Jyoti CNC Automation Ltd (NSE: JYOTICNC) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
ParakramSinh Jadeja — Chairman & Managing Director
Analysts:
Aniket Jain — Analyst
Yash Patel — Analyst
Manish Ostwal — Analyst
Bala Subramanian — Analyst
Kamlesh Bagmar — Analyst
Srinik Mehta — Analyst
Janice Karia — Analyst
Keshav Baradia — Analyst
Presentation:
Operator
Sa. Sam. Sa. Sa. Sam. Ladies and gentlemen, good day and welcome to Jyoti CNC Automation Q3 and 9 months FY26 earnings conference call hosted by Aquarius Securities Private Limited. As a reminder, all participant lines will win 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 pressing10.0 on your Touchstone phone. Please note that this conference is being recorded. Before we begin a brief disclaimer. This conference call may contain forward looking statements about the company which are based on the 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 risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Harshit Patel from Equeria Securities. Thank you. And over to you sir.
ParakramSinh Jadeja — Chairman & Managing Director
Thank you. Good evening everyone. On behalf of Equator Securities I welcome you all to third quarter and nine months FY26 earnings conference Call of Duty CNC Automation Limited we are pleased to have with us management represented by Mr. Parakkaramshi Jadeja, Chairman and Managing Director of the company. We will have opening remarks from the Jadeja sir followed by question and answer session. Thank you. And over to you sir.
Thank you Harshit. Good evening everyone. A very warm welcome to our Q3 and 9 month FY26 earning conference call. Along with me I have a senior management team and sga, our investor relations advisor. Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I’ll begin my opening remarks with overview on the economy front followed by highlighted on the company. India’s economy continues to show a strong growth momentum supported by healthy domestic demand and steady policy reforms that improves a competitiveness and boost investors confidence. The Union Budget 202627 has reinforced this direction by focusing on long term investment and structural growth. A key highlighted of the budget is the continued emphasize on public capital expenditure as a main driver of growth. With an allocation of 12.2 lakh crore for FY27, around 9% higher than the previous year, this sustained a CAPEX push is expected to strengthen infrastructure, encourage private investment and provide long term visibility for the manufacturing sector. The Budget has also announced a focus measure across sectors. Jyoti CNC is catering to the launch of India Semiconductor. Mission 2.0 aims to expand a domestic semiconductor and equipment manufacturing along with chip design capabilities which will drive demand for high precision machining. Electronics manufacturing has been further supported through a 40,000 crore outlay under the Electronics component manufacturing scheme. Scale up helping scale up EMS and component production in defense. Higher capital allocation to domestic aerospace and defense manufacturing strengthen the push for self reliance where precision engineering play a critical role. Similarly, a continued policy support for the automotive and auto component sector through PLI schemes and duty reforms reinforce India’s position as a preferred manufacturing hub on the global front as well. A greater clarity around tariffs supported by a free trade agreement signed with EU and US is expected to provide a meaningful boost to our export oriented end user industries. This improvement is in trade. Visibility should support demand across global markets and create additional opportunities for companies like ours. Overall, the current environment plays both country and Jyoti CNC in a strong position driven by clear and sustained focus on manufacturing. In this context, the role of mother machine manufacturers companies that build a precision machine used to produce other machine tools become especially very critical. As manufacturing activity expands across sectors, the demand for reliable higher quality CNC machine is expected to rise meaningfully creating a long term opportunities for players like Jyoti cnc. Now speaking of Jyoti cnc, as highlighted earlier, the Indian CNC machine tools market continued to be a largely served through import, presenting a significant opportunity for a domestic players. To strengthen our presence and capabilities and capitalize on the opportunity, we are undertaking a large capacity expansion in India, increasing our manufacturing capacity from current 6,000 machine to 16,000 machine by September this year. I am happy to announce that the CAPEX is progressing as planned and we will be able to ramp up sooner than expected on the back of huge industry demand and our product in India and globally. Alongside a capacity expansion, we have also made investment in talent development including upskilling our workforce and setting up an in house training institute to build up a pipeline of over 1000 skilled engineers. These initiatives form a critical part of our long term growth strategy to deliver high precision machines across diversified sectors and support a sustained growth. At the same time, R and D and innovation remain a key strategic priority. We continue to advance our product development efforts through initiatives such as the Human Control Panel along with a plan to integrate proprietary controllers, drives and motors. These steps will strengthen our product offering technology capabilities and reduce import dependencies over a period of. In parallel, we are actively exploring next generation products for high precision applications including semiconductor equipment which we believe