Thank you, Steve. Good evening, everyone.

On behalf of Axis Capital, I, Nikhil Kandoi, welcome you all to Q4 and 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'll have the opening remarks from Jadeja sir, followed by Q&A session.

Thank you, and over to you, sir.

Thank you, Nikhil. Good evening, everyone, and a very welcome to our Q4 and FY26 earning conference call.

Along with me, I have a senior management team and SGA, our investor relation advisor. Financial results and presentations have been uploaded on the stock exchange, and I hope everyone has had a chance to go through the same.

I will begin my opening remarks with an overview of the economic environment, followed by updates on the company's operational and financial performance. The global economy continue to remain uncertain due to tariff-related issues and the ongoing conflict in West Asia.

These development have resulted in higher energy prices globally, supply chain disruption, and challenges in the availability of the raw material for manufacturers across industries. In today's interconnected world, no country can remain completely insulated from such disruption.

India may also a witness some impact if the West Asia conflict continues for a prolonged period. However, India's long-term growth outlook remain strong, supported by the government focus on Atmanirbhar Bharat, improving India's standing as a manufacturing hub, and continued investments in infrastructure, which is supporting expansion of domestic manufacturing capacities.

On the global front as well, a better clarity around tariff along with free trade agreements with key economy such as the EU and the US is expected to support export-oriented industries. Improved visibility on global trade should strengthen a demand across the international markets and create additional growth opportunities for companies like ours.

Speaking about a Jyoti CNC, first let me highlighted the performance and progress on a standalone basis. FY26 was another year of a sustained a momentum for the company.

We currently have an installed annual capacity of 6,000 machine in India and Huron together. During the year, one of the key challenges we encountered was capacity constraint, with our facilities operating at utilization level exiting 100% during peak demand months.

This impacted our ability to fully execute orders despite a strong and expanding order book, supported by the robust demand across all major sectors we serve, including aerospace and defense, auto and auto component, general engineering, and EMS. The outlook across both domestic and global markets remain positive across all manufacturing sectors, and specially we have seen a good pick-up in auto and general engineering sectors.

All sector are expected to play a key role in our next phase of a growth, and we are witnessing a customer's inquiries and converting into the orders at the fastest pace. To support this growth, our plan to expand our annual capacity to 16,000 machine remain on track for a commencement of commercial operation in quarter two of this financial year.

This capacity addition will be a major driver for the company's next phase of a growth. The given strong demand and environment, we remain confident of ramping up utilization at a healthy pace.

While we are witnessing strong customer inquiries, in view of our order backlog, we have been considerated in the order booking to match our delivery obligations. If we look at the standalone India business, which reflect the underlying growth momentum, the performance remained very strong during the year.

A standalone quarter four revenue witnessed growth of 13% to ₹599 crores, while FY26 standalone revenue grew by 20% to ₹1,949 crores. On the profitability front as well, quarter four EBITDA stood at ₹191 crores with margin of 31.9%, while FY26 EBITDA stood at ₹564 crores with margin of 28.9%.

Quarter four PAT stood at ₹135 crores with margin of 22.6%, while FY26 a PAT stood at ₹391 crores with the margin of 20.1%. This a strong standalone performance reflect the healthy across our focus sectors, improved operating leverage, and strong execution capabilities across the businesses.

Coming to our consolidated operations. The global demand environment for our product portfolio continue to remain strong and we are witnessing increasing customer engagement.

However, a previously disclosed to the stock exchange, an ongoing investigation is being a conducted by the export control authorities concerning certain export order at Huron. The investigation has had a no material adverse impact on the company's operations, including order execution, exports, customer servicing, or ongoing manufacturing activities.

We would like to retreated that Jyoti Huron continue to enjoy a strong reputation across both domestic and international market. We remain confident in our ability to navigate the current situation effectively and emerge stronger going forward.

Importantly, this investigation are not limited to Huron alone, but extended across multiple companies operating within the industry across Europe. Speaking about the financial implication during the current period, based on the assessment of our local auditors for Huron, and as a matter of prudence for Huron, our company has reversed a revenue amounting ₹67 crore during the quarter, which had previously been recognized under the percentage of completion method called POCM.

I would like to clarify that this does not represent a loss of revenue or cancellation of the orders, but merely a deferment of the revenue recognition to future periods. Consequently, this impact our consolidated revenue from operations.

On a consolidated basis, revenue for Q4 FY26 stood at ₹599 crores, excluding the impact of the revenue reversal. Revenues would have grown up by 16% Q5 20—Q4 20 FY26 and by 19% in FY26 on a year-on-year basis.

