Jyoti CNC Automation Limited (JYOTICNC) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, we welcome you all to the Q2 and H1 FY27 Earnings Conference Call of Jyoti CNC Automation Limited, hosted by Elara Capital. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinion, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict.

Page 1 of 18

Jyoti CNC Automation Limited November 03, 2026 As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nemish from Elara Capital. Thank you, and over to you, sir. Nemish:

Thank you. Good evening, everyone. On behalf of Elara Capital, I welcome you to the Q2 and FY27 Earnings con-call of Jyoti CNC Automation Limited. We are pleased to have with us the management team represented by Mr. Parakramsinh Jadeja, Chairman and Managing Director, and the senior management team for Jyoti CNC Automation Limited. We will now have the opening remarks from the management, followed by a question and answer session. Thank you, and over to you, sir.

Parakramsinh Jadeja:

Thank you, Nemish. Good evening, everyone, and a very warm welcome to our Q2 and H1 FY27 earning conference call. Along with me, I have a senior management team and SGA, our Investor Relation Advisor. Results and presentation have been uploaded on the stock exchanges. I hope everyone has had a chance to go through the same. I will begin my opening remarks with an overview of economy, followed by industry and company's operational and financial performance. The global economy continues to face a challenging environment, with the ongoing conflict in the Middle East adding to uncertainty. The conflict has led to higher energy and commodity prices, disruption in shipping routes and supply chains, and increased freight and logistic cost. These factors are adding the inflationary pressure and waging on global growth. India has also felt the impact of this development, particularly through higher energy cost, rising raw materials prices, and increased freight costs for manufacturers. However, India's economy continues to remain strong, supported by domestic demand and growing focus on manufacturing. In this environment, building a strong and reliable manufacturing base in India has become increasingly important. While India has traditionally been known for its service sectors, manufacturing is now emerging as a key driver of economic growth, job creation, and India's position in global markets. The Government of India continues to support this journey through initiatives such as Make in India, the PLI scheme, and several sector-specific programs covering electronics, semiconductors, defence, and aerospace. One of the initiative is the ECMS scheme, which aims to strengthen the domestic manufacturing in electronic sector. I am proud to share that Jyoti CNC has also received a capital subsidy under this scheme, and I will share more detail on during the call. As India moves forward towards building a stronger manufacturing ecosystem, one area that deserved special attention is the manufacturing of machine tools, often referred to as mother machines. These machines from backbone of manufacturing and are used across sectors, including automotive, defense, aerospace, railways, and electronics.

Page 2 of 18

Jyoti CNC Automation Limited November 03, 2026 Despite the large domestic opportunity, around 60 percentage of the India's CNC machine demands is currently met through imports, largely from Japan, Europe, and South Korea. Given the critical role this machine play in both commercial and defence manufacturing, reducing import dependence and building domestic capabilities is important for India's long-term manufacturing security. This presents a significant opportunity for Indian manufacturers to develop the high-quality, technologically advanced machines locally and support the country's journey towards greater self-reliance. At Jyoti CNC, we are well-positioned to participate in this opportunity. We are among the India's leading CNC machine manufacturers with backward integrated manufacturing capabilities. That gives us greater control over our value chain. Over the years, we have built a strong customer base with more than 40,000-plus machines installed across sectors such as automotive, railways, and defence, along with sectors such as electronics and manufacturing. Our technology and product capabilities enable us to compete with leading global players, while our strong domestic presence gives us a good understanding of customer needs. With India's manufacturing sector entering an important phase of growth, we believe we are well-placed to benefit from the rising demand from advanced manufacturing solutions and contribute meaningfully to India's journey towards self-reliance. Let me now give you a quick update on our business. During the quarter, we dispatched approximately 1,900 machines, marking the highest quarterly dispatches in the history of the company's operations. This is on the back of additional 10,000 machines which we put to use during this quarter. Our foundry operations will commence operations in the coming days. As we continue to improve capacity utilization and ramp up production, we expect our volumes to grow further going forward. Speaking of our order book, we recorded a robust order book intake of INR800 crores during the quarter, taking our total order book to INR5,082 crores as of September 30, 2026. This order book is on the back of a strong demand from the auto sector, where OEMs are adding more capabilities, more capacities, particularly in the EV space. Overall, the order book provides us with strong revenue visibility for the coming quarters. And with additional capacity coming on stream, we are well-positioned to convert this demand into sustained growth. On the Huron front, we had added a new manufacturing capacity in November 2025. Dispatches from this expanded capacity are expected to commence during the third and fourth quarter of FY27, providing an additional contribution to our growth in the second half of the year. One of the product development front, we recently developed the MTX 100, a compact 5axis multitasking turn-mill center. The machine combines turning, milling, gear cutting, and grinding operation in a single setup, enabling customers to improve productivity, enhance machining accuracy, and optimize floor space. It is designed to cater to industries such as aerospace, defence, automotive and EV, and oil and gas, where demand for complex, high-precision components continues to grow. These

