Jyoti CNC margin drops 6.26 points as costs outpace revenue
Consolidated net profit fell 16.89% YoY, while other income contributed 17.96% of pre-tax profit.
Filed 29 May 2026, 12:43 IST · Jyoti CNC Automation Ltd (JYOTICNC)
Key takeaways
- Consolidated operating margin fell 6.26 percentage points YoY to 24.60% as expenses rose 13.50% against 4.08% revenue growth.
- Net profit fell 16.89% YoY to Rs 90.57 cr, while interest expense rose 75.02% and the tax rate increased 4.43 percentage points.
- The stock fell 9.28% on filing day versus a 3.26% median absolute move after the last eight results.
Price around the results
Costs grew faster than revenue in Q4FY26
In consolidated Q4FY26, revenue increased 4.08% YoY, but expenses grew 13.50%, reducing operating profit by 17.03% and narrowing operating margin by 6.26 percentage points. The same pattern continued sequentially: expenses rose 7.22% against 4.04% revenue growth, cutting margin by 2.24 percentage points. Other income contributed 17.96% of pre-tax profit, making reported profit less dependent on operating earnings.
Higher interest and tax rates weighed on profit
Interest expense rose 75.02% YoY, while depreciation increased 39.16%, adding pressure below the operating line. The tax rate was 34.42%, up 4.43 percentage points YoY and 5.94 percentage points sequentially. These factors helped push net profit down 16.89% YoY despite revenue growth.
Margin recovery reversed after Q3FY26
Operating margin had improved from 24.43% in Q1FY26 to 26.84% in Q3FY26, but fell back to 24.60% in Q4FY26; it remained 6.26 percentage points below Q4FY25. Even so, Jyoti CNC's margin was 8.94 percentage points above the 15.66% median for 71 Industrials peers that had reported the quarter.
Capacity additions remain the main business update
Management said capacity enhancement of 6,000 machines per year had been completed. The company also told investors it plans to add a further 10,000 machines per year by September 2026. The presentation gives no operating or financial outcome for these additions in the reported quarter.
The market reaction was unusually negative
The stock fell 9.28% on May 29, with volume at 14.04 times its reference level, and was down 3.45% after five sessions. That move was notably larger than the 3.26% median absolute reaction across the last eight results, when the stock rose after three releases and fell after five.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹599 cr | ₹576 cr | +4.04% | +4.08% |
| Other income | ₹25 cr | ₹6 cr | +309.92% | — |
| Expenses | ₹452 cr | ₹421 cr | +7.22% | +13.50% |
| Operating profit | ₹147 cr | ₹155 cr | -4.65% | -17.03% |
| Operating margin (%) | 24.60% | 26.84% | — | — |
| Interest | ₹20 cr | ₹24 cr | -16.12% | +75.02% |
| Depreciation | ₹14 cr | ₹13 cr | +7.71% | +39.16% |
| Profit before tax | ₹138 cr | ₹124 cr | +11.60% | -11.26% |
| Tax | ₹48 cr | ₹35 cr | +34.90% | +1.86% |
| Net profit | ₹91 cr | ₹89 cr | +2.33% | -16.89% |
| EPS (₹) | ₹3.98 | ₹3.89 | +2.31% | -16.91% |
Operating margin of 24.60% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -9.28% | -7.77% |
| Next session | -10.88% | — |
| 5 sessions | -3.45% | -1.19% |
| 15 sessions | +12.33% | — |
| 30 sessions | +19.48% | — |
Volume on the results session was 14.04× 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
- Capacity enhancement of 6,000 machines per year has already been completed.
- The company plans to add production capacity of 10,000 machines per year by September 2026.
What to watch
- Whether operating margin recovers from 24.60% after the 2.24-percentage-point sequential decline.
- Whether expense growth moves below the 7.22% sequential increase recorded in Q4FY26.
- Progress on management's stated plan to add 10,000 machines per year by September 2026.