Jyoti CNC Automation Limited Q4 & FY26 Earnings Conference Call

Financial Performance Overview

Standalone Performance (India Business):

  • Q4 FY26 Revenue: ₹599 crores (13% YoY growth)
  • FY26 Revenue: ₹1,949 crores (20% YoY growth)
  • Q4 FY26 EBITDA: ₹191 crores (31.9% margin)
  • FY26 EBITDA: ₹564 crores (28.9% margin)
  • Q4 FY26 PAT: ₹135 crores (22.6% margin)
  • FY26 PAT: ₹391 crores (20.1% margin)

Consolidated Performance (Impacted by Huron Investigation):

  • Revenue reversal of ₹67 crores at Huron subsidiary due to export control investigation
  • Q4 FY26 Revenue: ₹599 crores (would have been 16% growth without reversal)
  • FY26 Revenue growth: 19% YoY (excluding reversal impact)
  • Q4 FY26 EBITDA: ₹147 crores (24.6% margin)
  • FY26 EBITDA: ₹527 crores (25.2% margin)
  • Q4 FY26 PAT: ₹91 crores
  • FY26 PAT: ₹336 crores (6% YoY growth)

Operational Highlights

Capacity Constraints and Expansion:

  • Current installed annual capacity: 6,000 machines (India and Huron combined)
  • Facilities operating at utilization levels exceeding 100% during peak demand
  • Capacity expansion to 16,000 machines on track for commercial operation in Q2 FY27
  • Expected to commence operations by September 2026

Order Book Position:

  • Q4 FY26 order intake: ₹700+ crores
  • FY26 order intake: ₹2,364 crores
  • Outstanding order book as of March 31, 2026: ₹4,732 crores
  • Order book diversification: 38% aerospace & defense, 19% general engineering, 20% auto & auto components, 4% EMS, balance from other sectors

Segmental Revenue Breakdown (FY26):

  • 39% from aerospace and defense
  • 26% from auto and auto component
  • 23% from general engineering
  • Remaining from other sectors including EMS and dies and moulds

Huron Investigation Details

Nature of Issue:

  • Ongoing investigation by French export control authorities concerning certain export orders
  • Investigation involves multiple companies across Europe (over 50 companies under investigation in last 3 years)
  • General manager of Huron placed on suspension as per standard investigation protocol

Financial Impact:

  • Revenue reversal of ₹67 crores under percentage of completion method (POCM)
  • Corresponding manufacturing costs already incurred but revenue not recognized
  • Margin impact of approximately ₹40 crores
  • Management emphasizes this is a deferment, not a write-off or cancellation
  • Revenue expected to be recognized once export licenses are obtained

Operational Impact:

  • No material adverse impact on operations, order execution, exports, customer servicing, or manufacturing activities
  • Investigation timeline uncertain - management cannot provide specific timeframe for resolution

Business Outlook and Guidance

Demand Environment:

  • Positive outlook across domestic and global markets
  • Strong pickup in auto and general engineering sectors
  • Healthy customer engagement and order inflow
  • 15,000+ customer base in India across manufacturing sectors

Capacity Ramp-up Plans:

  • New capacity expected to improve manufacturing cycle and reduce working capital requirements
  • Target to reach 8,000-9,000+ machines in FY27
  • Maintain 25%+ EBITDA margin guidance despite changing product mix

Huron Operations:

  • FY26 Huron standalone revenue: Approximately ₹248 crores
  • Q4 FY26 Huron revenue: ₹25 crores
  • FY27 expectation: ₹300-350 crores standalone revenue
  • Added 25 people in manufacturing and expanded facilities from November 2025

Additional Financial Metrics

Machine Statistics:

  • Q4 FY26 machines sold: 1,760
  • FY26 machines sold: 5,550
  • FY26 average realization: ₹35.62 lakh per machine
  • Product categorization: Up to ₹50 lakh (entry-level), ₹50 lakh to ₹2 crores (mid-range), above ₹2 crores (high-end)

Debt Position:

  • Debt increased by approximately ₹300 crores for capacity expansion
  • Working capital increased by only ₹45 crores
  • Expect improved cash flow from operational efficiency post new facility commissioning

EMS Segment Update:

  • EMS order book static at ₹700 crores for approximately 1.5-2 years
  • Delay in component manufacturing investments from EMS players
  • Expecting improved momentum with new ISM 2 and component manufacturing PLI schemes

Management Commentary

Mr. Parakramsinh Jadeja emphasized that the technology from Huron has been fully integrated into Jyoti's operations, with 75% of aerospace and defense execution (₹800+ crores) coming from India operations. The company remains confident in navigating the investigation and emerging stronger, with no plans to divest the Huron business.