Page 3 of 18

Jyoti CNC Automation Limited November 03, 2026 developments reflect our continued focus on strengthening our R&D capabilities and expanding our product portfolio in line with evolving customer requirements across domestic and international markets. Lastly, I am also pleased to share an important development under the Government Production Linked Incentive, so-called PLI scheme, for domestic manufacturing. Jyoti CNC has received approval for a capital investment of over INR1,020 crores over the next 5 years, which is a capital incentive of 25%. Through this initiative, we aim to develop in-house manufacturing capabilities for key components such as CNC controllers, motors, drives, and operator interfaces. This will help reduce our dependence on imports, strengthen our backward integration, and further reinforce our commitment to the government Make in India vision. Now, coming to the financial and operational performance. Standalone performance, quarter 2 FY27 revenues witnessed robust growth of 31% to INR588 crores compared to the same period last year. On the profitability front as well, Q2 FY27 EBITDA stood at INR164 crores compared to the INR111 crores in Q2 FY26, with margin of 28%, an increase of 320 basis points. Quarter 2 PAT stood at INR115 crores, growing by 46% over same period previous year, with margin standing at 19.6%. Speaking of consolidated performance, revenue for Q2 FY27 stood at INR602 crores compared to INR508 crores in Q2 FY26, a growth of 18.5%. On a profitability front, Q2 FY27 EBITDA stood at INR131 crores compared to INR125 crores, with margin standing at 21.8%. Q2 PAT stood at INR73 crores, with margin standing at 12%. For Q2 FY27, our revenue continues to be diversified across end-user industries, reflecting the strength of our business model during the quarter. 21% of our revenue came from aerospace and defense, 36% from automotive and auto components, 28% from general engineering, 7% from electronics and manufacturing services, 1% from die and molds. The balance 7% came from other industries. Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at INR5,082 crores, providing good revenue visibility for the coming quarters. The industries-wise order book comprises 36% of aerospace and defense, 22% from automotive and auto components. 21% from general engineering, 12% from electronics manufacturing services, and 4% from die and molds, with the balance coming from the other sectors. For a detailed update on order inflow during the quarter, you can refer to investors' presentations. On machine sales front, we sold 1,911 machines during Q2 FY27 compared to 1,315 machines in Q2 FY26. The product mix was as follows: entry-level machines sales stood at INR1,802 crores compared to INR1,237 crores last year. Mid-range machine sales stood at 98 compared to 69 last year. High-end machine sales stood at 11 compared to 9 last year. Overall demand continue to remain encouraging across the key sectors, while our capacity expansion will further strengthen our ability to capitalize on opportunities ahead.

Page 4 of 18

Jyoti CNC Automation Limited November 03, 2026 To conclude, we have delivered a strong performance in Q2 and H1 FY27, supported by healthy demand across key sectors and continued progress in our business operations. Our focus on strengthening manufacturing capabilities, advancing technology through our partnership with Huron. And supporting India's growing manufacturing ecosystem continue to drive our growth journey. With a healthy order book and disciplined approach to investments, we remain focused on sustaining our growth momentum in the coming quarters. With that, I would now like to open the floor for question-and-answer. Moderator:

Thank you very much. We will now begin the question and answer session. The first question is from the line of Harshit Patel from Equirus Securities.

Harshit Patel:

Sir, my first question is on our order intake. I think we have already clocked more than INR14 billion in the first half of FY27 against the full-year guidance of INR25 billion to INR30 billion. Do you think that we will be able to exceed this run rate, given that our new capacities have also been commissioned and we will be able to take more orders? I think we were holding back ourselves from taking more orders while the capacity was being commissioned. Also, could you share how the pipeline looks for the second half of FY27 in terms of order intake?

Parakramsinh Jadeja:

Thank you, Harshit. You're right. Already, we have been clocked against the guidance is little bit higher. And always our second quarter and third quarter is intake month basically, all the time, okay. Is the place the orders there? Still, let's say every sector, the pipeline is very healthy. Particularly in aerospace and defence, we are expecting further more orders in this quarter and coming quarters on a healthy numbers over there.

Harshit Patel:

Yes. Understood. Sir, my second question is on our interest cost. I think they fell to about INR14 crore from a very high number in the last quarter. This is despite our net debt has actually grown in the first 6 months of FY27. I just wanted to reconfirm with you, we are fully expensing our interest cost, right and not capitalizing that?

Parakramsinh Jadeja:

So basically, this is a operational, let's say the utilization and all, on a working capital and everything is a reduction of our interest cost there.

Harshit Patel:

Understood, sir. Sir, yes, lastly, on Huron, I think Huron has reported a revenue of about INR44 crore in this quarter, with a net profit being about INR43 crore. Probably still maintain the senior guidance of about INR300 crore to INR325 crore of revenue at Huron, with about 5% to 10% EBITDA margin.

Parakramsinh Jadeja:

Correct. we are on the same level. We are looking to be a quarter 3 and quarter 4. And we are very progressed in terms of is all end-user certificates and all. And very positive signals has come from the government authority over there. And I am very happy to share with you, 1 or 2 machines last week, they already given a permissions to us also. So with that, third and fourth quarter, we are seeing a good visibility is on a ramp up on a revenue. And definitely, we are on a track to reach out to close to a INR300 crore of a targets to be there.

Page 5 of 18

Jyoti CNC Automation Limited November 03, 2026 Moderator:

The next question is from the line of Bajrang Bafna from Sunidhi Securities.

