Jyoti CNC Automation Limited (JYOTICNC) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, we welcome you all to the Q4 and F526 earnings conference call of Jyoti CNG Automation Ltd hosted by Axis Capital. As a reminder, all participant lines will be in the listener remote and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note, this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and may involve risk and uncertainties that are difficult to predict. Now, I hand the conference over to Mr. Nikhil Kandui from Axis Capital. Thank you and over to you, sir.

Thank you, Steve. Good evening, everyone. On behalf of Access Capital, I, Nikhil Kandai, welcome you all to Q4 and FY26 earnings conference call of Jyoti CMC Automations Limited. We are pleased to have with us management representative by Sir Parakalam Singh Jalaja, Chairman and Managing Director of the Company. We will have the opening remarks from Jalaja, sir, followed by Q&A session.

Thank you and over to you, sir.

Thank you, Nikhil. Good evening.

Good evening, everyone, and a very welcome to our Q4 and F526 earning conference call. Along with me, I have a senior management team and SGA, our investor relation advisor. Financial results in presentation 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 continues to remain uncertain due to tariff-related issues and the ongoing conflict in West Asia. These developments 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 destruction. And India may also 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 Atma Nirva Bharat, improving India's funding as a manufacturing hub and continued investment in infrastructure, which is supporting expansion of domestic manufacturing capacities. Please. On the global front, As well, a better clarity around tariffs along with free trade agreements with key economies such as the EU and the US is expected to support export-oriented industries. Improved visibility on global trade suits London a demand across the international market and create additional growth opportunities for companies like ours. Speaking about a Jyoti CNC, first let me highlight the performance and progress on a stand-alone basis. FY26 was another year of a sustained momentum for the company. We currently have an installed annual capacity of 6,000 machines in India and abroad 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, these impacted our ability to fully execute orders despite a strong and expanding order book, supported by the robust demand across all major sectors we saw, 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 ortho and general engineering sectors. All sectors are expected to play a key role in our next phase of growth, and we are witnessing a customer's enquiries and converting into the orders at the fastest pace. To support this growth, our plan to expand our annual capacity to 16,000 machines remain on track for a commencement of commercial operation in quarter 2 of this financial year. This capacity addition will be a major driver for the company's next phase of the growth and the given strong demand and environment. We remain confident of ramping up utilisation at a healthy pace. While we are witnessing strong customer enquiries in view of our order backlog, we have been considered in the order booking to match our delivery obligations. If we look at the standalone India business which reflects the underlying growth momentum, The performance remained very strong during the year. A standalone quarter for revenue witnessed growth of 13% to 599 crores, while FY26's standalone revenue grew by 20% to 1,949 crores. On the profitability front as well, Water for EBITDA stood at 191 crores with margin of 31.9 percentage, while FY26 EBITDA stood at 464 crores with margin of 28.9 percentage. Water for PET stood at 135 crores with margin of 22.6 percentage. While FY26, a patch stood at 391 crores with a margin of 20.1%. This, a strong standalone performance, reflects the healthy across our focus sectors, improved operating leverage, and strong execution capabilities across the businesses. Coming to our consolidated operations, the global demand The global demand environment for our product portfolio continues to remain strong, and we are witnessing increasing customer engagement. However, as previously disclosed to the stock exchange, an ongoing investigation is being 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 reiterate that Jyoti Huron continue to enjoy a strong reputation across both domestic and international markets. And we remain confident in our ability to navigate the current situation effectively and emerge stronger going forward. Importantly, these investigations are not limited to GURON alone, but extended across multiple companies operating within the industry across Europe. Speaking about the financial implications 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 of 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, these impacts our consolidated revenue from operations. On a consolidated basis, revenue for Q4F526 stood at 599 crores excluding the impact of the revenue reversal. Revenues would have grown up by 16 percentage Q420, FY26, and by 19 percentage 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 these machines. Had already been incurred, while the corresponding revenues could not be recognized during the current period. Lower revenues coupled with the associated cost and de-operating leverages. Adversely impacted a profitability. As a result, a consolidated EBITDA for Q4 FY26. Pets for the quarter, stood at Rs. 91 crores, and for a FY26 pet, stood at Rs. 336 crores. An increase of a 6% year-on-year basis here. Had there been no impact of reversal, fat growth would have been a factor. Speaking of our order intake, our order intake for Q4 FY26, today's Rs. 700 crore plus. Driven by all sectors and particularly by auto and general engineering segments for FY26, the order intake stood at rupees. This includes 27% of aerospace, 28% of auto and auto component, and 31% from general engineering. As on 31st March, 2026, our outstanding audiobooks stand at Rs. 4,732 crores, which is very healthy and growing. On the operational KTI, 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 DISE and Modes. Speaking of our current order book, it remains healthy and well-diversified at Rs. 4,732 crore, reflecting a steady demand and continued customer confidence. The industry-wide breakup is as follows. 38% from aerospace and defense, 19% from general engineering, 20% from auto and auto components and 4% from EMS. And balance are from the other sectors. As we enter FI27, 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 machines 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 dollar inflow and improving long-term opportunities across domestic as well as export markets. We may now open the floor for question and answer.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question comes from the line of Nishant with Kotak. Please go ahead.