On the profitability front, the revenue reversal has also impacted profitability as the manufacturing cost related to this machine had already been incurred, while the corresponding revenues could not be recognized during the current period. A lower revenues coupled with the associated cost and de-operating leverages adversely impacted a profitability.

As a result, a consolidated EBITDA for Q4 FY26 stood at ₹147 crores with a margin of 24.6%. FY26 EBITDA stood at ₹527 crores with a margin of 25.2%.

PAT for the quarter stood at ₹91 crores, and for FY26, PAT stood at ₹336 crores, and an increase of a 6% year-on-year basis there. Had there been no impact of reversal, PAT growth would have been a faster.

Speaking of our order intake, our order intake for Q4 FY26 stood at ₹700 crore plus, driven by all sectors and particularly by auto and general engineering segment. For FY26, a order intake stood at rupees at ₹2,236 crore.

This includes 27% of aerospace, 28% of auto and auto component, and 31% from general engineering. As on 31st March 2026, our outstanding order book stand at ₹4,732 crores, which is very healthy and growing.

On the operational KPIs, a segmental revenue for FY26 consists of 39% from aerospace and defense, 26% from auto and auto component, 23% from general engineering, and the remaining from other sectors, including EMS and dies and molds. Speaking of our current order book, it remains healthy and well diversified at ₹4,732 crores, reflecting a steady demand and continued customer confidence.

The industry-wise breakup is as follows: 38% from aerospace and defense, 19% from general engineering, 20% from auto and auto component, and 4% from EMS, and balance are from the other sectors. As we enter FY27, we remain optimistic about the opportunities ahead for the company.

The demand environment across our key sectors continue to remain stronger, supported by increasing manufacturing investments both in India and globally. With our ongoing expansion of 10,000 machine progressing on schedule and expected to commence operation by September, we are entering the next phase of a growth with significantly enhanced capacity and stronger execution capabilities.

We continue to see a healthy customer engagement, stronger order inflow, and improving a long-term opportunities across domestic as well as export markets. We may now open the floor for question and answer.

good evening. Nishant here.

Hi, Nishant.

Hey. Hi, sir.

Sir, I just wanted to understand what are the timelines for the investigation to get over. By any chance, did we have an alternative opinion with respect to the auditors to not kind of take a revenue write-off, but to kind of take a provisioning, which probably could have just kind of impacted your bottom line, but your top line wouldn't have got impacted so much?

That probably looks to be a better accounting rather than just taking your complete revenue right off. With respect to the timelines, if you can just help us out when the investigation timeline will be completed, and when can we get back that revenue of ₹67 crores which has been written off, that's my first question, sir.

See,

first of all, Nishant, this is not an write-off. This is a deferment, and this deferment of revenue of a POCM.

POCM also is a, let's say, is an future sales, basically. It's an revenue recognition based on a percentage of order completions there, okay?

The auditor's view was that it is just a deferment. It's not a write-off that.

Once we get this, let's say the situations that in a investigation there are few machines was under POCM and that was not available the exports license clearance. They stated that once this export license you will receive, you can immediately converted into your revenue in a coming quarters over there.

Remove in this mind this is no more a write-off there, okay? It's just is deferment there, okay?

This is the clarity that. It is not, let's say, the POCM cannot be a provisioning.

Can be a provisioning on a like that on a financial kind of a thing. The fact is a fact, it is just a deferment, there was nothing to be kept as like that, okay?

Regarding the investigation, okay, we have retained a legal counsel, are not in a position to indicate a specific time frame for resolution of the matter. However, this investigation has no material adverse impact on the company's operations, including order execution, exports, customer servicing, or ongoing manufacturing activities.

Everything as it is working nicely there,

okay? That's why

there are more than 50 companies are under investigation in last 3 years. We have not seen any conclusion from any companies today in Europe today.

Okay. Sir, second question, I just wanted to understand the order book, if you can see, congratulations, sir, for the order intake.

It looks to be a little more well diversified and not skewed towards aerospace. In general, sir, while we execute the order book and the new capacity coming in, the order book still looks to be more towards higher-end machines where the working capital cycle could be a little more extended.

How are we thinking of managing the cash flow in the coming year FY27? What is the typical CFO to EBITDA ratio which one can probably look at in your business for the next 1 year as well as for FY28?

Thank you on your remarks on the order book. It's a very healthy order book we are seeing.

Even in a last quarter we have received, even end of this month we have received a very good orders from European areas, like in Ukraine and all, including French government. We received a good orders there.

