Jyoti CNC Automation Ltd (NSE: JYOTICNC) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Parakramsinh Jadeja — Managing Director
Harshit Patel — Director
Analysts:
Unidentified Participant
Manish Ostwal — Analyst
Nidhi Shah — Analyst
Aadil Khan — Analyst
Ishita Lodha — Analyst
Aniket Jain — Analyst
Mayank Chaturvedi — Analyst
Pratik Dharmshi — Analyst
Venkat Rakesh — Analyst
Ashish Kumar — Analyst
Sandeep Jain — Analyst
Jash Shah — Analyst
Kamlesh Bagmar — Analyst
Depesh Kashyap — Analyst
Priyesh Babariya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Jyoti CNC Automation Q1FY26 earnings conference call hosted by Equirus Securities Private Limited. This conference call may contain forward looking statements about the company which are based on beliefs, opinions 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. 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 the than 0 on your Touchstone 4. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshit Patel from Equiris Securities. Thank you. And over to you sir.
Harshit Patel — Director
Thank you. Good evening everyone. On behalf of Equira Securities, I welcome. You all to the first quarter FY26 earnings call of Jyoti CNC Automation. We are pleased to have with us Mr. Parakaramsi Jadeja, Chief Chairman and Managing Director of the company. We will have opening remarks from Jadeja sir followed by a Q and A session. Thank you. And over to you sir.
Parakramsinh Jadeja — Managing Director
Thank you. Arfit. Good evening everyone and a very welcome to our first quarter FY26 earnings conference call. Along with me I have a senior management team and sga. Our investor relation advisors results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I will begin my remarks with the brief update on economy followed by a key operational and financial highlights for first quarter FY26. The global economy is going through a tough time. Many developed countries are still dealing with high inflation and slow growth. There is also uncertainty due to a new tariff and trade related issues.
But India continues to stand out. Our economy is expected to grow at 6.4% in both FY2, 2025 and 2026 which makes us one of the fastest growing economies in the world. One positive sign is the manufacturing PMI which measures how fast the manufacturing sector is growing. In July 2025 it stood at 59.1. Anything above 50 means the sector is expanding and India has been consistently above that mark. This shows that India is becoming a strong base and a manufacturing hub for global economies. While India’s overall outlook is strong, we need keep a close eye on geopolitical situation and ongoing tariff related situation.
Since we have a manufacturing presence outside of India, we will be a better position to navigate the situation. However, it is still evolving and needs a close monitoring. Now let me Talk about Ajyoti CNC. We are one of the top 10 CNC machine manufacturer in the world with manufacturing facilities in Rajkot in France. With an annual capacity for manufacturing of over 6,000 machines. With over decades and experience and R and D, we have been able to develop world class machine manufacturing capabilities which is at par with the global standards. We at Jyoti are proud to play a key role in supporting India’s vision of becoming a global manufacturing hub.
With our strong manufacturing capabilities and world class infrastructure, we are well equipped to meet the growing needs of the industry. Our machines are used across wide range of sectors including aerospace, defense, automotive, electronics, general engineering and many more showcasing our ability to cater to diversified applications. Our partnership with Huron, a global leader in high precision machining, has further strengthened our technological age and helped us expand our footprint across international markets. We continue to see a steady demand for our product both in India and globally driven by a focus on quality, innovation and timely delivery. Over the period we have been able to penetrate into wide industries including high growth industries such as aerospace, defense and ems.
We have been able to acquire customers with high repute and have been able to add a wallet share among the marquee domestic and global clients. We remain positive on our end user industry growth and with our expertise in machine manufacturing and strong relationship across customers, we are optimistic of growing our revenues and profits going forward. As we look forward, we remain committed to investing in a new technologies, building a strong customer relationship and supporting the growth of India’s manufacturing sector. Speaking of a few specific highlights which I want to share, in July 2025 our board approved the purchase of 20 acres of land and Tumkuru Machine Tool park in Karnataka.
This part of our long term growth plan. The idea is to set idea is to set up support centers, technological center and a warehouse closer to our customers especially those in electronic manufacturing services called as a EMS sector which is mainly based in Southern India. The strategy is to move closer to the customer cluster and diversify our manufacturing presence. Further opportunity in the EMS segment are promising. We are in active talks with multiple customers and the initial assessment looks very promising. We are still in early evolution stage and will be able to share more insights once we form some decisions as part of EMS related pli.
A government has acknowledged that the companies in the entire supply chain of manufacturing will be eligible for pli. We are in active discussion. Nothing has been finalized yet but we will definitely submit our proposal and await a positive responses there. We are Also seeing increased inquiries from our European customers, especially from the defense and the allied sector. We are hopeful that this can in turn convert into a large orders going forward. Our current capacity utilization is close to 75% with current order pipeline and order inquiries, we will need additional capacities to cater to this high demand scenario.
Our plan to increase capacities to 10,000 machine per year is in progress well and will be completed by September 2026. Lastly, I would like to highlight that continue to follow a careful and disciplined approach when it comes to investing our future growth. Currently we are planning to fund all the related organic capex by a mix of internal accruals and debt and we do not envisage any need of external capital. We remain committed to maintaining a healthy financial position while making the right investment to support our long term strategy. Coming to the financial and operational performance for a first quarter of 26 we reported a very strong consolidated revenue growth of a 13.4 percentage.