can become a meaningful growth driver for the company in the coming years. In summary, we are expanding capacity strengthening our talent base depending our capabilities. And preparing to serve a much larger and more global customer base. We remain financially disciplined and future focused and we are confident of delivering a sustainable growth in the years to come. Now I will share with you, let’s say with you, the key updates of the company. In November 2025 we expanded our capacities at Huron facilities in France almost double in line with our growth plan. This expansion strengthened our manufacturing capabilities and positions us well to meet a rising global demand. Huron continued to serve as a key technology hub for the company with a strong focus on high end machines catering to global customers. With the increased capacity, we are a better equip to address a growing demand from the aerospace sector and expand our global footprint. We have commenced assembly operation at the facility and are seeing healthy ramp up with material traction expected to reflect from FY27 onward we are seeing a strong traction from defense sector both in India and across global markets. We have a healthy order book of aerospace and defense of close to 41% and around 1900 crores reflecting growing confidence in our capabilities. The increasing demand for high precision machining solution in this segment with the ramp up of our capacity at Huron, capacity expansion at India coming live in September 2026 and a strong growing order book across sectors, we expect the coming period of the significantly stronger supported by improved execution, higher deliveries and sustained demand across our key end markets. Before I begin my update on the operational and financial performance, I would like to briefly explain the nature of our business and the reason behind our higher inventory day so that everyone has the right context. Ours is a manufacturing business with a long production cycle and the working capital requirement is largely driven by inventory. We operate across three broad product categories in entry level machine which are largely supplied to ems, automobile and auto component. In general. Engineering the manufacturing cycle is around three to six months. For mid range machines to a low level machine the cycle extends to about nine months. With for large and complex machine the manufacturing cycle can range between a 12 to 18 months. Given this long build cycle, inventory naturally remain on the balance sheet for extended period. Historically our inventory days were much higher than the current level over the last few quarters. Through a better planning, execution and process improvement we have been optimizing our working capital cycle and seeing positive trends in which will release and shorten the intensity of working capital requirement and we are on a trajectory of that. Speaking of the financial and operation performance for the quarter and nine months ended FY26 we reported a strong consolidated revenue growth of 28.1 percentage for the quarter standing at rupees 570 in line with our internal expectation. Our performance for the nine months was also strong with consolidated revenue of Rupees 1494 crores in nine month FY26 compared to Rupees 12.42crores in nine month FY25 reflecting a growth of 20.3%. With strong order book, stable economic and geopolitical situation, capacities in place and execution rigors, we are optimistic of a stronger Q4 in FY27. Historically also we have witnessed that Q4 is among the best performing quarter across the financial year and we anticipate the trend to continue this year as well. Speaking of segment revenue for 9 month FY26, 42 percentage came from Aerospace and Defense 28 percentage from Auto and Auto component 22 percentage from General Engineering and remaining 8% from other sectors including EMS and dies and molds. Our order intake for 9 month FY26 stood at R1661 crores. This includes a.46 percentage from Aerospace and Defense, 30 percentage from Auto and Auto component and 17%. Percentage from General Engineering. Speaking of our current order book, it remains healthy and well diversified at rupees 4585 crores reflecting a steady demand and continued customer confidence. The industry wise a breakup is as follows. 41 percentage from aerospace and defense 19 percentage from general engineering 18 percentage from auto and auto component, 14% from EMS and the balance from other sectors. Let’s coming to the margin EBITDA for quarter three FY26 stood at rupees 155 crores, a growth of 37.3 percentage compared to the same period last year EBITDA margin were 26.8 percentage compared to 25% in Q3FY25, a growth of 180 basis points year on year. EBITDA for nine month FY26 stood at 379.4 crore, a growth of 21.1 percentage year on year. Profit after tax for Q3FY26 stood at Rupees 89 crores compared to Rupees 80 crores in Q3FY25 reflecting a growth of 10.3 percentage. For nine month FY26 it grew by 18.5 percentage lower growth in PET is largely attributed to increased finance cost on account of a capacity expansion plan. As this capacity is coming in live and will start contributing to revenue and profitability, we will see interest burden being absorbed and reduction in debt which will enhance the overall profitability significantly. As we enter FY27, Jyoti CNC is well positioned with stronger order book visibility and key capacity expansion. A project nearing commissioning with sustained demand across sectors and improving execution, we remain confident in our growth outlook. We look ahead with optimism supported by our manufacturing skill, technology focus and long term commitment to value creation. We may now open the floor for question and answer. Thank you very much.
