Macpower CNC Machines Q4 FY26: Record Results, Bigger Capacity Plans, and a Clear FY27 Growth Target

Macpower CNC Machines Limited closed FY26 with its highest-ever annual performance. Revenue from operations rose to INR 333.18 crore in FY26, up 27.3% year on year. Profitability improved alongside scale, with EBITDA at INR 53.90 crore, up 29.7%, and PAT at INR 33.87 crore, up 33.1%.

The momentum stayed strong in the March quarter. Q4FY26 revenue reached INR 100.29 crore, up 25.3% year on year and 16.4% sequentially. EBITDA rose to INR 16.24 crore and PAT to INR 10.15 crore, both also marking the company’s highest-ever quarterly levels.

FY26 performance: Growth with steady operating margins

Macpower’s FY26 EBITDA margin was 16.18%, modestly higher than FY25. PAT margin for FY26 was 10.17%. In Q4FY26, EBITDA margin came in at 16.19%, down sequentially from 18.08% in Q3FY26.

In the concall, management attributed the Q4 margin dip to higher other expenses. Two drivers were highlighted: an increase in marketing activity (roadshows and exhibitions) and higher job-work costs used to bridge component capacity constraints.

Orders, NEXA mix, and the demand pipeline

The company disclosed an order book of about INR 405.83 crore as of 31 March 2026. Alongside firm orders, Macpower also provided visibility into the tender pipeline. Total bids submitted were stated at about INR 1,028.53 crore, with tender bids under evaluation at about INR 376.01 crore.

Product premiumisation remains a central theme. In the concall, management stated that the NEXA series contributes about 40% of the pending order book. Management also shared that NEXA machines had an average selling price of about INR 29 lakh last year, and they expect it to remain around INR 29 to 32 lakh.

Capacity and capex: A near-term de-bottlenecking plan alongside a bigger roadmap

Macpower ended FY26 with installed capacity of 2,500 machines per annum. Management said capacity utilisation is around 80% currently and expects it to reach around 90% during FY27.

The investor presentation lays out a longer-term roadmap that includes a greenfield plant plan and large capacity expansion ambitions through 2030. Separately, the concall introduced a near-term execution plan to address constraints more quickly.

Management said it is in the final stage of securing 13 acres on a 25-year lease near the existing site. The stated near-term objective is de-bottlenecking. Management described constraints in component capacity like spindles and other sub-areas, even though the company can assemble up to 2,500 machines. In later Q&A, management indicated that after de-bottlenecking, phase 1 could add 1,000 to 1,500 capacity, though the company said it would share more detail after the next one to two quarters.

On capex, the presentation shows annual capex rising steadily: INR 9.16 crore in FY24, INR 12.42 crore in FY25, and INR 15.36 crore in FY26. In the concall, management guided that FY27 capex could be around INR 30 crore to INR 40 crore, including construction around INR 30 crore and continuing capex in the existing unit of about INR 10 crore to INR 12 crore.

Defence and aerospace: Large references, but revenue still early-stage

The company’s presentation highlights participation and supply history in defence and aerospace. It states 200 plus machines supplied to 35 defence factories and 100 plus machines supplied to 6 aviation factories, including HAL and ISRO. It also references participation in projects such as Chandrayaan-3 and DRDO programs.

However, management was explicit in the concall that the current revenue share from defence is in single digit. The reason given is operational: defence and government tender machines can be customized and can occupy assembly space for five to six months. The company’s plan is to scale this segment with dedicated capacity, including a separate defence assembly shop as new facilities come online.

Working capital and inventory: A visible execution lever and a risk factor

The FY26 balance sheet shows inventories at INR 145.55 crore, up from INR 108.79 crore in FY25, and trade receivables at INR 46.27 crore, up from INR 34.32 crore.

Management described a notable operational shift: the company had about 80 finished machines in inventory, which it said is unusual for its history. The explanation was that customers faced loan and subsidy documentation steps before final payments, delaying revenue recognition even though manufacturing costs were already incurred.

Management also spoke about building inventory for imported components with long lead times. They mentioned certain imported items such as ball screws, LM guideways, rotary tables and encoders and said they maintain significant inventory to reduce delivery risk.

FY27 outlook: Explicit growth guidance and a margin stance

Management provided clear forward guidance. For FY27, it expects 28% to 30% revenue growth. It also stated that it aims to maintain EBITDA margins around current levels and try to improve slightly. Marketing spend is expected to remain a regular feature, and management indicated such costs would be less than 1% of value.

The company also stated it has no plans to dilute equity through QIP. Funding for expansion could include internal accruals, supplier credit, and term loans.

Takeaways for investors

Macpower’s FY26 performance shows strong scale-up, with record revenue and profit levels and steady full-year margins. The company has disclosed a meaningful order book and bid pipeline, and it has provided explicit FY27 growth guidance.

The next phase depends on execution. The near-term leased facility plan is positioned as a practical move to remove bottlenecks, while the longer-term roadmap remains linked to larger land acquisition and plant build-outs. Investors will likely track three proof points in FY27: how quickly de-bottlenecking improves throughput, whether working capital remains manageable as inventories expand, and whether premium products like NEXA continue to rise as a share of orders.