Our consolidated revenues to date rupees 410 crores in a first quarter FY26 compared to rupees 361 crores in a first quarter FY25. Historically the first quarter tends to be a seasonally a soft period for our industry as order activity is usually lower during this time. Our business typically sees a strong second half of the year and we expect this trend to continue this year as well. Revenue split across the industries is 30% contribution from aerospace and defense, 36% come from auto and auto components, 26% contribution from general engineering and 8 percentage from other sectors. Our first quarter FY26 order intake stood at rupees 451 crores which consists of 33% of aerospace and defense, 31% of auto and auto components, 29% of general engineering and 7% from the others.
Our current order book remain healthy and well diversified standing at rupees 4412 crores reflecting a steady growth and customer trust. Industry wise order book breakup stands at 39 Percentage from the aerospace and defense 19 Percentage from general engineering 17 Percentage from auto and auto components 16 Percentage from EMS 4 Percentage from dies, molds and rest coming from the other segment there. Our Gross margin for first quarter FY26 stood at 55.9% as compared to 53.2 percentage on FY25, a growth of 270 basis point over there. EBITDA for first quarter FYI 26 student rupees 100.2 crores, a growth of 6.5% Our EBITDA margin student 24.4% this quarter is against the 26 percentage in a first quarter FY25.
EBITDA was primarily impacted on account of increase in our employee cost and the same has been balanced out over the year with increase in revenue and operating leverage playing out over here. Profit after tax for first quarter FY26 stood at rupees 71.2 crores as compared to 50.9 crores in first quarter FY25 a growth of 40.2 percentage. Our pet margins for the quarter stood at 17.4% as compared to 14% in the first quarter FY25 a growth of three hundred and forty basis points on a year on year basis. To conclude, we have made a strong start of FY26 backed by solid revenue growth, a healthy order book and continued demand across the key sectors.
Our strong manufacturing basis focus on technology through our partnership with Huron and commitment to supporting India’s manufacturing vision position as well as for the future. We remain financially disciplined with balanced approach to investment and are confident of delivering a sustained growth in the upcoming quarters. We may now open the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone phone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets 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 Manish Oswal from Nirval Bank Securities. Please go ahead.
Manish Ostwal
Yes sir, thank you for the opportunity. And I have a question on the current quarterly performance compared to the earlier quarter trend. So if I look at the seasonal softness of the quarterly revenue in last year this quarter the decline compared to March quarter slightly higher compared to quarter one of last year. So can you explain anything which is impacted the more moderation growth in the revenue compared to the seasonal pattern.
Parakramsinh Jadeja
So basically Manish ji see the first quarter is little bit always softer after the stretch of last quarter and even our reflections also let’s say once every all of our customers are closing the their financials and audit numbers and always they are reaching to again to budget approvals and getting the funds and everything. So first quarter always in industries are like that okay. And this is a seasonally that we are seeing and the things are here there is no other than any significant change we have been addressed over here.
Manish Ostwal
Secondly sir, like end user industry where you indicated the order book in terms of end User industry. So those industries are going faster than much faster than the current quarter growth rate. So in terms of yearly performance where the revenue growth we can anticipate on a yearly basis compared to F25 given the very strong order book position we have.
Parakramsinh Jadeja
So particularly I’ll tell you this Aerospace and defense this area okay there we are looking a very strong wind still there. Okay. And and this area we have a very let’s say very large machines and everything that the value addition also is much better there and we are looking for the more in the coming next two to three years this scenario is going to be happen there.
Manish Ostwal
Lastly, sir recently filed a filing where you mentioned that the board is Approved purchase a 20 acre low acre land in Karnataka. So what kind of capex? What size of capex? We are investors were there so we.
Parakramsinh Jadeja
Have not make any final printout over there because just is beginning. So the idea being that we would like to develop a very supportive things to our customer there basically. So we will do our tech centers, we will do our demo centers and we’ll do the all the supporting the qualifications and all to the our customers there. Okay. So we are going near to the customers for a servicing support spare parts and all like that. So we are not looking at large anything a capex kind of a things are like that. It’s just a kind of a sales and service offices and the support systems to be developed over there in any initial stage.
And all our customers was demanding especially on all this electronic manufacturing customers base our southern area. So there were always the push was that you should come over near to us over here. So we are going there basically in terms of a capex. I’m not able to tell you anything today because it’s not in plan has not been been made out of that. We will see in a couple of quarter and we’ll update you on that.
Manish Ostwal
All right. Thank you.
operator
Thank you. The next question comes from the line of Nidhisha from ICICI securities. Please go ahead.
Nidhi Shah
Thank you so much for taking my question. So my first question is on the the other expenses they have grown reasonably this quarter. I was just won if this is a new level. Other expenses that we can extract even Q4 other expenses were a little bit on the higher side. So. And what is one of the drivers for this level of other expenses?
Parakramsinh Jadeja
So basically in other expenses generally see the way we have increased our manufacturing capacity. Okay. And let’s say this quarter whatever the parts and everything we are manufacturing we are a long manufacturing cycles are there. So in a Coming quarter water. These are all the components and everything is going to be consumed over there. So this is all our manufacturing activities has been increased. That’s why this kind of expenses has been increased there.
Nidhi Shah
And so can we expect a similar level?
Parakramsinh Jadeja
And then that will be. And that will be then, then it will be balanced, it will be sustained into. Sustained into balance there and it will be equally divided there basically.
