Macpower CNC Machines Ltd (NSE: MACPOWER) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Rupesh Mehta — Chairman and Managing Director
Vinay Pandit — Investor Relations
Analysts:
Unidentified Participant
Presentation:
Vinay Pandit — Investor Relations
Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team I welcome you all to the Q3 and 9 months FY26 post earnings conference call of Mac Power CNC Machines Limited. Today on the call from the management team we have with us Mr. Rupesh Mehta, Chairman and Managing Director, Mr. Vishal Mehta Chief Financial Officer and Mr. Kishore Kikani, Company Secretary. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the period ended December 2025.
The growth, perspective and vision for the coming years Post which we will open the floor for Q A over to the management team.
Rupesh Mehta — Chairman and Managing Director
Thank you very much Vinay. First of all good afternoon everyone. First of all I earnestly welcome you all to Q3FY26 post result conference conference call. We appreciate that you have taken out time for from your busy schedule to attend this call. Thank you for being in this call. The financial results and presentation have been posted on the company’s website and hope you have had an opportunity to go through the same. I would quickly run you through the quarter 3 FY26 result highlights first then we will discuss more about our business. So in quarter three FY26 the company delivered its highest ever quarterly performance in history of Magpower in terms of the EBITDA in terms of the PET in terms of the revenue.
So I would like to give you the some figures. Revenue stand at 86.15 which is grown yoy at 43%. EBITDA stand at 15.5 cr which is grown y o wide 99% with EBITDA margin of 18.8% that is also a highest ever. And pet stand at rupees 9.79 crore which is grown yoy 190% with pet margin of 11.37% this quarter. This nine month our capex is also at increase by 12.41 compared to last nine months 7.81 cr. So that’s why our depreciation is also increased by 1 crore. Then also we achieved a good package machine. Average price is also increased Last increase from 18.28 to nearly 20 lakh rupees YoY Nexa which we had discussed so many times in Two three con calls that we are focusing on Nexa product.
So I think I’m happy to announce that the contribution of Nexa product is also a 39% in our order book. Because we are focusing on those Nexa product area. Strong order book pending order book Is also increased by 375 crore compared to Q3. It’s now 17% growth in the order book Also domestic bid is also submitted by 639 and tender bids defense and aeronautic bid is 300. So total bidding is 958. So in quarter four we are expecting more strong order book and more delivery. We developed a few new product also in our product basket.
The name is DCM4002. That is the double column series machines. Is weight of this machine is approximately 30 ton and the value is approximately 2 crore turn mill center with Y axis that is this is one is our new model. Nearly 1 crore market value product. And one product is GX100 Super. These three new product in this quarter we recently developed according to the market need and as part of ongoing capacity enhancement strategy. The company has recently taken the 10000 square feet industrial set space on rental base. So we can not stop our growth journey for coming one year or two years.
And secondly we are looking and discussing for another 50000 to 1 lakh square feet rental base new sets to increase our production our process. And we are sifting some of the process in this new ready available rental waste. So once we start the new plant we don’t have to suffer for next financial year update about our new land. We have already paid a primary token advance amount and all the government said almost 18 type of the different different approvals we received. And now everything is clear. We have to just sign the agreement with the government.
But we are waiting for the government new policy which is maybe in this Gujarat budget or maybe in February end. So maybe I’m hopefully expect that in March first week, second week we received our new land for the new project. And significantly we increase our export business also. As you know that we participate in the EMO exhibition in Germany. And from this exhibition we received few orders from the few dealers we appointed. And gradually now we are entering into the export market also. This is a brief about the business and performance. And I request Vinay to start the question and answer.
Questions and Answers:
operator
Thank you sir. We’ll now begin the question and answer session. All those who wish to ask a question please use the option of raise hand. You can also. You can also put your question in the chat. Box. We’ll wait for a moment till the question queue assembles. We’ll take the first question from Ara. Please go ahead.
Unidentified Participant
Hi. Hi Ri. Congratulations on a strong set of numbers.
Rupesh Mehta
Thank you.
Unidentified Participant
So my first question is just with regarding this land rental area that you just spoke about. So this is different from the land that you are acquiring which you are in the process of, you know, deciding with the government how how much land they’ll give and those various terms. And that land, correct me if I’m wrong, will have a 10,000 machine capacity over the next five years. So what will the purpose of this rental area of 50,000 to 100,000 square foot be for.