Even India also we have received good orders on aerospace and defense in our Indian contexts also there. Apart from there, there is a very significant movement we have seen in a last quarter in auto, auto components, and general engineering area.

That we have a more than 15,000 plus customer base now in India in across manufacturing sector there. We see very robust outcomes in the next coming days over here.

In terms of this our capacity is coming is also is a mix of all. It's not just only entry-level, but with a mix of all.

The way the new capacity is coming up, we are expecting to our manufacturing cycle also to be improved. We see that based on that, our cycle will reduce.

We are able to see the more working capital requirement is going to be reduced there, and we see the conversion of a cash flow over there, basically. Even this year also, the from the last year to this year, the last year we were into negative cash flow to we entered into positive.

We are looking to be a very robust cash flows in quarter-on-quarter in coming days over here there.

Sir, if I can squeeze in one last question, with the commodity inflation which is kind of prevailing at this point of time, what percentage of contracts are fixed in nature and what percentage of contracts are passed through in nature? What is the time lag by which we can kind of pass in the cost to our customers?

Thank you so much, sir. Yeah.

The cost, Nishant, we have always a fixed cost base there, okay? We are not able to pass on the increase any cost to the customer there, okay?

We are a naturally hedge over here because we have a very long manufacturing cycle. Any new orders we are taking, we are able to increase the price.

Let's say today, in a last 2 months, we have seen the cost has been increased close to 2% to 3% over there on a raw material prices. From 1st of this May, we have increased our prices for the new to our any new customers and new orders over there, basically.

We are able to compensate over here with the new cycles there.

Sir. Thank you so much, sir.

Take care.

Thank you, Nishant.

Yeah. Hi, sir.

Thank you for taking my question. Sir, my first question is on the standalone segment.

We did roughly about ₹600 crores revenue in the standalone book, which is a 13% YoY growth. I just wanted to understand this growth was lagging in the standalone segment.

Is this because of capacity constraints or are there any other reasons?

I'll correct you here. The year ended the standalone business is not a ₹1,600 crores top line.

It's a ₹1,950 crores.

Okay. Sir, I was talking about Q4 alone.

Okay. Q4 alone is a ₹600 crores.

The total is a ₹1,900. Right in a Q4, let's say, we have executed 1,750 machine.

Right, sir.

Almost we cross this quarter is more than 100% capacity. You can understand that how the situation we have faced there.

Right. Just to make sure, this growth was lagging because of capacity constraint.

Is that understanding correct?

Correct.

Right.

Correct.

Sir, on the Huron side, if this investigation continues, then would we be able to recognize revenue in Q1 of FY27? Yes,

absolutely. Only related to this the machine was under on manufacturing and not available the license, only those things they have been not recognized and pushed forward there, basically.

Once that license also will come, when the export permission will come, definitely we can able to recognize those also.

Okay. Apart from that, there will be business as usual for Q1, and once the license comes, this ₹67 crore will get recognized, right?

Let's get recognized, okay?

Right. Sir, incremental whatever- That

this 60 this ₹67 crores, see, the margin was very hefty. Basically, even this we got the hit of a ₹40 crores was in a margin side.

That also will recognize in future once the machines will be clear out of that.

Okay. Sir, the incremental capacity that will be coming in from September, when can we see entering order inflows coming for the same?

Already let's say today also we have reached to a ₹4,700 plus crore order book there, okay? It's a you can understand what is a customer's expectation from us there.

Already this quarter we started to taking the orders, and we reached more than ₹700 crores. Apart from that, we are definitely going to increase our pace from September onwards there.

Understood. Sir, what kind of inflows are we expecting from the EMS segment, namely from Tata Electronics and what kind of expansion are they looking at?

Basically, right now they all are optimizing their manufacturing capabilities and capacity there. We are just the delay side we are seeing from all the EMS player there.

Nothing has been invested much on a last component manufacturing in a last 1 and 1/2 year there. We are also waiting to, and you know that now ISM 2 and component manufacturing PLI has also been increased.

Many more people are getting these permissions are going to coming out there. Right now, our all the teams are very much busy to multiple customers over there, and we are expecting to see the results very soon now.

Hello.

Hi, Manish.

Hello. Hi, sir.

Sir, I have only one question. Most of the questions are already answered.

On the current order book position, what is the execution period, execution timeline, and how much we can execute in FY27?

Basically right now with this total order book, we have a ₹4,700 crores. Based on the commitment, we have to execute in an 18 to 20 months over this.

How much we can see execution in FY27?