Nidhi Shah
And also the other income this quarter is also quite high. So what is the reason for that?
Parakramsinh Jadeja
Basically this is a Forex gain. It came over here in terms of adapters and receivables there basically how much.
Nidhi Shah
Would you be able to quantify the Forex again?
Parakramsinh Jadeja
So it’s a 16 crore rupees there. And. We are in a eurozone. Okay. And Euro has been appreciated very largely in the last couple of months. So that has been converted over here basically.
Nidhi Shah
Could you please call out, you know what is your revenues and pads for Hudon for Q1 and also that you know we’ve spoken multiple times about how we want to shift most of our high end manufacturing to Huron so that you know to gain a better market share in your. So what is the progress on that front?
Parakramsinh Jadeja
So basically today whatever this order index and everything what we are seeing in aerospace and defense this is a total area we have a client base are from the Huron side only. Okay so in terms of in a Huron we have done around 70 crores as in revenue this year compared to the last year was a 67 crore there and at pet level is close to around 2 crore there. Basically there we have. Let’s say our new facilities are coming in operations from this month end. Okay they have handed over and final everything is going on.
So here already there also we have increased the manpower there a lot because the new facilities are going to start now. So almost in terms of expenses is 8 crore rupees has been add on because the people we need to be trained and to be ready with that. Okay so these are the things otherwise there also we have a sustainable margins and all are very well there now.
Nidhi Shah
So given that the new, the new you know factory is going to come up over there and you set up your hiring people there. What is the, what is the kind of revenue and pattern we can expect from Huron in say by the end of FY26.
Parakramsinh Jadeja
So you know Huron let’s say until today we are. Our capacity has been fully utilized. Okay so this year and still it is a. Let’s say four months it’s going to be. It’s almost gone okay. From the fifth month is coming it means half year is available with us and whatever the machines we are making there. It’s a long lead manufacturing machine. So we see the revenue growth on a last quarter even for a next year first quarter only to be a large growth. We can able to see that things. Okay.
Nidhi Shah
Thank you so much for answering my question.
operator
Thank you. The next question comes from the line of Adil from ICICI Prudential Life. Please go ahead.
Aadil Khan
Hi. Hi. Good evening sir. Thank you for taking my question. I have two questions. One is what percentage of our total sale is exports to us? And the second one is that do you see any impact of this global uncertainty on EMS orders that we can get in India? Those are my two questions.
Parakramsinh Jadeja
First of all we in this today’s revenue we are not having any export sales to us there. Okay. We are mainly on a eurozone there. So us today we are not directly as an affected any tariff time because we are just going and establishing our more sales networks in coming quarters there basically. Okay. And your second questions about ems. See the all the situation is lucid today. All our customers are basically going on a very happy growth levels and all. And manufacturing is going to be in the coming times is all electronic manufacturing is going to grow.
Furthermore, we are not seeing any adverse effect on investment cycles. And we are not feeling anything over that to be stopped in India today. Over here. In fact there are many more customers are coming in India. But that I have covered in my initial remarks. So we are seeing the much more opportunities on the sector. Because this is just a beginning over here then.
Aadil Khan
Understood, sir. Thank you so much for taking my question. And all the best.
Parakramsinh Jadeja
Thank you.
operator
Thank you. The next question comes from the line of Ishita Lodha from Swan Investments. Please go ahead. Yes, Mrs. Ishita, your line has been unmuted. You can go ahead. Sorry to interrupt. You’re not audible. Your voice is breaking. No, we. We are unable to hear.
Ishita Lodha
Hello. Hello. Am I audible? Yeah.
Parakramsinh Jadeja
Yes.
Ishita Lodha
For the. For the land acquisition in Karnataka. How much have we spent? Only for the land.
Parakramsinh Jadeja
Is close to a 20 crore rupees. It’s a. It’s a government lend. The government has allotted this land and it’s in a specific machine tool park. Okay. The. The Indian government has made this special park and it’s been developed very specific machine tool activities over there. Basically. So it’s in part and it’s a 20 crore rupees there.
Ishita Lodha
Okay. Yeah. Thank you.
operator
Thank you. The next question comes from the line of Aniket Jain from yes, securities, please. Go ahead, sir.
Aniket Jain
I wanted to check that you have quite a good margin increment this year. One of the best over the last few quarters. So do you expect to maintain. I’m talking about the gross margin. So do you think we’ll be able to maintain those gross margins and this time it did not flow through EBITDA because of higher employee and other costs, other expenses. So once that normalizes, can we see margins increasing to probably 27, 28%? And that is my question number one.
Parakramsinh Jadeja
Okay. And so basically in terms of a margin. So we are not seeing any pressures because the way we know what is our order book today we are executing from them. So we know the what is the price as the machine has been sell. And we know that today’s material cost and all. So today we are not seeing anything on any cost pressures there. I think we will be maintain margin growth very well in this year also.
Aniket Jain
And the second one is, would you be able to provide any guidance, revenue guidance for this year, any growth guidance or any absolute number that you are targeting for this year.
Parakramsinh Jadeja
So I’ll generally have maintained the momentum. I never made a guidance. But I’ll tell you one thing. We will. We will maintain the growth trajectory nicely and momentums will be maintained there. The way our execution will improve. See the challenges part. What we are saying is not in business because we are on a the huge order book. And still the pipes are coming bigger and bigger. Okay. Challenge is still is in part of execution. Because the people. The way we are increasing the team size people and all. And this is not an adjust commercial manufacturing activities over here is a very high.