Rupesh Mehta
This new land for rental? We are just discussing because it is readily available with the very nominal rental base. So in 2627 financial year, if we received the land on March, then also minimum 12 months, one year we have to wait for the infrastructure, plant and machinery and expansion of the capacity. So meanwhile for 2627 this land is available for short period. So we are deciding that if we utilize this land then we can smoothen our production and production capacity also we can I think improve.
Unidentified Participant
So if we get this land, the 50,000 to 100,000 square foot rental area then we will still go ahead with the new land that we’re trying to get for the 10,000 machines. Or then we’ll just use this existing space for that capex.
Rupesh Mehta
This new 50,000 to 1 lakh. Already we shifted 10,000 square feet area some of the process. We are shifting in this new 50,000 to 1 lakh. Because what we feel that if we want to achieve 2,500 machines capacity, we need to shift some of the process. So we are planning to shift some of the process in this new rental area for a short period, maybe one year or one and a half year after new building, new construction of new plant will be in operation. We’ll shift this rental area and will be totally focused on the new plant and new building where we are keeping another,500 machine for phase one.
Yeah.
Unidentified Participant
So this will just be temporary and it won’t be an additional capacity enhancement. It will be the same capacity moving.
Rupesh Mehta
To that area, same capacity. But we, we are. We have to struggle to achieve this 2500 capacity because of the shortage of the areas. So we decided as a safer side, it is not that much costly also. So we’ll shift some of the process to smoothen the 2500 capacity for next financial year.
Unidentified Participant
Okay, understood. And my next question is so last last year in quarter three FY25 we you spoke about some bank realization issue and payments regarding those issues which you know affected the performance a bit. So did we face any similar bank realization issues this quarter or was that a one time thing?
Rupesh Mehta
No, I think now the we have some kind of the financial scheme also available with the some of the NBC and that is why our payment and financial realization issue is the almost sold out. So that’s why we make the one good strategy also with some NBFC and now we don’t have that much problem for the realization. So that issue is not I think and this quarter three quarter four are always the highest ever for the every machine tools builder or capital goods manufacturer. And that’s why we feel that quarter on quarter also we will achieve the good numbers.
Unidentified Participant
And just one last question. Are we sticking to our guidance for performance in FY27 or is there any revision in the guidance?
Rupesh Mehta
I think as I discussed that every year we’ll achieve 25 to 30% growth. So same journey we are expecting for next financial or also and this is.
Rupesh Mehta
Revenue and profit growth everywhere.
Unidentified Participant
Okay. Okay. Congratulations again on the strong set of numbers. Thanks.
Vinay Pandit
Thank you. Arnav. We’ll take the next question from Dhawal Shah. Please go ahead.
Unidentified Participant
Yes, congratulations, good set of numbers.
Rupesh Mehta
Thank you very much.
Unidentified Participant
Yes, so. So my question is regarding the various models. We have given a lot of information about the new products in the presentation. So where do we stand in terms of our complete offering to the market at this stage? How many more products for which other new platform are needed for us to you know have a complete set of offering to the customer. So say for example if our competitor is having 10 products so do we have all of those 10 products or we have reached eight products and the you know and the other two we are working upon.
So my question is from that side.
Rupesh Mehta
Yeah I think about product basket worldwide we all the six, seven players are neck to neck. I think I have a 5% loss than some of the company and some of the model we are not focusing. So I think almost every manufacturer 90, 95% similar product. So product basket wise I think I am proud that we are in top three in India. So then also every quarter we are adding the new new product. So product basket wise we are the 100% as I told in my last con call also that we are suffering for the plant capacity and that’s why we are not focusing on the certain area like tier one customer.
But now we are focusing. Recently we got good numbers from Kiloskar and Amit Forge or like big companies. So we are focusing on that area. But what we have to do for the next financial year is some of the I think area tier one, tier two customer. We have to separately make the separate team for them and some of the segments which we are not focusing because of capacity. So we are gradually focusing on the this area where our presence is almost negligible because of our plant capacity. But now we are increasing the presence in the segment wise and the area wise also.
