Jyoti CNC's margin stays below last year's level despite 18.53% sales growth
Expenses grew faster than revenue YoY and a higher tax rate pushed net profit down, although the margin improved sequentially.
Filed 03 Nov 2026, 12:04 IST · Jyoti CNC Automation Ltd (JYOTICNC)
Key takeaways
- Revenue rose +18.53% YoY, but expenses grew +22.79%, pulling operating margin down 2.71 percentage points.
- Net profit fell -15.11% YoY as the tax rate rose 8.42 percentage points, while other income was only 2.2% of pre-tax profit.
- Operating margin improved 0.42 percentage points QoQ to 21.82%, while the stock rose +3.15% on the results day.
Price around the results
Revenue momentum returned, but costs diluted operating leverage
Jyoti CNC reported consolidated revenue growth of +18.53% YoY and +18.40% QoQ in Q2FY27. Operating profit rose only +5.42% YoY because expenses grew +22.79%, faster than revenue, reducing operating margin by 2.71 percentage points. Sequentially, revenue grew faster than expenses, so operating margin improved 0.42 percentage points.
Higher tax and depreciation weighed on reported profit
Net profit declined -15.11% YoY despite the increase in operating profit, as the tax rate rose 8.42 percentage points and depreciation increased +52.53%. Other income contributed just 2.2% of pre-tax profit, so it did not materially support earnings quality. QoQ, a -42.81% fall in interest expense helped pre-tax profit rise +41.29%, but the tax rate still increased 7.86 percentage points.
Margin recovered from Q1 but remains below the prior-year range
Operating margin improved from 21.40% in Q1FY27 to 21.82%, ending two consecutive quarterly declines from 26.84% in Q3FY26 and 24.60% in Q4FY26. It remains below 24.53% in Q2FY26. Among 108 Industrials companies that had reported the same quarter, Jyoti CNC's margin was 10.79 percentage points above the 11.03% sector median.
Management highlighted capacity, orders and a new five-axis machine
Management said an additional 10,000 machines of capacity is being put to use, with foundry operations scheduled to commence in the coming days. The company reported Q2FY27 order intake of Rs 5,082 cr and described its order book as well diversified. The presentation also said the company developed the MTX 100, a compact five-axis multi-tasking turn-mill centre.
The market reaction was above the stock's typical move
The stock rose +3.15% on the results day, compared with a median absolute post-results move of 2.21% across the last eight occasions. Its history is evenly split between four up moves and four down moves, so the direction was not typical even though the size was higher than usual.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹602 cr | ₹508 cr | +18.40% | +18.53% |
| Other income | ₹2 cr | ₹4 cr | -42.71% | -75.03% |
| Expenses | ₹471 cr | ₹400 cr | +17.78% | +22.79% |
| Operating profit | ₹131 cr | ₹109 cr | +20.67% | +5.42% |
| Operating margin (%) | 21.82% | 21.40% | — | — |
| Interest | ₹14 cr | ₹24 cr | -42.81% | -1.90% |
| Depreciation | ₹16 cr | ₹15 cr | +6.04% | +52.53% |
| Profit before tax | ₹104 cr | ₹73 cr | +41.29% | -4.89% |
| Tax | ₹31 cr | ₹16 cr | +91.40% | +32.23% |
| Net profit | ₹73 cr | ₹57 cr | +27.02% | -15.11% |
| EPS (₹) | ₹3.19 | ₹2.51 | +27.09% | -15.16% |
Operating margin of 21.82% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.15% | +1.57% |
Volume on the results session was 10.64× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- An additional 10,000 machines of capacity is being put to use, with foundry operations scheduled to commence in coming days.
New orders
- Order intake in Q2FY27 was INR 5,082 crore.
- The company reported a healthy and well-diversified order book.
New products
- The company developed the MTX 100, a compact five-axis multi-tasking turn-mill center.
What to watch
- Whether operating margin moves back above 21.82% after the sequential recovery.
- Whether expense growth moderates from +22.79% YoY.
- Whether the tax rate stays near or below 30.02%.