So skill base has to be impart first. And that’s the always in my call. I have maintaining since last four calls that we are working more and more onto that. And based on that our execution will improve and we will include more and more growth to be there. In fact, all our order book we have committed to our customers vary on a short times and all. Okay. So we also are looking to be a very growth trajectory is in coming quarters to be there.
Aniket Jain
Just last one if I can squeeze in. So due to this execution, execution risk or the execution issues that you’re currently going through. Are you saying no to any orders or are you deferring the orders to probably after two years or after two and a half years. So that would be my last.
Parakramsinh Jadeja
Basically we are not doing this kind of a thing. But yes, the customers are not being pleased. Now if I commit the delivery more than two years, no ones Are ready to wait for up to two years basically. Okay, so we are also into. So right now, whatever the things we are expanding. We are, we are. We are running behind all our. Let’s say the capex what we are doing every day. We are chasing them and increasing the people and the skill up of the people. Our center of excellence are working fully and we are, we are focusing on more and more to increase the team size and to better execution over there.
Aniket Jain
Understood. Thank you so much for the answers.
operator
Thank you. The next question comes from the line of Mayank Chaturvari from HSBC Mutual Fund. Please go ahead.
Parakramsinh Jadeja
Yeah. Hi.
Mayank Chaturvedi
Good evening sir.
Parakramsinh Jadeja
Hi man.
Mayank Chaturvedi
So just one. Firstly on the board meeting approval that has come in to acquire entities in USA and China. Can you please elaborate more on this? Have you identified new entities? I mean to which part of a production will it cater to etc.
Parakramsinh Jadeja
Thank you Mike. You have read the board notes. So. Yeah. Yeah. Mike. We took a decision to go to China because the. China is the world largest market today. Okay. And we are so cost competitive and compared to the global market over there. And in China Huron has a very long customer base. Basically all our government customers are there. Okay. And we are now aggressively looking to expanding the geography China there. So we took a decision in this board and in the first phase we would like to go and sales and services network our own peoples and all.
And the second there our existing client as well as this new area there we are entering in electronic manufacturing. The largest consumers are sitting over there basically. Okay. So. So it’s a great opportunity and all the customers also wanted to us to go there. So we are going there.
Mayank Chaturvedi
Is there a customer overlap between your EMS customers in India and in China?
Parakramsinh Jadeja
Yeah, so a similar customer base also there. So we are going there.
Mayank Chaturvedi
Okay, great. Great to hear that. So second on your existing order book for ems when do you expect that to get liquidated?
Parakramsinh Jadeja
Yeah, yeah, we are just now all my. The customers plant. Okay. Their. Their supply chains are been developing and many more plant under construction. There are. Okay. So we have not been received the schedule when it is to be happened. But any moment we are looking and seeing their construction activities and all. We hopefully in a third and fourth quarter is going to be a good liftings are going to be happen for that.
Mayank Chaturvedi
Okay. Okay sir. And this last bookkeeping like you give every quarter. Can you give a breakup of the machinery sold in entry level, mid level and high level high end level machines?
Parakramsinh Jadeja
Yes. So this quarter we have sold 1117 machines. Okay. And entry level product is 994 machines. Okay. An average of a 20.52 lakhs. Okay. And meat level is around 104 machines at 71 lakhs. And the high end machine is a 19 machines at an A value average value of a 5.6 crores.
Mayank Chaturvedi
Okay. Okay sir. Great. Great. Thank you for answering that.
Parakramsinh Jadeja
So the last year. Last year. Last year first quarter we sold 788 machines. And in terms of a number this quarter we sold 1117 machines. Okay. So this is how a total scenarios are here.
Mayank Chaturvedi
I see the average price realization for high end machine has also gone up significantly.
Parakramsinh Jadeja
Basically. Basically these are the long lead manufacturing machine. So some of the machine the last year first quarter has gone up more this quarter. 23 machine let’s say is also is making impact of a 5060 crore rupees of a revenue. Okay.
Mayank Chaturvedi
Okay.
Parakramsinh Jadeja
So that is will come in a coming quarter then.
Mayank Chaturvedi
Okay sir.
Parakramsinh Jadeja
Great.
Mayank Chaturvedi
So great. Thank you for us answering my wishes. All the best.
operator
Thank you. The next question comes from the line of Pratik Dharamshi from Union Mutual fund. Please go ahead.
Pratik Dharmshi
Congratulations Jadeja ji for a good set of numbers. Couple of questions.
Parakramsinh Jadeja
Yeah. Yeah. A couple of questions.
Parakramsinh Jadeja
Thank you. Pratik bhai. Yeah.
Pratik Dharmshi
One on margins structurally how should one see your margins evolving over say next two to three years. Considering you mentioned aerospace and defense will take more share of business going ahead which mainly will be driven by Huron. So how should one structurally look at the margins? Will it hold around this level or there is scope for improvement over next two to three years time frame.
Parakramsinh Jadeja
Yeah. So again in my answer I given you in past in a differently asked this question in first time. Let’s say the people. Let’s say we have a order book is close to if you today’s run rate. If we see that is a two years. Okay. So is a margin is a clearly visible there. We are not going to down below this basically.
