The shares of a Small-Cap company, specializing in the manufacturing of simultaneous 5-axis CNC machines in India, with almost a 10% market share in the country, are in focus after the management provided Revenue & EBITDA Guidance for FY-26.
With a market capitalization of Rs. 23,457.56 crores on Tuesday, the shares of Jyoti CNC Automation Ltd jumped by upto 1.14 percent, making a high of Rs. 1044.95 per share compared to its previous closing price of Rs. 1033.10 per share.
Guidance & outlook of Jyoti CNC Automation
According to the company’s recent conference call update, Jyoti CNC Automation Ltd’s management shared its business outlook for FY26. The company expects to keep EBITDA margins above 25%, with Q4 FY25 at 31% and the full year at 27%, helped by better product mix and cost savings. Although current capacity is a limit, they expect around 35% growth in volume in FY26 when new lines start.
The company has a strong order book with visibility over the next two years, though management notes customers are not agreeing to delivery timelines beyond that. Despite negative operating cash flow in FY25, mainly due to long production cycles and large-ticket orders in aerospace and defense, the company expects to return to positive cash flow by FY26-end.
Capacity Expansion
The company operated at 90% capacity in Q4 FY25 and 65% overall for FY25. It plans to add 10,000 machines per year, reaching a total of 16,000 by June 2026, with a Rs. 400-450 crore investment, launching all at once.
Its French subsidiary, Huron, has finished expansion and will soon be fully operational, with potential revenue of $80 million per year. In FY25, Huron made Rs. 253 crore in revenue and about Rs. 8 crore in profit.
Jyoti CNC Automation at a Glance
Jyoti CNC Automation, founded in 1989, has a global presence with subsidiaries in France, Germany, Canada, and Turkey. It operates 3 manufacturing plants, two in Rajkot, India, and one in Strasbourg, France, covering over 2.5 lakh sqm. The company offers 200+ product variants and has installed over 1.35 lakh machines worldwide. With a strong order book of Rs. 4,346 crore, it has an annual production capacity of 6,000 machines in India and 121 in France.
It is a leading Indian manufacturer of high-precision CNC machines used for metal cutting. They design and produce a wide range of machines, including turning centers, milling machines, and advanced 5-axis and multitasking systems. These machines are used in industries like aerospace, defense, automotive, and general engineering, helping companies automate and enhance their manufacturing processes.
They serve a prestigious clientele across aerospace, automotive, and industrial sectors. Key aerospace clients include Rolls-Royce, HAL, Tata Advanced Systems, Safran, GE Aerospace, Airbus, Boeing, and more. In the automobile sector, it caters to major players like Tata Motors, Mahindra, Audi, Volvo, Ashok Leyland, Fiat, and Bharat Forge (Kalyani Group). Its industrial and engineering clients include ArcelorMittal, Havells, Bosch, Godrej, JSW, Kirloskar, Brakes India, Wipro, and others.
The company’s total revenue rose by 26.9 percent from Rs. 453.12 crore to Rs. 575.25 crore in Q4FY24-25. Meanwhile, Net Profit rose from Rs. 99.64 crore to Rs. 108.97 crore during the same period.
The company’s PEG ratio of 0.63 indicates the stock may be undervalued. It maintains a low debt-to-equity ratio of 0.29, showing strong financial health, and has delivered a solid average 3-year revenue growth of 21.49%.
In FY25, the company’s revenue came mainly from Aerospace & Defense (45%), followed by Auto & Auto Components (23%), General Engineering (20%), and smaller contributions from EMS (5%), Die & Mold (2%), and Others (5%).
The current order book shows continued strength in Aerospace & Defense (39%), with notable orders in Auto & Auto Components (17%), General Engineering (19%), and a rising share from EMS (16%). Die & Mold and Others contribute 4% and 5% respectively.
In 2025 at IMTEX, the company launched 7 new products as part of its R&D push, including advanced machines like the GU 8 (5-Axis Gantry), AWT 22 (Alloy Wheel Turning), BTM 100 (Twin Spindle Automation), ATM 200 (Inverted Turning Center with Automation), HP 4000/6000 (HMC), Tachyon Beta (High-Speed 5-Axis), and HUMA (Human-Machine Interface).
Written by Sridhar J
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