Jyoti CNC Automation Aims For 90% Capacity Utilisation To Maintain Growth In FY26

Jyoti CNC Automation Ltd. expects to maintain its fiscal 2025 growth trajectory in the current financial year, driven by strong demand and an order book of Rs 4,500 crore, according to Chairperson PG Jadeja.

For FY26, the company is optimistic about achieving 90% capacity utilisation, which remains its key focus, the managing director told NDTV Profit in a conversation on Tuesday.

"We expect to maintain a growth trajectory similar to FY25, as our current production capacity is capped at 6,000 machines," Jadeja said. "Our next manufacturing facility is scheduled to become operational in FY27."

Regarding the order book, he said that at the current production rate, it would take about two and a half years to complete, but the company aims to expedite execution within 18–20 months.

Amid heightened demand, the company anticipates the need for further capacity expansion within the next two years.

"Our customers are growing everywhere. Geopolitical changes have opened huge opportunities, particularly in Europe," the CMD said. "We're also confident in Indian manufacturing growth, especially in electronics. Still, within two years, we'll need to expand even faster."

The current capacity addition of 10,000 machines is focused on general engineering, EMS and entry-level products and will likely be completed by June. "However, in the next round of our capex, we will focus more on large, heavy machines for aerospace and defence," the CMD said.

When asked about revenue from European orders, he clarified that the revenue contribution will ramp up gradually over time, rather than seeing an immediate spike in FY26.

On working capital, Jadeja said inventory days significantly improved from 330 days two years ago to 181 days currently, with a target of 160 days this year.

"Right now, we have a lot of enquiries and pressure from customers to deliver faster. However, due to current capacity constraints, our delivery timelines are around 18–24 months, sometimes up to two-and-a-half years," Jadeja said.

"Customers aren't willing to wait that long. As execution improves and capacity increases, the order pipeline will strengthen," he said.