Bajrang Bafna:

Just my first question pertains to again a bit of Huron that you have already indicated that some approvals have already started coming in for the licenses, so we are in a position to dispatch machines in this quarter. So broadly, sir, if we see INR300 crore guidance, can we expect at least INR80 crores or maybe INR100 odd crores of dispatches in Q3 to begin with, then probably a little bit ramp up in Q4? Is that a right understanding?

Parakramsinh Jadeja:

Yes, that's a clear right understanding.

Bajrang Bafna:

And sir, if we see in the first half, the console margins are closer to 22-odd percentage right now, and we have initially guided will be closer to 25% odd margins. So can we expect now the second half where your additional capacities are going to be there? So the range -- the overall guidance of 24 or maybe 25 odd percentage of EBITDA margin, can we are in a position to achieve that once the ramp up at Huron happens in this?

Parakramsinh Jadeja:

Yes, we are very much confident. If you look at that in a domestic front, we are doing extremely good. And with this second half always to be a much better half from the H1. So with this, all the situation, we are very much confident to reach to 25% margin, what we have guided to market, and we are about to maintaining those things.

Bajrang Bafna:

And sir, if my understanding is right, despite your most of the sales that has come from entrylevel machines, which you have already indicated in your opening remarks in Q2, where almost 1,800 odd machines are the entry-level machines, where margins are little lower as compared to your high-end machines, which goes to defence and aerospace segment. Despite that, you have been able to clock in 28% standard on margin. So once the ramp up of these high-end machines happens in Q3 and Q4, because they are predominantly heavy in terms of defense and aerospace side. So there is a scope to further improvise the overall margin performance. So is that understanding is right?

Parakramsinh Jadeja:

Yes, you are right. And I was always telling to you people in your past questions and in a meeting, that let's say once this our entry-level product number is also going to increase, our business model combination is such that we will not go below 25% of margin there. And until what the order book can pipe with me, I know the completely composition on the order book and what we are going to execute those things. So we are very much confident onto. In Q2, let's say in H2, even the number of machines are going to increase furthermore because our capacity is now being put to use. And that's how we are looking to be a better growth coming in the next 2 quarters there.

Bajrang Bafna:

And sir, if everything goes right, because now you are working more towards the development and the R&D side. So the lever of this R&D expenses, because as you move into next 2, 3, 4 years view, you are anyway going towards mechatronics and then probably robotic side, where lot of sort of investments will also be required to develop these high-end products.

Page 6 of 18

Jyoti CNC Automation Limited November 03, 2026 So in that case, the lever will be your -- additional margins will be a lever where you can put in these investments. So this, despite having high R&D expenses, and your margins that you are guiding 25%, so you can use that lever to maintain the margins. Is that is something that we can hope for, or there is a further room to show higher margins in the coming years? Because that's a broad understanding, because the additional investments that you will require to put in for developing high-end products, whether they are in mechatronics or they are specifically the robotic side. So is that something that the lever that you will use the additional profitability to fund your additional investments in the R&D side. And the margins will be maintained in this 25% odd range, because that we need to have some sort of understanding that your additional investments will go into funding your additional requirements on the R&D side. So is that the broader understanding in your mind also to... Parakramsinh Jadeja:

Let me, Bajrangji, let me clear the strategy. You are right. Your thinking is absolutely on a right direction. Basically, in the next 2 to 3 years, we are developing all our electronics, that is a side. Our original task is the strategy is that, in the next 2 years, we would like to be Jyoti, to be a mechatronics company. Today, we are a mechanical company. We design the machine, we manufacture the machine, we castings, we machining the precision component, and we integrate. Now in future, we are looking to be a mechatronics company. So basically, definitely yes, we are going to invest whatever the benefits we are going to improve in a margin, we are going to invest into R&D there. And that will allow us to a further growth there. And that let's say after the mechatronics, in future, we will enter first into industrial automation. And industrial automation is the robotics is the first priority for us there, basically. So these are the multiple vertical we are working and we are going to work over there. Second part, definitely we are looking still to be a little bit margin improvement over there because our cost. One, this is to be manufactured vertically integrated over here. The cost advantage will come. As well as today, by the way, I will just give you the input that, we have been put up almost in this last 6 months, we have close to 950 people and been add on. And this revenue still is going to come. So costs are being booked, okay. So these all operational leverage also we will see in the coming days, and that we will utilize into R&D also to be there.

Bajrang Bafna:

Got it, got it. And sir, on this INR1,000 crore investment that you are going to do over next 4, 5 years, where these all controllers and these drivers are going to be developed, you have already got closer to 25% central subsidy. Can we expect similar subsidy from the state government since you have applied for that?

Parakramsinh Jadeja:

Yes, thank you. Basically, I stated into my opening remarks that, we got 25%, almost INR255 crore subsidy from the central government. And Gujarat government that is state government is a matching grant. Is almost equal to a little bit something more because there is some R&D subsidy also is going to be kick on. So with that, we are expecting very soon, this sanction will come and we will close to 50% plus to the subsidy we will have out of INR1,020 crore there.

