Thank you. Good evening, everyone.

On behalf of Anand Rathi, I welcome you all to Q1 FY '27 earnings conference call of Jyoti CNC Automation Limited. We are pleased to have with us management represented by Mr.

Parakramsinh Jadeja, Chairman and Managing Director. We will have opening remarks from the management, followed by a question-and-answer session.

Thank you, and over to you, sir.

Thank you, Aniket. Good evening.

Good evening, everyone, and very warm welcome to our Q1 FY '27 earning conference call. Along with me, I have a senior management team and SGA, our investor relation advisor.

Results and presentation have been uploaded on the stock exchange. I have everyone I hope everyone has had a chance to go through the same.

I'll begin my opening remarks with an overview of the economy, followed by industry and company's operational and financial performance. The global economy witnessed a challenging FY '26, with the geopolitical tensions creating uncertainty across markets for significant part of the year.

The conflict in the Middle East disturbed global supply chain and energy markets, leading the volatility in crude oil price, raw material cost, and inflation. These developments created an uncertain operating environment for businesses across the industries.

FY '27 has begun on a relatively stronger footing. Geopolitical tension in the Middle East have moderated, with greater restraint being shown by all countries.

While the outlook has improved, the global environment continue to remain sensitive, and any fresh geopolitical or trade-related disruptions can once again impact global supply chains, commodity prices, and cross-border trade. In today's interconnected world, no economy remain insulated from global events.

India, too, witnessed the impact of higher crude oil prices and supply chain disruption during the past year. At the same time, this event have reinforced the importance of building the resilient and self-reliant manufacturing ecosystems.

While India has traditionally have been recognized as a service-led economy, there is now a clear policy focus on strengthening domestic manufacturing as a long-term driver of economic growth, employment generation, and global competitiveness. The government of India continues to accelerate the country's manufacturing ambitions through initiative such as Make in India, the PLI schemes.

Higher infrastructure spending and the development of industrial corridor, sector-specific policies are also driving investment across key industries, including PLI incentives for mobile and electronics manufacturing, increased private participation in the space sector, continued focus on to defense indigenization, and policy support for automotive industry through EV and advanced manufacturing initiatives. Together, these measures are strengthening India's manufacturing ecosystem, attracting investments, and reinforcing the country's position as a preferred global manufacturing hub.

As a company, we are closely aligned with this structural growth opportunity. Our businesses is a direct reflection of manufacturing activity across the country, as of as our CNC machines enables customer to expand the capacity, improve productivity, and manufacture with greater precisions.

Speaking about the machine tool industry, the global market today is estimated around US$85 to $90 billion. China remained the largest consumer of machine tools, followed by the United States, reflecting the scale of this their manufacturing ecosystems.

India's machine tool market, while currently estimated at around US$4 billion, as it an inflection point as manufacturing investments accelerate across the sectors. We believe the domestic market has potential to grow multiple times over the next decade.

Despite this opportunity, India's continues to depend heavily on imports, with nearly 60% of domestic machine tools demand being met through imports, primarily from Japan, Europe, and South Korea. This presents a significant opportunity for import substitution, as Indian manufacturer increasingly look for reliable, technological advanced, and locally supported solution.

Domestic machine tool companies are well positioned to capture larger share of this market while contributing to India's vision of becoming a global manufacturing powerhouse. Coming to the key updates during the quarter for standalone businesses: during the quarter for Jyoti in India, we continue to witness a strong demand from general engineering, automotive, EMS, defense, and other precision engineering sectors.

This reflects increasing capital expenditure by manufacturers, rising localization initiatives, and continued investment in expanding domestic manufacturing capabilities. The demand environment remained encouraging, with customer increasingly looking to automate operations, improve productivity, and enhance manufacturing precisions.

We recently launched an a new product, NX, a high-precision double-column machine. The product is targeted to cater primarily to railway sector along with the commercial vehicles, infra, power, and heavy engineering.

These type of machines was largely imported previously, and we are confident we will receive encouraging response from our customers. India demand is reflected in our standalone performance.

Q1 Q1 FY '27 revenues witnessed a robust growth of 37% to ₹107 crores compared to same period last year. The profitability front as well, Q1 FY '27 EBITDA, adjusted for forex losses, stood at ₹145 crores compared to ₹99 crores in Q1 FY '26, with margin of 28.4%, an increase of 190 basis points.

Reported EBITDA stood at ₹137 crores, with margin of 27.2%. Q1 PAT stood at ₹88 crores, growing by 21% over same period previous year, with margin standing at 17.2%.

Speaking of the global our operation at Huron, globally demand continued to be led by the defense, aerospace, and general engineering. As customers globally continue to invest in advancing their defense and manufacturing capabilities, we believe the long-term demand outlook for high-technology CNC machines remains robust.

Speaking about the operation at Huron, I'm pleased to share that all operations are running smoothly and are in swing. There have been no disruptions to order intake, project executions, or overall operations, Huron's capacity reflecting the resilience of our team and process.

We're also witnessing steady improvement in Huron environment across multiple industry sectors.

We are also witnessing a steadily improving demand environment across multiple industry sectors, which gives us confidence in healthy order inflow over the coming quarters. Based on current market trends and customer engagement, we remain optimistic about building a strong order book for Huron.

Huron continued to be a key pillar of the company's long-term growth strategy. Its advanced technological capabilities, strong engineering expertise, and established global presence significantly enhance our ability to serve customers worldwide.

As we continue to leverage Huron's strength, it will play a critical role in expanding our global reach, accelerating innovation, and delivering world-class CNC machine solution to customer across diverse industries. Our financial front at consolidated basis: revenue for Q1 FY '27 stood at ₹508.5 crores compared to ₹410.2 crores in Q1 FY '26, a growth of 24%.