And that’s why if you can see last year our Nexa contribution was almost negligible. We increased by 39%. So we are sure that next financial year according to our capacity will get the good numbers from the booking and good numbers for the billing also by maybe 20 to 30%. We are expecting the growth for the next financial year.
Unidentified Participant
Okay, so this NEXA segment is for catering to tier one customer?
Rupesh Mehta
No, NEXA is for the higher end products.
Unidentified Participant
Higher end products? Yes. Okay, but. But does it mean that the tier one customers will be more on the higher end side or your even your current MSME will also buy?
Rupesh Mehta
No. Right now our regular team is handling the tier one tier two but we already appoint the few people and maybe in new financial year will active the Tier 1 tier to our new team for the Tier 1 and Tier 2.
Unidentified Participant
Okay, second question is on the margins front you you’ve written about 25 margin vision. So this gap from 18 to 25% and another 7, 8% this is going to be possible because of backward integration or. Or a mix of more better higher products and backward integration.
Rupesh Mehta
I think it is for the backward integration and we have a fixed cost. Once your revenue will increase, your margin will definitely increase. If you can see the revenue, once revenue increase the margin is increased by 1 or 2%. So that is the one area. And second area is backward integration. And third area is we are focusing on NEXA product which is premium product where our margin level is little bit high compared to other baskets. And third is the defense business where our focus is slightly more right now. And the margin level is highest ever in defense area.
Unidentified Participant
Okay, okay.
Rupesh Mehta
So that’s why I. I believe that we can achieve this 25% in coming two, three years in new plant in.
Unidentified Participant
Propose the new plant. So the current plant back what maximum margins you can do from the current plant?
Rupesh Mehta
It depends on the revenue. If your revenue is increased then definitely your EBITDA margin will increase. And if we are not participating in the big exhibitions or not doing anything else we can keep the cost remaining same Then also the margin will increase. So there are the two aspects. Some if my revenue is increased by 10 crore then margin definitely beta margin will increase.
Unidentified Participant
Okay. So you are okay. So from here on every incremental machine you sell all your costs are there in the P and L. And it is going to directly go to the ebitda.
Rupesh Mehta
Ebitda. Yes.
Unidentified Participant
Right. Every. Every additional revenue you make will go to ebitda.
Rupesh Mehta
Good. Ebit.
Unidentified Participant
Yeah. With very little bit increase in your cost. Okay.
Rupesh Mehta
Right. Yeah.
Unidentified Participant
Okay.
Rupesh Mehta
We have a fixed cost. That’s right.
Unidentified Participant
Fixed cost is there. Yes.
Rupesh Mehta
Yeah.
Unidentified Participant
Okay. Thank you very much. I’ll come back in the queue.
operator
Thank you. Dhaval. Still we’ll take a question from the chat. Actually there are three questions by Hitesh Jain. One of the questions is the timeline for the 25% EBITDA margin guidance. So I think just after.
Rupesh Mehta
After I think fully operation of new plant we can actually. 25%.
operator
Okay. And what were the number of machines sold in this quarter in the last quarter?
Rupesh Mehta
Number of machines we are not disclosing because of the sum of the strategy and competition are watching everything. So number of machine I will not explain.
operator
Okay sir. And last his last question is what is the capacity utilization expected in the next quarter?
Rupesh Mehta
I think next quarter capacity utilization is not for the quarter but entire year. So we are expecting. I think in the terms of capacity utilization is the terms of the production. So almost 85% we are expecting capacity utilization.
operator
Okay sir. Thank you sir. So we’ll take the next question which is also from chat. It’s from Naman Jain. He’s asking if we compare with world’s leading CNC machine manufacturers. Margins of those companies. Can Magpower reach those margin levels? This quarter we reached 18% levels. How much room is left on the margin front?
Rupesh Mehta
No margin will increase gradually. It is not for night journey. But with the new plant I had given the clear projection that we are trying to achieve the 25% EBITDA with the new plant capacity and new investment in new backward integrations. So we are expecting maximum 25%. After that I will give you the new guidance. But there are lots of opportunity in this business to increase the margins. We can start the new vertical also there are lots of. But right now we are focusing on 25% with new plan.
operator
Thank you sir. His next question is are we looking for any technological or R D partnership with world’s leading producers to become the top 10 or 20 companies in the world? Is there anything in your agenda?
