Jyoti CNC Automation Ltd (JYOTICNC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, we welcome you all to the Q2 and H1 FY '27 earnings conference call of Jyoti CNC Automation Limited hosted by Elara Capital. This conference call may contain forward-looking statements about the company which are based on beliefs, opinion, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nimesh Sundar from Elara. Thank you, and over to you, sir.
Nimesh Sundar (Elara Capital): Thank you. Good evening, everyone. On behalf of Elara Capital, I welcome
Moderator: Sorry to interrupt, Mr. Nimesh Sundar. Your audio is breaking up.
Nimesh Sundar (Elara Capital): Yeah. Is it clear now?
Moderator: Yes, sir. Please go ahead.
Nimesh Sundar (Elara Capital): Yeah. So, I welcome you all to the Q2 and H1 FY '27 earnings conference call of Jyoti CNC Automation Limited. We are pleased to have with us the management team represented by Mr. Parakramsinh Jadeja, Chairman and Managing Director, and the senior management team of Jyoti CNC Automation Limited. We will now have the opening remarks from the management, followed by a question and answer session. Thank you, and over to you, sir.
Parakramsinh Jadeja (Jyoti CNC Automation Ltd): Thank you, Nimesh. Good evening, everyone. And a very warm welcome to our Q2 and H1 FY '27 earnings conference call. Along with me, I have a senior management
Parakramsinh Jadeja (Jyoti CNC Automation Ltd): team and SGA, our Investor Relation Advisor. Results and presentations have been uploaded on the stock exchanges. I hope everyone has had a chance to go through the same. I will begin my opening remarks with an overview of economy, followed by industry and company's operational and financial performance. The global economy continues to face a challenging environment, with the ongoing conflict in the Middle East adding to uncertainty. The conflict has lead to higher energy and commodity prices, disruption in shipping routes and supply chains, and increased freight and logistics costs. These factors are adding to inflationary pressure and weighing on global growth. India has also felt the impact of this development, particularly through higher energy costs, rising raw material prices and increased freight costs for manufacturers. However, India's economy continues to remain strong, supported by domestic demand and growing focus on manufacturing. In this environment, building a strong and reliable manufacturing base in India has become increasingly important. While India has traditionally been known for its service sector, manufacturing is now emerging as a key driver of economic growth, job creation, and India's position in global markets. The Government of India continues to support this journey through indicative initiatives such as Make in India, the PLI scheme, and several sectors specific programs covering electronics, semiconductors, defense, and aerospace. One of the initiative is the SPECS scheme, which aims to strengthen the domestic manufacturing in electronic sector. I'm proud to share that Jyoti CNC has also received a capital subsidy under this scheme, and I will share more detail on during the call. As India moves forward towards building a stronger manufacturing ecosystem, one area that deserved special attention is the manufacturing of machine tools, often referred to as mother machines. These machines form backbone of manufacturing, and are used across sectors including automotive, defense, aerospace, railways, and electronics. Despite the large domestic opportunity, around 60% of the India's CNC machine demand is currently met through imports largely from Japan, Europe, and South Korea. Given the critical role these machines play in both commercial and defense manufacturing, reducing import dependence and building domestic capabilities is important for India's long term manufacturing security. This presents a significant opportunity for Indian manufacturers to develop the high quality, technological advanced machines locally and support the country's journey towards the greater self-reliance. At Jyoti CNC, we are well positioned to participate in this opportunity. We are among the India's leading CNC machine manufacturers, with backward integrated manufacturing capabilities that gives us a greater control over our value chain. Over the years, we have built a strong customer base, with more than 40,000 plus machines installed across sectors such as automotive, railways, and defense. Along with sectors such as electronics and manufacturing, our technology and product capabilities enable us to compete with leading global players, while our strong domestic presence gives us a good understanding of customer needs. With India's manufacturing sector entering an important phase of growth, we believe we are well placed to benefit from the rising demand from advanced manufacturing solutions
