Macpower CNC Machines Limited: Q2 FY26 Sees Record Performance and Strategic Expansion

Macpower CNC Machines Limited, a key player in the high-precision CNC machinery segment, has reported an exceptional performance for the second quarter and first half of fiscal year 2026. The company achieved its highest-ever revenue, EBITDA, and Profit After Tax (PAT) in Q2 FY26, underscoring robust operational execution, sustained demand momentum, and disciplined financial management. This strong showing positions Macpower to capitalize on the growing industrial capital expenditure cycles in India.

For Q2 FY26, Macpower's revenue from operations reached INR 85.71 crore, marking a 21% year-on-year increase from INR 71.10 crore in Q2 FY25 and a sharp 40% sequential rise from INR 61.03 crore in Q1 FY26. Total income for the quarter stood at INR 85.89 crore, reflecting a 21% year-on-year and 41% quarter-on-quarter growth. EBITDA for Q2 FY26 was INR 14.16 crore, a significant 11% year-on-year growth and a 79% sequential increase. Profit After Tax (PAT) reached INR 9.38 crore, growing 13% year-on-year and more than doubling from the previous quarter. Earnings per share for the quarter stood at INR 9.37.

Here is a financial summary of Macpower's performance:

Strategic Growth and Capacity Expansion

Macpower is embarking on an ambitious growth trajectory, marked by significant capacity expansion and strategic initiatives. The company has increased its production capacity to 2,500 machines per annum in Q2 FY26. Looking ahead, Macpower plans to develop a 30-acre greenfield plant with a total capacity of 10,000 machines over the next five years. Phase one of this expansion involves 2,000 machines with an estimated capital expenditure of INR 100 crore, aiming for 5,000 machines in year one and 10,000 within five years. This expansion is expected to generate 3-4x revenue potential and improve operating leverage to over 18% EBITDA.

Crucially, the new plant will also facilitate backward integration, enabling in-house manufacturing of critical components like foundries, sheet metal, control panels, and spindles. This move is anticipated to strengthen cost competitiveness, improve supply chain control, and shield margins from external volatility, ultimately increasing EBITDA margins. The land acquisition for this project is progressing as planned, with token money already paid and major approvals obtained, targeting completion by December.

Diversification and Global Footprint

Macpower is strategically diversifying its revenue streams by increasing its focus on high-moat sectors, particularly Defence and Aerospace. 50% of the new plant's capacity will be reserved for defense-related work, reflecting the company's commitment to this segment. Macpower has already supplied over 200 machines to 35 Defence Factories and 100+ to 6 Aviation factories, including major players like HAL and ISRO. The company has also submitted significant bids totaling over INR 1,000 crore for defence projects and signed an MoU for INR 100 crore for a new facility for CNC machines at the Vibrant Gujarat Summit 2024.

In a move to expand its global footprint, Macpower participated in EMO Hannover 2025, a premier international exhibition. This participation successfully showcased advanced CNC solutions and facilitated discussions with over ten international companies from Europe, Japan, Korea, and Taiwan for technology transfer and collaboration. Five companies have been shortlisted, and NDAs have been signed with three, indicating strong potential for joint ventures and export market expansion. This strategy aligns with the global