Pratik Dharmshi
Understood. And the second question I missed out you mentioned something would be you would be applying for some PLI scheme. I missed out on that. What was it regarding?
Parakramsinh Jadeja
Yeah, so great Prateek. Thank you for that. See the now the government has come out with the new the scheme that all the supply chain on a PLI has been eligible and Jyoti has also been identified and let’s say approved eligible. Let’s say we are also eligible to get this PLI scheme and whatever the capex we are doing. Okay. And in some part of these capex we’ll see that how they are been Approving and all. So there we have a one of the support systems are in in a capex they are giving us a 25 percentage of a subsidy okay.
From the central government. And similarly if central government gives you the X similar amount is given by the Gujarat government there. Okay. So it’s close to 25% other there. And additionally whatever the machines and this kind of a thing. So that we are just discussing with the government there and been not been clarified that how we can able to get the productive let’s say the linkage incentive. There is a right now the scheme is for the 6 percentage on the sales but how we are going to eligibles and all that is unclear. Things are there, that’s why not I’ve given the numbers to you there.
But yes we are eligible and we have approached to the government. We will very soon will come to know how much we are able to get this support systems over here.
Pratik Dharmshi
Got it. Thanks a lot and all the best.
Parakramsinh Jadeja
Thank you.
operator
Thank you. The next question comes from the line of Venkat from Mirabilis Investment Rush. Please go ahead.
Venkat Rakesh
Yeah, hi sir, thank you for the opportunity. Vipin Gomerabilis. Hi.
Parakramsinh Jadeja
Yeah, hi sir.
Venkat Rakesh
I just one question. Given that we have these capacity constraints and we are we plan to like increase the capacity. How do you usually go about planning planning of this capacity? Like in terms of if you were to prioritize this capacity between the sectors ems, auto, General engineering. How does that decision basically works out? Is it based on the margin profile of that order or the growth visibility of that sector or the customer, the bargaining power or let’s say the customer concentration within that sector? So how do you go about prioritizing these three. These three sectors?
Parakramsinh Jadeja
Yeah. First of all let’s say your first question about the planning. Okay. So generally we see there is a model mix of a business there. Okay. See the size of the machines are been different in every different segments. The in an entry level product the machines also goes to a size of the machines also goes to aerospace. So there is no much a direct connectivity on a capacity planning on a sector. While there is basically a frame size of the machines, basically what kind of machines we are able to build what is the frame size are available.
What is the biggest part we are able to do it and that’s the all our planning directions and lead our base on that. Basically the all the capacity is based on a smaller machine, medium sized machine or a large machine basically. And all these three categories are being distributed over the all the manufacturing sectors to be there. So that’s the. Your first question answer to be there. Okay. What was the second? Can you repeat that so I can give the more better?
Venkat Rakesh
Yeah, I mean that. That is. That’s pretty much clear that it’s largely differentiate between small, mid and large categories of the size of machine.
Parakramsinh Jadeja
Yeah. Is an envelope is enveloped of machine basically there.
Venkat Rakesh
Okay. And given the current situation which sectors then within the three let’s say you see would be growing faster than the others given the capacity constraint. Again.
Parakramsinh Jadeja
So.
Venkat Rakesh
So the reason again I had to ask is that how much flexible are you in terms of the delivery of delivery timelines of these products within sector. So which sector would be the most let’s say flexible. If you were to let’s say delay or you know, postpone that delivery timeline.
Parakramsinh Jadeja
Today I have only this by large machines and particularly large machines today. What the order book we have receiving received and going to the suit there getting more and more inquiry in from the Europe now today is on a large machines and large machines. Let’s say in terms of today’s our plant capacity. It’s not unfungible that all large parts cannot be produced in a small machine there on that area. Okay. So small machines I can produce in a large assembly area. But large machines I cannot produce on a smaller machine area. So you can consider there is a large area that we are feeling to be a constraint to be there.
Rest are fungible there. Yeah.
Venkat Rakesh
Okay. Then in that case how to think about the growth of further let’s say next two years of small versus medium versus large.
Parakramsinh Jadeja
So we are based on this model mix and the seeing the scenario our capacity we are expanding accordingly. There basically already is plan out and we are increasing similar level to be there.
Venkat Rakesh
Right. But which sector of these three which. Which category of these three would be like let’s say the fastest growth.
Parakramsinh Jadeja
And let’s say. Let’s say today. Let’s say today what this our 10,000 machine capacity we are expanding. Okay. Even the highest growing area we are seeing in coming next two to three years is going to be electronic manufacturing there. And even that is a more comfortable for us because this all EMS and other sectors are very fungible. So we can do with the auto auto component general engineering everywhere the same capacity will be utilized there. So full these expansions are going to come on a. On a entry and mid level machines. They are basically.
Venkat Rakesh
Okay, so this 10,000 capacity would largely restrict between medium and spawn.
Parakramsinh Jadeja
Yeah. Yeah.
Venkat Rakesh
Okay.
Parakramsinh Jadeja
And that is the fastest growing area also there.
Venkat Rakesh
Great. Sir, again like roughly 50. 50 broadly or let’s say 60, 40. 60 between small and 40 between medium.
Parakramsinh Jadeja
So this additional 10,000 machine is going to be dedicated to the entry and mid level. So in a before that let’s say while we have made this 6,000 machine capacity, we have almost a large machine capacity. We already increased there and in Huron also, whatever the capacity, we are expanding. It is basically for a large machine only there. Yeah.