Rupesh Mehta
So we. It is already in our agenda. In quarter two Concol meeting we had discussed about the joint venture or the technology transfer. And some of the product will produce in India with their technology. We already met 55 company in last Germany exhibitions. And we are almost in the finalization stage. But we are waiting for the new land. Once we receive the new land I think we’ll start with the one company.
operator
Thank you sir. We’ll take the next question from chat. It is from Aniket Jain from yes securities. He’s asking what is the impact of trade deals with US and European Union on the CNC market in India.
Rupesh Mehta
I think USA we don’t have anything we are importing from USA or we are exporting from India to usa. But European machines are maybe they can I think sell in India. But their price is right now almost doubles. And tariff in Europe and India is just 7.5%. So it will reduce only 7.5% if the tariff is zero. So it will not give that much impact. Because their price is almost double without custom duty. So logistic cost is also a significant role for them also because logistic cost is also 25 to 30%. So it will not give any impact.
But we have a good chance in their country. Our tariff rate in a European market is I think too high. So it is a good chance where we are focusing right now we had supply the many machine to European market after Emo Germany exhibition. So yes, it is a beneficially to the Indian company.
operator
Thank you sir. We’ll take the next question from Mahek Talati. Please go ahead.
Unidentified Participant
Yeah. Hello sir. Thank you so much for the opportunity. So. So just wanted to understand. So when we say 25 to 30 growth from NFY 27 and going forward. So is it in volume terms or revenue terms everywhere.
Rupesh Mehta
I think for the revenue terms also and EBITDA terms also. And a bad term also.
Unidentified Participant
But when. But then we are also expecting the margins to improve going forward. So our bid and paired growth should be higher than revenue. Correct?
Rupesh Mehta
Yeah. Yeah. It. It. It is relevant to the your revenue. Once your revenue will increase your EBITDA margin definitely will increase.
Unidentified Participant
Okay. And sir, what was the average realization in this quarter per machine revenue?
Rupesh Mehta
Yeah, I think I had given the figure mag. This is the 20 lakh rupees average price compared to last quarter 3.18.28. So it is increased.
Unidentified Participant
Okay. Q2. What was in Q2?
Rupesh Mehta
I think nearly 2020. Like so same same in a Q2 versus Q3.
Unidentified Participant
Okay, so going. But now since you are focusing on the defense portfolio. So this 20 lakh will increase going forward gradually.
Rupesh Mehta
We have a huge pending order from Defense. And we are going to realize this order on quarter three. So definitely quarter three will be average price will be increased.
Unidentified Participant
Okay. Understood. Okay. And land will be in 7th or March 1st. Correct.
Rupesh Mehta
I am expecting because they we have to just sign. Nothing is pending right now all the approvals is clear. But right now they have a old policy and they say stop and wait for the short time we are giving you the new policy. And which is a very very good and very beneficial to the sectors. So that’s why we are waiting.
Unidentified Participant
Understood. Thank you. Thank you so much.
operator
Thank you. We’ll take the next question from Shashi Khan. Please go ahead.
Unidentified Participant
Good afternoon sir. Thank you. Congratulations for good set of numbers. And obviously the numbers is quite stronger this time. And we hope that the company will deliver in future also. So my first question is about the the orders that are under evaluations around 380 crores. 18 crores tender are under winduish. See the results flowing in.
Rupesh Mehta
I think for the tender business there is no time frame for them. There is a one rules. There is a one rules for J that after 90 days they have to pay the some of the fees for tender uploading. So normally they have to complete the tender process in 90 days. But some of the department is not I think following this SOP. So maybe it depends on how many tenders. But in almost the Trend is quarter four is the maximum opening of tender. And right now one HL tender is open of 3.5 crore. So now tender will open quickly in quarter four.
After that how much tender we win. That is up to the I think luck or our background calculations what price we had supplied, what price some other people are quoting. So according to me Average ratio is 10%.
Unidentified Participant
Okay. Overall bid pipeline is around 5, 958 crore. So 10 is kind of conversion ratio for us. Is it right?
Rupesh Mehta
Yeah.