Page 7 of 18

Jyoti CNC Automation Limited November 03, 2026 Moderator:

The next question is from the line of Raj Shah from ENAM AMC.

Raj Shah:

My first question is regarding the order inflow. As you mentioned in your opening remarks as well, almost more than 50% of the orders that we received in this quarter was from the auto sector. If you can throw some light on where are these orders coming from, how has been the demand, and is this sustainable going forward as well?

Parakramsinh Jadeja:

Thank you, Raj. Basically, I always telling to, in my call in past also to you also, Jyoti, we have a more than 15,000 plus customer base now, okay? In the entire manufacturing ecosystem of a country. Today, we are serving almost all manufacturing areas, okay. And particularly where I'm sitting, I like to share with you that, in Rajkot, a standalone we are looking, this year we will be crossing more than 2,000 machine only from my town. And these are all Tier 1, Tier 2, Tier 3 supplier for auto, general engineering, all these areas. And every area, like Punjab is growing today, and Kolhapur belt is growing. Even now the eastern belt, okay? There also we are receiving a good numbers and all. I think, momentum, what the way we are seeing the investments are coming and pipelines are what we are seeing today. We are very much confident in the next 3 years, we are clearly visibilities are there. In fact, still there is a great opportunity is there and our 62% is still is import there. So our focus area is to improve the execution more and more, okay? Front end business side, there is no challenge. We are not going to see that coming 2 to 3 years there.

Raj Shah:

Got it, got it. And sir, now since our capacity will be with foundry coming up in this quarter, can we see the ramp-up in execution of the EMS orders in the order book, which has not been moving because of capacity constraints?

Parakramsinh Jadeja:

See, even if you see that the step put to use. We 1,500 capacity and we have executed 1,900. It means the new capacity is already into consideration there. Even in EMS now in this quarter it is almost you can see there is the execution also has been improved there. And we are expecting furthermore improvement will come in the next 2 quarters there. You are right there.

Raj Shah:

Got it, got it. Sir, second question was on the working capital front. We can see inventory days have increased, we understand in this quarter because your capacity is still coming up and because of supply chain restrictions, and also there are many components which has a very long lead time. But going forward, do you see that this coming down to, say, below 200 or close to 200 levels, that you have been talking about in the past?

Parakramsinh Jadeja:

Thank you, Rajesh. Basically, Raj, in fact, inventories days, if you look at that, the one, let's say, total year these targets and we are reaching out there. At 6 months today, in fact, from 203 days at March level, and if I look at that, our the next coming 6 month, the projections what we are seeing. So already today, we are at inventory days has been improved. Basically, we are at close to 190 days. And end of the year, we are looking to further lesser than this, basically.

Raj Shah:

Got it, got it. Finally, sir, last question. What will be the capex amount for this year, FY27?

Page 8 of 18

Jyoti CNC Automation Limited November 03, 2026 Parakramsinh Jadeja:

So until today, we have done close to 100 and all the advances and paid we have done. So INR183 crores we have done. And now, the only the foundry last miles are there. So what we have been projected, the total outlays of a close to INR450 crores to INR500 crores, we are going to be very near to that after this all completions over there.

Moderator:

The next question is from the line of Aniket Jain from Anand Rathi.

Aniket Jain:

So my first question is that aerospace and defence orders have declined quite materially this quarter, while autos as well as general engineering orders have picked up. So do we think that the momentum in autos and general engineering will continue, and maybe can we see very sharp pickup in aerospace and defence from next quarter? And also, since auto and general engineering would be more of entry-level or mid-level machines. So is there any risk of any impact on gross margins due to the mix change? That's my first question.

Parakramsinh Jadeja:

Aniket, number one, that in aerospace and defence, many orders we are getting through the government tenders. In a last quarter, there are some of the tenders has not been open as we have been expected. So that will come, and it means we are not lose any orders. It will be in the pipe there. So we are on track as our plan, and we are not seeing anything in a deep on aerospace and defence particularly, okay. In fact, one more thing I would like to highlight there, and I was always telling to you also that my aerospace, defence, or entry-level product and all product mix, my margin is not going to be affected there. If you look at this quarter, it's clearly showing that the number of machines has more, okay. So initial, my gross margins are better on a high end, but then my overall cost is then furthermore there. Here, I'm absolutely is optimizing those areas to be there.

Aniket Jain:

Understood, sir. And so, my second question is that, sorry for the background noise. Maybe I'll come back in the queue there is some alarm that has gone off. Sorry for that.

Parakramsinh Jadeja:

No issue, no issue.

Moderator:

The next question is from the line of Ajay Surya from Niveshaay.

Ajay Surya:

Sir, just one question on, first, if you can just give some clarification on the current status on the French investigation which was going on Huron like what is the current status? And so, just follow up on this, sir, like because like the CNC controller or any critical component supplies are the end users. Like maybe the French government asking for more end-user certificate or compliance undertaking on machines Made in India? So like are we facing any maybe bottleneck on raw material supply on CNC controller or any other critical component? If you can just give some clarification on this.

Parakramsinh Jadeja:

Okay. Thank you, Ajay. Let's say first half your question is regarding the status of Huron. So the first week of April, what we received the notice and what we have response to them, and then after there is not a single communication from them, okay. And this is the same status are all other investigative company in Europe.