The consol number also include ₹35 crores in revenue from Jyoti CNC to Huron, which get netted off in consolidation. Further, the Q1 FY '27 and Q1 FY '26 are not strictly comparable as, in Huron, we have moved away from our accounting method, which led to lower revenue recognition in Q1 FY '27 as compared to Q1 FY '26, at which time we are following a percentage completion method on a certain terms and condition.

On a like-to-like basis, our consolidated revenue should have been higher by more than ₹30 crores. Q1 FY '27 adjusted EBITDA stood at ₹119 crores compared to ₹100 crores.

Adjustment was an account on unrealized forex losses to the tune of ₹10 crores. Adjusted EBITDA margin stood at 23.4%.

Reported EBITDA stood at ₹109 crores, with margin of 21.4%. Q1 PAT stood ₹57 crore in a margin standing at 11.2%.

Overall, both our standalone and consolidated businesses continued to benefit from a healthy demand environment. Historically, the first quarter has been seasonally a softer period for machine tool industry, with customer ordering activity generally picking up in a second half of the year.

We expect a stronger second half this year as well, supported by a healthy demand pipeline across the both domestic and international market. In addition, our new manufacturing facility is scheduled to commence operation by the end of September, which will significantly enhance our production capacity and enable us to better cater to the strong demand environment.

As a result, we expect the second half of FY '27 to be particularly robust for the company. Overall, the demand environment today is so strong that we are running at close to our full utilization.

Our plant operated at 86% capacity utilization in Q1 FY '27, underscoring the need for the capacity expansion that we had announced earlier. I'm pleased to share that our expansion project, which will add the capacity for 10,000 machines annually, is progressing as planned.

Installation of machinery is well underway. Our operating team have already been put on place, and we have proactively built up raw material and inventory over the past 9 months to ensure a smooth production ramp-up.

We remain on track to commission the new facility by the end of September, following which we will be a positioned to cater to strong domestic and international demand pipeline while supporting our next phase of growth. Our revenue continue to be well diversified across the end-user industries, reflecting the strength of our business model.

During the quarter, 37% of revenue came from aerospace and defense, 35% from automotive and auto components, 17% from the general engineering, 6% from electronic manufacturing services. The balance 5% has came from other industries.

Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at ₹4,848 crores, providing a good revenue visibility for the coming quarters.

The industries-wise order book comprised: a 38% of order book is from aerospace and defense, 20% from general engineering, 19% from automotive and auto components, 13% from electronic manufacturing services, and 4% from die and molds, and with balance coming from the other sectors. For a detailed update on order inflow during the quarter, you can refer to our investor presentations.

On machine sales front, we sold 1,406 machines during Q1 FY '27 compared to 1,117 machines in Q1 FY '26. The product mix was as followed: entry-level machine sales stood at 1,349 compared to 994 last year; mid-range machine sales stood at 33 compared to 104 last year; and high-end machine sales stood at 24 compared to 19 last year.

Overall, we have started FY '27 on a strong footing with healthy revenue growth, improving profitability, and robust order book. Demand continues to remain encouraging across key sectors, while our upcoming capacity expansion will further strengthen our ability to capitalize on the opportunities ahead.

With a strong manufacturing base, continued investment in technology, our partnership with Huron, and a clear focus on supporting India's manufacturing transformation, we remain confident of sustaining our growth momentum while creating a long-term value for all our stakeholders. With that, I would now like to open the floor for question and answers.

Thank you very much for the opportunity, sir.

Hi,

sir. Sir, firstly, on our capex, as you mentioned that the additional 10,000 machine capacity will come on stream in September '26, what will be our overall capex outgo for the full year FY '27?

Because there will be some maintenance capex as well. Just a follow-up to that: all our relevant backward integration—foundry, sheet metal fabrication, machining, all those things—they will also come on board in September '26?

Thank you, Harshit. Let me come back to one by one your questions.

We targeted at close to ₹450 crores of a capex for this our new capacity over there, and we are until today we are on to a same target line. We are on the track, absolutely on that.

Another your questions about the detailing. Today, almost our 80% of machine shop is already the factory has been constructed, machine has been put up.

Already we started to partially machining and everything has already started. Only the part of automation that we are going to do it now, and then it will be improve our more and more manufacturabilities over there, about the machine shop there.

Sheet metal shop, the building is about to finish now, and all the machines we are already received. Once the building has been handed over from this days within a week time and all, our installations and everything is going to start.

Parallelly, our paint shop also the building is getting ready in this week, basically all the equipment, everything is put into inside and to installation is going to start from this, okay. Only the foundry part, okay, that is running little late.

We are expecting to this foundry to be finished in October there, okay. Right now, the foundry equipments and everything is going to come in September, and we may take at least 1 month additional time to that.

Apart from that, assembly building is also ready now. Assembly building is ready, machine shop is ready, sheet metal is ready.

Only in foundry, we will have a 1 month to wait over there. Almost you can say that 99% we are on time there.

Understood, sir. Perfect.

Sir, secondly, on our working capital position, as you mentioned in your opening remarks, our current inventory levels are slightly elevated because we are planning for the upcoming execution ramp-up from the second half of FY '27 onwards. How this inventory position, along with both receivables and payables, how these metrics will look like at the end of FY '27?

Here, I'm trying to understand how will our working capital and the operating cash flow generation will look like for the full year.

Basically, the last year, Harshit, we started to ramp up the See, today you see that we are close to now ₹5,000 crore order book, okay. We have ramped up the every our procurements and all since last 9 months there.

With this new facility is coming up, and execution will set right nicely after the new facility, we are expecting to to let's say the working capital in a inventory stage is drastically remove let's say improvement we will see. In terms of a operating cash flow, we are expecting to a very positively surprise to be seen there.

