Thank you. Good evening, everyone.

On behalf of Equirus Securities, I welcome you all to third quarter and 9 months FY26 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 of the company. We will have opening remarks from the Jadeja sir, followed by question-and-answer session.

Thank you, and over to you, sir.

Thank you, Harshit. Good evening, everyone, and a very warm welcome to our Q3 and 9-month FY26 earning conference call.

Along with me, I have a senior management team and SGA, our investor relations adviser. Results and presentation have been uploaded on the stock exchange.

I hope everyone has had a chance to go through the same. I'll begin my opening remarks with overviews on the economy front, followed by highlighted on the company.

India's economy continues to show a strong growth momentum, supported by healthy domestic demand and steady policy reforms that improves a competitiveness and boost investors' confidence. The Union Budget 2026-27 has reinforced this direction by focusing on long-term investment and structural growth.

A key highlighted of the budget is the continued emphasize on public capital expenditure as a main driver of growth. With an allocation of ₹12.2 lakh crore for FY27, around 9% higher than the previous year.

This sustained a capex push is expected to strengthen infrastructure, encourage private investment, and provide long-term visibility for the manufacturing sector. The budget has also announced a focused measures across sectors Jyoti CNC is catering to.

The launch of India Semiconductor Mission 2.0 aims to expand a domestic semiconductor and equipment manufacturing, along with chip design capabilities, which will drive demand for high-precision machining. Electronics manufacturing has been further supported through a ₹40,000 crore outlay under the Electronic Components Manufacturing Scheme, helping scale up EMS and component production.

In defence, higher capital allocation to domestic aerospace and defence manufacturing strengthen the push for self-reliance, where precision engineering play a critical role. Similarly, a continued policy support for the automotive and auto component sector through PLI schemes and duty reforms have reinforced India's position as a preferred manufacturing hub.

On the global front as well, a greater clarity around tariffs supported by a free trade agreement signed with EU and US is expected to provide a meaningful push to our exports-oriented end-user industries. This improvement in trade visibility should support demand across global markets and create additional opportunities for companies like ours.

Overall, the current environment place both country and Jyoti CNC in a strong position, driven by clear and sustained focus on manufacturing. In this context, the role of mother machine manufacturers, companies that build a precision machine used to produce other machine tools, become especially a very critical.

As manufacturing activity expands across sectors, the demand for reliable, higher-quality CNC machines is expected to rise a meaningfully, creating a long-term opportunities for a players like Jyoti CNC. Now speaking of Jyoti CNC, as highlighted earlier, the Indian CNC machine tools market continue to be a largely served through import, presenting a significant opportunity for a domestic players.

To strengthen our presence and capabilities and capitalize on the opportunity, we are undertaking a large capacity expansion in India, increasing our manufacturing capacity from current 6,000 machines to 16,000 machines by September this year. I'm happy to announce that the capex is progressing as planned, and we will be able to ramp up a sooner than expected on the back of huge industry demand and our product in India and globally.

Alongside a capacity expansion, we have also made investment in a talent development, including upskilling our workforce and setting up an in-house training institute to build up a pipeline of over 1,000 skilled engineers. These initiatives form a critical part of our long-term growth strategy to deliver high-precision machines across diversified sectors and support a sustained growth.

At the same time, R&D and innovation remain a key strategic priority. We continue to advance our product development efforts through initiatives such as the Huma control panel, along with a plans to integrate a proprietary controllers, drives, and motors.

These steps will strengthen our product offering, technology capabilities, and reduce import dependencies over a period. In parallel, we are actively exploring a next-generation products for high-precision applications, including semiconductor equipment, which we believe can become a meaningful growth driver for the company in the coming years.

In summary, we are expanding capacity, strengthening our talent base, deepening our capabilities, and preparing to serve a much larger and more global customer base. We remain a financially disciplined and future-focused, and we are confident of delivering a sustainable growth in the years to come.

Now I will share with you the key updates of the company. In November 2025, we expanded our capacities at Huron, a facilities in France, almost double in line with our growth plans.

This expansion strengthen our manufacturing capabilities and positions us well to meet a rising global demand. Huron continue to serve as a key technology hub for the company.

With a strong focus on a high-end machines catering to global customers, with the increased capacity, we are a better equipped to address a growing demand from the aerospace sector and expand our global footprint. We have commenced assembly operation at the facility and are seeing healthy ramp-up with material traction expected to reflect from FY27 onward.