Venkat Rakesh
Thank you.
operator
Thank you. The next question comes from the line of Sandeep Jain from Baroda PNB Paribas Mutual Fund. Please go ahead. So your line has been unmuted. Please go ahead with the question. As there is no response from this line, we will move towards the next question. The next question comes from the line of Asish Kumar from Ampersand Capital Investment Advisors. Please go ahead.
Ashish Kumar
Yeah, thanks for the opportunity. Any kind of color you can give. On like you have said that H2 is significant will be significant better than Q1. But Q2 can we see a higher revenue growth compared to what we have seen in Q1? And second question is on EMS. In past few calls we have mentioned that the supplies will start from let’s say later part of this year. What’s the update on that? And when we start supplying EMS machines like what kind of impact will have on our margins? Yeah, that. Those are my questions.
Parakramsinh Jadeja
So basically let’s say always a first up and second half is a 40, 60 kind of settings like that. Okay. And Q1 to always Q2 always to be better. Q3 is much better and 4 is a greater than that is the way we are going ahead there. So there’s the. I can say there’s only color, more color. I’m not able to tell you there. Okay. Regarding this let’s say in ems so people have fear that let’s say EMF as an. As a margin is gross margin is less is an competitive area. It is not like that for overall our entry level product and this combination of this is all entry level product and EMS on a similar level only there.
So it is not going to impacted anything in. Well EMS execution is going to be increased. There is on a similar set of margins to be there.
Ashish Kumar
Thank you. And like our EMS supplies will start from second half. That’s. We are sticking to that or is. There any delay in that.
Parakramsinh Jadeja
So we are also looking to be eagerly to supply them. So the facility will be ready there. Hopefully we will start from a third quarter. We hope if someone will put up early so we can deliver them faster there.
Ashish Kumar
Okay, thanks. Thanks. That’s all from My side.
operator
Thank you. The next question comes from the line of Sandeep Jain from Baroda pnb Paribas Mutual fund. Please go ahead.
Sandeep Jain
Yeah, hi sir. Sorry I got disconnected last time. So just one question. I joined late so if you can clarify that. In Huron our capacity expansion plan was got delayed in Q4 and all. And it was supposed to get started probably by Q2 if I remember it correctly. So is it online or there is further delay? How we can look at it?
Parakramsinh Jadeja
Sandeep Ji. It’s online just three days back. I come back from there. The facility has been finally handed over to us as a final. Now our equipment installations and everything is going on. And from September onwards we are starting assemblies over there.
Sandeep Jain
Okay.
Parakramsinh Jadeja
So we already. We already move into there in the plant and all the activities have been started there.
Sandeep Jain
Okay.
Parakramsinh Jadeja
There is no delay and revenue booking.
Sandeep Jain
And all those things will start from Q2 or Q3 kind of.
Parakramsinh Jadeja
No, because that. You know that manufacturing cycle is longer there. Okay.
Sandeep Jain
Okay.
Parakramsinh Jadeja
If I start any machine assembly it is also going to be a longer period there. Basically.
Sandeep Jain
Got it. So from September if you will start assembly and all. Okay.
Parakramsinh Jadeja
So probably we will see the. We will see the last quarter some colors but the better is from the. Yeah, yeah. You know that now border.
Sandeep Jain
Yes, yes. And all the facility in Huron is a high ticket size machinery, right?
Parakramsinh Jadeja
Yes, all are high ticket size machinery.
Sandeep Jain
High ticket size machinery. Fine. That’s it. That’s. That’s my.
Parakramsinh Jadeja
Thank you. Thank you. Thank you. Thank you.
Sandeep Jain
Yeah.
operator
Thank you. The next question comes from the line of JJ. Shah from Ohm Portfolio Equity Research. Please go ahead.
Jash Shah
Thanks for the opportunity. Sir, I had a question on your overall growth rate. Do I understand correctly that you have a capacity utilization constraint till the new capacities come in. So your growth is basically back. Back ended basically from the second half of FY26 or actually FY27. Because if I annualize your current first quarter growth rate even at the basis of 4060 for first half and second half your FY26 revenues will be around close to 2000 crores. Which only gives you 10 15% growth rate at the top line level for the current year.
Parakramsinh Jadeja
You are putting me in a difficult situation because I know any time to give any forward to you. You are slightly. But see the first quarter. I’ll tell you one thing. No, no. I’ll tell you one thing. I’ll tell you. I’ll tell you one thing. I’ll tell you one thing a little bit. Your calculation is little bit. You have to correct See the already the first quarter growth has been close to 15 percentage. Yeah, close to 15 percentage. Okay. And always I said there is a second third and all will be having a good. And today our capacity is close to 6,000 machines.
Okay. Right. And. And right now let’s say we are based on this quarter is a 1100 machines. We’ve done so close to this year. We are expecting to almost 90% utilization and 90% utilization. You can now make a maths and also you will reach a nice number there.
Jash Shah
Okay, okay. Okay. And do you have different margins in your these segments like ems, arrow and defense or the margins more or less similar?
Parakramsinh Jadeja
No, basically yeah. In a. Yeah. In terms of a we measures on a gross margin. So in a past also I have been mentioned many a time maybe you have not been aware. So I’ll let you know that we have a entry level product. What we call an entry level product. Okay there we have a gross margin is close to a 35 to 40% in between there.