Understood, sir. Perfect.

Thank you very much for answering my questions. I'll come back in the queue.

Hello. Good evening, sir.

Thank you for the opportunity.

Good evening, Rabindra Nath Nayak.

Thank you, sir. Sir, congratulations for good gross margin.

There is a significant growth in the gross margin despite very low sales in Huron. The other figures like, sir, the staff cost and also the other expenditure and quarter-to-quarter basis has increased, and also whether it is due to the new capacity that you're building.

Whether it is relating to that, the interest cost is also has gone up. You mentioned that with the foreign exchange loss, our EBITDA is around 23%.

I am referring to your past call that whatever may be the realization, ₹30 ₹36 even realization go to around ₹30 lakhs, our margin will remain 24%, 25%. How will you reconcile all these things to actually to a 23% margin in this quarter?

Whether there is some capacity cost we have built in in this quarter so that our even our margins are low? Can you comment on something on this?

Thank you. I will come to the next question.

Thank you, Rabindra. See, Rabindra-bhai, basically, if you look at that, our standalone margin has improved a very well, okay.

It means we are on a completely on a cost and everything is nicely been there. Even though let's say the individually we have a 27% plus, and we always guided to the people to at 25%, okay.

Right now, what we are seeing is the difference are coming basically in Huron. We have made the revenue close to a ₹35 crore in quarter compared to the last year quarter it was close to ₹70 crores.

We missed this ₹35 crore additional revenue due to this our new accounting structures and all. We have produced, but we are not able to build them.

The cost and everything has been loaded there, okay. That's how it is been looked like, and compared to let's say even we have a ₹35 crores of a material has been transferred from India to there.

That in consolidated revenue, it is been net off, and that's why this revenue has not been seen to be higher there, okay. In terms of a margin, we are absolutely on track.

Once the revenue comes in a coming quarters been booked in a Huron, it will be restate to the all the margin to be there.

Okay. Sir, interest cost has gone up.

Because why are not capitalizing the interest for the new capacity that you're going to build?

Basically, we have fully booked into cost over here. Anyhow, the capacity is going to start in this year.

We are going to utilize from September onwards. Partly already we started using the building up to this all our components and all.

Already we have put to use. There are many things we have put to use there, okay, and that's how we are able to improve from our third quarter.

If I have not put to use and if I start everything from October onwards, then I can capture the revenue from next year onwards there. Already we started, we put to use, and then cost has been incurred, we cannot push into an capitalization over there.

Okay. If we compare, like-to-like basis, whether it is right to estimate that up around ₹20 to ₹25 crores of additional cost we have built in in our cost for which the margin is down?

No. Basically, see, the margin, I told you that revenue has not come from Huron at close to ₹35 crores.

That's supposed to come as compared to the last year first quarter, okay. If you calculate this margin, we missed the margin of ₹20, ₹22 crore.

Exactly on the same margin we missed there. Okay.

Okay. Okay.

Okay? Sir, one suggestion, because if you give the Huron's performance on a quarter-to-quarter basis, that would be helpful because instead of discussing in the conference call, if you can give it explicitly, that would be helpful for the investor to actually analyze the things properly.

That is a suggestion.

Last year,

there was a forex gain that we have not accounted because if you could have accounted for that in this quarter, then the things would be better because we have got ₹10 crores loss, last year it was ₹20 crores of gain perhaps, forex time. Like-to-like basis, performance would be compared properly.

Sir, the new machines that you have just discussed in the opening remark, what type of machine and what is the realization, and also what is the market? What is the import currently India is doing for this type of machine?

Basically, this large size of a machine are coming mainly from this Taiwan, Korea are the main supplier this particular machines. The machines are more than 5 meters range.

We have built up this 6 meters, the new first model. Then another machines we are put up in right now under development is a 8 meter and 10 meters also.

Particularly for the heavy engineering, last year, India has import more than 300 machine of this categories there, and value for this machine is close to ₹3 to ₹5 crores in between over here. We have just been developed, and the target industries is right now the railway is also expanding big way there.

We have received some of the orders in this quarter also against this machine for the railway component suppliers over there.

Okay. Is it a 3X machine?

queue for follow-up? This is last question.

Okay.

Yeah. Rabindra, this is a 3+1, yaani this machine is a five-sided machine, but not in a 5-axis simultaneously there.

Okay. Thank you, sir.

Thank you.

Good evening, Jadeja, sir.

Sir, first,

one question around the Huron thing which you mentioned at the initial part of the call, right, regarding one of the machines where I think the approval was pending because of which it is in inventory, right? Is that correct, which I heard?

Correct. Because

comparing it to the last call which you had highlighted, it is about the licenses which I remember, right?

For each

machine, I think the controller has to issue approvals. Is that approval received now?

Is it a timing issue, or is it still due even post June 2026 for this specific machine?

No, particularly is not in a one machine, but specifically all the export license is right now they are taking a longer time there, okay. We are in a waiting mode there.

Once we will receive the license, it means there is a certainty for the machine to be dispatched, and then only we can able to book this into our revenue to be there. This is very conservative method been adapted by the local authorities and the local auditors over there, so that we have adapted over here basically.

We are in a very very strong positions. Our two to three meeting our management has done with the authority there.

They are very much positive. They are looking to the end-user client and all, and they will clear very soon there.

Got it, sir. That's it from my side.

All the best. Yeah.

Yeah.

Yeah.

Sir, congratulations for decent set of numbers on standalone. Of course, there is some ambiguity on the Huron side.

I'll be little more specific to get the clarification done from you. Since you already pointed out, I'm just putting in perspective, earlier we have adapted percentage completion method, and now we are booking revenues on Huron once the machines are dispatched.