Questions and Answers:
Operator
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and yes. On their touchstone telephone. 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 is from the line of Aniket Jain from yes, securities. Please go ahead.
Aniket Jain
Good evening sir. Congratulations on posting really good set of numbers. So my first question is on the India EU as well as US trade deal. I think India is reducing the tariffs at least for European Union from probably 18 to 20% to near zero now while EU’s tariffs will are already in probably low single digit. So are we anticipating any kind of competition from European Union? Because supplier what are your views on EU as well as US state duty?
ParakramSinh Jadeja
Basically I’ll let you know that in a. In a machine duty today the machines are coming from EU its duty was only 7 and a half percentage and all this machine customers were importing against the the exports license there. So almost every customers today what the machines are coming from Europe and USA it is in a machine tool industries are almost at zero duty there.
So there is no significant change in terms of a competition over there. Rather we are, we are feeling a little bit better there now because all our import contained like we were importing the controller from Siemens channel Germany and all our duty was seven and a half percentage.
This will going to be zero for us. So basically that will be a cost advantage is going to come to us. So we are looking very happily to see this deal there. Basically.
Aniket Jain
Understood sir. And so for us are we. I think we had plans to set up a sales office there. So have we. Is there any progress on that
ParakramSinh Jadeja
Basically we were just looking at the appropriate time. So we have last let’s say last two three months. We already progress all the company registration legalities and all is over now. And within a 1/4 now we are let’s say appointing all of our sales team and our tech centers and all. Hopefully this operation will be starts and within the next two to three months very aggressively we are going ahead in us there.
Aniket Jain
Understood sir. Sorry I can if I can squeeze in one more. So we are nearing production. So basically we are nearing the capacity expansion for our Rajkot facility. But we are yet to receive any material orders for ems. So I just wanted to check if they are anticipating any kind of orders during this. Quarter maybe in Q1 of next year so that our capacity as and when it comes online we have ready orders in hand so that it is optimum utilization. So what are your thoughts on order?
ParakramSinh Jadeja
Everyone is. Everyone is looking to answer of this. Basically we are fully prepared. Even our capacity is also coming up and we are fully booked with the order book of back to back to them. And right now we are working with the many more suppliers, many more this manufacturers and approving their process and all.
Basically all this my the future customers they’re also are expanding their capacity. They are all are on on execution level there one their plants and things are ready. I think they need the further machines and all and we are very much hopeful to get the few orders in the coming quarters there.
Aniket Jain
So basically in Q4 so this quarter or maybe in Q1
ParakramSinh Jadeja
Maybe maybe on a Q1 there maybe.
Aniket Jain
Thank you so much for answering the question. So all the best. I’ll get back into the queue. Thank you sir
Operator
. The next question is from the line of Yash Patel from Kotak amc. Please go ahead.
Yash Patel
Hello sir. Yes sir. I want to. I wanted to ask you about the cash flow situation this quarter. Can you throw some light on what were the cash flow this quarter?
ParakramSinh Jadeja
Yes. By we are on a. Let’s say end of the year. What we are discussing in past also. So we are on a very positive trajectory on a cash flow side there. So we are moving ahead very positive cash flow in a direction in a Q4 there you saw that in quarter two on a half yearly we were at at breakeven level. Let’s say the positive there. Similarly we are at a similar level and we are hopefully that it will be a last quarter is always to be a better quarter for us. So we are looking very positive cash flow.
