Corporate Development     

Published: April 30, 2026
Updated: April 30, 2026

Jyoti CNC Automation

Rs 10,000 cr expansion plan

During the ‘Vibrant Gujarat’ regional conference 2026 held in January at Rajkot, NSE-BSE listed Jyoti CNC Automation announced a major investment plan, committing over Rs 10,000 crore over the next five years towards manufacturing expansion, R&D and skill development to strengthen the manufacturing ecosystem. The investment aims to enhance capabilities for supplying precision CNC machines to the aerospace, defence, electronics and semiconductor industries. The other industries being catered to are automobiles, railways, die & mould, infrastructure, oil & gas, healthcare, pumps & valves, power and agriculture.

Meanwhile, in a recent development, French authorities have initiated a judicial investigation against the company’s wholly owned subsidiary, Huron Graffenstaden SAS Huron, over alleged violation of European Union export controls regulations. The investigation focuses on the alleged unauthorised export of high-precision machines classified as ‘dual use’ technology (capable of both civilian and military applications). Further, the DirectorGeneral of Huron has been temporarily restricted from discharging any duties pertaining to Huron. A 4 million euro bank balance (Rs 44 cr) has been seized, in addition to two residential properties owned by Jyoti SAS. A formal judicial investigation has also been initiated against some of its employees. Huron has refuted the allegations made and is seeking better clarity through legal advice to contest it strongly. The management claims that the development is not expected to have any adverse impact on business as the subsidiary’s operations remain as usual.

Though the management has stated that Jyoti CNC Automation itself on a standalone basis contributed over 85% of revenue from operations for the group, it is important to note that in November 2025 Huron’s expansion got completed, whereby the installed capacity doubled from 120 machines to 240 machines, aligned with its strategic growth plans to enhance manufacturing capabilities to cater to rising aerospace demand. The company has utilised 46,442 sq m land for the plant while 32,144 sq m land remains unutilised.

While commenting on the French facility expansion, Parakramsinh Jadeja, Chairman & Managing Director of the company, had then said, “Huron has played a pivotal role in shaping Jyoti into what it is today, and this expansion marks an important milestone in our growth journey. This enhanced capability not only strengthens our global manufacturing presence but also reinforces our long-term commitment to technological excellence.”

GLOBAL REACH

The company has manufacturing plants at Rajkot and Strasbourg, France. The Rajkot facility with 6,000 machines is spread over 2,37,408 sq m while 1,57,155 sq m of land remains unutilised. The company has planned a further capacity enhancement of an additional 10,000 machines per annum, to be completed by September, 2026. The capex of Rs 400 crore has been envisaged over two fiscal years from late 2025 for this purpose. On a cumulative basis, the company has installed over 1,35,000 machines so far across more than 60 countries.

During the financial year ended March 2025, on a consolidated basis, the company reported operational revenue of Rs 1,818 crore and PAT of Rs 316 crore, with an annual EPS of Rs 13.90. In the first three quarters of FY26, it has achieved Rs 1,494 crore in operational revenue (PY Rs 1,242 crore) and PAT of Rs 245 crore (PY Rs 207 crore), translating into an EPS of Rs 10.79 (PY Rs 9.10) on equity capital of Rs 45.48 crore with Rs 2 face value. EBITDA and NPM for the period are 25.4% and 16.4% respectively. The finance cost of Rs 50 crore is higher by Rs 19.20 crore (62.33%) compared to Rs 30.8 crore in the corresponding period of the previous year. The long-term and short-term borrowings as of September 30, 2025 (figures as publicly available) are Rs 102.6 crore and Rs 394.3 crore respectively.

In its latest credit rating obtained in February 2026, long-term/short- term bank facilities of Rs 449.11 crore and another long-term facility of Rs 810 crore are assigned as IVR A+/ stable, IVR A1 and IVRA+/stable respectively. The company’s Rs 1,000 crore IPO had hit in January 2024, wherein 3.02 crore equity shares were offered at Rs 331 each, having a Rs 2 face value. Currently, the promoters own a 62.55% stake.

WIDE PORTFOLIO

The company is on a sound wicket and has a bright future. Its manufacturing plants and its ambitious expansion plans, supported by a wide product portfolio having wider applications and excellent profit margins, make the stock attractive for investment. This indicates that the company is poised for robust growth at an accelerated pace.

The ongoing litigation at its French manufacturing unit will not be any negative effect on its consolidated performance in FY26. However, FY27 may see a negative effect till the matter gets resolved.

Currently, the stock is quoted at Rs 703, near its yearly low of Rs 687 (16/3/26). It’s worth noting that it has also made a yearly high of Rs 1,330 (2/6/25). Evaluating on the basis of different parameters, the stock is worth purchasing, with a small lot to begin with. After resolution of the France issue, the stock should regain lost ground. However, taking a twoyear view, the stock has the potential to reward investors with handsome appreciation.