What about their capex. Will they be able to meet the demand as the existing cap utilization is around 90%
As part of expansion the Capacity has since Doubled at Huron facility in France.
Jyoti.pdf (764.7 KB)
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Legal proceedings against Jyoti CNC subsidiary:
Management says 85% of the standalone business is not affected and one day share price correction of ~15%. As if, markets simply writing off 15% business. I may be stretching the one day event as such.
What is important is to understand company’s reliance on Huron for technology as it got 5 axis machine technology from Huron only. Need clarity on this aspect
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According to the French National Anti-Terrorism Prosecutor (PNAT), the directors of Huron Graffenstaden SAS are suspected of having set up, from 2022 onwards, a system of fraudulent exports to Russia, routed through India, of machine tools classified as dual-use goods — that is, equipment capable of both civilian and military application — in deliberate violation of EU export control laws and the embargoes strengthened after Russia’s invasion of Ukraine in 2022
machines went from France to India to Russia, bypassing EU sanctions. India was allegedly used as a transit route.
On 3 April 2026, a formal judicial investigation was opened on the following charges: smuggling of dual-use civilian and military goods as an organised group, delivery to a foreign power of processes, objects, documents, or digital data whose exploitation could harm the fundamental interests of the nation, and non-compliance with international measures restricting economic and financial relations with foreign
The Indian exchange filing makes it sound like a documentation and export control compliance issue. The French sources tell a different story. The PNAT — which is the anti-terrorism prosecutor, not a regular commercial court — is alleging a deliberate, organised scheme to route sanctioned goods to Russia through India. The charges include harming the fundamental interests of the French nation and operating as a criminal conspiracy. These are among the most serious charges that exist in French law for corporate conduct.
If you observe its financials, the story of Jyoti CNC changed from 2021-22 which otherwise has had a very very mediocre performance for good over a decade. Margins from low single digits shot up to 25% and management has not explained this anywhere in the calls or annual report. The reason has to be this, they supplied to Russia, enjoyed good pricing premium as all the doors to Russia are closed. While the tech for 5 axis is transferred to India entity, all the know how, it is unclear how the A&D part of the book will behave given the charges are very serious on the French entity.
With a very weak balance sheet, no cash flows and huge capacity coming online, if any of the large customer pulls out, it wouldn’t end for the company
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@Venkat_Rakesh good analysis …
I am wondering that why they manufracture item in france instead of india and put themselves on such a huge risk. Are they not able to manufacture such part in india?
Building on the previous post,
Huron was a consistent loss-maker from acquisition in 2007 through FY22. Net worth was negative and Jyoti was absorbing losses through loan write-offs.
The initial recovery in FY23 coincided with a strong global machine tool cycle. But post that almost every major player declined. DMG Mori down 11%, Okuma down 9%, Japanese MT production down 14%, European consumption down 17% in 2024.
Base effect doesn’t seem to explain revenue consistently jumping against the industry in decline. And if they’re winning complex aerospace contracts, shouldn’t employee costs be going up, not halving as a percentage of sales?
One possible explanation is growth in Jyoti’s Indian A&D business (ISRO, HAL, BrahMos) Management has said that A&D orders are connected to Huron’s technology, with 50:50 manufactured in France and India.
The real risk here is if Huron’s export licenses get revoked or restricted. That would probably put the entire 5-axis pipeline at risk. And Eschau II would become a stranded asset on a doubled fixed cost base.
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Couple of updates from Huron.
- Change in CEO position Statement of Huron Graffenstaden SAS relating to the appointment of a new Chief Executive Officer - HURON GRAFFENSTADEN
- Statement of Huron Graffenstaden SAS relating to its Internal Compliance Program, from the newly appointed CEO, Commitment to compliance - HURON GRAFFENSTADEN
Not trying to read tea leaves here, but this seems to suggest that previous practices are inadequate and that there could have been compliance related infractions.
Edit: restructure
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The capacity addtion may be ther, but till their french subsidary manufactures their 5 axis machines. The management has said in their latest concall that there is no issue about the tech. how tru is that. Already some of their licenses have been cancelled wich has resulted in loss of revenue but the expenses have been incured
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