Let's say, we will see once the capacity on place, definitely we are looking to be a good growth from here.

Will you be in a position to quantify?

Let's say, I'm not able to quantify right now. Otherwise, it will be fixed the numbers.

We need to see that also. Once the capacity will come, we need to optimize and everything to increase there.

Okay. Secondly, on-

Definitely we will able to tell you in the next 3 to 4 months' time once the capacity will be completed.

Once the capacity commence operation in September, sir, how fast we can see ramp-up? Can you just give qualitative- Yeah.

See,

basically, we already have add-on the people and everything since last 1 and 1/2 year. We are training the people.

Once the plant has been commenced and start, we hope that we will increase at least 20% to 30% further more on the speeds over here.

All right, sir. All the best for the coming quarters and years.

Thank you.

Thank you, Manish.

Hi, sir. Thank you very much for the opportunity.

Am I audible?

Yes, Harshit. Yes.

Perfect. Sir, firstly, on the execution on the EMS side, as you explained, the client facilities are still not pretty much ready.

The execution in FY27, will it be more of back-ended? We will see more execution in the second half, and first half will be relatively muted.

Is that the right understanding?

Harshit, already we are running almost 100% utilization in last quarter, okay? You can understand that without EMS also, we are in the situations today.

We are expecting in a second half, if it is coming in the first half, let's say, almost 2 months has gone, we are not seeing anything on a much steeper stage is going to be increased in September. Onwards September, yes, we are also being ready, and we will definitely capture this opportunities.

Understood. Sir, secondly, we also have a very large aerospace and defense order book, and we also execute quite a lot from the India as well.

Could there be any risk on the India aerospace and defense execution because at the end of the day, the technology comes from Huron. At least that's what my understanding is.

That India execution piece, whatever we supply from here, is that on track or maybe some sort of delay because of this investigation?

Clear to you that this technology is completely from Jyoti now, okay? It's not from the Huron there, okay?

All the machines what we are manufacturing is more than the Huron. If you look at that the total numbers, this year we have executed more than ₹800 crores of a aerospace and defense, okay?

Almost out of that around 75% has execution from India only there. This is all Jyoti's own capabilities in a last 25 years.

We learn everything from the best practices from the European side. Now the technology front is completely our own there.

We are not dependent there. We are not seeing any slowdown over here for an execution side from this perspective there.

Perfect. Understood, sir.

Thank you very much for answering my questions, and all the very best.

Thank you, Harshit.

Good evening, sir. Thanks for the opportunity.

Hi, Vaibhav.

Yeah. Sir, just one clarification that I needed.

The order book that we have today, what is the proportion of order book where similar constraint on export license not being there is applicable and then you would want to kind of delay that execution?

Right now, in this order book, we have a some orders is from the Huron side, and out of that around a six machine and close to around a ₹70 crores is from the Ukraine, okay? Ukraine because it's just received only on a last month,

okay?

That's the only new orders in this quarter that is going to be executed from the Huron, and we need to apply and to take a licenses there on a next year there, okay?

Okay.

Yeah.

Sir, as far as this reversal of revenue is concerned, now whatever we have in terms of unbilled revenue, etc., we don't expect anything in the coming quarters, right?

Absolutely. It's all are done.

It will now come from a different way. It will come to a reversal different way, okay?

It will add on.

Right. Sir, as you mentioned, as far as Huron's operations are concerned, you don't see any impact whatsoever because of this development.

Can we see ramp-up in terms of revenues in Huron, given the fact that the capacity expansion got completed last year in FY26?

Absolutely. There is nothing is in terms of an impact of a company's operation, including the order execution, exports, customer servicing, manufacturing activities, anything.

We see that already we have incurred the more cost on a people. We have added around 25 people in manufacturing there, okay?

We entered all the additional new facilities from November onwards. Definitely, you will see the quarter-on-quarter, there will be improvement from this last year's number there.

Okay. Sir, would you like to share a number or a range as in what kind of growth we can see just from Huron?

Then obviously India growth is dependent on the new capacity which gets commissioned in September.

In a Huron also, basically, let's say the capacity has been increased. Being in a long-term manufacturing cycle, it started from December onwards there.

You see that somewhere the execution, let's say first dispatch and everything will start from the new assembly is around August and September there.

Okay.

Yeah.

That's it from my side. Thank you.

Hi, sir. Good evening.

Thank you for the opportunity.

Hi, Mohit.

Hi. Sir, on the first question, I think in the past, you had mentioned in your previous earnings calls that since you had capacity constraint, you were not taking on much orders in your order book given that the delivery timelines were higher than 18 months, and customers wouldn't accept very longer delivery timeline than that.