Since the complete dispatch was not there in this quarter on the Huron side as compared to what we have exported some material to Huron, we have seen the revenue dip. If we would have adapted the earlier method, then revenues would have been higher by close to another ₹30, ₹35 crores, which would have flown to EBITDA, and the comparable EBITDA would have been much better than what it look like in this quarter.

Is my understanding right, sir, to understand?

Absolutely you understood as perfectly right, and I already stated into all past two questions also. Absolutely let's say if this method has been not set, then my top line which should be ₹35 crores more, and ₹22 crores margin should be more there.

Correct. Now, sir, going into Q2 precisely, can we expect that some dip that we have seen in Q1 in terms of dispatches of machines, can they pick up in Q2 or we have to wait for the second half?

Can we expect some sort of pick-up in dispatches of machines in Q2

so Q2 can be much better in terms of

margins?

Yeah. Basically, we are looking to be see, this particular things has been changed only in last 3 months, okay.

It started from Q1, okay. Now we are expecting Q2 is a much better.

We have a local machine. Those are the machines are going to be prepared and going to dispatch we are not waiting for the end-user certificate also.

We are expecting Q2 numbers to be improved there first, okay. Gradually, I'll tell you one thing: this are the large machines, and manufacturing times are longer, is a lumpy things are coming up.

One third quarter and fourth quarter, we will see the bunch will come. Ultimately, we are producing and keeping there into a WIP there.

One day it will go out, and we will see the nice results on a coming quarters to be there.

Okay. Sir, I'm just trying to conclude it.

The earlier practice was that since the lumpiness was not there, numbers were looking smooth because of percentage completion method. Now, few quarters few quarters might see more dispatches, few quarter might see lower dispatches on the Huron side.

It is better for us to look at the yearly picture rather rather than, quarter-on-quarter EBITDA margins. Is that understanding right?

Absolutely. Machine tool company, we need to see a yearly basis only there.

Okay. Sir, still we stand by with our earlier guidance of close to 25% to 30% growth on top line and maintaining the EBITDA margins in the range of 25% across?

Absolutely. We are fully committed.

We are on way, and we have demonstrated if you look at that even this situation also, we are close to 23.4% margin, and growth also is close to 24% at consolidation level also. We are on track, and we are absolutely going to deliver 25% to 30% as guideline has been given, and margin also to be maintained there.

We're fully confident on that. We'll deliver that.

Thank you, sir. Wish you all the very best.

Thank you very much.

Thank you.

Hi, sir. I wanted to check on the EMS market.

Is the demand environment improving there? Can we see some good ordering in the couple of quarters that are yet to come in this year?

Maybe that's question one for EMS ordering.

Okay. What is the question number two?

Batai do.

Sir, question number two is also on the accounting change that you have done. If I understand correctly, there'll be some huge lumpiness in the revenues, basically ₹30 to ₹35 crores.

We may see ₹30 crores for Huron in one quarter, and that may increase to ₹100 crores in next quarter because eventually their run rate was about ₹70 crores that was historically done. Doesn't that create a lot of lumpiness in the EBITDA margins also?

It can go to probably 30%, 31% when the revenues are higher and can come down to 23%, 24%. How do we look at the margins and the sustenance of margins then?

I always say that, Aniket, that first of all, the machine tool company, we are not a quarter-to-quarter, okay. Anyhow, we are here, and we manufacture the very large machines and all, it will going to happen, and we will see that things.

You will also able to understand the complete cycle to be there. That is a part and parcel of the business, we will see that things basically.

Regarding the EMS, we are fully busy right now. It's not converted into a order because all my customers also are developing their own capacity.

Many customers are waiting the now there is a new electronic manufacturing component PLI scheme and enhanced up to ₹40,000 crores. Many of customers are waiting, and then they get the clearance.

Right now, more than 200 of people those are working with our customers and developing each new processes, toolings, the programming, and supporting them. We are fully equipped to support to them.

Once they are ready, we are also ready. Basically right now, our capacity also will come up.

They all are looking to us over here also, but today we are almost 90% the utilization levels are there. Already we have a big order book in our pipe, and we first like to execute all these things first.

Understood, sir. Very clear.

Thank you so much for answering. I'll get back in the queue.

Yeah. Hi, sir.

I'm audible?

Hi. Absolutely.

Sir. Thanks for taking my question, and congrats on strong standalone performance.

My first question is on your realization. If you look at the realization per machine blended is come down in FY '26 to around ₹38 lakh from 40 ₹44 lakhs in FY '25.

If you look at the number what you disclose in the 1Q FY '27, it's further down to ₹36 lakh. Just want to understand, it's mainly due to the, let's say, machinery or the sector or which has drive this lower realization for the '26 and also 1Q FY '27?

Basically, see,

if you look at that, the last year, the first quarter was a 1,100 machines are there. This year, we have increased the number of machine to close to 1,406, okay.

The last year the first quarter average was 34.41, okay, and this year is close to 34.56, is almost similar there, okay. We will be in a range in coming days because the way number of machines and capacity on a entry-level and mid-level machines are increasing, we will be in a range of similar in a coming quarters or 1 or 2 years to be like this.

Okay. Got it, sir.

Sir, next question, bookkeeping question: you said the total capex for this 10,000 machine close to ₹450 crores. I think if you look at for the '26 capex, I think it's somewhere close to ₹300 crores.

Just want to understand what capex you have done till now in FY '26 and what would be your capex for FY '27 in terms of number?

In terms of this year, we are going to do close to ₹200 to ₹225 crores. Balance of this 150 plus some maintenance capex and all kind of things.

Okay. Can we assume again ₹300 crore capex for this year as well?

No, it is not going to touch to 300. I told you that ₹200 to ₹250 in between.