It's not a very good evening. Nishant here.

Hi, Nishant. Hey, hi, sir. So I just wanted to understand what are the timelines for the investigation to get over and by any chance like 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, you know, impacted your bottom line, but your top line wouldn't have gotten impacted so much. And that probably looks to be a better accounting rather than just taking a complete revenue write off. So, and 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, Anishant, this is not a write-off.

This is a deferment and this deferment of the revenue of the POCM. POCM also is a, let's say, is a future scale, basically. It's a revenue recognition based on a percentage of order completion scale, okay? So the auditor's view of that, it is just a deferment. It's not in a right of that. Once we get this, let's say, the situations that in an investigation, there are a few machines. It was under POCM and that was not available the export license clearance. So they stated that once this export license you will receive, you can immediately can convert it into your revenue in the coming quarters over there. So first of all, remove in this mind, this is no more write-off there, okay. It's just, it's deferment there, okay. So this is the clarity there. And it is not let us say the POCM cannot be a provisioning, can be a provisioning on a like that on a financial kind of a thing and the fact is a fact it is just a deferment. So, there was nothing to be to be kept as like that. Regarding the investigation, we have To retain the legal counsel, I am 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 else it is working a nightly there. And that's why we are almost more than, there are more than 50 companies are under investigation in last three years. And we have not seen any conclusion from any companies today in Europe today.

And so the second question, I just wanted to understand the order book, if you can see congratulations for the order intake, it looks to be a little more well diversified and not skewed towards zero space. But in general, sir, while we execute the order book and the new capacity coming in. The order book still looks to be more towards the high-end machines where the working capital cycle could be a little more extended. So how are we thinking of managing the cash flow in the coming year, FI27? What is a typical CFO to EBITDA ratio which one can probably look at in your business for the next one year as well as for FI28?

Thank you. On your remarks on order book, it's a very healthy order book we are seeing. Even in the last quarter, we have received, even end of this month, we have received the very good orders from European areas like in Ukraine and all, including French government, we received the good orders there. Even India also, we have received the good orders on aerospace, it depends in our Indian context also there. Apart from there, there is a very significant movement we have seen in the last quarter in a total components and general engineering area. You know that we have a more than 15,000 plus customer base now in India in across manufacturing sector there. So, 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, and the way the new capacity is coming up, we are expecting to our manufacturing cycle also to be improved, and 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.

Even this year also, from the last year to this year,

the last year we were into negative cash flow to be entered into positive and we are looking to be a very robust cash flow in quarter on quarter in coming days over here there.