Parakramsinh Jadeja (Jyoti CNC Automation Ltd): and contribute meaningfully to India's journey towards self-reliance. Let me now give you a quick update on our business. During the quarter, we dispatched approximately 1,900 machines, marking the highest quarterly dispatches in history of company's operations. This is one of the back of additional 10,000 machines, which we put to use during this quarter. Our foundry operations will commence operations in coming days. As we continue to improve capacity utilization and ramp up production, we expect our volumes to grow further going forward. Speaking of our order book, we recorded a robust order book intake of ₹800 crores during the quarter, taking our total order book to ₹5,082 crores as of September 30th, 2026. This order book is on the back of a strong demand from auto sector where OEM are adding more capabilities, more capacities, particularly in the EV space. Overall, the order book provide us with a strong revenue visibility for the coming quarters. And with additional capacity coming on stream, we are well positioned to convert this demand into sustained growth. On the Huron front, we had added a new manufacturing capacity in November 2025. Dispatches from this expanded capacity are expected to commence during the third and fourth quarter of FY '27, providing an additional contribution to our growth in the second half of the year. One of the product development front, we recently developed the MTX 100, a compact 5-axis multitasking turn mill center. The machine combines turning, milling, gear cutting and grinding operations in a single setup, enabling customers to improve productivity, enhance machining accuracy, and optimize floor space. It is designed to cater to industries such as aerospace, defense, automotive and EV, and oil and gas where demand for complex, high-precision components continue to grow. This development reflects our continued focus on strengthening our R&D capabilities and expanding our product portfolio in line with evolving customer requirements across domestic and international markets. Lastly, I'm also pleased to share an important development under the Government Production Linked Incentive, so-called PLI scheme for domestic manufacturing, Jyoti CNC has received approval for a capital investment of over ₹1,020 crores over the next 5 years, which is a capital incentive of 25%. Through this initiative, we aim to develop in-house manufacturing capabilities for key components such as CNC controllers, motors, drives and operator interfaces. This will help reduce our dependence on imports, strengthen our backward integration and further reinforce our commitment to the Government Make in India vision. Now coming to the financial and operational performance. Standalone performance: Quarter 2 FY '27 revenues witnessed robust growth of 31% to ₹588 crores compared to the same period last year. On the profitability front as well, Q2 FY '27 EBITDA stood at ₹164 crores compared to the ₹111 crores in Q2 FY '26 with margin of 28%, an increase of 320 basis points. Quarter 2 PAT stood at ₹115 crores, growing by 46% over same period previous year with margin standing at 19.6%. Speaking of consolidated performance, revenue for Q2 FY '27 stood at ₹602 crores compared to ₹
Parakramsinh Jadeja (Jyoti CNC Automation Ltd): eight crores in Q2 FY26. A growth of 18.5%. On a profitability front, Q2 FY27 EBITDA stood at 131 crores compared to 125 crores, with margins standing at 21.8%. Q2 PAT stood at 73 crores, with margins standing at 12%. For Q2 FY27, our revenue continues to be diversified across end-user industries, reflecting the strength of our business model during the quarter. 21% of 21% of our revenue came from Aerospace and Defense, 36% from Auto and Auto Components, 28% from General Engineering, 7% from Electronics and Manufacturing Services, 1% from Die and Molds. The balance 7% came from other industries. Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at Rs 5,082 crores, providing good revenue visibility for the coming quarters. The industries-wise order book comprised 36% of Aerospace and Defense, 22% from Automotive and Auto Components, 21% from General Engineering, 12% from Electronics Manufacturing Services, and 4% from Die and Molds, with the balance coming from the other sectors. For a detailed update on order inflow during the quarter, you can refer to investor's presentation. On machine sales front, we sold 1,911 machines during Q2 FY27 compared to 1,315 machines in Q2 FY26. The product mix was as follows: Entry Level Machines sales stood at 1,802 compared to 1,237 last year. Mid-Range Machines sales stood at 98 compared to 69 last year. High-End Machines sales stood at 11 compared to 9 last year. Overall demand continue to remain encouraging across the key sectors, while our capacity expansion will further strengthen our ability to capitalize on opportunities ahead. To conclude, we have delivered a strong performance in Q2 and H1 FY27, supported by healthy demand across key sectors and continued progress in our business operations. Our focus on strengthening manufacturing capabilities, advancing technology through our partnership with Huron, and supporting India's growing manufacturing ecosystem continue to drive our growth journey. With a healthy order book and disciplined approach to investments, we remain focused on sustaining our growth momentum in the coming quarters. With that, I would now like to open the floor for question-and-answers.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harshit Patel from Equirus Securities. Please go ahead.
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