Can you just give us a sense and if you can give any color, how much of that was you did not accept and now with the capacity coming up, how much boost it can give to your order inflow growth in FY27? Which sectors would it be driven by?

See,

Mohit, basically right now, look at that only if I talked about the India perspective over here, it's a great opportunity is emerge over here. The Indian market in last 3 years is consecutively is consuming more than 20% CAGR level of a consumption.

We people, all the Indian machine tool builder, somehow we are not able to capture those due to our constraint and all. Imports are surging.

Imports are increasing. It's a painful for us also.

We are also waiting to increase our capacity as much as fast can come over there, okay? Once that will come, definitely I'm not able to quantify how much directly we are losing today revenue.

Let's say today the order book there, but it's a huge pipelines are front of us there and we are not able to capture them.

Okay. Let's say in your order book moving forward towards next year, you expect this aerospace to come down and auto component and general engineering that you are seeing a lot of traction, that mix to go up?

As a result of that, you have mentioned in the past that you will have a 25% EBITDA margin as a steady state even with the mix changing. You expect that to continue as well?

Absolutely. We are not looking in the next 5 to 10 years.

Is now with this global scenario, the way even the Western Asia the issue has been the erect, okay? It's become a more uncertainty and fear factor has started.

We see that in this area, people are going to invest further more. We are already discussion with the many of our client, okay, in a Europe and everywhere, they all are expanding.

China is expanding, Turkey is expanding, Italy, every area people are started to investing on the aerospace and defense area there. We don't see there is any decline on the next.

That's a very steady-state business we are seeing over here there. We are not thinking like that, okay, it will be dropped there.

Okay. Fair.

Sir, just the last question from my end. In terms of your debt has, gone up from last year to this year this year to about ₹850 plus crores.

I understand that could have been for working capital requirements as well. Should we expect any increase in debt, going forward?

If you can give any color on that, that's it from my end.

I'll tell you, the debt what we have increased in this year is all close to ₹300 crores is the debt has been incurred on a our capacity expansion, basically, okay, on a our new capacity there. Only working capital has increased only a ₹45 crores to be there.

We don't foresee this increment will end of this year. We are seeing that is a lot of cash flow will come and the situation with the improvement on our efficiency after the new facility will come, okay?

We don't foresee from here to debt has been increased there in terms of a percentage and all.

Sir. Thank you for answering the questions.

I'll jump back in the queue.

Thank you. Yeah.

Yeah. Thanks for the opportunity, sir.

Hi,

sir. One question on the part of say, how much machines we sold, sir, 1,750?

Kamlesh bhai, exactly the number of machine is 1,760.

Okay.

For the quarter four.

For the quarter four. Okay.

The entire year is a entire year is a 5,550.

Okay. Got it, sir.

Sir, if I see like we have grown at roughly around 30-odd percent year-over-year while if I'm just comparing the standalone numbers because in consol, there is an impact of Huron. If I see our EBITDA, that has grown at 9 9-odd percent for the quarter in standalone operations while our machine count, that has increased by 30-odd percent.

That reflects that our margins from a ₹13 lakh per machine, that has dipped down to ₹10 lakh ₹85-odd thousand. Going forward, like the the the higher number of machines are getting compensated by or are getting negated by sharper fall in the margins.

Going forward, like can we assume the margins to be in the range of and that also in a peak quarter. Can we assume that the margins would remain at ₹9 to ₹10 lakh which used to be at roughly around ₹13-odd lakh or ₹12 to ₹13 lakh?

Kamlesh bhai, every call, since last four, five call, I'm not able to give you the correct picture per machines and everything because we have a very much variety of models and all like that, okay? Number of machines.

Ultimately, what I said always in a past to you, and my answers are remaining same that we will be at EBITDA level margin at total level of a standalone or a global. We will not go down by 25%.

If you imagine this, even this event happened, and we have taken this all deferment on a revenue and margin, still we are at 25%, near to 25% this quarter also.

No, but, sir, the realizations ₹34 lakh, which is the lowest since our listing per machine, ₹34 lakh realization, it is the lowest since our listing.

This year the total realization is 35.62.

Yeah. No doubt we are increasing the capacity, but that entire benefit is getting negated by lower realizations because as we have to sell more and more machines.

Can it be right in saying that going forward our realizations would remain at ₹35-odd lakh and with a margin of 25-odd percent?

See, I'll tell you one thing that Kamlesh bhai, we have discussed in a past call also, and I have told you that the way number of machines are going to increase, the machine average price going to reduce, okay? Our margin profile, let's say, it's going to be at 25.