Answer, 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, and what is the timeline by which we can kind of pass in the cost to our customers? Thank you so much.

Yeah, so the cost, Nishant, we have always a fixed cost base there. We are not able to pass on the increase any cost to the customer there, but we are naturally head over here, because we have a very long manufacturing cycle and any new orders we are taking, we are able to increase the price. Let us say today, in the last two months, we have seen the cost has been increased close to 2 to 3 percentage over there on raw material Thank you. On our from 1st of this May, we have increased our prices for the new to the our any new customers and new orders over there basically. So, we are able to compensate over here with the new cycles there.

Okay, sir. Thank you so much. Thank you so much, sir. Take care.

Thank you.

Thank you, Nisank.

The next question comes from the line of Aadeel Khan with ICICI Prudential. Please go ahead.

Yeah, hi, sir. Thank you for taking my question. Sir, my first question is on the standalone segment. So, we did roughly about 600 crores revenue in the standalone book. So, I just wanted to, which is a 13% YOI growth. So, 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?

So, first of all, I'll correct you here. The year-ended, the standalone business is not a 1,600 crore stop line. It's a 1,950 crore.

Okay.

Sir, I was talking about Q4 alone.

Okay. Q4 alone is a 600 crores. The total is a 1,900. And right in a Q4, let's say we have executed a 1,750 machine.

Right, sir.

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

Right, so just to make sure, so this growth was lagging because of capacity constraint. Is that understanding correct?

Correct.

And so on the Huron side, so if this investigation continues, then would you be able to recognize revenue in Q1 of FY27?

Yes, absolutely, this is only related to this the machine was in under manufactured, under on manufacturing and not available the license, only those things they have been not recognized and and push forward there basically. Once that license will also will come, once the export permission will come, definitely we can able to recognize those also.

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

Let's get recognized.

Right, and so incrementally whatever that

is 67 crore see there we have a the margin was very happy. So, basically even the we got the heat of the 40 crores on a margin side that also will recognize in future once the machines will be clear out of that.

Okay, okay. And sir, capacity, the incremental capacity that will be coming in from September. So, when can we see and soon order inflows coming for the same?

So, already we are, let's say, today also we have reached to a 4700 plus corridor order book there. And it's, you can understand what is the customer's expectation from us there. Already this quarter we started to taking the orders and we reached more than 700 crores. But apart from that, we are definitely, we are going to increase our pace from September onwards there.

Understood. And 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?

So, basically, right now, they are all optimizing their manufacturing capabilities and capacity there. So, 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 one and a half year there. So, we are also waiting to, and you know that now ISM2 and component manufacturing PLI has also been increased. Many more player people are getting these permissions are going to coming out there. Right now, all the teams are very much busy to multiple customers over there. And we are expecting to see the results very soon now.

Thank you, sir. Mr. Adil, I would request you to please come back in the queue for further questions. Thank you. The next question comes from the line of Manish Otswa with Neural Bank Securities, Private Limited. Please go ahead.

Hello.

Hi, Manish.

Hi, sir. Sir, I have only one question. Most of the questions have already answered. On the current order book position, what is the execution period, execution timeline, and how much we can execute in F-27?

So, basically, right now, with this total order book, we have 4,700 crores, and based on the commitment, we have to execute in 18 to 20 months over this.

And how much we can see execution F27.

So let's say we will see the one the capacity on place. Definitely we are looking to be a good growth from here.

Will you be in a position to quantify?

I will not be able to quantify right now otherwise it will be fixed. The numbers, and now we need to see that also. Once the capacity will come, we need to optimize and everything to increase there.

Okay, and secondly...

Definitely, we will be able to tell you in the next three to four months time, once the capacity will be completed.

So, once the capacity commenced operation in September, sir, how fast we can see ramp up? Can you just give quality?

Yeah, see, basically, we already, already, already we have add on the people and everything since last one and a half year. So, we are training the people. This is completely once the plant has been commenced and start. We hope that we will increase at least 20 to 30 percent further more on speeds over here.

