Jyoti CNC Automation: Propelling Growth with Strategic Expansion and Innovation in Q2 FY26

Jyoti CNC Automation Limited, a pivotal player in India's manufacturing landscape, has announced a robust financial performance for the second quarter and first half of fiscal year 2026. The company, known for its advanced CNC machine tools, reported a consolidated revenue from operations of INR 508 Crore for Q2 FY26, marking a significant 17.9% year-on-year growth. For the first half of the fiscal year (H1 FY26), the revenue stood at INR 918 Crore, reflecting a 15.8% increase compared to H1 FY25. This impressive growth underscores the company's strategic positioning amidst India's burgeoning capital investment cycle and its commitment to technological advancement.

The company's operational efficiency also saw notable improvements. EBITDA for Q2 FY26 reached INR 124.6 Crore, a 16.9% increase year-on-year, with an EBITDA margin of 24.5%. Profit After Tax (PAT) for the quarter was INR 85.5 Crore, growing by 12.7% from Q2 FY25, and PAT margin stood at 16.8%. For H1 FY26, EBITDA was INR 224.8 Crore (up 12.0% YoY) and PAT was INR 156.9 Crore (up 23.7% YoY). This performance is a testament to Jyoti CNC's vertically integrated manufacturing setup, strong in-house R&D, and deep understanding of high-growth industries, enabling them to deliver precision, reliability, and cost-competitiveness.

Diversified Revenue Streams and Robust Order Book

Jyoti CNC's revenue mix highlights its strong presence across diversified end-user industries. For Q2 FY26, Aerospace & Defence contributed 36% of the revenue, followed by Auto & Auto Components at 26%, General Engineering at 21%, Others at 10%, Die & Moulds at 5%, and Electronic Manufacturing Services (EMS) at 2%. This broad-based contribution mitigates risks and ensures stable demand. The company's order book remains exceptionally healthy and well-diversified, standing at INR 4,546 Crore as of Q2 FY26, providing clear revenue visibility for the next 24-30 months. This robust order book reflects sustained customer confidence and strong demand across its key verticals.

Strategic Capacity Expansion and Innovation

To capitalize on the strong demand and future growth opportunities, Jyoti CNC is undertaking significant strategic initiatives. The company is scaling its production capacity from 6,000 machines per annum to an ambitious 16,000 machines per annum, with completion targeted by September 2026. This expansion includes the establishment of a new major manufacturing base on approximately 20 acres at Tumakuru Machine Tools Park (TMTP) in Karnataka, which will focus on larger, high-precision CNC machines for sectors like Aerospace, Defence, and heavy industry. This project is planned to be funded through a balanced mix of internal accruals and debt.

Furthermore, the capacity expansion at the Huron facility in France, involving an additional 120 machines, is nearing completion and is expected to commence operations soon. This will significantly boost Huron's deliverables from €30-32 million to €70-75 million in top line, expanding the company's global footprint. The company is also heavily investing in R&D, having successfully secured a design patent for 'HUMA', an intuitive control panel that revolutionizes operator-machine interaction. Jyoti CNC is developing its own controllers, drives, and motors under the PLI scheme, which is expected to enhance gross margins by 4-5% once commercialized within the next two years.

Talent Development and Future Outlook

Recognizing that its people are at the heart of its progress, Jyoti CNC is continuously investing in talent development. The company is upskilling and grooming its workforce and is in the process of setting up an in-house training institute to develop over 1,000 skilled engineers needed in the coming years. This ensures a steady pipeline of talent to support its ambitious growth plans.

Management is confident in strengthening its leadership in the Indian market and expanding its global footprint. The company anticipates a consolidated growth rate of 30-35% year-on-year for the next three to five years, with similar growth expected in the current financial year. For the next fiscal year, Jyoti CNC has committed to delivering approximately 10,000 machines, with a realistic expectation of achieving 8,500-9,000 units. The focus remains on disciplined execution, fostering customer trust, and building world-class machines for India and the global market, truly embodying the spirit of 'Atmanirbhar Bharat'.