25 plus it will be remain there. Okay.

Even, let's say, we see that in a forward situation, okay, in our this additional the 6,000 to 16,000, if we reach to full capitalize, let's say full utilization. Even the machine, let's say, the machine average price will reach to ₹30 lakhs, still we will be at around at close to a 25% EBITDA.

It will not go down there.

Secondly, like say, our EMS EMS order book, that has been ₹700 crore for last static at ₹700 crore for last 2 years or 1 and 1/2 year. Sir, don't you think that now with the prices like, say, the order book at those levels and from there the cost would have increased significantly, we won't be making margins on those on that EMS order book?

Because that's a 1 and 1/2 year old-

In fact, we will do a more better margin if right now, because whatever this the prices was fixed up, okay, all was connected with the indirectly with the dollar terms permission, okay? Basically the while we will execute, we will gain more there.

Okay. Great, sir.

Sir, lastly, any target for machines in FY27, sir? What is our target?

How much we would be doing like, say, this year we did 5,500. What is the target for next year?

Let's say we are seeing that in September once the everything will completed, okay, we see a steep growth should come. Exactly I'm not able to tell you the number of machines and all because only I am going to get last 6 months with available with me there.

That also we will settle at the people and everything. We'll have good numbers there.

Okay. Great, sir.

Thanks a lot, sir.

Yes. Hi, sir.

Thank you for the opportunity. I'm fairly new to the company.

One broad question on the Huron. I believe we bought the company about 20 years back, back in 2007.

Just wanted to understand 20 years in, now our revenues are broadly similar to what they were at the time of acquisition, slightly lower, in fact. Just want to understand what has been the due course when we look at Huron, even in terms of Huron in itself and the tech integration for Jyoti as well?

Thank you. Very interesting question you asked, I'm able to express nicely there.

See, the 20 years back when we bought a Huron, Huron is same as today, okay? When we took over this company, Jyoti's top line was ₹50 crores, okay?

Today we are at close to ₹2,000 crores, okay? That's the technology and everything, let's say basically the operation excellence, how to do the precision manufacturing, everything, we learn and we implemented over here and we have grown up over here, okay?

That's the one part. Second, in this journey, the first time when we bought a Huron, then after the first time we could able to invest only in a last year, okay?

As it is let's say when we took this company, we have never invested any single euro over there for expansion of a capacity and everything to be there because we were not in a position to invest further more over there, okay? Only in a last year, we have invested and increased the capacity.

We will see in future to be execution also increasing from there. Whatever the things are we are doing the business is putting into account of ours here.

We are exporting from here to all global over there basically. You see this is an consolidated base advantage over there basically.

Got it, sir. That helps a lot, in fact.

Sir, second question on the ongoing investigation bit. As you mentioned that it's very tough to figure out how that pans out.

If you can help us give some color if something some sort of similar investigation has happened in the geography and how that has panned out and if maybe that could help us understand maybe how the Huron in this investigation pans out as well? It's very

let's say, I cannot able to give a exactly the name of the company and all, but you can just in this world very simple if you ask to any AI or let's say any of the Google or anything, you can able to find out how many investigations are going on since last 3 years there.

All right, sir.

In a Europe, it's a right now is a new normal there.

Okay. All right, sir.

Thank you for that, and wish you all the best.

Thank you.

Good evening, sir. Hope you can hear me.

Actually,

Aniket. How are you?

I'm good, sir. How are you doing?

Fine, fine, fine.

Sir, your capacity expansion will be complete soon, and I think you previously mentioned that about 60% to 70% of that will be used for EMS. As of now, our EMS order book is quite low.

I wanted to check if the capacity is fungible and if we can produce maybe aerospace, defense, or auto machines from that, and then we can maybe export it or can be utilized in India. Is the capacity fungible, and how much additional CapEx will need to incur on that?

Oh,

no. It's fully fungible from a general engineering, auto, dies and molds, and all the areas there, okay?

We are able to utilize fully on that, basically. Aniket, I'll tell you, let's say today I'll like to tell you again every call I'm telling to the people.

We have a last year we were having a 14,000 customers. This year we have crossed to be a 15,000 customer there.

The small MSMEs and all this manufacturing area in a country is increasing drastically there. Just to tell you that the last year in my town in Rajkot alone, we have sold more than 1,000 machine over here.

That's quite a big number, sir. Yeah.

Okay?

Yeah.

It's all are fungible, and we are able to execute nicely there.