Okay. Fine, sir.

Got it. Thanks.

That's it from my side.

Sir, firstly, a clarification. In the beginning, you said that this quarter's capacity utilization is 86%.

Can you tell me what the capacity was for that utilization number?

Basically is of 6,000 machine a year.

Okay. Because if I was not wrong, earlier for FY '26, we said around 90% utilization.

That's why I wanted to confirm that number.

Correct. The last year, let's say at the end of the year, we built 5,550 machines there.

Okay.

Yeah.

Sir. Thank you.

My question is even though the ASP declined this quarter, we saw an improvement in the gross margin. Is that how it is going to be going forward even as the entry-level machines ramp up with the new capacity?

That's why I'm telling let's say the gross margin, ultimately with all model mix, I always guided like that: we will be at EBITDA level at 25%. We may sometimes go plus, but we have been business model has been ensured like that we'll be near by that.

Sir. Lastly, one structural question.

Are you seeing any signs of replacement demand, like machines that were imported 20 years back or something that are getting swapped with Indian machines now?

Yeah. There is a lot of new demands are coming.

Particularly in a last July, we have seen historically highest order book today now. Every area demand is coming up.

First time in a local market Local, it means this in India, we cross more than 1,000 machine in 1 month. Specifically, even the every industrial area is growing, but particularly the area I'm coming from, let's say Rajkot alone, Jyoti has booked more than 250 machines in July there.

It's a massive demand. Now we have been witnessing the people those have been used our machine in 2000 to 2005, they are replacing, even new capacity being add-on, and many, many new things are coming there.

See, the last year, none of the Indian machine tool company, we were having the capacity, import has surged, okay. Import has increased to now in a last year has reached to 62% of a total India's consumption there.

Sir. Got it.

Hello. Am I audible?

Hello. Hi, sir.

Thanks for the opportunity. Sir, first question regarding the Huron accounting one.

We as of now, we took this stance because of the going on investigation in the Huron capacity. I just wanted to understand that if we get this investigation concluded and if this investigation comes into our favor, going forward in the next year, we will be again going back to the percentage of completion method or the Huron facility specifically will be accounted as on the basis of deliveries?

No. Basically, until that is the now, see, the principle of account is no more connectivity with today our investigation and all.

Basically, the uncertainty is happening due to geopolitical situation, and end-user certificate is a important parameter there. Previously, it was not that important there.

Now, they consider this is an uncertainty of the delivery. Once until that certainty will not been come over there, they will not book.

If I get the, let's say, the end-user certificate within 3 months of my order, I can able to book a POCM there also.

Got it. Just, sir, one more question on the new capex.

Basically, we will be adding around 10,000 of machine capacity in the coming quarter by September. What number of machines that are we looking from this incremental capacity to be booked by FY '27?

What I said that we'll be grown up by 25% to 30% this year,

okay.

That's already we have estimated, and we have been given the guideline there. You can make calculation based on that because right now, last year, we have built almost 90% of our capacity.

You can say that we are going to cross more than 8,000 machine this year.

8,000 machine. Perfect.

All right, sir. Thank you so much.

Yeah.

Yes. Hello, sir.

Thank you for taking this question. Thank you for addressing all the questions very clearly.

I just had one question on the subsidiary. First, can you just explain me the rationale behind changing the accounting policy?

Secondly, the total loss that the subsidiary has recorded of approximately ₹30 crores, can you just give us a bifurcation how much that loss has occurred due to operational and probably delay in sales issues and how much is purely to accounting purposes?

Basically, I'll tell you that let's say this year the first year last last year first quarter, we did close to 7 million turnover. This year also, we have manufactured the machine up to 6.5, but we are able to build up to 3 million there.

Additional ₹35 crore revenue we have missed, but all the cost has been incurred there, okay. That is the difference are being seen into a ₹30 crores of a gap there.

Okay. Sir, the rationale behind changing the accounting policy?

See, the rationale behind the accounting policy is that today, now this end-user certificates, okay, is getting too much late there, okay. With this, investigation has been started.

The auditor has taken a very conservative steps, and based on the accounting standard and French GAAP over there, any percentage of completion method, if any of your dispatches is there is uncertainties are there, you are not able to book those revenue, basically. Uncertainties means that you have received the order, even you have received the funds also, but your government authorities, they will not clear, you are not able to dispatch, you are not able to book this revenue to be there.

Okay. Just one clarification.

We are just awaiting the certification and completion of this investigation. Once these two things get sorted out, we'll just

Both things are different. You remember one thing: investigation is a different parameter, and end-user certificates are different there.

Yes. Okay.

Okay? End-user certificate, and dual-use end-user certificate, we need to take any exports from Huron to there, not today, even in past also, okay.

Previously, we used to get this certificate very fast. Today, the timeline has increased there, basically.

Sir, any reason for the timeline to stretch?

Geopolitical situation. It's a defense ministry.

They check every individual users. Let's say today, if I received the machine order from HAL, okay, and if I have to export let's say give machines to HAL, I'm using a Siemens controller.

Siemens has to take this permission for HAL from German Defense Government there, okay, from government defense there, okay. They will give the clearance based on the users of this machines, okay.

Every time they ask something, we go to our customers. Let's say we are right now waiting for many of our Chinese customers and Turkish customers to getting the clearance over there, okay.

Once the authority asks something questions, we have to go again to that customers and getting the documents and going back. This is how the process has been increased there.

Okay. That is quite insightful, sir.

Thanks a lot. If I can squeeze one more thing.

On the investigation side, can you give any timeline as to when this entire thing will get sorted out?

We will be normalized these things basically. I don't think so we are not seeing very near future to be let's say they are not Geopolitical situation is such that we don't see that it has been finished in a 1 month or 2 months like that, okay.