Operator
The next question is from the line of Manish Odwal from Nirmal Bank Securities Private Limited. Please go ahead
Manish Ostwal
. Yes sir. Thank you for the opportunity. I’ve listened your initial commentary on the industry and we all understand the industry is a very strong outlook in terms of growth. But when I look at our order book position especially this year compared to the last year performance last year at 25 we started an order book of 3438 crores and end up 20,43,46 crore 26.4% growth.
Whereas in this YTD basis in this particular financial aid on. Order book growth only 5.5%. So order book growth has disappointed materially. So can you make detailed comment why the order book growth is not happening? What is our current capacity utilization in the business?
ParakramSinh Jadeja
So Manish ji thank you very much. See basically now today we have reached to order book is almost. Almost one and a half year to two years. This industries are not ready to listen to us for the longer delivery period. So there is not any. You are able to see that numbers are growing higher there. Okay. The way the let’s say this year our capacity utilization has touched to almost 90%.
Now once our new capacity will come in a picture and we deliver the old order book there we will see the traction to be more over there today. Okay. And we will build a new order book on a bulky order book on that. Then after only that once the capacity expansions are going on. So today let’s say once it is on today we are at almost 4,600 crores is a very heavy order book and customers are no more. Customers are ready to wait more than 18 month delivery commitment there.
Manish Ostwal
So basically because of supply constant at our end we are not taking the new order or customers not placing new orders to us till the new capacity come on stream. That is the way I should.
ParakramSinh Jadeja
Absolutely, absolutely, absolutely. Because if I. If I get any new orders from a very bulk orders and all my delivery period is going to be a more than 18 months there. Okay. You know customers are willing to wait for two to three years there. So 4,000 let’s say if you look at that 18 months order book is a very happy order book for our industries there.
Manish Ostwal
Understood sir. The second question on the capex plan on the new capacity. I believe we have taken loan of 300 term loan of 300 crores from Union Bank. So how much we have this use it for this capacity expansion program and how much we need to spend more.
ParakramSinh Jadeja
So basically this year you know that we have earlier announced that we are going to do 400 to 450 crore capex. And we are. We are behind that very aggressively to finish as early as possible. Because today’s our growth are being a constraint on based on the capacity today now. Okay. So we have used that almost 200 plus crores from Union bank and we will use this this financial year aggressively as soon as possible to finish the capex over.
Manish Ostwal
Right. And the last question on the supply chain situation because a lot of components we import from Japan. So how the supply chain situation is stable, it’s volatile. EOF Or currency impact. Can you talk about that thing that. That will be my last question sir. Thank you.
ParakramSinh Jadeja
Today our supply chain is very stable in terms of internationally Japan and Germany are well supply chain. There is not much issues over there. It’s a very stable supply chain. We are seeing that.
Operator
The next question is from the line of Bala Subramanian from Arihant Capital. Please go ahead.
Bala Subramanian
Good evening sir. Thank you so much for the opportunities sir. We are planning to develop pre controllers drives and motors under game going to 4 to 5 percentage of grass margins. Just want to understand this like it’s meaning we are going to place CNC controllers like Fanuc and Siemens which is widely used in the industry.
So I think we are taking with Homa as a front end HMI moving to full stack controllers involve decades of cumulative sapper stability and server tuning expertise. I just want to understand beyond prototype what specific milestones like we are planning to achieve under the PLA schemes.
Whether they’re developing entirely to look or Siemens and like how like how it will reliable compared to those softwares and can able to make it reducing royalty or import cost at the component level. If you share more details about the controller part.
ParakramSinh Jadeja
Thank you Bala particularly the On a journey of. There is a background noise are coming Please ask someone to mute can you. Yes. Yeah yeah. Thank you sir. Yeah. So basically for this journey of a CNC controller development and Atmanirbhar Bharat over here see the In a decade this.
