Jyoti CNC Automation Eyes 30-35% Growth, Margin Improvement Amid Expansion Plans
Jyoti CNC Automation aims for 30-35% growth over 2-3 years, targeting 90% capacity utilization by FY26. The company plans to improve margins by 4-5% through vertical integration. With an order book of INR 4,546.00 crore, Jyoti CNC reported strong Q2 FY26 results: revenue up 17.90% YoY to INR 508.00 Cr, and PAT up 12.70% to INR 86.00 Cr. The company's diversified order book includes 40% from Aerospace & Defence and 20% from General Engineering.
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Jyoti CNC Automation , a leading manufacturer of CNC machines, has outlined ambitious growth plans for the coming years, targeting a 30-35% expansion over the next 2-3 years. The company's strategy focuses on capacity utilization and margin improvement, backed by technological advancements and expansion initiatives.
Expansion and Capacity Utilization
The company aims to achieve over 90% capacity utilization by FY26, a significant increase from its current utilization rate. This push for higher efficiency is part of Jyoti CNC's broader expansion strategy, which includes:
- Near completion of capacity expansion at the Huron facility in France, adding 120 machines
- Current operations at close to 88% capacity utilization
- A robust order book of approximately INR 4,546.00 crore, providing visibility for the next 24-30 months
- Plans for a new manufacturing base at Tumakuru Machine Tools Park (TMTP), Karnataka, supporting long-term capacity expansion
Margin Improvement and Technological Advancements
Jyoti CNC anticipates a 4-5% margin improvement, driven by the development of its own human controllers, drives, and motors. This vertical integration is expected to enhance the company's operational efficiency and profitability.
Quarterly Performance Pattern
The company maintains a 40-60 performance split between the first and second halves of the fiscal year, with Q3 and Q4 traditionally being its strongest performing quarters.
Financial Highlights (Q2 & H1 FY26)
| Metric | Q2 FY26 | YoY Growth | H1 FY26 | YoY Growth |
|---|---|---|---|---|
| Revenue | INR 508.00 Cr | 17.90% | INR 918.00 Cr | 15.80% |
| EBITDA | INR 125.00 Cr | 16.90% | INR 225.00 Cr | 12.00% |
| EBITDA Margin | 24.50% | -20 bps | 24.50% | -80 bps |
| PAT | INR 86.00 Cr | 12.70% | INR 157.00 Cr | 23.70% |
| PAT Margin | 16.80% | -80 bps | 17.10% | 110 bps |
Order Book and Market Diversification
As of Q2 FY26, Jyoti CNC's order book stands at INR 4,546.00 crore, reflecting strong customer trust across various industries. The order book composition shows a diversified market presence:
- Aerospace & Defence: 40%
- General Engineering: 20%
- Auto & Auto Components: 17%
- EMS (Electronics Manufacturing Services): 15%
- Die & Moulds: 4%
- Others: 6%
This diversification strategy may help the company mitigate risks associated with sector-specific downturns and capitalize on growth opportunities across multiple industries.
Conclusion
Jyoti CNC Automation's growth targets, coupled with its focus on margin improvement and capacity expansion, position the company for potential strong performance in the coming years. However, investors should note that these projections are based on current plans and market conditions, which may be subject to change.
Historical Stock Returns for Jyoti CNC Automation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.57% | +5.86% | -4.70% | -10.93% | -26.58% | +128.14% |
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