We are seeing a strong traction from different sector, both in India and across global markets. We have a healthy order book of a aerospace and defence of close to 41% and around ₹1,900 crore, reflecting growing confidence in our capabilities and the increasing demand for high-precision machining a solution in this segment.

With the ramp-up of our capacity at Huron, a capacity expansion at India coming live in September 2026, and a growing order book across sectors, we expect the coming period of the significantly stronger, supported by improved execution, higher deliveries, and sustained demand across our key and markets. Before I begin my updates on the operational and financial performance, I would like to briefly explain the nature of our business and the reason behind our higher inventory days so that everyone has the right context.

Ours is a manufacturing business with a long production cycle, and the working capital requirement is largely driven by inventory. We operate across three broad product categories: in entry-level machines, which are largely supplied to EMS, automobile, and auto component, and general engineering.

The manufacturing cycle is around 3 to 6 months. For mid-range machines to a low-level machine, the cycle extends to about 9 months.

For large and complex machine, the manufacturing cycle can range between a 12 to 18 months. Given this long build cycle, inventory naturally remain on the balance sheet for extended period.

Historically, our inventory days were much higher than the current level. Over the last few quarters, through a better planning, execution, and process improvement, we have been optimizing our working capital cycles and seeing positive trends in which will release and shorten the intensity of working capital requirement.

We are on a trajectory of that. Speaking of the financial and operation performance for the quarter and 9 months ended FY26, we reported a strong consolidated revenue growth of 28.1% for the quarter, standing at ₹576 crore, in line with our internal expectation.

Our performance for the 9 months was also strong, with consolidated revenue of ₹1,494 crore in 9-month FY26, compared to ₹1,242 crore in 9-month FY25, reflecting a growth of 20.3%. With strong order book, stable economic and geopolitical a situation, a capacities in place, and execution rigours, we are optimistic of a stronger Q4 in FY27.

Historically, also we have witnessed that Q4 is among the best a performing quarter across the financial year, and we anticipate the trend to continue this year as well. Speaking of segment revenue for 9-month FY26, 42% came from aerospace and defence, 28% from auto and auto component, 22% from general engineering, and remaining 8% from other sectors, including EMS and dies and moulds.

Our order intake for 9-month FY26 stood at ₹1,661 crore. This includes a 46% from aerospace and defence, 30% from auto and auto component, and 17% from general engineering.

Speaking of our current order book, it remains healthy and well-diversified at ₹4,585 crore, reflecting a steady demand and continued customer confidence. The industry-wise a breakup is as follows: 41% from aerospace and defence, 19% from general engineering, 18% from auto and auto component, 14% from EMS, and the balance from other sectors.

Coming to the a margins. EBITDA for Quarter 3 FY26 stood at ₹155 crore, a growth of a 37.3% compared to the a same period last year.

EBITDA margin were 26.8% compared to 25% in Q3 FY25, a growth of 180 basis points year-on-year. EBITDA for 9-month FY26 stood at ₹379.4 crore, a growth of 21.1% year-on-year.

Profit after tax for Q3 FY26 stood at ₹89 crore compared to ₹80 crore in Q3 FY25, reflecting a growth of 10.3%. For 9-month FY26, it grew by 18.5%.

Lower growth in PAT is largely attributed to increase finance cost on account of a capacity expansion plans. As this capacity is coming in live and will start contributing to revenue and profitability, we will see interest burden being absorbed and reduction in debt, which will enhance the overall profitability significantly.

As we entered FY27, Jyoti CNC is well-positioned with stronger order book visibility and key capacity expansion a project nearing commissioning. With sustained demand across sectors and improving execution, we remain confident in our growth outlook.

We look ahead with optimism, supported by our manufacturing scale, technology focus, and long-term commitment to value creation. We may now open the floor for question and answers.

Good evening, sir. Congratulations on posting a really good set of numbers.

My first question is on the India-EU as well as US trade deal. I think India is reducing the tariffs, at least for European Union, from probably 18% to 20% to near zero now, while EU's tariffs are already in probably low single-digit.

Are we anticipating any kind of competition from European Union suppliers? What are your views on EU as well as US trade deal?

Thank you, Aniket. Basically, I'll let you know that in a machine duty today, the machines are coming from EU, its duty was only 7.5%, and all these machines, our customers were importing against the exports license there.

Almost every customers today, what the machines are coming from Europe and USA, it is in a machine tool industries are almost at zero duty that. There is no significant change in terms of a competition over there.