We are sure the way authorities have been responding to us about the licensing and all, our team went and meet them. Definitely, they are going to improve the timeline over there.

Got it. Thank you so much.

That is very insightful. All the best.

Yeah.

Hi. Thank you for taking my question again.

I wanted to check whether these export licenses are required when we are manufacturing the machines in India and exporting from India as well, or is it just the Huron-specific issue?

No, it's every machine tool company. Let's say today I'm in India, and whatever the machines I'm manufacturing, the machines are simultaneously 5-axis, and if I have to supply to any of the customers, okay?

Mhm. Let's say right now, I'm buying this controller from Siemens.

If tomorrow I buy controller from FANUC or Siemens anywhere, they have to obtain this license from their authority to be there.

Understood. It's

Right now, Huron is in Europe, they are making a machine, they have to take there, okay?

Okay. Yes.

I'm buying a controller from Siemens, Siemens is taking this basically in India for us there.

Understood, sir. Got it.

This was the question.

Thanks for opportunity, sir. Sir, as you mentioned that you are not able to book around ₹35 crore revenue in this quarter, otherwise revenue to be around ₹65 crore.

Hello. Are you able to hear me now?

Yeah. Now it's correct.

Sir, as you mentioned that you are not able to book around ₹35 crore revenue in this quarter, otherwise revenue to be around ₹65 crore on the Huron. Just wanted to understand what's your full year guidance for the revenue of Huron in FY '27 and what EBITDA margin can we expect from this year?

Okay. Basically, that's the correct question now.

Huron, we are expecting to close to ₹300 to ₹325 crore of a revenue this full year.

On a margin side, what margin we can make on the Huron in this year then?

Basically, at EBITDA level, we will reach at Huron level at close to 8%

to 10%. 8% to 10%.

Yeah.

Sir. My next question on the CNC controller: as you are developing your own CNC controller, just wanted to understand what is the progress right now, and when we can expect commercial deployment of CNC controller?

Basically we are manufacturing, let's say, designing, developing drives, motors, CNC. Today, our HMI is ready.

I think commercialization will happen in a next 2 years' time.

When can we expect the capex for this commercial production of the CNC controller?

Right now, we have already applied for the PLI, okay, and we are eligible, and we have been applied there. Plans are ready.

Once we will get the clearance, we will make a plan to commence there.

What would be the incentives for the PLI, sir, in terms of the percentage?

Today, in terms of a capital subsidy is close to 25% from the central government. Similar, whatever the central governments are giving is the same amount are matched by the state government, you can consider close to 50% there.

Got it, sir. My last question on that customer qualification program which you are running with the semiconductors and with the Apples.

Just wanted to understand what is the progress over there.

Already many customers we have been qualified, and many we are designing and developing the processes for them. It is going greatly.

In beginning also, I said that we have more than 100 200 people are connected with them and developing the many more product for them basically.

Sir. Thank you, sir.

That's all from my side.

Thank you.

Yeah. Thanks for the opportunity, sir.

Sir, I'm apologising for the question. Sir, what processes we are taking up, in terms of improving our HR, then our financial, operations, particularly CFO side, and our audit system?

Because you may be looking at a lot of these things circulating on the media, social media as well. What steps we are taking to improve our systems, internal systems?

Because given the fact that we are in such a good position and we are doing remarkably well, 10% market share in terms of CNC market. Internally, what we are doing better on improving the processes?

I ideally believe that you should change the auditor. These steps should be taken because it will further improve our visibility in the investor community because these are literally dragging our overall perception.

Kamlesh-ji, I'll tell you one thing: the improvement is always an continuous improvement, okay? This is the ongoing process all the time.

Every company is been growing from small to mid-size to bigger size, and they evolving and, let's say, improving every day by day there, okay? You look at with your perception, and we are also taking into account on this area.

We are very much, let's say, always in improvement side in terms of a quality, in terms of a processes. We are ISO 9000 company.

If we are not in terms of this HR best practices and all this, we cannot have a walk with the world largest and biggest customers to be there. They will not qualify to us there.

If you look at that our customer base and all, if our processes are not into place, but your suggestion, we will take in consideration, and we will see that always we are improving, and we will further improve to be more there.

I appreciate that, sir. Secondly, and we really look forward to that because despite having such a strong performance, we continue to hear a lot of complaints on that front.

Kamlesh-bhai, without people performance never comes. Understand that.

I do appreciate that, sir.

Okay. Without a good quality work of the people, we should not able to reach on this position there.

Great, sir.

Sir, on the Huron side, you told that we would be doing 300-odd crore in this year and 10% to 11% margin. I believe that is on the Huron side only.

I said 8% to 10%. Now 10 to 10 to 12 karke bada mat do.

I said 8% to 10% very clearly.

No, sir. I'm trying to understand that is only on the Huron standalone basis.

Whatever components which we are sending from India, so that would be having their own 20 20%, 25% margin built in that. For a company as a whole, on ₹300 crore, would we be making 25%, 30% margin.

Yeah. So, 10 to 10-odd percent is primarily on the Huron standalone basis.

Absolutely.

I said someone has asked to Huron performance, I said at Huron level there.

Okay. Sir, secondly, on percentage of completion method, when I go to your annual report for FY '25, we used to have been following that practice in accounting treatment as well, revenue recognition.

I'm really confused that whether it was adapted in FY '26 itself or because it has been the practice in the previous year as well. I'm really confused on that part, whether we have followed now or it was there in earlier years as well?

Kamlesh-bhai, this practice is in Huron since last 20 years.

Yeah.

Okay? This is still exist.

Only one condition has been added, okay? That is I'm telling you that only once uncertainty is that to be end-user certificate, okay?