Jash Shah
Okay.
Parakramsinh Jadeja
Then we have a. We have a mid range machine there. We have a around a 40 to 45 to 47 percentage of a gross margin there. And then we have a. The high end machines. Okay there we have it close to a 55, 57 percentage over there. Okay.
Jash Shah
Right, right, right. And sir, how the working capital cycle now?
Parakramsinh Jadeja
So now let’s say last year we have reached to close to 175 days and this year we are slightly going to improve from that now. Okay, whatever the call. So we we said that this year will. And we are on the way and nicely we are on the way. We are going to touch in between 150 to 160 days over there.
Jash Shah
I see. Yeah, got it sir. Thank you very much.
Parakramsinh Jadeja
Thank you.
operator
Thank you. The next question comes from the line of Kamlesh Baghman from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Yeah, thanks for the opportunity sir. If I like last year like we had a bit of per machine of roughly around 12 lakh rupees. And if I see this quarter like we have done on the gross margin 20 or 20 0.5 odd lakh rupees which is down 16% year over year. So can it be the case that in order to push our volumes we may take a hit on the margins and the margins could be much lower which we were expecting around 12 odd lakh rupees. So just a query on that.
Parakramsinh Jadeja
You are the only person is able to reach out to per machine like that. So basically margin I said that as an combined EBITDA Level margin we are going to have too close to. Let’s say this year in first quarter itself is 24.4. And it’s come down 1.5 percentage. And that’s only due to the people increase in the last one year. Okay. So we are comparing to last year first quarter to this quarter. Okay. And almost 15 crore rupees of additional fine. The manpower cost we have incurred from last year first quarter to this year first quarter.
This is the only difference has been come over here. And that’s how we are able to maintain number of machines. Model mix may change. Okay. Sometimes we make larger machines, it’s a less volume. Sometimes we make more machines with the less value. But number of machines to be more. We are on a track to maintain on a EBITDA level. And we will be on that basically.
Kamlesh Bagmar
So I was just referring to the gross margin. So it’s down 16% year over year in rupee terms. So last year it was 24 and half lakh. And it is now 20.5 lakh.
Parakramsinh Jadeja
You. You are calculating per machines? Basically.
Kamlesh Bagmar
Yeah.
Parakramsinh Jadeja
Okay. Yeah, yeah. So basically, basically the per machines is not in a parameters because this quarter the number of machines we made more. That’s why the per machine average is 36.72. Okay. So the end of the year we will be having a. Let’s say if I reach to a 50 lakhs average. So automatically it will be set right over there. Okay.
Kamlesh Bagmar
But do we expect like. Say like last year it was 44.6 lakhs. So do we expect.
Parakramsinh Jadeja
No, it’s a some quarter. Let’s say in this quarter this what I told you around two, three machine has been coming on a next quarter more. The value of the machine is very high. So you will see the next quarter maybe or third quarter maybe more jump. Okay.
Kamlesh Bagmar
And sir, lastly you had. You had like say you are not in. You are not giving us a guidance. And you have maintained that for the last many of the concourse. But as you are saying that you will maintain the momentum. And over the last three years we have grown 30 to 35% Kagger. So what do we see? Like would we be able to maintain that particular momentum? So I’m just thinking through that particular part.
Parakramsinh Jadeja
So basically I said we will maintain the momentum. It means we maintain the momentum. It’s very clear.
Kamlesh Bagmar
No, but like and there is a.
Parakramsinh Jadeja
There is a great opportunity in front of us. Definitely we will maintain the momentum. And lastly.
Kamlesh Bagmar
Sir, sorry to interrupt. Yeah, Just, just. Just follow up to that. So sir, you have clearly articulated that you are not going to have any external capacity capital. Does it mean that there will not be any fundraising to fund the capital?
Parakramsinh Jadeja
No, we are not. We are not going to come to take any capital on a market in a. My. Let’s say organic growth. What I says is an organic growth. Okay, so let’s say today we are growing organically in the next two years. So there is no need of extra fund because our all internal accruals and our cash flows and everything you will see improving in this coming quarters very nicely. So we are able to fund it very well our own growth over here. There.
Kamlesh Bagmar
Thanks and best of luck.
Parakramsinh Jadeja
Thank you.
operator
Thank you. The next question comes from the line of Dipesh Kashyap from Invesco. Please go ahead. Yeah.
Depesh Kashyap
Hi sir. Thanks for taking my questions. How are you sir?
Parakramsinh Jadeja
Fine, fine.
Depesh Kashyap
I just wanted to understand how to think about the capacity and capacity utilization. So as I understand we have 6000 machines capacity right now. So that means 1500 odd machines per quarter. Right. But this quarter we did around 1100. Odd machines and you talked about 75 percentage. Yeah, so. So. So. So my question is like you talked about that you have capacity for small, mid and large machines which are not fungible. So so based on your order book, what kind of capacity utilization can we reach? Because we were already at 90 odd percent in the last quarter. Has the order book kind of changed? Because I think you have done more auto and general engineering this quarter. So how should we think about going forward in the remaining nine months?