Rather we are feeling a little bit better there now, because all our import content, like we were importing the controller from Siemens, Germany and all, our duty was 7.5%. This will going to be zero for us, basically that will be a cost advantage is going to come to us.

We are looking very happily to see this deal there basically.

Understood, sir. Sir, for US, I think we had plans to set up a sales office there.

Is there any progress on that, and

yeah? Thank you, Aniket.

Basically, we were just looking at the appropriate time. Last 2, 3 months, we already progressed all the company registration, legalities, and all is over now.

Within a one quarter now, we are appointing all our sales team and our tech centers and all. Hopefully, this operation will be starts and within a next 2 to 3 months, very aggressively we are going ahead in US that.

Understood, sir. Sorry, if I can squeeze in one more.

We are nearing the capacity expansion for our Rajkot facility, but we are yet to receive any material orders for EMS. I just wanted to check if you're anticipating any kind of orders during this quarter or maybe in Q1 of next year, so that our capacity, as in when it comes online, we have ready orders in hand so that it is optimum utilization.

What are your thoughts on orders as well as?

Aniket, everyone is looking to answer of this. Basically, we are fully prepared.

Even our capacity is also coming up, and we are fully booked with the order book of back-to-back to them. Right now, we are working with many more suppliers, many more this manufacturers and approving their process and all.

Basically, all the future customers, they are expanding their capacity. They are all on a execution level there.

Once their plants and things are ready, I think they need the further machines and all, and we are very much hopeful to get the few orders in a coming quarters there.

Basically in Q4, this quarter or maybe in Q1?

Maybe, maybe only Q1 there, maybe only Q1 there.

Thank you so much for answering the questions, sir. All the best.

I'll get back into the queue.

Thank you.

Hello, sir. Sir, I wanted to ask you about the cash flow situation this quarter.

Can you throw some light on what were the cash flow this quarter?

Yashbhai, we are on a end of the year, what we are discussing in past also. We are on a very positive trajectory on a cash flow side there.

We are moving ahead, very positive cash flow in a direction in a Q4 there. You saw that in Quarter 2 on a half-yearly, we were at breakeven level, let's say at the positive there.

Similarly, we are at a similar level, and we are hopefully that last quarter is always to be a better quarter for us, we are looking very positive cash flow versus.

Sir. Thank you.

Thank you.

Yes, sir. Thank you for the opportunity.

I have listened your initial commentary on the industry, and we all understand the industry is a very strong outlook in terms of growth. When I look at, sir, our order book position, especially this year compared to the last year performance, last year FY25 we started order book of ₹3,438 crore and end up 20 ₹4,346 crore, 26.4% growth.

Whereas in this YTD basis in this particular financial year, order book growth only 5.5%. Order book growth has disappointed materially.

Can you make detailed comment why the order book growth is not happening, and what is our current capacity utilization in the business?

Manishji, thank you very much. See, basically now today we have reached to order book is almost 1.5 year to 2 years.

This industries are not ready to listen to us for the longer delivery period. You are able to see that numbers are growing higher there.

Okay? This year our capacity utilization has touched to almost 90% now.

Once our new capacity will come in a pictures and we deliver the old order book there, we will see the traction to be more over there today. Okay?

We will build a new order book on a bulky order book on that then after only that, once the capacity expansions are going on. Today once it is on there.

Today we are at almost ₹4,600 crore, is a very heavy order book, and customers are ready to wait more than 18 months delivery commitment there.

Basically, sir, because of supply constraint at our end, we are not taking the new order or customers not placing new orders to us till the our new capacity come on-stream? That is the way I should understand?

Absolutely. Absolutely, absolutely, because if I get any new orders from a very bulk orders and all, my delivery period is going to be more than 18 months there.

Okay? No customers are willing to wait for 2 to 3 years there.

So 4,000, let's say if you look at that 18 months order book is a very hefty order book for our industries there. Okay?

Understood, sir. The second question on the our capex plan on the new capacity.

I believe we have taken loan of 300 term loan of ₹300 crore from Union Bank, how much we have this used it for this capacity expansion program, and how much we need to spend more through term loan?

Basically this year we have earlier announced that we are going to do ₹400 to ₹450 crore capex, and we are behind that very aggressively to finish as early as possible because today's our growth have been a constrain based on the capacity today now. Okay?