Page 9 of 18

Jyoti CNC Automation Limited November 03, 2026 There is no further progresses. Let's say it's basically status quo there, okay. Second part is the investigation and the dual-use purpose license clarifications. Okay, let's say approval. There is not much direct connectivity there. Usually right now, the time has increased to give a end-user certificate because they are in a war situation. So they are asking, clarifying and more times are taking to giving the approvals of a license there. But these are the issues are mainly on a French side. We are not witnessing these kinds of things in what we are making machine in India. We are not facing these kinds of challenges over here, and we are in a good shape over here. let's say these are the 2 questions over that, but one of the hint what we have been listened at. Is that a supply chain issues? Yes, there is a CNC controller supply chain is increasing. The concern is becoming increasing due to the worldwide this machine tools order intake is increased dramatically now. In the last 6 months, Japan has clocked the order book intake is more than 60% month-on-month there. The highest order intake is happening in Japan, Germany, Italy, and particularly in U.S., okay. Due to this all AI and this data center, all these capabilities and capacities are fully booked on that. So previously, what the delivery we were getting into controllers and all the suppliers almost goes on toss and more than double the time has happened. But thanks to the God and we have been planned properly, and let's say all our the capacities and everything was coming and renting off. So we were planned properly and then all the inventories and everything, what our safety factors we have been maintained, and because of that, today we are able to clock this growth. Otherwise, this is yes, it is a challenging time on a supply side there. Ajay Surya:

And sir, like on the -- maybe because a large chunk of our order book is from aerospace and defence, like almost 30%, 35%. So for these orders, like are the designs or technology are from transfer from Huron,because like just one as in simplify, will this affect our standalone business or it will not affect?

Parakramsinh Jadeja:

No, it is our own designs. Some of the machine has been designed by Huron, but it is a jointly designed. This all our ownership and everything is with us only.

Ajay Surya:

Got it.

Parakramsinh Jadeja:

And now we have close to 200 plus designers working over here at Huron at 15 to 20 people. So we have a larger team and more capabilities and everything we have developed over here over the period there.

Ajay Surya:

Got it, got it. And sir, congratulations on the ECMS approval. So sir, like...

Parakramsinh Jadeja:

Thank you.

Ajay Surya:

One question on this. Like sir, I mean, I have read across like global CNC companies who have tried to develop controllers themselves. There are few Chinese companies and even GE tried to

Page 10 of 18

Jyoti CNC Automation Limited November 03, 2026 do, but globally when we see, only few players have succeeded. And while we have a large installation base. Sir, just want to understand on the execution, like will there be a separate team for this or like how many engineers do we have in maybe the particular electronics and controller development? How it was maybe 2 years back, 1 year back, and how are we now going to maybe increase the team over here for all the controller, drivers, servo motors, because, sir, it is a very critical. So controller is a brain of the machine, and we have seen companies struggle to build a commercially accepted controller. And that's why maybe only like Siemens, FANUC, and all these players rule the market. So like just want to get some sense on like what gives us the confidence that we can maybe possibly succeed over here? Parakramsinh Jadeja:

Yes. Thank you. That's a nice question. See, the Indian engineers has a great capabilities. I believe on that. And today, in terms of all these young talented people, in only this controller division in R&D center today, separately the teams are working since last 1.5 year. Now that number has reached to almost more than 110 people. And we are expecting 40, 50 more engineers are going to add in the coming days, in the next around 6 month there. So all these young engineers are designing, developing close to this 150 plus people. We are very much confident in terms of the quality of the product. And let's say right now, the biggest advantage, what the Siemens and FANUC has taken 50 years. Today, all the code development times and all, with this AI comes in a picture, and the quality outputs are coming on that. The speed has increased there. The quality and speed both are increased there. And we are quite confident and even we are putting up all the hardware manufacturing facility. It's a world-class facility we are creating. So we don't have any doubt in terms of the quality parameters. Yes, there is a challenge, acceptability from the customer side, but Jyoti has a 15,000-plus customer base, and one-third are customers are a die-hard customer for us. Whatever the things are going to give them, okay, the people will accept and try and allow us to test over there. So I'm very much confident in coming days to execution on this area there.

Ajay Surya:

Understood. And if I can maybe ask one last question.

Moderator:

Sir, sorry to interrupt. But can you please come back in the queue. The next question is from the line of Aniket Jain from Anand Rathi.

Aniket Jain:

My second question was related to the machine realization that have declined about INR32 lakhs a quarter. So as the revenues from Huron and aerospace and defense picks up in the coming quarters. So can we expect this to increase to INR35 lakhs to INR40 lakhs, or would INR32 lakhs, INR35 lakhs be a more reasonable range, considering we will see a very sharp pickup in entry-level and mid-level machines going forward?

Parakramsinh Jadeja:

See, what is your question basically?

Page 11 of 18

Jyoti CNC Automation Limited November 03, 2026 Aniket Jain:

So the average realization has reduced to about INR32 lakhs this quarter. So would we see a jump to maybe INR35 lakhs, INR40 lakhs that we had previously? Or is this a more reasonable number because the number of entry-level and mid-level machines will be higher?