This Japanese and German manufacturer has developed this product and they have made mastery and let’s say today they are driver of the word total the motion control over here. Our journey is starting now but we have now experience of our now Jyoti has completed all. Almost 30 years plus and Huron we have 190 years plus experienced people are available there. So we have a very in terms of a drive tunings and fine tuning the parameters and all on a control design site. We have a very experienced knowledgeable people available plus in our country today very youngsters the new people and all our institute like IITs and the CMTIs and all these this all people together we are quite confident that and we are able to manufacture, design, develop manufacture reliable product. Not only the reliable product in terms of a technological forefront over there. So let’s say today any new technology commerce coming they will always to be one step ahead in terms of a more advancement. Because those guys are not able to change the platform very easily once the product has been developed. So we are very much confident in terms of that and in a looking forward to to develop one of the best controller in this earth there. Okay sir I think I given you. Given you the one part of that. What was your next question there inside that
Bala Subramanian
Sir like how like if you could explain PLS scheme for property controller drives and motors. S
ParakramSinh Jadeja
Basically the electronics component manufacturing scheme what you have already the government has expanded the budget also from 20,000 crore to 40,000 crore. So we are eligible over here to be on a capital subsidy over there.
And there is a specific mark out there for capital subsidy. The amount what is been disbursed by let’s say been granted by the central government. Same amount will be in Gujarat government also. So we are expecting to be a very large number of a this scheme advantage going to be received to manufacturing this controller drives and motors and sensors there.
Bala Subramanian
Okay sir answer another part of 4 to 5% grass expansion. It’s entirely dependent on replacing Fanuc or CN’s controllers entirely or it’s reducing royalty or input cost at the component level.
ParakramSinh Jadeja
Basically these are. These are the very high value import items and particularly on a high end machines the cost of this controllers are very high there. Okay so definitely we are able to. And once we are manufacturing in India and now all electronics company. Component manufacturing ecosystem also has been developing so nicely in India. So even the microchips and all are also is going to be available made in India chips only. So we are no more dependent on future on that. So our cost controls will be very much in our hand there.
Bala Subramanian
Okay sir for my last question. We are designing products for semiconductor manufacturing emission builders. I think it required extreme precisions even nanometer range. I just want to understand what kind of market we are targeting. It’s majorly for like front end applications or backend assembly side.
ParakramSinh Jadeja
Basically in a semiconductor side you are right there. It’s. It’s required a nanoprecision and based on our this experience at Huron as well as Jyoti we are now entering into a nano precision over there. We are going to create the infrastructure to produce the nanoprecision over there. And particularly we are targeting to equipment to build a semiconductor achieves there.
So we are going. We are. We are designing and developing many differential process on it from casting foundry to inspection units and many many more equipments are there around 8 to 10 different technologies we are developing over here in equipment side to. To serve to the our semiconductor mission 2.0 there.
Operator
The next question is from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Yeah, thanks for the opportunity. Just one question on the part of like say if we deduct standard on from console. So if I see the revenue so it is down 7 odd percent year over year. So it may be because of ramp up in the Huron. So can you highlight like say because on a console basis our margins are looking lower or the growth in EBITDA looking much lower while on the standalone, standalone it is looking very strong.
So because on standalone we have done 165 crore of EBITDA while on console basis it is 155 crore. It may be because of let’s say ramp up in the expenses at the boron operations while the revenue has not reflected yet. So can you share some highlight or insight into the into the gap between the earnings.
ParakramSinh Jadeja
Already already what you are saying is absolutely right. You answered yourself only Kamlesh Bhai definitely the revenue has been not been. Came over here and the cost has been incurred in this. In this. Now with our new facility comes on a picture. We have add on around 27 more people in manufacturing in France to ramp up our production. Furthermore now there even in terms of inventory building up also we have started very aggressively and supply material from Jyoti to there and we started all floors and everything like that. So you will see this be very normalized things and number wise in next year, quarter on quarter you will see more and more Huron numbers will come very positively on. On a growth side there. Once the growth we will able to execute there all these costs will be absorbed and you will see the EBITDA level will increase one plus one like that.
Kamlesh Bagmar
Okay, great sir. And if I see margins like if I just do the math EBITDA per machine. Let’s say it was. It is roughly around 10 lakh rupees in this nine months. So going forward as our execution improves and the new capacity comes in Huron further complements the expansion in the growth. So where do we see our margins?
Like do we see significant jump in the margins because the scale and like large capacity expansion comes into play so that that would get absorbed over larger base in terms of fixed costs. So where do we see our margin? Because in street there is some concern that the margins are not.
Because year over year our margins are at 10 lakh rupees which was 11 and a half lakh rupees a year back on a nine month basis. Thank you.