We have used that almost ₹200-plus crore from Union Bank, and we will use this financial year aggressively as soon as possible to finish the capex over there.

Right, sir. The last question on the supply chain situation, because lot of component we import from Japan, how's the supply chain situation?

It's stable? It's volatile, or currency impact?

Can you talk about that thing? That will be my last question, sir.

Thank you.

Today our supply chain is very stable. In terms of internationally Japan and Germany are well supply chain, there is not much issues over there.

It's a very stable supply chain we are seeing that. Okay?

All right, sir. Thank you very much.

Answered all my questions,

and

all the very best for the coming quarters.

Thank you. Thank you very much.

Good evening, sir. Thank you so much for the opportunities.

Sir, we are planning to develop proprietary controllers, drives, and motors under PLI scheme. We are going to receive 4% to 5% of gross margins.

Just want to understand this proprietary controllers its meaning. We are going to replace CNC controllers like Fanuc and Siemens, which is widely used in the industry?

I think we are taking with Huma, that it's a front-end HMI. Moving to full-stack controllers involve decades of cumulative software stabilities and servotuning expertise.

I just want to understand beyond prototype, what specific milestones we are planning to achieve under the PLI schemes, whether we are developing entirely to replace Fanuc or Siemens, and how it will reliable compared to those softwares? That can able to make it reducing royalty or import cost at the component level?

If you share more details about the controller part?

Thank you, Bala. Particularly, on a journey of a Aatmanirbhar Bharat, there is a background noise are coming.

Please ask someone to mute.

Sir.

Yeah. Basically, for this journey of a CNC controller development and Aatmanirbhar Bharat over here, see in a decades this Japanese and German manufacturer has developed this product, and they have made mastery, and let's say today they are driver of the world the motion control over here.

Our journey is starting now, but we have now experience of Jyoti has completed almost 30 years plus, and Huron we have 190 years plus experienced people are available there. In terms of a drive tunings and fine-tuning the parameters and all on a control design side, we have a very experienced, knowledgeable people available, plus in our country today very youngsters, the new people and all our institute like IITs and the CMTIs and all, this all people together, we are quite confident that and we are able to design, develop, manufactures reliable product, not only the reliable product, in terms of a technological forefront over there.

Okay? Let's say today any new technology coming, they will always to be one step ahead in terms of a more advancement, because those guys are not able to change the platform very easily once the product has been developed.

We are very much confident in terms of that, and looking forward to develop one of the best controller in this earth there.

Sir.

I think I given you the one part of that. What was your next question there inside that?

Sir, if you could explain PLI scheme for proprietary controllers, drives, and motors?

Basically, the Electronic Components Manufacturing Scheme, the government has expanded the budget also from ₹20,000 crore to ₹40,000 crore. We are eligible over here to be on a capital subsidy over there, and there is a specific mark out there for capital subsidy.

The amount what is been granted by the Central Government, same amount will be in Gujarat government also. We are expecting to be a very large number of a this scheme advantage going to be received to manufacturing this controllers, drives, and motors, and sensors there.

Sir. Sir, another part, 4% to 5% gross margin expansion, it's entirely dependent on replacing Fanuc or Siemens controllers entirely, or it's reducing royalty or import cost at the component level?

Just a follow-up.

Basically, these are the very high-value import items, and particularly on a high-end machines, the cost of this controllers are very high there. Okay?

Definitely once we are manufacturing in India, and now all electronics component manufacturing ecosystem also has been developing so nicely in India, even the microchips and all are also is going to be available made-in-India chips only. We are no more dependent on future on that, our cost controls will be very much in our hand there.

Sir. Sir, my last question.

We are designing products for semiconductor manufacturing machine builders. I think it required extreme precisions, even nanometer range.

I just want to understand what kind of market we are targeting? It's majorly for front-end fabrications or back-end OSAT assembly side?

To get more clarity.

Basically, yeah, thank you, Bala. Basically in a semiconductor side, you are right there.

It's required a nano-precision. Based on our this experience at Huron as well as Jyoti, we are now entering into a nano-precision over there.

We are going to create the infrastructure to produce the nano-precision over there. Particularly we are targeting to equipment to build a semiconductor chips there.

We are designing and developing many differential process from castings, foundry to inspection units and many, many more equipments are there. Around 8 to 10 different technologies we are developing over here in equipment side to serve to the our Semiconductor Mission 2.0 there.

Got it, sir. Thank you.