Parakramsinh Jadeja:

See, Aniket, I am very much clear and telling you again and again, okay. Now, today, the way I have add-on a capacity, these numbers are definitely a top line is going to increase, number of machine is like that. So average realization is no more a number for me there, okay. But yes, INR32 lakhs to INR35 lakhs is, even in the past also I said the range is going to be there.

Aniket Jain:

Correct, sir. And sir, my second question was on the data centers. So we are seeing very massive installations for data centers. So do we have any ready offerings that we can supply to data centers, and are we receiving any customer inquiries for any of our products from those customers?

Parakramsinh Jadeja:

Oh, of course. Many of our customers have started using our existing product as well as we are developing product for them. And is too much of things are coming now. Right now, all these data center component manufacturer, mainly in China is a leading country today. But the things are coming in India also, and we are witnessing this growth over here.

Moderator:

The next question is from the line of Abhishek Jain from Kriis PMS.

Abhishek Jain:

Congrats for strong set of numbers, sir. Sir, my first question on the Huron side. We have already recognized certain upfront expenses in Huron, while INR60 crore of Huron revenue has not been recognized in consolidated financial in first half. So will this revenue will flow in the second half and it will help in the improvement in the EBITDA margin?

Parakramsinh Jadeja:

Absolutely. It will cover in H2.

Abhishek Jain:

So if I see that this quarter we have revenue of around INR44 crores in Huron, while you have recognized around INR15 crores revenue. So if we adjust that numbers, our EBITDA margin will improve by 3% to 4% on consolidated, is it a right assumption?

Parakramsinh Jadeja:

Yes, it's a right assumption.

Abhishek Jain:

Okay, sir. And my last question on the revenue guidance, the volume. Just wanted to understand what is the volume guidance for FY27 for Huron and standalone business, and what would be the margin guidance for separately?

Parakramsinh Jadeja:

So basically, in the past quarter call also, we were discussed, and in terms of a number of machines, we are expecting to 8,000 machines to clock. And we are on to a same right now, already has seen this quarter has improved. We have already touched 3,317 machines and expecting to close to 4,700 plus machines in the next 2 quarters there, okay? And in terms of a guideline. I have told you that we will be in terms of a total numbers, Huron, Jyoti combined will grow by 25% to 30% and we are on the track there. As well as margin side, in many of other past the

Page 12 of 18

Jyoti CNC Automation Limited November 03, 2026 questions I confidently given, and I am giving you that also. We will maintain our 25% commitment, and that will be closer at end of this year, we will reach out to there. Abhishek Jain:

Got it, sir. And when can we expect the commissioning of the new plant? When will the production start?

Parakramsinh Jadeja:

Already I said in a very simple way that already put to use. Only when foundry is on last mile. And that's how these all the machine assembly, sheet metal, and everything has been done. So already is put to use there now. Once the foundry will finish, we will say that is complete there basically. But there is no bottleneck today in terms of what we are targeting to achieve this year there now.

Abhishek Jain:

Can we expect to...

Moderator:

Sir, sorry to interrupt, but can you please...

Parakramsinh Jadeja:

Already I told you that 3,300 become 4,700.

Moderator:

The next question is from the line of Sanjay Ladha from Bastion Research.

Sanjay Ladha:

Sir, my question is regarding the competition which is coming up. So what we are hearing from across Japan, Taiwan, and across countries of the management of the CNC machine is. India is becoming a more focus area for them, and they are setting up service centers in India. So can you throw some light on this, and are we seeing some competition on that side or this is not a portal to what we are doing, and we will be able to do what we are doing? If any comment from your end.

Parakramsinh Jadeja:

See, I will tell you one thing. I flip the question basically. I see differently, okay. See until today, the Indian market has been enjoyed by these Japanese and Europeans. Now we are giving them a competition. And our market share, let's say 10 years back, their import was 80%. Now it has reached to 38% is the manufacturing, 62% like that, okay. So and their services centers and everything is in India because they are servicing in India last 25 years there. So basically now with this, our capabilities are increasing, our capacities are increasing. We are trying to more and more compete to them.

Sanjay Ladha:

But sir, just wanted to add on that. So you have already said that Japan has clocked 60% Y-o-Y growth. And what I am hearing that Japan, because yen has depreciated a lot, there are more lot of inquiries happening over there. Because until then, it is an expensive market because of the foreign exchange problem due to this. Now, we are seeing that growth is coming back in Japan again. So before my question pertaining to that, the key because the machine which was previously supplying into India or other countries, the cost is pertaining to higher because the cost differential is not there. So anything sort of that, I am just asking?

Page 13 of 18

Jyoti CNC Automation Limited November 03, 2026 Parakramsinh Jadeja:

No, basically, the Japanese yen is, in terms of a dollar, it's down, okay. But dollar against the Indian rupees has gone up. So in India, the Japanese price has not been decreased, but not an increase also.

Sanjay Ladha:

Okay. Understood. Sir, just a last question. Regarding that what you have said in the con call, what I am able to see is that the H1 FY27 was roughly 30%, 35% of our revenue EBITDA and PAT, and probably H2 would be closer to 70%, 75% of revenue EBITDA and PAT. Is that fair assumption to take it from...