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

The next question comes from the line of Harshit Patel at Aquarius Securities. Please go ahead.

Hi, sir. Thank you very much for the opportunity. Am I audible? Yes, Harshit. Yes. Sir, firstly, on the execution on the EMS side, as you explained, the client facilities are still not pretty much ready. So, 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?

Arshit, already we are running... Almost 100% utilization in last quarter, okay. You can understand that without the EMS also, we are in the situation today. We are expecting in a second half. If it is coming in the first half, let's say almost two months is gone, we are not seeing anything on a much steeper stage is going to be increased in September. But onwards September, yes, we are also being ready and we will definitely capture these opportunities.

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

So, could there be any risk on the India aerospace and defense execution?

Because at the end of the day, the technology comes from put on. I mean, at least that's what my understanding is. So that India execution piece, whatever we supply from here, is that on track or maybe some sort of delay because of this investigation?

First of all, clear to you that this technology is completely is from Jyoti now, ok. We have it is not from the Huron there, ok. 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 aerospace and defense, ok. And almost out of that, around 75% has execution from India only there. And this is all Jyoti's own capabilities. In the last 25 years, we learned everything from the best practices from the European side. But now the technology front is completely our own there. And we are not dependent there. So, we are not seeing anything, any slowdown over here for an execution side from this perspective there.

Perfect. Well understood, sir. Thank you very much for answering my questions and all the very best.

Thank you. Thank you. That's it.

The next question comes from the line of Voibow Chan with Access Asset Management Company. Please go ahead.

Good evening, sir. Thanks for the opportunity. Just one clarification that I needed. The order book that we have today is what is the proportion of order book which where similar constraint on export license not being there is applicable and then you would want to kind of delay that execution.

So, right now, in this order book, we have some orders is from the Huron side, and out of that, around 6 machines, and close to around 70 crores, is from the Ukraine. So, and Ukraine, because it's just received only on the last month. Okay. Okay. So that's the only new orders in this quarter that is there and that is going to be executed from the Huron and we need to apply and to take licenses there on a next year there. Okay.

Yeah. In fact, as far as, you know, this reversal of revenue is concerned, now whatever we have in terms of unbuilt revenue, etc., we don't expect anything in the coming quarter, right?

Absolutely, absolutely, it's all under. It will now come from a different way, it will come to a reversal different way, okay. It will add on. Right, right.

And sir, as you mentioned, as far as Chiron's operations are concerned, you don't see any impact whatsoever because of this development. Uh... And can we see, you know, ramp up in terms of revenues in Huron, given the fact that, you know, the capacity expansion got completed last year in FI26?

Absolutely. There is nothing is in terms of the impact of a company's operation, including the order execution, exports, customer servicing, manufacturing activities, anything. And we see that now, it's become a, already we have incurred the more cost on a people, we have added around 25 people in manufacturing there. Okay. And we entered the, all the additional new facilities from November onwards. So definitely you will see the quarter on quarter, there will be improvement from this last year's number. Yeah. Okay.

So would you like to share a number or a range as in what kind of growth we can see just from here on? And then, obviously, India growth is dependent on the new Capacity Visitors Commission in September.

So, in Huron also, basically, let's say the capacity has been increased. And being in a long-term manufacturing cycle, it started from December onwards there. So, you see that somewhere this hour, the execution, let's say, first dispatch and everything will start from the new assembly, is around August and September there.

Okay. Okay. Yeah. That's it for my day. Thank you.

Thank you. The next question comes from the line of Mohit Motwani with Tara Capital. Please go ahead.

Hi, sir. Good evening. Thank you for the opportunity. So, on the first question, you know, regarding, I think in the past, you had mentioned in your previous earnings calls that, you know, since you are capacity constrained, you are not taking on much orders in your order book, given that the delivery timelines were higher than 18 months and customers wouldn't accept a very longer delivery timeline than that. So can you just give a sense of, you know, how much of, if you can give any color, how much of that was you did not, you know, accept, and now with the capacity coming up, how much boost it can give to your order inflow growth in FY27? And which sectors would it be driven by?