Thanks for the opportunity. Sir, just one question on the part of say if we deduct standalone from consol, if I see the revenue, it is down 7-odd percent year-over-year.

It may be because of ramp-up in the Huron. Can you highlight say because on a consol basis, our margins are looking lower, or the growth in EBITDA looking much lower, while on the standalone it is looking very strong?

Because on standalone, we have done ₹165 crore of EBITDA, while on consol basis, it is ₹155 crore. It may be because of say ramp-up in the expenses at the Huron operations while the revenue had not reflected yet.

Can you share some highlight or insight into the Huron operations and the gap between the earnings?

Absolutely. Already what you are saying is absolutely right.

You answered yourself only, Kamleshbhai. Definitely the revenue has not been came over here, and the cost has been incurred.

In this now with our new facility comes on a pictures, we have add on around 27 more people in a manufacturing in France to ramp up our production further more now there. Even in terms of a inventory building up also, we have started very aggressively and supply material from Jyoti to there, and we started all floors and everything like that.

You will see this be very normalized things and a number-wise in next year. Quarter-on-quarter, you will see more and more Huron numbers will comes very positively on a growth side there.

Once the growth we will able to execute there, all these costs will be absorbed, and you will see the EBITDA level will increase 1 plus 1 like that.

Great, sir. Sir, if I see margins, if I just do the math, EBITDA per machine say it is roughly around ₹10 lakh in this 9 months.

Going forward, as our execution improves and the new capacity comes in, Huron further complements the expansion in the growth, where do we see our margins? Say, do we see significant jump in the margins because the scale and large capacity expansion comes into play, so that would get absorbed over larger base in terms of fixed costs?

Where do we see our margins? Because in street, there is some concern that the margins are not because year-over-year, our margins are at ₹10 lakh, which was ₹11.5 lakh a year back on a 9-month basis.

Thank you. Kamleshbhai, I'm answering to you on a consecutive last six calls on a same question, and my answer is same.

Let's say we are delivering, we are committed, and we are seeing that there is no margin pressure we are seeing at a 25% or so EBITDA. If someone let's say if it is increasing, it is okay, but we are not seeing any pressure on that to below that.

We are fully committed in a next coming 2 years. The way we have a order book with us, we are very much sure that our margin parameters will be maintained very strongly for a next coming 2 years.

That's the visibilities we are having today there.

Great, sir. Sir, you have highlighted in your presentation with regard to the semiconductor.

Are we catering to the semiconductor sector as of now, or we are developing the machines to cater to that?

We are developing the technology today. Okay?

Once the technology we will reach out to that same level of requirement, then we will launched our product there.

How much time lag could be there? Say from current date or in what time period we would be able to have the?

I think we are seeing that in next 2 years, definitely we will come with the commercial product to be launched there.

Lastly, sir, can you give the breakup of machines, say entry-level, mid-level, high-end, and the commensurate revenue through machines?

Yeah. Let's say Quarter 3, the entry-level the machines is 1,207 at a value of a ₹247 crore.

The average is ₹20.46 lakh. Mid-level, we have 128 machines, and value is a ₹83 crore.

Average is coming a 64.84. Around 23 machines at value of a ₹221 crore, the average is coming a ₹9.6 crore.

The total number of machines is a 1,358, and the average is coming as a 40.5.

Great, sir.

This is okay, Kamleshbhai?

Thanks a lot, sir.

Thank you.

Hello, sir. I had a couple of questions.

One, I wanted to ask you, you had almost ₹4,600 crore of order book. What is the advance that we take when we do this order book?

Let me tell you, while we take any entry-level product, okay, and in entry-level, we have a common let's say around 5% is a minimum advance to be with us there. Okay?

While the high-end machines, okay, while high-end machines for exports and all, there we are able to get a milestone payment also, and we are getting at around 10% to 15% advance. In a government orders, let's say we have a many government defence orders, there we are not getting the advance there.

Government don't give the advance there. Yeah.

Because this will be always your key concern when it comes to the operating cash flow. As you've seen the trend, you are making a lot of net profit or the operating profit, but your operating net cash from the operating activities has been negative.

There's a big difference. On one side, you earn almost ₹500 crore, other side you have a negative ₹100 crore net cash from operating activities.

Going forward with the expansion of the capacity, your requirements of the inventory will remain quite high even in the next few quarters. I don't know if you have some idea about when you expect this cash flow from operating activities to be in line with the operating profit that you make?