Understood, sir. Sir, my second question would be there is increased momentum in auto as well as general engineering.

What kind of machines are these? Would these be higher-end, mid-level or entry-level machines?

Maybe if you're able to give the order book split as per the high-end, mid-level, or entry-level machines?

I can give you that. I'll tell you, we are now more and more seeing the more and more machines people are looking with automations, okay?

Because the manpower shortage is everywhere people are seeing. Jyoti is a very forefront in this area.

We are getting a more and more in automations over here. That's the new normal we are seeing even in auto and general engineering and everywhere there, basically.

In terms of this, yeah, I'll give it to

you.

I'm giving you that. Yeah.

Basically right now, let's say the aerospace,

okay,

is close to a 38%, okay? Auto and auto components are 19%.

General engineering is close to 20%.

Sir, actually I wanted to check, out of this, aerospace can have mid and high end probably. Auto can have

entry level and-

Basically, in a aerospace and defense, is largely on a

high end, okay?

You can consider, yeah, largely all are in high end basically. Almost our 40% is in high end, and 60% in entry level and mid-level there.

Okay.

60% is in entry level and mid. Basically, autos and general engineering would be mostly entry and mid-level only.

Correct. Correct.

Correct.

Okay. Sir, if I can squeeze in-

I'll again tell you what is the definitions we have identified that, okay? Up to ₹50 lakhs machines, we consider to be entry-level product.

From ₹50 lakh to ₹2 crores, we considered a medium, let's say a mid-range machines. Above ₹2 crore only we considered the high-end machine there.

Understood, sir.

Sure.

Maybe if I can squeeze in one more. I just wanted to check on the ongoing investigation.

Is the total revenue reversal complete or is there any possibility of further revenue reversal as well? I also-

Yeah. Just ask.

No problem.

I also read from where that maybe that was a document from Ukraine government so that we have delivered some machines to maybe Russia or so. Are those machines that have been already delivered to Russia as per the claims by Ukrainian government?

Are those into the question or these machines are yet to be delivered

and- You are telling something I'm listening the first time because there is no Ukrainian government is here in this part over, okay? Basically, the French government is investigating, okay?

This is a normal investigations are they are checking what are the our exports order today, what we have delivered in past, and what is going to be happen in future. That's the only investigations are going on there, basically.

Got it, sir. There is no-

There is no Ukrainian government. In fact, we have received a good order from Ukraine right now.

Indeed, sir. Sure, sir.

These were my questions. Thank you so much.

Good evening.

My question is also related to Huron. Probably similar to what the previous participant had asked.

The question is, was the Jyoti management aware of this alleged Russia via India re-export channel during the years 2022 to 2024? What due diligence on Huron export compliance was performed during that period?

We have never exported anything the machines come from France to there to here, okay, to Russia there. By the way, for the input for you that whatever the machines Huron built there, almost 70% goods are coming going here to India there.

They does just the assembly there.

This is getting rerouted into Russia and that's the reason for this investigation.

We have not made any rerouted there. That's we are going to prove out there, basically.

Because the all the machines the Jyoti has been full capabilities, and Jyoti only has dispatched 2022-2023 there, okay?

Then after,

we have not exported to Russia at all there, okay?

Yeah. During that time, the export had happened and probably for that only this investigation is happening right now.

What you're suggesting is this is no longer the case. No longer any movement is happening to Russia.

Your general manager there has been put on suspension, I'm sure it is not a ordinary investigation, right?

Correct. Basically, any investigation, and particularly like this, there is a standard protocol that general manager cannot be reach out to any inside material and all, okay?

They wanted to be a fair investigation over there. It put onto their hold at their home there, okay?

When we are looking at similar kind of cases in other companies, we are seeing that the base case for such kind of investigation, the time frame is anything between 2 to 3 years. Correct.

Correct.

Even when you look at the ₹67 crores revenue that could not be recognized, the chances that it will get recognized in the next 24 months are also there could be chances that they may not get recognized for the next 2 to 3 years as well, right?

No, we are not looking that because that's the machines are absolutely are in a queue to get the licenses there, okay? This is basically very sure that this the investigation, the conclusion will take very longer time.

Until today, they have not concluded anything. It will take very long time: 2 years, 3 years, 5 years, we don't know.

We can't comment on that also today.

Correct. Because we have similar experience in another company and it took, as you rightly saying, a much longer time in the whole process.

That is the reason why your auditor probably mentioned that it should be not recognized completely while you take in the cost.

Correct.