Once the end-user certificate given by the government, we will add on to a POCM there, it will be continued there. It is not being closed, okay?

This is not being changed anything. It is a modified.

The accounting team has been modified there.

Okay. Great, sir.

Thanks a lot.

Yeah.

Thank you so much, sir, for the opportunity. Sir, I wanted to understand that what are we expected since our new facility is going live in Q2 FY '27, Q1 FY '27 should see the jump in order intake, while sequentially from Q4 FY '26 to Q1 FY '26 when we see, the order intake fell by 15%.

Can you please throw some light on that, how should we view this?

Basically, we are already having a stretch order book. We have a very large order book compared to the our execution today.

Every quarter, let's say today, if you see that in a last couple of quarters, we are consciously let's say what we are dispatching, we are increasing more than that, okay. Even this year this this quarter also, we have a close to a close to a ₹510 crores is a dispatch, and we have a ₹600 crores is a is a order book there.

Our customer also look at that once our execution capability will increase, we can book further more than. Definitely we will see in a last quarter to be more order intake because that will be our customers also become a very confident, then only they will place us to order on on on-time deliveries to be there.

Okay. Sir, my another question would be, as you said that Q1 to Q1 should not be comparison, I understand that.

On a sequential basis, we are comparable, and the capacity is already being going live on building up. The cost on that front is already building up, right?

When we see on sequential basis, our margin have been down by 320 basis point. This reflects some of the point you said that because of Huron ₹35 crore, so that's attributed primarily to Huron, otherwise our margin would intact on that basis.

Is that understanding right?

Absolutely. You can see my, let's say on the same standalone business, I have a 27.5% margin to be there in this quarter itself.

Sir. Thank you so much.

I will get back. Thank you.

Hi. Am I audible?

Yeah.

Just want to understand this end-user certificate. It is only for 5-axis, right?

Absolutely.

It is not

5-axis 5-axis is also 5- there there is a many many conditions are there. Let's say first is a 5-axis simultaneously, or any let's say there are there are many long guidelines by EU and all.

Certain precision also is a part of that.

None of our standalone sales require any kind of end-user certificate, right?

Standalone in India?

Let's say if some of Jyoti exports

We also required.

Okay. Is there some lag in the revenue recognition?

No, In India particularly, we are having a India and Germany, we have a very good report systems and all, we are able to get it very fast over there.

Understood. All right.

Thanks. That was my question.

Yeah.

Thank you, sir. Thank you for the opportunity again.

Sir, actually in the plant visit, you have mentioned that a ₹200 crores of order is expected from MBDA. What is the status of that now?

Already, out of that, few orders we have received in this quarter, and many are in coming quarters we are expecting that.

Okay. Sir, MBDA is also planting here with L&T.

They have already set up the capacity in Coimbatore. Whether we have actually can the opportunity there to market our product?

Absolutely. Many European companies are coming in India, and we are all are in preferred supplier to their list.

Not only this one, many more are coming in a aerospace and defense area to be there.

Okay. Sir, again, sir, the BFW is already set up this 10,000 machine capacity in Hosur.

How the competitive scenario is going to shape up because we are also developing at the same time? Can you please throw some light on that, how is the competitive scenario is going to crop up?

See,

right now, Rabindra, always every business there is a competition. We are coming up here with always we have a very fight and tough competition always, okay.

It is a part and parcel of the life.

Okay. Sir, they are also manufacturing the 3X machines in this new facility or they are manufacturing something other lower?

I cannot tell about the strategy of my competitors there.

Sir. Thank you very much.

Thank you.

I have two questions.

Hello?

Yeah.

Good evening, sir. Thank you for the opportunity.

I have two questions. First one is on debt outlook.

Could you just provide an outlook for the debt for the fiscal year FY '27? Walk us through the driver behind the increment in cash interest during the quarter?

The second question is regarding the order book. What is the current visibility for the order book for the current fiscal?

Both are my two questions.

Right now, in a debt situation, we are very much comfortable situations that we are not seeing further debt to be increased from this year because already we have taken term loans and everything to be there. Once let's say any further capex in next future, we will think over there, okay?

Still, okay, our balance sheets are allowing us to go up to, and we have made a discipline parameter inside that we will not grow more than let's say our debt should be 1:2 to EBITDA level there, and where we are within that limits, and we will not going to increase to be there. This year, we are in the similar level to be there.

It is not going to increase there. What was your second question?

I missed that.

Sir, second question is regarding the order book visibility.

Yeah. Order book let's say we are very much clear that this year the first quarter we took almost ₹600 crores, and we are expecting to finish this entire year in between ₹2,500 to ₹3,000 crores there.

Sir. Thank you so much.

Hello, sir. Good evening, and congratulations for a good set.

Sir, I just wanted to ask on Huron, basically just one question. You said that around ₹300, ₹325 crores of revenue, and if I'm not wrong, our capacity there is 240 machines.

What would be approximately the number of machines for this revenue, if you can say? You said around 8% to 10% margins, but would it be PAT positive this year, do you think so?

Yeah. First of all, 8% to 10% EBITDA, yes, we are a positive there, okay, in terms of a PAT positive there, okay?

Second, in terms of a let's say, the 240 machine is a capacity based on the model mix. Today, what we are receiving the orders is all are a large machines.

The machine value is more than €1 million to be there, and that's why this manufacturing time and everything is longer there. For a larger machines, in our capacity, we are able to execute in terms of a value-wise close to €75 million through there.

It's close to ₹750 crores there. ₹750 crore

is the full capacity realization?

Full capacity utilization

level, yes. Eventually we will reach there?

We just expanded last year in December, okay, November, December, we add on the capacity. We have now capacity up to ₹750 crores to be there.