Already in my first question, I answered to Aniket there, and it's my answer is same that you will see we are on a growth trajectory. One side, we are capacity expanding, second side we are expanding, but our overall inventory days, we are reducing from very large to that.

Once the scale-up has reached on a economical scale has reached that, that our inventory days also will reduce that. You will see quarter-on-quarter very significant improvement from the next year.

Even you will look at that end of the year, you will see a positive operating cash flows to be there.

Okay.

We are very much worked on that, and we are on line with them.

Okay. For your French Huron capacity expansion, which has happened sometime in November, when can we expect the sales to start showing in our quarter after quarter results?

The growth we are going to see from first quarter onwards, because there is a manufacturing time for the machine is longer there. We will see you will see the growth trajectory from Quarter 1 onwards there.

Okay. Thank you so much.

Thank you.

Yes, sir. Thank you for the opportunity.

Good evening, Jadejabhai. Considering that the private capex will pick up going forward, should we see a growth accelerating, and can we guide for a 25%, 30% growth in FY27 and northward of 30% in FY28?

Yes, absolutely. FY27, you can consider same numbers of 27 as well as 28.

Understood. You mentioned in your opening remark that aerospace, defence, and auto ancillaries are some of the sectors you are seeing incremental growth coming from an order book building up.

Apart from that, are there any specific sectors you would highlight both on India and global perspective where the growth you see accelerating not in the current order book, but in the upcoming order book?

Basically, the entire manufacturing is growing. I'm always very much difficult while I'm presenting numbers to you to combine the general engineering and auto and all like that.

Okay? Many manufacturing sectors are growing: valves, pumps, domestic, and every area.

Today I have a 14,000-plus customer base in India. We are consolidating and bringing this number into four sectors front of you there basically.

Is exploding on a completely on a manufacturing. If you look at that the Viksit Bharat India's target is to be a $30 trillion economy and 25% of a manufacturing.

25% of manufacturing, today we are at 13%, and growing this economy at 6% to 8% in between, you can understand every sectors are going to grow there. Every sectors.

Railway, apart from what we are not discussing over here, we are seeing the very tractions on a railway. The railway component manufacturing is increasing, and we are supplying many machines to them.

It's falls under category of we called as a general engineering. If you see that every quarter-on-quarter, our general engineering baskets are increasing there.

Understood, sir. Just one last thing.

What would be the revenue mix from exports currently, and do we see that changing materially improving on the export side going forward, or we'll be majorly focusing on the domestic growth story?

Jenishbhai, we are very much focused to be maintain around 35% to 40% is to be exports and 60%, 65% to be domestic. This is in line we are looking for a next couple of year, it is going to be maintained similarly like this.

Perfect, sir. Thank you.

Thank you for the opportunity, and all the best for the future.

Thank you. Thank you.

Thank you for taking my question again. I had two more questions.

Number one is on the material cost inflation. I believe there is probably 20%, 30% of your total cost could be coming from the raw materials, maybe steel, aluminum, copper.

Are we hedging those, or how are we protecting our margins? Is there any price escalation clause included in the contracts?

Aniket, we are in a absolutely on a natural hedging scenario. See, the every orders are fixed orders.

We are not having a long-term contract to repeat to same price to give a next machines to them customers there. That our inventory cycles are almost 200 to 240 days our manufacturing.

Whenever this any this commodity prices plus and minuses, okay, we are transferring on a same next month to the new customers, and we are able to balance these things there.

Got it, sir. Probably one more on Huron.

I did some reverse calculation, I think one more participant asked the question. On Huron, what are the revenues?

Because on my numbers, I think it is coming between ₹45 to ₹50 crore versus probably around ₹60 crore in the last quarter. Why is there a decline on Huron?

No, it's not decline. I'll tell you one thing.

It's because of a consol level, I told you that we are now increasing the a new inventories and everything there. There is a in a consol level, there are more material been dispatched from Jyoti to there, in a consol it has been reduced there basically.

Okay? Otherwise, right now there is is almost it is little bit higher than the Quarter 2 numbers to Quarter 3 numbers there.

By any chance, are you able to share the number? Not sure if you're comfortable doing that, but what is the Huron's revenue, and how much are we sending from Jyoti to Huron?

Absolutely. I'll just find out, and I'm not front of me there.

I'm right now in Huron right now. Okay.

I'll share with you that detail.

Sure, sir. Probably last one.