See, Mohit, basically right now, look at that as an only if I talked about the India perspective over here. There is a great opportunity to emerge over here. The Indian market in the last three years is consecutively consuming more than 20% CHR level of a consumption. And we people on all the Indian machine tool builders, somehow we are not able to capture those due to our constraint and all. Imports are surging. Imports are increasing. It is a painful for us also. We are also waiting to increase our capacity as much as fast can come over there, okay. So, once that will come, definitely I am not able to quantify how much directly we are losing today revenue. Let us say today the order book there. But it is a huge pipelines are front of us there and we are not able to capture them.

Okay, and 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 where you are seeing a lot of traction, that mix to go up. And 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?

Ah, absolutely. First of all, we are not looking in the next 5 to 10 years is now with this global scenario, the way this even the Western Asia, the issue has been, the erect, okay, it has become a more uncertainty and fear factor has started. And we see that in this area, people are going to invest furthermore. We are already discussing with many of our clients in Europe and everywhere, they all are expanding. China is expanding, Turkey is expanding, Italy, every area people have started to investing on the aerospace and defense area there. We do not see the repair. Any decline on the next, that is a very steady state business we are seeing over here then. So we are not, we are not thinking like that Ka, it will be dropped there.

Okay, fair. And so there's a last question from Aind. In terms of debt has, you know, gone up from last year to this year, this year to about 850 plus crores. And I understand that would have been for working capital requirements as well. Should we expect any increase in debt, you know, going forward? If you can give any color on that, that's it from Aind.

So, I will tell you, the debt, what we have increased in this year, is close to all, close to 300 crores, is the debt has been incurred on our capacity expansion basically, okay, on our new capacity there. Only working capital has increased only 45 crores to be there. And we do not 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 do not foresee the from here to that has been increased there in terms of a percentage and all.

Okay. So, thank you for asking the question. So, I will jump back in the queue. Yeah.

The next question comes from the line of Kamlesh Bagmaar with Lotus Asset Managers. Please go ahead.

Yeah, thanks for the opportunity, sir. Hi, Kamlesh, bye. Yeah, hi, sir. One question on the part of, like, say, how much machines we sold, sir? 1750?

Kamlesh, bye, exactly the number of machines is 1760.

Okay.

So, for the quarter 4.

For the quarter 4. Okay, sir.

And the 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 am just comparing the standalone numbers because in Consol there is an impact of Huron. So, if I see our EBITDA that has grown at 9 odd percent for the quarter in standalone operations. While our machine count, that has increased by 30 odd percent. So that reflects that our margin from 13 lakh rupees per machine, that has dipped down to 10,85,000 rupees. So going forward, like, The higher number of machines are getting compensated by or are getting negated by sapper fall in the margins. So going forward, like, can we assume the margins to be in the range of and that also in a peak quarter? So can we assume that the margins would remain at 9 to 10 lakh rupees, which used to be at roughly around 13 odd lakh rupees or 12 to 13 lakh rupees?

Every call, since last 4-5 call, I am not able to give you the correct picture for machines and everything, because we have a very much variety of models and all like that, and number of machines. Ultimately, what I said always in a path 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 percentage. We are at, if you imagine this, even this event happened, and we have taken this all deferment on revenue and margin. Still, we are at 25 percentage, near to 25 percentage, this quarter also.

No, but like the realizations like 34 lakh rupees, which is the lowest in salt stain. One machine, 34 lakh rupees realization. It is the lowest.

This year the total realization is 35.62.

Yeah, yeah, yeah. So, like 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. So, can it be right in saying that going forward, our realizations would remain at 35 watt lakh rupees and with a margin of 25 watt percent?