Unidentified Participant
So in 958crores 319crore is from different segment remaining is fix 39. So where is the major, you know order coming from? Which sector?
Rupesh Mehta
I think everywhere. Right now they have a huge budget. Mainly HVF and recently this engine factory. Hal and Bell Bhel they are I think uploading the maximum tenders.
Unidentified Participant
So currently I mean as you mentioned there are six, seven players having similar kind of product portfolios. So what is the competitive intensity in these buildings from the existing player?
Rupesh Mehta
I think average Everybody is getting 10 to 12%.
Unidentified Participant
Okay.
Rupesh Mehta
I mean some of the small machines or basic machines tender we are not filing because of process and the bank guarantee amount is old and some of the institute are not that much good for the payment systems. So. And some of the company is not filing the higher end machines like 5 crore, 10 crore, 20 crores. So it is company to company there they are selecting the technicals and then they are filing so average in terms of the value, in terms of the numbers they are getting 10 to 12 person.
Unidentified Participant
Okay. So. So what is the on ground status from you know, emerging industries like aerospace that India is trying to, you know, have its pie grown. So how much you know, inquiries we are witnessing from that segment.
Rupesh Mehta
I have a very good market survey, I think about the segments of our machine to CNC machine tools. So I think this year we’ll close with the exactly figure will come come out after this quarter four. Because quarter four is highest ever for everyone and especially March. So I think we are expecting 15 to 25% growth in this sector.
Unidentified Participant
Okay sir. Okay sir. So are we also looking to participate in, you know, do we have a calendar of any exhibitions coming where we are trying to, you know, participate in coming time?
Rupesh Mehta
We already participated in last Jamnagar exhibition. Now in this 20th we are participating in Ludhiana. So every month we are participating in the domestic exhibition after that one exhibition in Kolkata. So this year our marketing aggression also you can see that’s why our order because we had a problem for the capacity not for the market. Till date we are, we are covering only 4.5% market share in terms of the value. So I think still we have a lots of opportunity. Once we increase the capacity we will focus more and more on other sectors, other tier one, tier two customer.
Right now if we focus more aggressively then our operating cost will increase. And our order book, you can see it’s like a double or triple. But we have a problem for the executions. So that’s why we are increasing the capacity gradually and we are increasing our marketing and distributions and new product basket strategy gradually. So we have still lots of room because our market share is just 4% compared to value. So we are participating right now in each and every exhibition. Okay.
Unidentified Participant
So as we have seen we are you know, very R D focused. You know, company launching so many new variants of new variants, new models. So have we added, you know recently a good team of R D members or how is the, you know, total strength of the R D team? And have you added any further into.
Rupesh Mehta
Right now we have almost compared to last year we have almost 2 times RT bigger R& D team. And we don’t have a. That Area we are not feeling that that area is challenging for us. Because we are in this field since last 27 years. So our team is capable to manufacture any kind of the machines and some of the import substitute machines. We are going to make the one collaboration also in coming next financial year. So right now we are not struggling for the product I think or product development maybe automation, robotic. It’s the upcoming product also that we already produce and supply to our client.
So our RL team is almost two times compared to last year. So we are not aware that area Right now our challenges is only only land. Once we have a land we’ll build up the new setup and then when we will start and we’ll show the more aggression like other players in market.
Unidentified Participant
Okay. So do we have any, you know certain kind of internal policy of R D budget that we are going to spend every year? Is there anything fact like that?
Rupesh Mehta
No, I think we decided at least 1 or 2% minimum 1% maximum 2% is the RNG budget. But for R D right now we are not facing that much product. We have a lots of new product is readily available with our brass kit. But we are not going to launch. Because if we launch then we are we have to face the again same problem for the capacity and it it is like in one machine we have to utilize 1100 components. So we have to modify our machining process, our fabrication process, our product process. So right now we don’t have that much capacity and space.
So we are not launching this product. Once our new plant will start will keep the product to product assembly area separately we’ll focus on that area. So R D team is I think one year ahead then our future requirement.
Unidentified Participant
Okay sir. Very nice to hear. Thank you sir. Thanks. That’s all from my friend. Thank you.
operator
Thank you. Thank you sir. We’ll take a question from chat from Mr. Abhijit. A is asking what is the price difference in next order book and non nexa order book. Trying to understand the margin difference.