Understood. Just, sir, last question to understand this license and end-user certificate better: so is it that even from France, if you have to locally sell in the European Union like to Germany or Spain, Portugal, even there, do you need certificate or this is only to export out of European?

No, out of European Union. I don't need a license there for the Germany, for the Italy, for a Spain.

Okay. Understood, sir.

This last question, sir: you said to one of the previous participants, a lot of replacement demand and a lot of local demand is also coming in. I have visited Rajkot a couple of times.

Just trying to connect these two things: is it that you're finding a lot of component guys who are now getting into aerospace or precision engineering even at a local level, Tier 1, Tier 2 suppliers? Are they also upgrading?

Is it fair to say that they're upgrading to a certain level of machinery, and that's why in the future our realizations can go up because it feels that now since with the new capacity, Jyoti can take a lot of import share because you said 62% is import as on today? Are these guys also upgrading because India is seeing so much manufacturing, and like you said, all Europeans are coming here?

People would need some better capability machinery, right? If Jyoti can deliver, would our realizations go up with time because people have to also upgrade if they have to work with Europeans and US companies?

Absolutely. See, the face is changing the entire India there.

India is moving more and more the maturities are coming is all the manufacturing company is expanding their core competence to produce the very high precision component there, okay. Recently, we have supplied some machines in our town.

Those guys are supplying a parts to Airbus or a Dassault into this programs also. Based on that, all these Indian manufacturing capabilities are increasing.

Second, people are looking more and more on automation on the machines there, okay. That's the another area is opening up, and we are forefront to substitute to import substitutions.

Yes, in coming days, we are looking to on a higher and higher manufacturing the larger machines to be there basically, on a high-tech machines to be there.

Understood. Sir, just to end this, when you say high-tech machines or higher range machines, is it basically that your customers are also moving from components to a system supplier, and hence they also need more advanced machineries, or is it that they are getting into more technical components and that's why they need advanced machines, or it is a mix of both?

All mix. Basically, they are moving their on high value chain basically.

India's manufacturing is going more and more on a high-value manufacturing to be there, and that's why the precisions are required more and more there.

Understood. This is all what was coming from China, Taiwan, Korea, the business that India is now getting?

Would it be fair to say

that? Absolutely.

China Plus One is a real things are coming up. Even I'll tell you simple example: earlier our Indian Railway, what the speed was there, and what are the now Vande Bharat and all the new trains are coming.

Once we need to produce a high-speed trains and all, you need a high precision components and more technology-driven parts to be there. Those are the things are everywhere is improving there basically.

Understood. This NX machine that you've put in the presentation, sir, what is the use in Indian Railways, if you could just spend 1 minute on that?

To manufacture the bogie.

Okay.

Wagon bogies. Yeah.

Okay. Thank you so much, sir, and all the best, sir.

Thank you very much.

Yeah. Hi, sir.

Can you

Hi, Deepesh. Deepesh.

Hi, sir. Hi.

Hi. Sir, just one more question on Huron thing.

Sir, I think last year last quarter, we reversed around ₹67 crore of revenue from Huron, and this quarter, we are talking about ₹35 crore. Total around

It's not reverse. This year this this quarter is not reverse that.

It's Ha,

it is not recognized. Almost ₹100 crore of revenue which has to be recognized, right?

I was just wanted to know how many machines are we talking about in this number, and is this a single order or these are multiple orders?

It's a multiple order and around 7 to 8 machines.

7 to 8 machines, multiple orders.

Sir,

is there a different timing when you have applied for the license? Will it all come in a single quarter, single month, or it will be spread out?

How do you think?

No. Once that is clear, I think they will clear everything there.

The entire thing may happen in a single time, in a single Yeah. Yeah.

Yeah.

Yeah.

Okay. Generally, I think you said whenever you are near completion to the machine, right, 2, 3 months before that you apply for the license.

So,

Earlier it was our practice. Now we will start from day first now.

Already we have received some of the orders in this quarter, we already apply for that.

Okay. This is typically to a particular geography that is taking time from EU or it is anywhere out of EU that is taking time, sir?

Everywhere. See, basically, particularly our customers are all into China, Turkey.

These are all are a sensitive areas basically, today's timeline there.

Got it. Sir, what is the debt level right now?

I think last year we closed at around ₹700-odd crore net debt levels. With the inventory building up, still, how is the debt level right now?

Today, our March and today's level is almost same. Okay.

Okay. We are still confident that the OCF generation that we are thi- talked about in the last quarter that we will continue for this quarter this year also,

right?

That we will be

Absolutely. We'll built up a good OCF this year.

So ₹200, ₹220 crore of capex you talked about, and then like you said, the debt will be at similar levels. You expect to generate a similar OCF kind of a number?

Basically this year we are expecting close to a 50% of a EBITDA level there.

50% of EBITDA conversion. Yeah.

Got it. Thank you so much, sir.

Thank you for your time. Thank you.

Thank you.

Am I audible now?

Saurabh.

Just one last question. Just wanted to understand that in case the investigation, the entire investigation that is going on in the Huron, would there be any going forward in the coming quarters if it does not get concluded, is there any impairment loss we supposed to be booking by end of FY '27 in case if this gets drag along by at least Q4 of FY '27?

Yeah.

Not at all.

Hello?

Not at all.

Not at all. Okay.

Thank you so much.

Thank you all of you for joining us today. I hope I have addressed all your questions.

We remain committed to keeping the investment community informed with the regular updates on any development in the company. For any further information or a queries, please feel free to reach out to us or a SGA, our investor relation advisor.

Even I'm inviting all of you. All this expansion and everything is going on.

Come over here, witness, see how we are growing, and welcome to all of you over here. Thank you very much to joining in this call.