Our gross margins increased to 57% now. What kind of margins are we making on the high-end machines, and probably is there any increase in the margins for low and mid-end machines as well?

Are we able to sustain these kind of margins, or is there a one-off or probably a temporary situation? Although it has been.

See, basically Aniket, we are always working is more and more is to be our value addition program. Okay?

Based on this our a complete back-end manufacturing cycle and whatever the critical sub-assemblies and all we were importing, we are adding more and more. Even our local entry-level product also we are expanding the margin.

Of course, our margins are much better on a high-end machines, and we are executing like that. In between, I'll tell you the FY this our Quarter 3, in Huron my sales is ₹80 crore, not ₹40, ₹45 crore.

Huron is ₹80 crore. Okay.

Total together in a 3 months is close to ₹200 and ₹222 crore in a 9 months there.

Okay. Yeah.

How much is this then out of ₹80 crore, probably ₹30, ₹35 crore is being exported from Jyoti to Huron? Am I correct in my understanding?

Yeah. Basically at consol level, whatever the manufacturing is going to increase there, the 70% goods are going from here to there.

Okay? If you look at that this year, we have close to ₹85 crore worth of material has already been supplied to them.

Okay? That's how we are going to see the future expansion growth are there.

Okay? Let's right now it is affecting to us, in a consol level it has been removed.

Okay? Yep.

Once it will be executed from Huron, that number will comes in a picture there.

Got it, sir. Very clear.

Thank you so much for taking my questions. Yeah.

Hi, sir. Congratulations on a great set of numbers.

Sir, just one question I had. You mentioned that we were trying to get our working capital cycle more in control by various efforts that we're taking.

Could you talk a little bit about how we're trying to get those inventory days down and optimize working capital? That is first.

Sir, second, we've seen a lot of tensions between EU and US, and that has led to a renewed uptick in defence spendings globally. Is there anything that we are looking at inorganically to kind of increase our wallet share with European customers or get access to newer customers to kind of capitalize on that opportunity?

Thank you, Keshav. Basically, about the inventory optimizations.

See, the Jyoti is having a more than 200-plus product variants. In a last 3 years, we have reached out to almost 2.5 to 3x on a similar SKUs.

Based on this SKUs, our optimizations are coming. More and more scale will increase, further more optimization will come on a same set of SKUs we are delivering the more, my inventory is become a optimizing there.

That's one. Second, now in a new plant, we are doing lot of automations over there.

Okay? Some of the manufacturing processes was in manual, that's we are putting into very sophisticated automations are going to be in a place to be there.

We are seeing further optimizations are going to be seen over there in terms of a flexibility on a manufacturing, easy setup change, and everything like that. That's the one part.

Going forward we are looking to be a more and more optimizations on that. Your second question about the EU and this area.

Yes, now after the EU deal, already delegation has came, I met many people over there and all. We are seeing that the more and more investments are going to be happened in a Europe there, and particularly Germany has taken a lead in terms of a defence manufacturing.

They are going to spend more than $500 billion, and rest all the other people together they will invest close to $1 trillion in coming days. Already our all sales people are working with them very closely.

We are seeing that aerospace, defence, as well as very high-precision manufacturing in EU zone is increasing dramatically there.

Got it, sir. Wish you all the best.

I remember just now. Apart from that, I like to tell you one thing more that we have recently started our China operations also there.

We are going to further more on a China with our sales activity there. All this geopolitical situations, every country has started investing there.

In this quarter, we got a good numbers orders from China as well there.

Got it, sir. That's very helpful.

Sir, as part of our efforts to get more automation in the general manufacturing processes in the new plant, do we expect that to kind of help margins more from the 26%, 27% level we are at right now once that?

I think here I'm always giving a one simple answer. Okay?

There is a possibilities are there we will improve said margin, but I would like to be very let's say conservative over here, and I'll not like to guide you that to from 25% to 30%. Okay?

We'll be in a range in between 25% to 27%. Already we are on a one of the best in industries we are serving over here there.

Great, sir. Thank you so much, sir, and wish you all the best for the future.

Thank you. Thank you.

Thank you so much.

Sir, I have only one question, of the total inventory which we have, what is the breakdown of RM versus WIP as on 31st December 2025?

1 second. I think I have a given a numbers on a half-yearly.

I need to take from this number because I'm sitting on a France right now. Okay?

I can send you the details.

All right, I connect to your office, sir. Thank you.

Definitely we'll send you there.

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

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Thank you very much to all of you there.