Jyoti CNC Automation Ltd – Fundamental Overview

Jyoti CNC Automation is one of India’s biggest CNC machine tool manufacturers. They produce CNC turning centres, turn-mill centres, vertical and horizontal machining centres, multi-axis and multi-tasking machines. They also build Industry 4.0 and AI-enabled automation systems. Their manufacturing base includes two plants in Rajkot and one in France (Huron), giving them strong global capability. Financials: The company delivered a strong FY25. Revenue jumped around 36% year-on-year to roughly ₹1,817 crore. Gross profit expanded sharply, and net profit more than doubled from about ₹151 crore to around ₹316 crore. Quarterly numbers also look solid: Q4 FY25 revenue was around ₹576 crore with ₹109 crore profit. Q2 FY26 revenue was roughly ₹508 crore with profit of about ₹86 crore. Balance Sheet: Long-term debt is moderate at around ₹100 crore. Total assets rose close to 28% due to capacity expansion. Current liabilities have increased, reflecting high working-capital needs. Cash Flow: This is the weak spot. Operating cash flow was negative (around ₹100+ crore), and investing cash flow was also negative due to aggressive capex. The business is scaling, but liquidity must be managed tightly. Industry Position & Growth: The company is benefiting from rising demand in aerospace and defence, which accounted for nearly 40% of new orders. They are rapidly expanding production capacity to around 6,000 machines per year and launching advanced machines, including new 5-axis systems and upgraded HMI tech. Risks: Heavy capex, negative cash flow, and execution pressure. Working-capital management will be crucial as they scale. Any slowdown in order flow or delays in execution can hurt margins.