Jyoti CNC margin slips as costs and interest pressure profit
Revenue rose +23.97% YoY, but costs grew faster and interest nearly doubled; management reported a Rs 4,848 cr order book.
Filed 07 Aug 2026, 13:59 IST · Jyoti CNC Automation Ltd (JYOTICNC)
Key takeaways
- Revenue grew +23.97% YoY, but expenses grew +28.93%, narrowing operating margin by 3.03 percentage points to 21.40%.
- Net profit fell -19.99% YoY to Rs 57.14 cr as interest expense rose +99.84% and other income fell -80.59%.
- Management reported a Rs 4,848 cr order book after completing capacity enhancement of 6,000 machines a year.
Price around the results
Revenue growth did not translate into profit growth
Consolidated revenue rose +23.97% YoY to Rs 508.47 cr, but net profit fell -19.99% to Rs 57.14 cr. Other income contributed 5.42% of pre-tax profit, so it was not a major earnings source, while its -80.59% YoY decline reduced support to reported profit. The lower tax rate, down 3.66 percentage points YoY, partly cushioned the pressure but did not prevent the net profit decline.
Costs and finance charges compressed margins
Sequentially, revenue declined -15.14% while expenses fell only -11.54%, so operating margin narrowed by 3.20 percentage points. YoY, expenses grew +28.93% against revenue growth of +23.97%, reducing margin by 3.03 percentage points. Interest expense rose +22.74% QoQ and +99.84% YoY, adding pressure below the operating line; the tax rate fell 12.26 percentage points QoQ to 22.16%.
Margin has fallen for a second straight quarter
Operating margin declined from 26.84% in Q3FY26 to 24.60% in Q4FY26 and 21.40% in Q1FY27. Despite the sequential deterioration, Jyoti CNC's margin was 7.12 percentage points above the 14.28% median for 70 reported Industrials peers.
Capacity expansion and new machine launch support the order pipeline
Management said capacity enhancement of 6,000 machines per year was completed and that a further 10,000 machines per year was planned by September 2026. The company said it launched the NX 6240 EY high-performance double-column machine in Q1FY27 for railway, commercial vehicle, infrastructure, power, heavy engineering, and die-and-mould customers. Management reported an order book of Rs 4,848 cr.
Current market reaction remains pending
There is no reported market reaction to these results yet. Across eight prior result reactions, the stock rose three times and fell five times, with a median absolute move of 3.64%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹508 cr | ₹599 cr | -15.14% | +23.97% |
| Other income | ₹4 cr | ₹25 cr | -83.95% | -80.59% |
| Expenses | ₹400 cr | ₹452 cr | -11.54% | +28.93% |
| Operating profit | ₹109 cr | ₹147 cr | -26.16% | +8.60% |
| Operating margin (%) | 21.40% | 24.60% | — | — |
| Interest | ₹24 cr | ₹20 cr | +22.74% | +99.84% |
| Depreciation | ₹15 cr | ₹14 cr | +5.68% | +22.94% |
| Profit before tax | ₹73 cr | ₹138 cr | -46.85% | -23.75% |
| Tax | ₹16 cr | ₹48 cr | -65.78% | -34.55% |
| Net profit | ₹57 cr | ₹91 cr | -36.91% | -19.99% |
| EPS (₹) | ₹2.51 | ₹3.98 | -36.93% | -20.06% |
Operating margin of 21.40% compares with a Industrials sector median of 14.28% across 70 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company launched the NX 6240 EY high-performance double-column machine during Q1 FY27.
Expansion
- The company completed capacity enhancement of 6,000 machines per year and plans a further 10,000 machines per year by September 2026.
New orders
- The company reported a robust order book of INR 4,848 crore.
New products
- The NX 6240 EY is targeted at railways, commercial vehicles, infrastructure, power, heavy engineering, and die and mould segments.
What to watch
- Whether operating margin recovers from 21.40% after two consecutive sequential declines.
- Whether interest growth moderates after rising +99.84% YoY and +22.74% QoQ.
- Progress against management's stated plan for an additional 10,000 machines per year by September 2026.