Unidentified Participant
I think average price for the non Nexa book is 15 leg to 16 lakh average price and product. There is a 30 leg machine also and 1.5 crore machine also.
operator
Okay, so his next question is that good order book this quarter after a sluggish growth in the last few quarters how do we see then order book run rate in the next year FY27.
Rupesh Mehta
I think as I discussed in my previous con call also that we’ll try to get the minimum 25% order new orders against executed and the new order so we’ll increase the 25% order book on each and every quarter on quarter.
operator
Okay sir. His next question is how much is the contribution from exports and where do we see this number in FY27?
Rupesh Mehta
I think recently we supplied few numbers in the Gulf and the European market. So gradually we don’t want to start aggressively for the export market. As I told you that we are facing the problem of capacity so gradually In a trial base we are focusing on the few countries. But with the new plan will separate. We’ll set up the separate export division also in manufacturing. Right now market is not that much problem for us. Our problem is execution. So in gradually we increase our export market. Sir, once we establish the capacity.
operator
Okay sir. He’s asking that the are the margins better in export and if yes how much.
Rupesh Mehta
Margin is better in the terms of 5 to 7% because of some of the incentive from the government also and rising also.
operator
And his last question is how much can the average realization increase in FY27 considering higher contributions from Nexa?
Rupesh Mehta
I think it is not important. I think for the average realization. Because right now we are working with the same plant with all the mix product basket. So say for example if I manufacture 20 like one machines and 40 lakh one machines. So the area of the assembly area utilization. So one 40 lakh rupees machine take two days and 20 lakh rupees machine take one day. So the average realization will I think effective once will shifted into the new plant. But right now average realization I expecting in next financial year that will increase by 10 to 20% in focusing on more high valued machines.
operator
Okay sir. And he’s asking one last question. Sir you mentioned our R D is two times of last year. So will this lead to an increase in the employee expense and other expenses in the coming quarters?
Unidentified Participant
No, I think it will not increase that much. We gradually increase the double team compared to last financial year to this financial year. And we are we are upgrading the team. It is not that much higher valued cost. But compared to last year we increased the R D team. That’s why our revenue and new models are coming quickly. But it is not that much. Compared to our entire salary cost it’s negligible cost.
operator
Thank you sir. All those who wish to ask a question please use the option of raise hand. Sir, we’ll take a question from chat from Naman Jain. He’s asking since you are making import substitution product. So how much percent of import you think can come down in terms of percentage in the next five years? Any PLI scheme government is planning for this sector.
Unidentified Participant
I think it depends on the government policy. I think it is too early to predict how much percentage we can reduce. But yes we can increase our percentage. That that. I am sure that this sector will grow by 20 to 30% YoY every coming five years. Because still we have lots of room. We are not exporting. India’s export is less than 1% and world market is open for India. And India’s companies are ready to sell the world market right now. But same as I told you that they are busy with the domestic order book. That’s why nobody is that much focused on export market except two, three companies.
So I think we cannot reduce the import. It depends on government policy. But with the joint venture technology transfer and acquisition of some of the company in Europe and other country we can increase our market share. But to reduce the market share is I think difficult in terms of the numbers we are is. But in the import machines are coming with the higher price. The average price of import machine is more than 1 crore. So I think India has to focus on that segment. But in coming five years definitely will achieve that area where right now what I am feeling that 45 to 50% is import and 45 to 50% India is 55 to 50% India is producing.
So if you can see the 10 years back story the import was 60 to 65% and gradually we I think reduced the importance import product. Right now we are focusing on double column. India is focusing on double column. We are also phi axis and HMC. I already purchased in 2012. I purchased from Hyundai Korea same machine. Now we are selling to India. I purchased lots of double column machine from the Taiwan and Japan. Now we are manufacturing same kind of the machine. So India is developing a new product basket which is import substitute. That’s why this segment is is growing by 50 to 25% which is the highest in the manufacturing industries.
operator
Thank you sir. Sir, we’ll take a question from chat. It’s from Ayush. He’s asking is it Safe to assume a 25 growth in revenue for FY27 and FY28 and EBITDA margins to sustain an 18 at 18% or even higher based on the contribution from Nexa27 I.
