, the Huron facility in France, expanded in November 2025, is seeing healthy ramp-up, particularly in the aerospace and defense segment, which constitutes about 41% of the order book (around INR1,900 crores).
Segmental Breakdown (9M FY’26 Revenue Intake)
- Aerospace and Defense: 42%
- Auto and Auto Component: 28%
- General Engineering: 22%
- Others: 8%
Strategic Initiatives and Future Focus
The long-term strategy focuses on talent development, including setting up an in-house training institute for over 1,000 skilled engineers. R&D is prioritizing product development, including proprietary controllers, drives, and motors, as part of the Atmanirbhar Bharat journey. Management also confirmed plans to launch commercial products for semiconductor equipment within the next 2 years.
The projected revenue mix remains focused on domestic growth, targeting 60%-65% domestic and 35%-40% exports for the coming years.
Inventory and Working Capital
The Chairman explained that the high inventory days stem from the long build cycles of large, complex machines (up to 12 to 18 months). However, the company is optimizing its working capital cycle through improved planning and process execution, expecting to see a release of working capital requirements as the new capacity comes online.
Q&A Insights
On the EU/US trade deal, the management stated the impact on competition is minimal as duties were already near zero for most imports. The primary benefit noted is the potential duty reduction on imported components like controllers from 7.5% to 0%, providing a cost advantage.
Regarding the US expansion, legalities are complete, and the company is aggressively appointing sales and tech teams, aiming for operations to start within the next 2 to 3 months.
Management guided for continued strong performance, suggesting that growth rates seen in FY’27 (25%-30%) can be considered achievable for FY’28 as well, supported by current visibility and capacity commissioning.
Source: BSE
