Macpower lifts FY27 growth outlook to nearly 35% after Q2

Macpower CNC Machines Limited raised its FY27 growth guidance to nearly 35% after reporting record Q2 FY27 revenue of Rs 120.33 crore, up 40.4% year on year. Its pending order book stood at Rs 476 crore, 36% higher year on year, while submitted domestic and government tender bids totalled Rs 939 crore.

What did Macpower report in Q2 FY27?

Macpower reported its highest quarterly revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT) in Q2 FY27. Revenue was Rs 120.33 crore, EBITDA was Rs 19.94 crore and PAT was Rs 13.47 crore for the quarter ended September 30, 2026. Management said revenue rose 40.4% year on year, EBITDA increased 40.8% and PAT grew 43.7%.

Macpower reported an EBITDA margin of 16.6% and a PAT margin of 11.2% in Q2 FY27. Net profit margin increased by 26 basis points year on year, while earnings per share were Rs 13.47, up 43.8%. Average machine realisation was Rs 20.36 lakh, although management noted that service revenue means this figure does not represent machine sales alone.

How did Macpower perform in H1 FY27?

Macpower said H1 FY27 was also its highest half-yearly performance for revenue, EBITDA and PAT. Revenue for the six months was Rs 215.56 crore, up 46.9% year on year, while EBITDA rose 60.2% to Rs 35.36 crore and PAT increased 65.5% to Rs 23.06 crore. EBITDA and PAT therefore grew faster than revenue in the reported half year.

Macpower reported a H1 FY27 net profit margin of 10.7%, up 120 basis points year on year, and earnings per share of Rs 23.05, up 65.5%. The average machine value in the order book during the six-month period was Rs 20.55 lakh, marginally above the Rs 20.36 lakh Q2 realisation. Q2 capital expenditure was Rs 2.89 crore, which management said led to a corresponding rise in depreciation.

Why did Macpower raise its FY27 growth outlook?

Macpower raised its FY27 growth outlook to nearly 35% from the 30% growth commitment management said it made in the first quarter. Chairman and Managing Director Rupesh Mehta said the company had delivered the earlier 30% growth level in Q2 FY27, supporting management's decision to improve its outlook. The nearly 35% figure is management guidance rather than a reported full-year result.

Management separately described a 25% to 30% growth range for the coming three years, including FY27 and FY28, based on the existing plant's ability to deliver more machines. It said it could deliver 2,300 to 2,400 machines in FY27, against installed annual capacity of 2,500 machines. Management also said Q1 forward inventory had supported Q2 deliveries and that some forward inventory remained available.

Price increases may begin affecting execution in Q3 FY27, according to management. Mehta said Macpower raised prices two to three months before the October 27, 2026 call, but Q2 deliveries largely reflected older orders and inventory. Management therefore did not attribute Q2's 40.4% revenue growth to the new prices.

How much order visibility does Macpower have?

Macpower had a pending order book of Rs 476 crore at the end of Q2 FY27, up 36% year on year. This backlog was almost four times Q2 revenue of Rs 120.33 crore, based on the reported figures. The NEXA series represented almost 40% of the pending order book.

Macpower also reported Rs 745 crore of domestic bids submitted and Rs 194 crore of government tender bids, producing a Rs 939 crore bid pipeline. The bid pipeline is distinct from the Rs 476 crore pending order book because submitted bids are prospective opportunities, whereas pending orders remain to be executed. Management did not provide a conversion rate or execution timetable for the Rs 939 crore pipeline.

The company recently delivered and launched the DCM 5 metre, V500G and VTX 1200, which it identified as large-series NEXA products. Macpower operates nine branch offices and nine technical centres, and said four additional technical centres in Kolhapur, Mumbai, Chennai and Aurangabad were under development for expected Q3 FY27 operations.

What capacity plans support Macpower's outlook?

Macpower has started construction on 13 acres of newly acquired land near its existing plant and expects the expanded facility to begin operations by the end of Q2 FY28. Management said the project is intended to remove bottlenecks, expand backward integration and scale production. It described the 13-acre site as sufficient to support 25% to 30% growth over the coming three to four years.

Management said it would disclose the capacity addition and capital expenditure details in its Q3 FY27 results call after finalising calculations. It is currently prioritising component manufacturing and machining, including spindle, sheet-metal, telescopic-cover and grinding capacity. Macpower said it had already placed some orders with five-to-six-month lead times and expected to place further equipment orders within one month of the October 27 call.

Macpower is not prioritising development of its separate 60-acre land parcel while the 13-acre project is under way. Management said the 60-acre development depends on the Gujarat government's defence policy and would not commence before the 13-acre site was developed. The company also plans to display a new five-axis aerospace and defence machine, developed by its research and development team, at IMTEX in January 2027.

Conclusion

Macpower's higher FY27 outlook follows a Q2 FY27 in which revenue rose 40.4% to Rs 120.33 crore and PAT increased 43.7% to Rs 13.47 crore. The Rs 476 crore pending order book, including almost 40% from NEXA products, and the Rs 939 crore bid pipeline provide management's disclosed demand backdrop, while H1 EBITDA growth of 60.2% exceeded revenue growth of 46.9%.

The next items to watch are Q3 FY27, when management expects recently increased prices to enter execution and four technical centres to become operational. Management also plans to provide capacity and capital expenditure details in its Q3 FY27 results call, while the 13-acre facility is targeted to begin operations by the end of Q2 FY28.