Parakramsinh Jadeja:

Let's say it's not at a 35%, it's a 40%, 60%.

Moderator:

The next question is from the line of Nikhil Kanodia from Sunidhi Securities and Finance Limited.

Nikhil Kanodia:

Sir, it is very heartening to see that few of our concerns are getting addressed. So sir, just wanted to check, for this quarter, like half year, the cash flow was around INR112 crores in front of INR13 crores that we did. So in that regards, as we ramp up the ordering and all of those things, our execution, so what sort of cash flow run rate should we expect for the years to come and for this complete financial year?

Parakramsinh Jadeja:

Yes. Thank you. Finally, this question has come because it was always people were looking and asking me. Now, today, we are close to a 47% of our OCF is against the EBITDA. And we are looking to be a 50% numbers to end of this year. And it will be continued to be there. So operating cash flow, we will see to a 50% to the EBITDA in the coming days there, and it will be maintained.

Nikhil Kanodia:

Okay. And sir, for the entire year, you had guided that you will do approximately 8,000 odd machines, and in H1 you have already done 3,317. This is obviously on an annual basis beyond 6,000. So right now, what would you guide for the entire machinery or maybe H2, how many deliveries will be there?

Parakramsinh Jadeja:

Sir, I told you that we will cross 8,000 machines.

Nikhil Kanodia:

Sir, 8,000 looks very conservative, and it is an easy target. That is the reason, like any change on the target over there?

Parakramsinh Jadeja:

How come it has become easy target? It has become, let us say, if I look at that, if 50% growth also, okay. It is close to 4,900. Okay? If you make a total, it is coming to 8,000. It is basically a 40%, 60%, is a 50% plus...

Nikhil Kanodia:

Yes, yes. Last year you have done somewhere around 5,600, so that was on.

Parakramsinh Jadeja:

5,600, was a full year.

Nikhil Kanodia:

Yes. Full year only.

Parakramsinh Jadeja:

Okay. So what is -- what last year we are doing almost 90% we are going to do in 6 months. It's not in a conservative number.

Page 14 of 18

Jyoti CNC Automation Limited November 03, 2026 Nikhil Kanodia:

Okay, sir. Sir, on the basis of what your competitors are saying, and even you have said that there is lot of demand for machining and all of those things, be it global or domestic market. And you have already mentioned that you have been planning it way ahead, and hence you don't see any challenges. So sir, just wanted to understand, say for example, in terms of controllers and all of those things, till what level can we see that or there will be not any supply side issue over there? Are there any capabilities towards our own controllers? That's the part in that as well. And like till what level, say for example, from 6,000 you're going to 16,000. So till what level are we sitting comfortable with, like what level of the deliveries can we manage?

Parakramsinh Jadeja:

So basically, we said that we will grow continuously next 2, 3 years by close to 25% to 30%, and will be maintained. So if you look at that this ways, and controllers will come in the next 2 years' time. It's not been counted right now into this first -- one year there? It's not in a part of that. So supply chain is basically has been continued to be a existing supplier, and there how only we are going to be maintain that.

Nikhil Kanodia:

Understood. And sir, you said that there are some minor delays or like in few days we will see the foundry also up and running. So just wanted to understand, like when are we expecting it to be completely operational and then even the foundries? I am aware that like when we did the plant visit and all of those things that we were already using the facilities. So in terms of foundry and all of those things, say some rough, like within a week's time or maybe a month's time, when are we expecting that to be also up and...

Parakramsinh Jadeja:

No. Foundry, first of all, this is a completely a new technology that we are being putting over here, okay? So this is a lost foam vacuum casting, okay? Is in a new area, and then until today in India, there are few foundries are there, but those are the small component. Today, we are going to do up to a 15 tonne single piece casting with the lost form, okay? So it's a new things. Already all the equipment is under transit, okay, and it will reaching there in this month end, and we are expecting to complete this quarter.

Moderator:

The next question is from the line of Rabindra Nath Nayak from Nirmal Bang Securities.

Rabindra Nayak:

Sir, the time is short, so I will read out the question. If you can answer it properly, that will be helpful, sir. Sir, you have actually targeted to spend around INR1,000 crores of capex in next 5 years to meet the approval that is you got the ECMS scheme. So how this capex will be done? Because you have already completed around INR200 crores capex is going to be completed this year. So this is a 5 years. Whether it will be through partner basis or some joint venture basis, you will do that. That is my first question. So what is the pending revenue from Huron in a particular last year? Last quarter, there was a negative kind of there was no booking from Huron, and this quarter it is INR15 crores we have booked. So what is the pending revenue that is to be booked, which is pending around the end-user certificate which is remaining?

Parakramsinh Jadeja:

Rabindraji, slet's clear that, okay? The last quarter also in Huron, we have booked close to INR30 crore revenue, and this quarter also we have booked INR42 crore, okay? But let's say we are

Page 15 of 18

Jyoti CNC Automation Limited November 03, 2026 supplying the parts and machines to them, okay? So in a consol, it has been nullified there, okay? And that's how it's become a INR15 crore there, okay? Otherwise, there is a dispatches are happened, INR42 crores to be there, okay? And let's say the revenue what we have been reversed in the last quarter of the last year, it was close to INR65 crores, is still is pending as it is. Once we will get the clearance, we are able to book the revenue to be there, okay. This was the questions of the Huron side. What was the other your question there? Rabindra Nayak:

The capex?