ParakramSinh Jadeja
I’m answering to you on a consecutive last six call on the same question and my answer is same. Let’s say we are delivering, we are committed and we are. We are seeing that there is no margin pressure. We are seeing at a 25% also or beta. And if someone. Let’s say if it is increasing it is okay. But we are not seeing any pressure on that to below that.
So we are fully committed in the next coming two years. We are the way we have an order book with us. We are very much sure that our margin parameters will be maintained very strongly for the next coming two years. That’s the visibilities we have it today.
Kamlesh Bagmar
And sir, you have highlighted in your presentation with regard to the semiconductors. So are we catering to the semiconductor sector as of now or we are developing the machines to cater to that.
ParakramSinh Jadeja
So we are developing the technology today. Okay. And once the technology we will reach out and reach out to that same level of requirement then we will launch our product there.
Kamlesh Bagmar
How much time lag would be there like say from current date or you know what time period we would be able to have
ParakramSinh Jadeja
. So I think. I think we are seeing that in the next two years definitely we will come with the commercial product to be launched there.
Kamlesh Bagmar
And lastly sir, can you give the breakup of machines like the entry level, mid level, high end and commensurate revenue.
ParakramSinh Jadeja
Yeah. So let’s say a quarter 3 the entry level the machines is 1207 at the value of a 247 crores. The average is 20.46 lakhs. Meat level we have 128 machines and value is 83 crores. Average is coming a 64.84. Around 23 machines at value of a 221 crores. The average is coming and 9.6 crore. So the total number of machines is a 1358 and average is coming as a 40.5. Is this okay? Kamlesh, right?
Kamlesh Bagmar
Yeah. Thanks a lot sir.
Operator
The next question is from the line of Srinik Mehta from Indo F Wealth India limited. Please go ahead.
Srinik Mehta
Hello sir, I had a couple of questions. One I wanted to ask you. You had almost 4600 crores of order book. What is the advance that we take when we do this order book?
ParakramSinh Jadeja
So let me tell you while we take any entry level product. Okay. And in entry level we have a common. Let’s say around 5 percentage is a minimum advance to be with us there. Okay. And while the high end machines. Okay. While high end machines for exports and all so there we are able to get a milestone payment also. And we are getting at around 10 to 15% advance.
But in a government orders, let’s say we have a many government defense orders there. We are not getting the advance there.
Srinik Mehta
Government don’t give the advance. Yeah. Okay. Because this will be always. Your key concern when it comes to the operating cash flow as you see the trend you are making a lot of net profit or the operating profit. But your operating net cash from the operating activities has been negative and there is a big difference. On one side you earn almost 500 crores. Other side you have a negative 100 crore net cash from operating activities. Going forward with the expansion of the capacity, your requirements of the inventory will remain quite high even in the next few quarters. So I don’t know if you have some idea about when you expect this cash flow from operating activities to be in line with the operating profit that you make.
ParakramSinh Jadeja
Yeah. So already in my first question I answered to Aniket there and it’s my answer is same that you will see the things see that we are on a growth trajectory. One side we are capacity expanding. Second side we are expanding but our overall inventory days we are reducing from very large to that.
Once the scale up has reached on an economical scale has reached that. That our inventory days also will reduce that. So you will see quarter on quarter very significant improvement from the next year. Even you will look at that end of the year you will see a positive operating cash flows to be there. Okay. We are, we are very much worked on that and we are online with them.
Srinik Mehta
Okay. And for your French capacity, French Huron capacity expansion which has happened sometime in November, when can we expect sales to start showing in our quarter after quarter results.
ParakramSinh Jadeja
So the growth we are able to we are going to see from first quarter onwards because there is a manufacturing time of year. Manufacturing time for the machine is longer there. So we will see the good numbers the first time we will see the numbers. You will see the growth trajectory from from quarter one onwards there.
Operator
The next question is from the line of Janice Karia from Union amc. Please go ahead.
Janice Karia
Yes, thank you for the opportunity. Good evening. That the private capex will pick up going forward. Should we see a growth acceleration rating and can we guide for a 25 30% growth in FY27 and northward of 30% in FY28?
ParakramSinh Jadeja
Yes, absolutely. FY27 you can consider same numbers of 27 as well as 28.