I will tell you one thing that even though we have been, Kamal Zbhai, 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. But our margin profile, let's say it's going to be at 25, 25 plus, it will be remained there. Even that we see that in the forward situation ok, in our this additional the 6,000 to 16,000, if we reach to a full capitalization, let us say full utilization, even the margin, let us say the machine average price will reach to 30 lakhs, still realty at around that close to a 25 percent, it will not go down there.

And secondly, like this, our EMS order book that has been 700 crore for last, static at 700 crore for last two years. 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, so we won't be making margins on those on that EMS order book, because that's a one and a half year.

In fact, we will do a more better margin if right now, because whatever this The prices were fixed up, okay. All was connected with the, indirectly with the dollar terms per mission, okay. So basically the, while we will execute, we will, we will gain more there.

Okay, okay. Great. And sir, lastly, any target for machines in FI 27th? What is our target? How much we could be doing? Like say this year we did 5,500. So what is the target for next year?

So, let us say we are seeing that in September, once everything will be completed. So, we see the fifth growth should come. Exactly, I am not able to tell you the number of machines and all because only I am going to get last six months with available with me there. And that also we will set at the people and everything, but we will have a good numbers there.

Great, sir. Thanks a lot.

The next question comes from the line of Ruchit Agarwal with Unify and Michelle Phan. Please go ahead.

Yes. Hi, sir. Thank you for the opportunity. I'm certainly new to the company, so just excuse me. One broad question on the Euron. So I believe you bought the company about 20 years back in 2007. I just want to understand 20 years in now, our revenues are broadly similar to what they were at the time of acquisition, slightly lower in fact. So just want to understand what has taken, you know, what has been the due course when we look at Euron, even in terms of Euron in itself and the tech integration for

Jyoti as well. Thank you. Very interesting question you asked. So, I am able to express nicely there. See, there are 20 years back when we bought a Huron. Huron is same as today, okay. But when we took over this company, Jyoti's top line was 50 crores, okay. Today we are at close to 2000 crores, okay. And 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. 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. 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 furthermore over there. Only in a last year, we have invested and increased the capacity. So, we will see in future to be execution also increasing from there, but 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. So, you see this is a consolidated base advantage over there basically.

So that helps a lot, in fact. And the second question on the ongoing investigation, as you mentioned that, you know, it's very tough to figure out how that pans out. But 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 can help us understand maybe how the Euron investigation pans out as well.

It's a very, let's say I cannot able to give exactly the name of the company and all, but you can just, in this world, very simple, if you ask to any, the 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 three years there. All right, sir. In a Europe, in a Europe, it's a right now is a new normal there. Okay.

Okay. All right, sir. Thank you for that and wish you all the best. Thank you. Thank you.

Thank you. The next question comes from the line of Aniket Chayal with your securities. Please go ahead.

Good evening, sir. Hope you can hear me. So, I am good sir, how are you doing?

Fine, fine, fine.

Sir, so your capacity expansion will be complete soon and I think you previously mentioned that about 60 to 70 percent of that will be used for EMS. But as of now our EMS order book is quite low. So, I wanted to check if the capacity is fungible and if we can produce maybe aerospace defense or auto. So, we can export machines from that and then we can maybe export it or it can be utilized in India. So, is the capacity fungible and how much additional defects will need to incur on that?

No, it is a fully fungible from a general engineering, auto, dies and molds and all the areas there. Ok. So, we are able to utilize fully on that basically. And in any case, I'll tell you, let's say today, I'd 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 these manufacturing area in the country is increasing practically there. Just to tell you that, the last last year, In a my town, in a Rajkot alone, we have sold more than 1000 machine over here.

That is quite a big number sir.

Ok. So, it all are fungible and we are able to execute nightly there.

Understood sir. And so, my second question would be, there is increased momentum in auto as well as general engineering. So, what kind of machines are these? So, would these be higher end, mid level or? Oh, entry-level machines and maybe if you are able to give the order book split as per the high and mid-level or entry-level machine.