This really puts the whole Huron into a significant drawdown for you rather than an upside. Of course, the India business is doing extremely well and will grow extremely well once the new capacity comes in.

This drag down from the Huron, is there a chance for you to sell out that business completely?

Not at all. We are not looking at all because we have been very well recognized over there to the all our customers, and we are very much near to the our customers.

We don't foresee anything kind of a like that.

Sir.

Yeah.

Good evening, sir. Am I audible?

Yeah.

Sir, first I wanted to understand the revenue of standalone Huron. What is the standalone revenue of Huron?

€25 million is close to 1 second. In a quarter four is ₹25 crores.

Full year, I'm assuming, ₹100 crores?

1 second. Full year is a ₹248 crore.

Sir, how much of this is intercompany? How much is supplied to Jyoti?

₹105 crores.

Sir.

Sir, since we are expanding our capacity, I wanted to understand the utilization, how do you see the utilization of this capacity if you can quantify in percentage terms?

We see that, let's say, in September it will come, it is only available for us the next 6 months, okay?

Right.

Yeah.

In terms of a- Years forward, sir. FY27, '28.

20 20 See the FY26, '27, the capacity is coming only on September there, okay? It means only the last 6 months are available to us there, okay?

We see that number of machines initially we started and everything, close to you can say additional, let's say right now we are almost 100%, that but the 50% of the that area, we will reach maybe around 8,000-something machines to be there, 8,000 or 9,000 plus.

By FY28? FY27

end, we are trying to do that

end. FY28 anytime?

We

in a past also I told you, this is all are based on the today how we are able to execute through the people and all. We maintain our momentum close to 25% to 30% year-on-year

that. Sir.

Understood. Thank you.

Yeah.

Yeah.

Yeah. Thanks for the opportunity.

Sir, I just wanted a clarification on your standalone revenues and consolidated revenues that you've given in the PPT, both of which for Q4 FY26 are ₹599 crores. They don't match with the reported numbers.

Are there any adjustments and why are both these same numbers, because there is some revenue at Huron also. Can you just explain these numbers, sir?

Let's say, because of this elimination in this quarter, that's why this is a, let's say, numbers are coming near to same, but it's because of elimination, intracompany elimination.

Okay. Whatever ₹25 crores that Huron did, it was sold to the standalone entity, it got eliminated while consolidation.

Is that right?

Correct.

Correct. Correct.

Sir, when I look at your reported numbers, say your standalone revenue reported in the P&L is ₹529 crores, and in consolidated reported is ₹575. In PPT, it is ₹599.

There what am I missing?

1 second. First of all,

Sir.

Yeah. Yes, yes,

yes. I got the answer for the first question, which is elimination during consolidation.

Yes. Correct.

Okay. Sir, against ₹248 crores that we did in Huron this year and Q4 is only ₹25, that too only to standalone, when does Huron recommence its other operations, its business which is not to the standalone entity?

How much would that be in your estimation for FY27? FY27

we are seeing to come to a normal level first, and that normal level is close to ₹300 to ₹350 crores, okay?

In Huron?

In Huron, standalone level there, okay? That is our expectations on this year.

In FY26, you did ₹250, ₹105 of which were to standalone. You did only ₹150 net.

Against that, you can double the revenues in FY27 in Huron? No,

no. Basically, it's eliminated because all the supplies are going from here.

Okay. Okay.

Whatever the Hurons are being manufactured, all the components, subassembly been manufactured over here, basically.

There will be growth in Huron FY27 versus FY26? Absolutely.

Absolutely. Absolutely.

Okay. Okay.

Thank you.

We have a very robust order book, and execution new capacities also, people also has been there. We see there is a robust execution will see on second quarter onwards there.

Sir, and this growth in Huron, is it dependent on you getting the licenses you've been saying in the call? Because in Q4 it seems there was no other revenue that Huron did.

Basically it's a reversal has come, that's why it's a no revenues there. It's an hit has come on only on a quarter four.

Mhm. Yeah.

Sir, last question, sir. If there was no reversal, Huron's revenues would have been gross and minus ₹67?

So ₹25 plus ₹67 would have been its normal revenue,

and

you reversed ₹67, it came to ₹25 million. Okay.

Absolutely.

Correct. Correct.

Absolutely it will be It's

also reversal of ₹67. Yeah.

Yeah. ₹67 with the net revenues could be extra there.

Okay.

Okay. Understood, sir.

Thank you, and all the best.

Thank you. Thank you very much.

Thank you all for joining us today. I hope we 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 queries, please feel free to reach out to us or SGA, our investor relation advisor.

Thank you very much to all of you.