Janice Karia
Understood. And you mentioned in your opening remarks that aerospace, defense and auto ancillaries are some of the sectors. You are seeing incremental growth coming from an order book building up. But apart from that are there any specific sectors you would highlight both on India and global perspective where the growth you see accelerating not in the current order book but in the upcoming order book.
ParakramSinh Jadeja
So basically the entire manufacturing is growing. I always very much difficult while I am presenting numbers to you to combine the general engineering and auto and all like that. Okay. So many manufacturing sectors are growing. Valves, palms, domestic and every area. Today I have a 14,000 plus customer base in India.
We are consolidating and bringing this number into four sectors. Front of you there basically is exploding on a completely on a manufacturing. If you look at that the Vixit Bharat India’s target is to be a 30 trillion dollar economy and 25% of a manufacturing 25 percentage of manufacturing.
Today we are at 13 percentage and growing this economy at 6 to 8% in between. You can understand every sectors are going to grow there. Every sectors railway. Apart from what we are not discussing over here we are we are seeing the very tractions on a railway. The railway component manufacturing is increasing and we are there supplying many machines to them.
But it falls under category of a record as a general engineering. If you see that every quarter on quarter of a general engineering basket are increasing.
Janice Karia
Understood sir. And just one last thing. What would be the revenue mix from exports currently and do we see that changing materially improving on the export side going forward or will be majorly focusing on the domestic growth story.
ParakramSinh Jadeja
So Jenny’s why we are very much focused to be maintained around 35 to 40% is to be exports and 60, 65% to be domestic. And this is in line we are looking for the next couple of year it is going to be maintained similarly like this.
Operator
The next question is from the line of Aniket Jain from yes securities. Please go ahead.
Aniket Jain
Thanks for taking my question again. So I had two more questions. So number one is on the material cost inflation. So I believe there is probably 20, 30% of your total cost could be coming from the raw materials. Maybe steel, aluminum, copper. So are we hedging those or how are we protecting our margins? Is there any price escalation, loss. Included?
ParakramSinh Jadeja
Aniketji we are in absolutely on a natural hedging scenario. See the every orders are a fixed orders. We are not having a long term contract to repeat to same price to give a next machines to them customer there.
And you know that our inventory cycles are almost 200 to 240 days of our manufacturing. Whenever there’s any this commodity prices plus and minuses. Okay. We are transferring on the same next month to the new customers and we are able to balance these things there.
Aniket Jain
All right sir. And probably one more on Huron. So I did some reverse calculation. I think one more participant asked a question. So on Huron what are the revenues? Because on my numbers I think it is coming between 45 to 50 crores versus probably around 60 cross in the last quarter. So why is there a decline?
ParakramSinh Jadeja
No, it’s not decline. I’ll tell you one thing. It’s because of a console level. We have a way. I told you that we are now increasing the. New inventories and everything there. So there is a. In the console level there are more material been dispatched from Jyoti to there. So in a console it has been reduced there basically. Okay. Otherwise right now, right now there is a. Is almost. It is little bit higher than the quarter two numbers to quarter three numbers there.
Aniket Jain
By any chance are you able to share the number? Not sure if you’re comfortable doing that. But what is the Huron’s revenue and how much are we sending from Jyoti to Huron?
ParakramSinh Jadeja
Yeah, absolutely. I’ll just find out and not front of me there. I am right now in Huron right now. Okay, I’ll share with you that detail.
Aniket Jain
Sure. And probably last one. So our gross margins increased to 57 now. So what kind of margins are we making on the high end machines? And probably is there any increase in the margins for low and mid end machines as well? And are we able to sustain these kind of margins or is there a one off or probably a temporary situation?
ParakramSinh Jadeja
Basically we are always working is more and more is to be our value addition program. Okay. Based on this our complete back end manufacturing cycle and whatever the critical sub assemblies and all we were importing we are adding more and more even the our local entry level product. Also we are expanding the margin. Of course our margins are much better on a high end machines and we are executing like that in between. I’ll tell you the FY this our quarter three in a Huron. My sales is 80 crores, not 40, 45 crores. And then total together in three months is close to 200, 222 crores in nine months there.
Aniket Jain
Okay. Okay. Yeah. So how much is then out of 80 cross? So probably 30, 35 cross is being exported from Jyoti to Huran. Am I correct in my understanding?