Yeah, I can give you that. But I will tell you we are now more and more seeing the more and more machines people are looking with automation. Okay, because the manpower software is everywhere people are seeing, and Jyoti is a very forefront in this area. So, we are getting a more and more in automizations over here. And that is the new normal we are seeing, even in auto, in general engineering, and everywhere basically. So, in terms of it is yearly, the pending order move. A part of the book, yeah, yeah, I will give it to you, I will give it to you, I will give it to you, part of the book. Yeah. So, basically right now, let's say the aerospace, okay, is close to 38 percentage.

Okay. Yes, sir.

Auto and auto components are 19 percentage. General engineering is close to 20 percentage.

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

I will give you the in terms of a mixed duration entry mid. Typically, in aerospace and defense, Yes, sir? Ah, is largely on a high end ok. So, you can consider yeah largely all are in high end there basically, almost say you have our 40 percent is in high end and 60 percent in entry level and mid level there.

60 percent is in entry level and mid level. So, basically autos and general engineering would be mostly entry and mid level only.

Correct, correct, correct.

Thank you.

And in our definition I will again I will again tell you what is the definitions we have identified that ok. So, up to 50 lakhs machines we considered to be entry level product and from 50 lakhs to 2 crores we considered a medium let me drain machine. About 2 crores only we considered the high-end machines.

Understood. Sure, maybe if I can squeeze in one more. So, I just wanted to check on the ongoing investigation. So, is the total revenue reversal complete or is there any possibility of further revenue reversal as well? And I already.

Yeah, just ask no problem.

And I also read somewhere that maybe that was a document from Ukraine government, so that we have delivered some machines to maybe Russia or so. So, the machines that are in question, are those related? So, are those machines that have been already delivered to Russia as per the claims by Ukrainian government? So, are those into the question or these machines are yet to be delivered?

So, first of all, you are telling something, I am listening the first time, because there is no Ukrainian government is here in this part hour.

Okay.

Basically, the French government is investigating.

Okay.

And this is a normal investigation. They are checking what are our exports ordered today, what we have delivered in past, and what is going to be happening in future. That is the only investigations are going on, basically.

Got it, sir.

So, there is no, there is no, there is no, there is no Ukrainian government. In fact, we are receiving the good order from Ukraine right now.

Indeed, sir. These were my questions.

Thank you so much.

The next question comes from the line of Srinik with Indo-Alts wealth. Please go ahead.

Hi, my question is also related to Huron.

So, and probably similar to what the previous participant had asked. So the question is, was the Jyoti management aware of this alleged Russia via India re-export channel during the years 2022 to 2024? And what due diligence on Huron export compliance was performed during that period.

First of all, 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 were not built there, almost 70% goods are coming here to India there, there does just the assembly there.

Yeah, but this is getting re-routed into Russia, and that is the reason for this investigation.

Yeah, but we have not made any re-routed there. That we are going to prove out there basically, because all the machines, the Jyoti has been full capabilities, and Jyoti only has dispatched 22-23 there. Okay, then after we are not exported to Russia at all there. Okay.

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

Yeah.

And what you're suggesting is this is no longer the case, no longer any movement is happening to Russia. I mean your general manager there has been put on suspension, so I am sure it is not an ordinary investigation, right?

Correct. So, basically any investigation and particularly like this, there is a standard protocol that general manager cannot be reach out to any inside the material and all. Okay. So, they wanted to be a fair investigation over there. So, it put on to their hold at that home.

So, 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.

So, 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 will not get recognized for the next 2-3 years as well, right?

