Jyoti CNC Automation Q2 FY27 Earnings Call: Guides 25-30% Growth For 2-3 Years, Record 1,900 Machine Dispatches (JYOTICNC)

Jyoti CNC Automation Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Dispatches; Standalone Outpaces Consolidated

• Standalone revenue grew 31% YoY to Rs.588 crore in Q2 FY 2026-2027, with EBITDA of Rs.164 crore (vs Rs.111 crore in Q2 FY 2025-2026) at a 28% margin, up 320 bps; PAT rose 46% YoY to Rs.115 crore (19.6% margin).
• Consolidated revenue was Rs.602 crore vs Rs.508 crore in Q2 FY 2025-2026 (+18.5%), with EBITDA of Rs.131 crore (21.8% margin) and PAT of Rs.73 crore (12% margin) — consolidated growth and margins lag standalone, weighed down by Huron losses.
• ~1,900 machines dispatched in Q2 FY 2026-2027 — the highest quarterly dispatch in company history; 1,911 machines sold vs 1,315 in Q2 FY 2025-2026, of which 1,802 were entry-level.
• H1 FY 2026-2027 operating cash flow was ~Rs.112 crore vs Rs.13 crore in H1 FY 2025-2026; CMD Parakramsinh Jadeja said OCF is ~47% of EBITDA and guided to 50% of EBITDA by end of FY 2026-2027, to be maintained thereafter.
• Inventory days improved to ~190 at end of Q2 FY 2026-2027 from 203 days at March 2026 (FY 2025-2026 close), with a further reduction targeted by end of FY 2026-2027.
• Q2 FY 2026-2027 interest cost fell to ~Rs.14 crore from a much higher Q1 FY 2026-2027 level despite net debt rising in H1; management attributed this to operational/working capital utilization and did not directly confirm whether interest is expensed rather than capitalized.

Auto-Led Intake Ahead of Guidance; A&D Tender Timing a Drag

• Q2 FY 2026-2027 order intake of Rs.800 crore took the order book to Rs.5,082 crore as of September 30, 2026; H1 FY 2026-2027 intake has already crossed Rs.14 billion against full-year FY 2026-2027 guidance of Rs.25-30 billion.
• Auto sector contributed >50% of Q2 FY 2026-2027 order inflow, driven by OEM capacity additions particularly in the EV space and broad-based momentum across tier 1/2/3 auto and general engineering suppliers.
• Order book mix (30 Sep 2026): aerospace & defense 36%, automotive & auto components 22%, general engineering 21%, EMS 12%, die & mold 4%, balance other sectors.
• A&D orders declined materially in Q2 FY 2026-2027 — management attributed this to government tender timing (some tenders were not opened as expected); orders are not lost and remain in the pipeline, though no specific quarter was given for conversion of the delayed tenders.
• Management sees clear order visibility over the next 3 years and cited ~62% of the market as still import-dependent; front-end demand is not expected to be a challenge over the coming 2-3 years, with focus shifting to execution.
• Execution ran ahead of installed capacity — 1,900 machines executed against 1,500 capacity — indicating new capacity is already in use; Rajkot standalone is expected to cross 2,000 machines in FY 2026-2027 across a 15,000+ customer base.

Loss-Making Subsidiary; Unbooked Revenue Is the Swing Factor

• Huron reported Q2 FY 2026-2027 revenue of ~Rs.44 crore with a net loss of ~Rs.43 crore; only ~Rs.15 crore was recognized in consolidation after intercompany nullification (Q2 dispatches to Huron totaled Rs.42 crore; Q1 FY 2026-2027 Huron revenue was ~Rs.30 crore).
• Rs.250-300 crore of unbooked Huron revenue is expected to come through once clarity emerges (recognition period unspecified); management confirmed Rs.60 crore unrecognized in H1 FY 2026-2027 will flow through in H2 FY 2026-2027 and support EBITDA margin improvement — the analyst's assumption that adjusting for this would lift consolidated EBITDA margin by 3-4% was confirmed.
• Rs.65 crore of Huron revenue reversed in Q4 FY 2025-2026 remains pending, to be booked once the end-user certificate clearance is received (timing unspecified).
• Management reaffirmed Huron FY 2026-2027 guidance of Rs.300-325 crore revenue at 8-10% EBITDA margin, with the ramp-up in Q3-Q4 FY 2026-2027; dispatch phasing of Rs.80-100 crore in Q3 FY 2026-2027, ramping in Q4, was endorsed.
• End-user certificate approvals are "well progressed" — the government authority has given "very positive signals" and permission for one or two machines was granted last week; delays on dual-use licenses are French-side only, with no such bottlenecks for India-made machines.
• The Huron French investigation is at status quo — notice received in the first week of April 2026 was responded to, with no further communication since, and the same standstill applies across other investigative companies in Europe.