ParakramSinh Jadeja
Yeah. So basically at console level, what the. Let’s say whatever the manufacturing is going to increase there, the 70% goods are going from here to there. Okay. So if you, if you look at that this year we are close to 85 crores worth of material has already been supplied to them and that’s how we are going to see the future expansion, growth. Are there. Okay, that’s right. Now it is an affecting to us in a console level. It has been. It has been removed. Okay. Yep. And once it will be executed from Huron, that number will come. See the picture there.
Operator
The next question is from the line of Keshav Baradia from Walford Financial. Please go ahead.
Keshav Baradia
Hi sir. Congratulations on a great set of numbers. So just one question I had you mentioned that we were trying to get our working capital cycle more in control by various efforts that we’re taking. So could you talk a little bit about how we’re trying to get those inventory days down and optimize working capital?
That is first. And so second, we’ve seen a lot of tensions between EU and US and that has led to a renewed uptick in defense spending globally. So is there anything that we are looking at inorganically to kind of increase our wallet share with European customers or get access to newer customers to kind of capitalize on that opportunity.
ParakramSinh Jadeja
Basically about the inventory optimizations. See the Jyoti is having more than 200 plus product variants in the last three years. We have reach out to almost 2 1/2 to 3x on a similar SKUs. So based on these SKUs our optimizations are coming more and more scale will increase.
A furthermore optimization will come on the same set of SKUs we are delivering. The more so my inventory is becoming optimizing. There are. That’s one second now in a new plant we are doing lot of automations over there. Okay, door. Those are our general. Some of the manufacturer. Processes was in manual. That’s where putting into very sophisticated automations are going to be in a place to be there. So we are seeing further optimizations are going to be seen over there in terms of a flexibility on manufacturing, easy setup change and everything like that. That’s the one part and that’s how we are looking to be growing forward. Going forward. We are looking to be a more and more optimization zone there. Your second question about the EU and this area. Yes, there is a lot of now after the EU deal we are seeing a lot of already there are delegation has came. I met many people over there and all. And we are seeing that the more and more investments are going to be happening in Europe there and particularly Germany has taken a lead in terms of defense manufacturing. They are going to spend more than $500 billion and rest all the other people together. They will invest close to 1 trillion dollar in coming days. And already we are overall sales people are working with them very closely. We are seeing that aerospace defense as well as very high precision manufacturing marketing in Euzon is is increasing dramatically there. Apart from that I remember just now. Apart from that I like to tell you one thing more that we have recently now we started our China operations also that we are going to furthermore on the China with our sales activity there and all these geopolitical situations. Every country started investing there. So we got in this quarter we got a good numbers order from China as well.
Keshav Baradia
Got it sir. That’s very helpful. So sir, as part of our efforts to get more automation in the general manufacturing processes of the new plant. Do we expect that to kind of help margins more from the 26, 27% level we are right now Once that?
ParakramSinh Jadeja
I think here I’m always giving a one simple answer. Okay. So yeah there is a possibilities are there we will improve some margin but I would like to be very let’s say a conservative over here and I’ll not like to guide you that to from 25 to 30. Okay. We’ll be in a range in between 25 to 27 percentage already we are on a all one of the best in industries we are serving over here.
Keshav Baradia
Great sir. Thank you so much and wish you all the best for the future. Thank you.
Operator
The Next question is from the line of Manish Otwal from Nirmal Bank Securities Private Limited. Please go ahead Sir,
Manish Ostwal
I have only one question like of the total inventory which we have what is the breakdown of RM versus WIP as on 31st December 2025?
ParakramSinh Jadeja
One second. So I think I have a given a numbers on a half yearly I need to take from this number because I’m sitting on a France right now. I can send you the details.
Manish Ostwal
All right. I connect to your office. Thank you.
ParakramSinh Jadeja
Yeah, definitely. We’ll send you there.
Operator
Thank you sir. Ladies and gentlemen, due to time constraints we’ll take this as a last question for today. 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 we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on and development in the company. For any further information or queries please feel free to reach out to us or sga, our investor relation advisor. Thank you very much to all of you there.
Operator
Thank you sir. On behalf of Equerry Securities Private Limited that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.