Rupesh Mehta
Think I’m sure that we can increase the EBITDA margin and 28 I think EBITDA margin will be also increased once your new plant will but pre operating and pre preliminary expenses cost will be added in new plant. So 28 EBITDA definitely will increase.
operator
And what about revenue? Sir, he is asking the revenue growth will be around 25%. You can assume.
Rupesh Mehta
No. It is after completion of new plant and fully operated. So I think 29. We can achieve the 25%.
operator
Okay, sir. Okay. We’ll take a follow up question from Abhijit A. He’s asking are we planning to participate in new exhibitions in FY27.
Rupesh Mehta
Yes, we are planning. As I just now discussed that in each and every month we are participating in exhibition. After this Ludhiana we have a Calcutta. After that we have exhibition in Pune. So every month we are participating. It is ongoing journey. And it is the regular process of business.
operator
Thank you.
Rupesh Mehta
Last year we don’t have a capacity. That’s why we are not aggressively participating in 2023. We not participate in exhibition 24. We started gradually, we are increasing and now aggressively we are participating in all the exhibitions.
operator
Okay, sir. Abhijit is asking sir, what was the primary factor behind the increase in finance cost this quarter? How do we see the trajectory going forward?
Rupesh Mehta
Yes sir. So I think we launched our scheme for our customers and we had a one tie off with one nbfc. So this is our internal I think scheme with the NBFC company which is help to realize the financial disbursement immediately. So that is why this cost is increased. But we’ll cover with our sales price. So it is indirectly cost. But it is not indirectly cost. Directly cost. Because our margin is improved. And we are I think diverting that percentage to the NBFC company.
operator
Okay, sir. Still we’ll take another question from chat is from Keshav Tantri. He’s asking I assume we import the controllers from Fanuc. Any impact on the cost of these components due to European urine freight deal.
Rupesh Mehta
Fanuc is not. I think it is in. We are buying with the yen. So it’s yen effect is I think applicable for us. And we are buying this Fanuc from Fanuc India. So they are giving us with the Indian rupees only. And the factor is every four month we have to see the yen. So right now in last two quarter the yen is decreased. So it is benefit to us.
operator
Okay, sir, we’ll take the next question from Ronit Kapoor. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity. So first of all congratulations on the great set of numbers. Thank you very much. Yeah. So I want to know like how’s the competition you’re seeing from this imported machine. This fabricators from China who are bringing in parts and assembling the machine. And secondly I want to Know like when is the BIS expected to come to stop this?
Rupesh Mehta
I think right now we are not that much. We are not facing that much process problem with the China import and they are assembly here. Because the quality of this kind of machines is just like tiny Chinese toys.
So within one year, within six months, two years of initially two, three years back people buy these machine who are just as a new entrepreneur they wanted to start their startup. But after this experience our machines life is minimum five years. And if the good maintenance and good service they are doing regularly then they can utilize for 10 years also for the roughing purpose. But these Chinese machines is only one year. So I don’t think so it will affect our Indian market. But I think new rules of BRDS is I think applicable on next financial year.
September October is the deadline. So maybe after that almost this kind of the import from other country and from the China will stop. But our import is from China is very very less in the entry level machine. You know imports are like. I mean merely of parts and a lot of these unorganized sector they’re fabricating it and making it right? No, but unorganized sector I think not in this sector, this segment they have to organize if they wanted to assemble and they wanted to test the machine then also they have to establish the full capacity plant.
So there are two, three players are just doing this kind of. But they are buying CKD all the machines. But it is entry level machines. The cost of that machine is just like 50% than Indian machine and the capacity is half. Our machine capacity is 2 time than Chinese machine and reliability is 0. So I think now people realize that we don’t have to buy these kind of machines. But the Chinese market share is in total terms of the value is not more than 5% also. So it is not the threat for us and our threat is to develop the for Magpower.
Our threat is or our opportunity we are missing is the plant capacity. So next financial year once we receive the new land we’ll increase our capacity. And the second is the import substitute product. So I am sure that we are fully capable to deliver the import substitute product in coming few years. So China is not a big threat. But yes, October November now this is the last warning from the government for this standard. So after October November I think September 3rd quarter China machine will stop. Okay. And lastly like any update on when you will be finalizing the joint venture.