25% FY27 Margin Guidance Intact Despite Entry-Level Mix

• Management is "very much confident" of reaching the guided 25% EBITDA margin for FY 2026-2027 despite H1 FY 2026-2027 consolidated margins of ~22%, expecting H2 to be much better than H1 and to reach 25% closer to the end of FY 2026-2027.
• Standalone margin was 28% in Q2 FY 2026-2027 despite ~1,800 entry-level machines; management stated the business model will not take margins below 25% even with a higher entry-level mix (period unspecified), and sees further improvement as high-end deliveries ramp in Q3-Q4 FY 2026-2027.
• Close to 950 people were added over H1 FY 2026-2027 with the associated revenue yet to come; management expects this operational leverage to emerge going forward and be channeled into R&D. H2 FY 2026-2027 employee cost is expected to be similar to the H1 run-rate.
• Average realization fell to ~Rs.32 lakh per machine in Q2 FY 2026-2027 on a higher entry-level mix; management guided realization in the Rs.35-36 lakh range over the next 2-3 years and said realization is "no more a number" as volumes lift top line.
• Management corrected H1:H2 FY 2026-2027 phasing to ~40%:60% for revenue, EBITDA and PAT, versus the analyst's assumed 30-35%:70-75% skew.
• The Q2 FY 2026-2027 tax rate is not 30% — the elevated consolidated rate reflects losses within consolidation reducing the base; management pointed to standalone accounts for clarity and gave no average tax-rate guidance for FY 2027-2028.

PLI/ECMS Approvals Underpin Controllers and Electronics Push

• Under the Government of India's PLI scheme, Jyoti CNC received approval for capital investment of over Rs.1,020 crore over the next 5 years at a 25% capital incentive to develop in-house CNC controllers, motors, drives and operator interfaces — aimed at reducing import dependence under Make in India.
• ~25% (Rs.255 crore) subsidy has been received from the central government on the Rs.1,020 crore program (through ~FY 2031-2032); a matching grant from the Gujarat state government is awaited, with total subsidy of 50%+ expected "very soon" (period unspecified).
• Jyoti CNC has also received a capital subsidy under the Government of India's ECMS scheme, which aims to strengthen domestic manufacturing in the electronics sector; management expects a total project cost of Rs.1,250-1,300 crore (Rs.1,020 crore of machinery), with subsidy available against machinery only and investment executed in phases.
• Phase 1 ECMS outlay is Rs.400-450 crore over one year, with ~Rs.200 crore subsidy expected, netting company outlay to ~Rs.200 crore over the next one year (FY 2027-2028).
• Industry context cited by management: ~60% of India's CNC machine demand is met through imports, largely from Japan, Europe and South Korea; imports' share has fallen from 80% ten years ago to ~38% vs ~62% domestic manufacturing as of FY 2026-2027.
• In-house controllers are expected within the next 2 years (FY 2027-2028 to FY 2028-2029) and are explicitly not counted in FY 2026-2027 volume plans; a 110+ engineer R&D team (working ~1.5 years) is to add 40-50 engineers over the next ~6 months (into early FY 2027-2028), taking it to 150+. Management acknowledged customer acceptability as the key challenge.

8,000 Machines and 25-30% Growth Guided; Execution Is the Test

• Management reaffirmed guidance to cross 8,000 machine deliveries in FY 2026-2027 — 3,317 delivered in H1 FY 2026-2027 with 4,700+ expected in H2 — versus 5,600 machines in full FY 2025-2026; management pushed back on the "conservative/easy target" characterization, citing H2 volumes of ~4,900 units (~50% over H1).
• 25-30% growth is guided to be sustained over the next 2-3 years (FY 2027-2028 onward) for Huron + Jyoti combined; FY 2026-2027 revenue growth is guided at 25-30% for the combined entity.
• Miro revenue is guided at close to Rs.300 crore (~€28 million) for FY 2026-2027 — €6.5 million recognized so far in FY 2026-2027, with the balance of ~€21.5 million expected over H2 FY 2026-2027.
• Foundry completion is expected in Q3 FY 2026-2027 — new loss-form vacuum casting technology capable of up to 15-ton single-piece castings, with equipment arriving end of November 2026; existing capacity is ~1,500 tonnes/month, rising to 5,000 tonnes/month with the new foundry (period unspecified).
• FY 2026-2027 capex of Rs.183 crore was already incurred as of the call date (including advances), against a projected total outlay of ~Rs.450-500 crore, nearly reached once foundry last-mile completion is done.
• Controller supply-chain tightening is an industry-wide headwind — Japan clocked >60% month-on-month machine tool order intake over the trailing 6 months (FY 2026-2027), with Germany, Italy and the US also surging on AI/data center demand; supplier lead times have more than doubled, though Jyoti's advance planning and safety inventories have kept growth on track. Ongoing Middle East conflict is adding energy, freight and inflationary pressure globally.