Parakramsinh Jadeja:

Let me clear to you that. Basically, in a capex side, for the electronics component manufacturing, what we have targeted is, let's say, close to a total project cost is going to come close to INR1,250 to INR1,300 crores. Out of that, INR1,020 crores, machinery, see this all subsidy will get against the machinery, not to be a land and building to be there, okay. So we are going to do it in a phased manner. In a first phase, we are going to do the investment in a one year time is close to INR400 crores to INR450 crores. And out of that, we are expecting close to a INR200 crores to be a subsidy there. So our outlay is going to be INR200 crore for the next one year there.

Rabindra Nayak:

Okay, okay. And sir, why this year, this quarter, the tax rate is so high, 30%? Is it any reason, or it is going to normalize coming year?

Parakramsinh Jadeja:

No, no, tax rate is not 30%.

Rabindra Nayak:

Okay. This quarter it is 30%. So what is the average tax rate we should assume for the next full year?

Parakramsinh Jadeja:

See, basically tax rate, Rabindra bhai you have to see into standalone, okay? In a consolidation, there is a loss has been reduced, so tax rate you will see more there. Once you see the standalone, you will find a clarity there.

Rabindra Nayak:

Okay. Sir, what is the employee cost run rate we can expect in next 2 quarters? Your plant is going to be commissioned. So what is the employee cost rate for quarter we can expect for the next 2 quarters?

Parakramsinh Jadeja:

Let's say, first half, what the cost of first half, it is going to be similar in a second half, because already we have been deployed the more people.

Rabindra Nayak:

Okay, okay. Sir, what is the foundry capacity lastly? What is the total foundry capacity, annual capacity, new foundry capacity, and the existing foundry capacity?

Parakramsinh Jadeja:

The existing foundry capacity is close to 1,500 tonne per month. With the new foundry capacity, we will reach to a 5,000 tonne per month.

Rabindra Nayak:

Okay, 5,000. So 20,000 per month, the total capacity, including a new foundry?

Page 16 of 18

Jyoti CNC Automation Limited November 03, 2026 Parakramsinh Jadeja:

No, no, no it is from 1,500 to 5,000.

Rabindra Nayak:

Okay, 1,500 to 5,000. Okay, understood, sir.

Moderator:

The next question is from the line of Amitoj Singh from 360 ONE Capital.

Amitoj Singh:

Just one question that, how much of Huron revenue was deferred this quarter? I think last quarter we had around INR35 crores of deferrals. How much will the figure be this quarter?

Parakramsinh Jadeja:

So basically, it's not in a deferred, but basically, it's not been, let's say, booked, okay. It's not in a deferred, it's not in a perfect thing because as per the POCM, we are not booked. So this quarter also, let's say, the production and everything has happened nicely what we are expecting, okay. So what we are looking to be INR250 crores, INR300 crores, we will get it soon there once the clarity will come. So this quarter also close to 3 million to 3.5 million additional we have produced, but we are not able to dispatch them.

Amitoj Singh:

Got it, sir. And just one more question on the interest expense. I didn't get the rationale behind why our interest expenses declined drastically this quarter. And should we assume this to be the stable quarterly rate, or was this just a one-time fluctuation?

Parakramsinh Jadeja:

No, it will be stable in a quarter-to-quarter there. See, we have a large working capital utilizations, okay. It's ups and down. Your short-term borrowing is become a plus or minus, then it will be plus or minus there.

Moderator:

The next question is from the line of Simran Kumari from Narnolia Financial Services Limited.

Simran Kumari:

Most of my question has been answered. Just wanted to get a clarity on Huron. Like what are the total revenue we are expecting to recognize during second half FY27?

Parakramsinh Jadeja:

So ma'am, I said that we are going to reach close to 300 crores. It means close to EUR28 million there, okay. Today is EUR6.5 million. The difference are going to come in the next 2 quarters then.

Simran Kumari:

And my second question is basically on the realization. Like you mentioned, due to more entrylevel machines, our realization has been in the range of INR32 lakhs to INR35 lakhs. Is it same for the FY28 as well, or do you think it will go to our previous range of INR35 lakhs, INR36 lakhs?

Parakramsinh Jadeja:

So we will be maintaining, I said that, in between 35 to 36 in the next 2 to 3 years there.

Moderator:

Ladies and gentlemen, due to time constraints, that was the last question. I would now like to hand the conference over to management for closing comments.

Parakramsinh Jadeja:

Thank you all for joining us today. I hope I have addressed all your questions. We remain committed to keeping the investment community informed with the regular updates on any development in the company. For any further information or queries, please feel free to reach out to us or SGA, our Investors Relation Advisor. Thank you very much for joining this call, and I wish you a wonderful, Happy Diwali to all of you there. Thank you. Thank you very much.

Page 17 of 18

Jyoti CNC Automation Limited November 03, 2026 Moderator:

Thank you very much on behalf of Jyoti CNC Automation Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Page 18 of 18