Jyoti lifts H1 operating cash conversion to 47% from 6%

Jyoti CNC Automation reported 47% operating-cash-flow-to-EBITDA conversion in H1FY27, compared with 6% in H1FY26, as net cash from operating activities rose to Rs 111.7 crore from Rs 13.2 crore. The improvement occurred even as consolidated profit after tax fell 17.3% year on year to Rs 129.7 crore and investing outflows reached Rs 193.5 crore.

What lifted Jyoti's H1 cash conversion to 47%?

Jyoti lifted operating cash flow, or OCF, to earnings before interest, tax, depreciation and amortisation, or EBITDA, conversion to 47% in H1FY27 from 6% in H1FY26. The presentation describes this as OCF-to-EBITDA conversion and says the momentum is expected to continue, without specifying a future target or time frame.

The principal change was higher operating cash generation. Cash generated from operations increased to Rs 149.0 crore in the half year ended September 2026 from Rs 43.8 crore in the half year ended September 2025. Direct taxes paid, net of refunds, rose to Rs 37.3 crore from Rs 30.6 crore, but net cash from operating activities still increased by Rs 98.5 crore to Rs 111.7 crore.

Consolidated EBITDA increased by 6.8% to Rs 240.2 crore in H1FY27 from Rs 224.8 crore a year earlier. Operating cash increased more sharply than EBITDA, matching the reported rise in OCF-to-EBITDA conversion to 47% from 6%.

How did working capital affect Jyoti's operating cash flow?

Working-capital changes remained a use of cash for Jyoti, but the outflow narrowed to Rs 108.7 crore in H1FY27 from Rs 184.1 crore in H1FY26. The Rs 75.4 crore reduction helped lift cash generated from operations to Rs 149.0 crore, despite consolidated profit before tax declining to Rs 177.1 crore from Rs 205.3 crore.

Operating profit before working-capital changes rose to Rs 257.6 crore from Rs 227.9 crore. The cash-flow statement recorded Rs 80.5 crore of adjustments for non-cash items or other investment and financial items, compared with Rs 22.6 crore in H1FY26; it does not provide a detailed breakdown of those adjustments.

The September 2026 balance sheet showed inventories of Rs 1,440.5 crore, up Rs 274.5 crore from March 2026. Trade receivables fell by Rs 93.1 crore to Rs 506.0 crore, while trade payables rose by Rs 57.1 crore to Rs 566.9 crore. The abridged cash-flow statement does not allocate its Rs 108.7 crore working-capital outflow across these individual categories.

Consolidated revenue increased 21.0% to Rs 1,110.5 crore in H1FY27, while EBITDA margin declined to 21.6% from 24.5%. Profit after tax fell to Rs 129.7 crore from Rs 156.9 crore, showing that the increase in operating cash followed changes in cash-flow and working-capital items rather than higher consolidated profit.

Why did Jyoti's cash balance decline despite higher operating cash?

Jyoti's cash and cash equivalents fell to Rs 26.7 crore at September 2026 from Rs 53.0 crore at the beginning of the period because investing outflows exceeded operating and financing inflows. Net cash used in investing activities was Rs 193.5 crore, compared with Rs 144.7 crore in the prior-year half, while financing activities generated Rs 55.5 crore rather than Rs 201.6 crore.

The result was a Rs 26.3 crore net decrease in cash and cash equivalents in H1FY27, against a Rs 70.1 crore net increase in H1FY26. End-period cash was also below the Rs 83.4 crore reported at September 2025. The presentation reports aggregate investing and financing figures but does not identify the individual transactions behind them.

Property, plant and equipment increased to Rs 837.7 crore at September 2026 from Rs 690.4 crore at March 2026. Capital work-in-progress declined to Rs 67.3 crore from Rs 89.3 crore. These balance-sheet movements coincided with the higher investing outflow, although the source does not provide a direct reconciliation between them.

What operating and funding changes should readers compare?

Jyoti's funding profile changed alongside the cash-flow movement. Non-current borrowings increased to Rs 511.9 crore at September 2026 from Rs 410.2 crore at March 2026, while current borrowings declined to Rs 431.0 crore from Rs 439.5 crore. Combined borrowings across the two categories increased by Rs 93.2 crore over the six-month balance-sheet comparison.

Total equity increased to Rs 2,138.2 crore from Rs 2,001.3 crore, while total assets rose by Rs 365.0 crore to Rs 3,980.3 crore. Current assets increased by Rs 208.3 crore to Rs 2,866.2 crore even as cash declined, led by higher inventories and other financial assets.

Standalone results differed from the consolidated position. Standalone H1FY27 revenue rose 33.6% to Rs 1,096.6 crore and standalone EBITDA increased 44.7% to Rs 302.5 crore. On a consolidated basis, revenue grew 21.0%, EBITDA increased 6.8%, and EBITDA margin declined by 2.9 percentage points to 21.6%.

The order book rose to Rs 5,082 crore at 30 September 2026 from Rs 4,848 crore at 30 June 2026, after Rs 809 crore of order intake and Rs 575 crore of orders executed. Aerospace and defence represented 36% of the September order book, followed by auto and auto components at 22% and general engineering at 21%.

Conclusion

Jyoti's H1FY27 result shows that operating cash generation improved despite lower consolidated profit. Net operating cash rose to Rs 111.7 crore, and OCF-to-EBITDA conversion reached 47%, while the working-capital cash outflow narrowed to Rs 108.7 crore from Rs 184.1 crore in H1FY26.

The next reported periods will show whether the presentation's stated OCF-to-EBITDA conversion momentum continues while investing cash outflows remain at Rs 193.5 crore and cash stands at Rs 26.7 crore. Jyoti also says additional capacity for 10,000 machines is being put to use and that foundry operations are to commence in coming days, alongside a Rs 5,082 crore order book at September 2026.