No, we are not looking that because that the machines are absolutely are in a queue to get the licenses there. Okay. So, there is, yeah, that is, that is sure that this is, yeah, this is basically, there is sure that this, the investigation, the conclusion will take very longer time. Until today, they have not concluded anything. It will, it will take very long time, two years, three years, five 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're rightly saying, a much longer time in the whole process. And, you know, the entire money had to be, and that is the reason why your auditor probably mentioned that it should be not recognized completely while you're taking the cost. Correct. So 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. But 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 all our customers, and we are very much near to our customers, and we don't foresee anything kind of like that.

Oh, Gisman.

Yeah, yeah. Srini, does that answer your question?

Okay, we'll move on to the next question. It's on the line of Yash Kinorya with Moneybee Securities. Please go ahead.

Good evening, sir. I'm not audible.

Yeah.

Sir, firstly, I wanted to understand the revenue of standalone Huron. What is the standalone revenue of Huron? 25 million euro is close to X, in a quarter four is 25 crores. And pull your, I'm assuming, 100 crores.

One second, it looks up.

A full year is a 248.

And sir, how much of this is intercompany? Like, how much is this supplied to Jyoti? 105 crores. Okay, sir. Sir, since we are expanding our capacity, I wanted to understand the utilization. Like, how do you see the utilization of this capacity? This can quantify in percentage terms. So, we see that, let's say in September it will come. So, it is only available for us the next six months.

Right.

Yeah, and in terms of a...

Year forward. So, FY27-28.

Yeah. 2020. This is FY26-27. The capacity is coming only in September there. Okay. It means only the last six months are available to us there. So, we see that a number of machines initially will started and everything, so close to, you can say, additional, let's say right now we are almost 100%, but the 50% of that area, we will reach maybe around 8,000 something machines to be there, 8,000 or 9,000 plus. By F by 28. FI 27 and we are trying to do that, right?

And FI 28, any time?

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

Okay, sir. Understood. Thank you.

Yeah, yeah.

Thank you. The next question comes from the line of Ruhant with Prada Capital. Please go ahead.

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

So let's say because of this elimination in this quarter, That's why it's a, let's say, numbers coming near to the same, but it's because of elimination. Intra-company elimination.

So whatever 25 crores that Huron did, it was sent to the standalone entity, so it got eliminated while consolidation. Is that right?

Correct, correct.

And 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, but in PCP it is 599. So, there what am I missing?

One second, first of all.

Okay, sir, I didn't have... Yeah, yeah, yeah, sorry. That's the last year, basically. Yes, yes, yes. So, I got the answer for the first question, which is elimination during consolidation.

Yes.

Correct. Okay. And, sir, against 248 crores that we did in Huron this year, and Q4 is only 25, that to only to stand alone. So when does Huron recommence its, you know, like, the other operations, its business, which is not to the standalone entity, and how much would that be in your estimation for FY27?

So, FY27 we are seeing to come to a normal level first, and that normal level is close to 300 to 350 crores, ok, in Huron and that yeah in Huron stand-alone level there, ok, that is our expectations on this year.

Sir, but in FY26, you did 250, 105 of which were to stand alone. So, you did only 150 net. And 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 have been manufactured, all the components subassembly have been manufactured over here, basically.

Hmm. Hmm. Yeah. But there will be growth in Huron, FY27 versus FY26.

Absolutely, absolutely, absolutely. Okay, okay. Thank you. And we have a very robust order book and execution new capacities also people also has been there. So, we see there is a robust execution we will see on second quarter onwards there.

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

So, basically, it's a reversal has come. That's why it's no revenue there. It's a hit has come only on a quarter four.

Yeah. Sir, if, sorry, last question, sir. If there was no reversal, what would have been, I mean, Huron's revenues would have been gross and minus 67. So, 25 plus 67 would have been its normal revenue, and it would go to 67, so it came to 25 again.

Correct, correct. So, it would also be revenues of 67, yeah. Yeah, 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. Ladies and gentlemen, due to time constraint, that was the last question for today. I now hand the conference over to the management for closing comments.

So, 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 SDA, our Investor Relations Advisor. Thank you very much to all of you.

Thank you. On behalf of Access Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.