I think we have a non disclosure agreement but we are ready from the both side slowly with some of the things will start Once we receive the new land. Meanwhile we are doing some of the things jointly Right now we are selling their machines. We are focusing that we can give the market survey and we are working on that area. Once we receive the land, we’ll announce the one joint ventures. So this joint venture capacity would be the exist the new land or like some of the other capacity. Because they have a certain kind of the criteria with this plant.
If we start the manufacturing of their product, I think we’ll disturb our own setup right now. So we’ll make the separate setup for them
Unidentified Participant
. So your new foundry also supposed to come up in the land, right?
Rupesh Mehta
Yeah. New plan. Yeah.
Unidentified Participant
Okay. And lastly like in terms of the joint venture, like major, you’ll be having a 50 stake or like a majority
Rupesh Mehta
joint venture. It is a word I am using. But it is like a technology transfer and buyback systems. So they are not investing. They want to invest but I denied them for the investment. So it is a one kind of the business opportunity that we produce some of the machine for their Asian market in our new plant and some of the imposed substitute product they will guide us to produce in our new plant. And we’ll give the some kind of percentage royalty to that.
This will be like a contract manufacturing like somewhere. No, no, no contact.
Unidentified Participant
Okay. That seems like a technology transfer agreement as such, only technology. Okay, thank you. That’s it. Thank you.
operator
Thank you. Ronit. Sir, we’ll take a question from chat from Zubin C is asking how would you compare the quality of Mac power machines versus other Indian competitors.
Rupesh Mehta
I think we all are neck to neck because we have to follow the Indian IS standards. Everybody is following the IS standard. Everybody have a laser bull bar NAS test which are the international norms which we have to follow to deliver the machines. So I think all the top five players are following these standards. And I think we all are capable to follow this standard and equal to other top five players. Magpower is also in same cube. There is no 1, 2, 3, 4. Because everybody have to follow the same standard of quality. So in the terms of quality, yes, we are different in the features.
Our length is higher, our speed is higher. In some of the model we are number one. We are getting the some of the segment market share is almost 30 to 40%. We are very strong in that focus in the summer segments. So quality wise we all are neck to neck. Mac power is also you can say number one.
operator
Okay sir. He further asks that how would you benchmark the quality against Italian or German CNC machines?
Rupesh Mehta
I think our machine Indian Machines is capable to compete them. But what we are manufacturing right now we are neck to neck that German and Italian what they are manufacturing we don’t have that product in India. So what they are manufacturing we don’t manufacture in India. But if you can say hmc, if you can say vertical machining center we are neck to neck with the German and Italy. Because everybody is following same standard which all the world is following.
operator
Okay sir, we’ll take the follow up question from Mahit Talati. Please go ahead.
Unidentified Participant
Yeah. Hello sir. Thank you for the follow up. You mentioned that you will not be taking any investment from the tech partners. So then how are we planning to fund the capex once the land is transferred to us?
Rupesh Mehta
Right now what the percentage they are asking is too high. We are discussing. So maximum for 5% we offered them. But after that if we not agree that will not give more than 5%. But about the new plant fund we borrowed some short term loan. And right now we have some of the reserve fund in our bank also. So this is a temporary short fund we will utilize and if the our foreign partners is ready then we will give the 5%, not more than that. Okay.
Unidentified Participant
Underscore and yeah, that’s it.
operator
Thank you Mahek. Anybody who wishes to ask a question please use the option of raise hand. Since there are no further questions would you like to give any closing comments?
Rupesh Mehta
Okay. Thank you very much. Captiva Team. Captiva, Vinay and Vin’s team and thank you very much to participating. And I promise you that we’ll keep this journey for the 27, 28, 29 coming five years will give you the significant growth. And with our robust order book you can see the quarter four also we will achieve the good numbers more than this every quarter on quarter we’ll try to achieve the more and more growth. And thank you very much to joining the control of MacMower Quarter 3. Thank you very much everyone.
operator
Thank you sir. We thanks the management team and all the participants for joining on this call. This brings us to the end of this conference call. Thank you. The recording has stopped.