Parakramsinh Jadeja
Yes, it is nicely. Let’s say. I’ll tell you one thing that what I say that many of the machines, large machines, my manufacturing time is longer. Okay. So sometime is not falling into a quarter on quarter. That. Okay. Sometimes let’s say in this month as June has been not finished some machines and falling into a gel July there. Okay. So definitely that kind of things will. And then the. The. Let’s say the. Some of the large machines manufacturing time is 12 to 15 months. Okay. So coming on to direct in productions. So it’s not directly measurable a quarter on quarter there basically.
Okay.
Depesh Kashyap
Okay. So that.
Parakramsinh Jadeja
That’s the challenge. I’m not able to satisfy you there. But.
Depesh Kashyap
Yeah, sorry.
Parakramsinh Jadeja
Yeah. End of the year, let’s say we see that we will reach 90% utilizations over here. And that’s why I on track. They’re completely there.
Depesh Kashyap
Okay, understood. And then your capacity is that going to come in September 26th? That is on track right now. That is no further delay.
Parakramsinh Jadeja
Absolutely. There is no Delayed we may hope we can do something better but.
Depesh Kashyap
And there is no delay at the customer and also they’re also on track with their.
Parakramsinh Jadeja
Absolutely, absolutely. Already we have taken orders and we want to execute it there very fast.
Depesh Kashyap
Understood sir. Secondly, I think in the board decision you have taken a decision to set up acquire entities in US and China. So it is just a sales network or you are going to set up a manufacturing also there. Like any thoughts about that Right now?
Parakramsinh Jadeja
Right now in a first phase we are looking to be set up a sales and services. There are. Okay, okay. And then. Then. Then if we required to have a some more let’s say the the opportunity there and to do some assembly plan over there the way we have a run.
Depesh Kashyap
Okay.
Parakramsinh Jadeja
All the component. All the components have been manufactured sub assembly done over in India and very near to customers in Europe the way China and the US also and if the US increase the tariff and the opportunities are people are moving there for a manufacturing will do some small assembly and then maintain the good momentum there.
Depesh Kashyap
Okay but for sales network you need not acquire, right? That is like one or two people you can put.
Parakramsinh Jadeja
No, no, no no. We we. We are. We are. We are going to increase only sales network Right now there are not acquisitions or any not in company. We are not in a large capex or any kind of any like that.
Depesh Kashyap
Understood. And lastly sir, the the total capex that we’re supposed to do this year and the next year was how much. If you can just remind us.
Parakramsinh Jadeja
So basically our capex what we have decided is close to 4 to 450. 450 crores. That’s the only right now it’s the things are going on there and this. Will be done by September or 2026. That is what September 2026 we will do before that basically. But the last is 226. Understood sir.
Depesh Kashyap
Thank you sir. Thank you very much.
Parakramsinh Jadeja
Thanks.
operator
Thank you. The next question comes from the line of Priyash Babaria from Mahindra Manulife Mutual fund. Please go ahead.
Priyesh Babariya
Sir. Thank you so much for the opportunity. So just wanted to ask on just like you mentioned the gross margin with respect to let’s say based on the level of machines entry mid or high would you be able to throw some color on as per the end user industries?
Parakramsinh Jadeja
Ah see I’ll tell you in terms of a entry level product and let’s say the value what I say this entry level product is up to 50 lakhs. Okay so it’s not like that as an end users Are fit on a always in this three categories. Some industries like that every industries are having a all three kind of a product are required. There are okay largely I can say only one thing today and that is today there today aerospace and defense are all are in a high end machine there rest. But in a aerospace and defense we have a entry level product also there as an industries wise there.
Okay? There are some non complex parts are big machines and they use the entry level product there. Okay? I’m not able to because all the. All the. All the area is not been specific based on the industry spectrum there.
Priyesh Babariya
Yeah, understood.
Parakramsinh Jadeja
And then I’ll tell you one thing that we are so diversified, okay. We are close to now 14,000 plus customer base now okay? To explain you to all my investors like you and all people I have put into this main category and combined them. Okay? But there are many manufacturing areas, okay? Like today the railway is one of the biggest growing area for us, okay? Like a medical implant is going to be the one of the biggest area for us there. Okay? So that’s all our sealer under others categories. So there are many of this kind of things are there in subcategories to be there.
Priyesh Babariya
And we have also second question is on. We also hired two people which is basically senior management personnel. This is with respect to us and China only or something how I’ll tell.
Parakramsinh Jadeja
You that the way. The way we are growing so we are making our management bandwidth is we are increasing. Okay. So two years back we were at less than thousand crore company and we are growing now every year 30, 35 percentage. So let’s say strategy and operations are two different areas. So today everything was in one basket over here. So we have made one vertical on a strategy. So one of the gentlemen we have hired he looks take care about the entire strategy there another person we have hired into operation that is on a operation head over here.
That’s on a manufacturing and looking is to here and many more people. We are still taking in a near terms to expand our management bandwidth over here.
Priyesh Babariya
Sure sir. Thank you. Thank you so much for answering all those questions.
Parakramsinh Jadeja
Best of luck. Thank you. Thank you.
operator
Thank you ladies and gentlemen. Due to interest of time that was the last question. I now hand the conference over to management for closing comments. Thank you. And over to you sir.
Parakramsinh Jadeja
Thank you very much to all of you for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on any development in the company. For any further information or inquiries please feel free to reach our. To reach to us as well as our sga, our investor relations advisors to be there. Thank you very much to all of you.
operator
Thank you on behalf of Equator Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect Alliance. Thank you.