Macpower CNC Machines: Manufacturing a Strong Growth?

[Debojit_Kangsa_Banik]

“Dear ShareholdersWe have commenced FY26 on a strong note, supported by a robust order book of ₹346 crore as of June 30, reflecting an 5% increase over FY25. With atypical execution cycle of four to six months, this provides solid visibility for sustained growth through the year.Our ongoing capex plan is progressing well. Phase-wise development includes a new facility focused on foundry, defence, and aerospace lines. Nearly 90%of local approvals for land acquisition have been secured, with final allocation expected in H2 FY26. This site will also act as a strategic base for future JointVentures—talks are currently underway with global partners for technology collaboration and international distribution.On the product front, we continue to drive innovation through automation and robotics. Our newly developed gantry and robotic-enabled models aredesigned for precision and scalability, significantly reducing human intervention.The NEXA series remains a key growth engine, having secured a ₹42 crore order for 160 machines during IMTEX 2025.Our focus areas—defence andaerospace manufacturing, expanded distribution, and strengthened technical and sales teams—set a strong foundation to achieve our ₹500 crore turnovertarget within the next 3–4 years.To support this trajectory, we are increasing our production capacity from 2,000 to 2,500 machines per annum by Q2 FY26. Our distribution footprint hasalso widened to 39 cities with the addition of new partners.Macpower remains debt-free with a net cash surplus, reflecting our strong balance sheet and financial discipline. We continue to prioritize cost efficiency,new product development, and responsible growth.Our unwavering focus on safety, sustainability, and stakeholder value reinforces our long-term commitment to excellence. With a healthy order pipeline of₹346 crore, growing sectoral demand, and ongoing investments in capacity and innovation, we are well-positioned to deliver industry-leadingperformance.

Not happy with only 5% growth in order book.

[Tushar_Gupta1]

There is not point to be sad with that 5% order book growth, order book will increases gradually company is going to so many exhibitions this year. And this order book is enough for the 1.25 Year revenue in that mean time company will get new orders. We have to see how the margins will roll out next and how company will pan out revenue growth YoY every quarter.

Company is trying its best, As we have seen Company delivery highest ever Q1 till date and management committed to deliver each quarter as highest till date.

[Aloysius_De_Sa]

You should be happy! This is also on the backs of heavier execution this quarter than the previous quarter last year by roughly 10 crores ..

[newrb]

Order book addition in a quarter is not growing. Below are the figures for private orders received (which is the main source of revenue for the company).

Q1 Fy 25 - 68 Cr
Q2 FY25 - 88 Cr
Q3 FY25 - 70 Cr
Q4 FY25 - 78 Cr
Q1 FY26 - 74 Cr

It has remained within a range. While OB shows 346 Cr, we should try and understand the aging of this order book. How much of it is more than a year old? Anything more than a year old is unlikely to be executed.

Also the management is talking about expansion to 5000, 10000 machines. However, they are saying revenue of 500 Cr in 3-4 years. With their current capacity of 2500 machines, they should be able to hit 500 Cr with average realization of 20L. While it is really great the company is talking about further expansions, why are they unable to even leverage current capacity in the next 1-2 years? Why does it need 3-4 years?

[gauravpersonal]

Sitting Through the Cycle

I’ve been tracking MACPOWER for the last few years and attending their concalls regularly. Over time, I’ve noticed the nature of questions hasn’t changed much — and in many ways, neither has the tone of the answers. It’s easy to feel like one is going in circles.

Some time ago, @Samarth_Nagpal (whom many here might know) said something that stayed with me — that it’s okay to stop over-reading into things beyond a point. Since then, I’ve moved away from trying to extract too much from management commentary and started paying more attention to human incentives and context and only looking for revenue growth ( execution ) , rest should follow.

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Whats assuring

• Promoters hold 75%, which keeps their skin firmly in the game.
• They’ve historically avoided debt — cautious about risk, interest costs, and bank dependency.
• In such a stance, raising equity via a QIP becomes the logical financing route — but only when equity feels cheaper than debt.

Last when they had that window when the stock touched ₹1700+. That they chose not to dilute at those levels means they likely believe they can unlock more value down the line — or that the timing didn’t feel right yet to the promotors.

Incentives are aligned. The optionality remains. And that’s what makes this phase interesting as the outstanding equity is changing hands quickly but cautiously.

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What the Macro Is Saying

• FY25 listed corporate capex: $130 billion (highest since FY11)
• 157 companies spent >$100 million
• Monthly capex in Apr–May FY26: ₹2.21 trillion, up 54% YoY

Also noteworthy: Q1 is usually the weakest quarter for capital goods, but FY26 has started differently with stellar results for majority of the capital goods sector. This is not about one company doing well — it’s a sector-wide pattern showing operating leverage at play and demand holding up.

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Final Thoughts

A probable case where macro tailwinds, rational promoter incentives, and adequate optionality (land bank, valuations, capital-raising headroom, JV) are quietly aligning.

That’s good enough for me to continue holding — not out of hope, not out of inertia — just calmly, with awareness.

And if one steps back for a moment:

• 60 acres of land quietly being acquired
• a potential JV in the background
• the best quarters for capital goods (Q3 and Q4) on the horizon

All seemingly converging in a narrow 6-month window: Oct 2025 – Mar 2026( Q3 and Q4 ) .

Feels less like a coincidence ??
— but maybe, just enough.

*Disclosure: Invested. Not a recommendation.

[Tushar_Gupta1]

Macpower CNC Concall Notes Q1 FY26

• Company has achieved highest ever Q1 in all Metrics i.e. Revenue, EBITDA and PAT in company’s history.
• Current orderbook stands at 346 Cr (1715 Machines) vs 330 Cr in last Quarter.
• Company has submitted 1102 Cr of Bids for new orders.
• Out of total bids 494 Cr is from tender biding. 80% of this is for Defence Sector and has highest ever order book from defence and growing very well.
• Aeronautics machines, company has just started and have very good application ahead. One of the India big aerospace company needs 260 Machines and they given drawings for the calculation also. That company is considering Macpower for machines and also invited for futher action.
• Management also guided that this year they will have highest ever Q2, Q3 and Q4 in Macpower history.

Capacity Expansion
– From 1 September company will add 500 Machines Capacity which will take earlier capacity to 2500 Machines annually.
– Company is going to get 50 Plus Acres of land instead of 32 Arces and that whole land is in one place.
– Some JV collaborator also demands more land so this will be helpful to get 50 Acres Land.
– 90% of the work had been done such as Religious matters, measurements etc was done and within next 30 days Collectorate has given instruction to complete all formality and send the file to ministry. Company is very near to pay 1% Processing fees. After that company will get the land by December 2025.
– Company will going to add another 2500 Machines in Phase 1.
– First Phase expansion need 100 Cr of funds company will going to fund it via debts and internal accruals because debt cost is 8-9% and company will get half of interest cost as reimbursement by the government (under Gujarat Vibrant Scheme). So the cost of debt will be cheaper than cost of Equity.

• In Phase 1 there is no need for equity dilution in Phase 1.
• After expansion of phase 1 company will do backward integration aswell which takes EBITDA margins to 22-25% minimum.
• Company is also trying to get Foreign JV for technical expertise, has done meetings with some companies and have one more meeting in next 1-2 days with one collaborator.
• Company will also onboard JV before the new expansion.
• Company also developed some new machineries aswell which is currently not in product baskets and going to display in Germany exhibition.

Company is going to German Exhibition next year with two major objectives:
— To tap exports market for some export orders.
— Finding JV opportunities for better collaborations.

• Revenue guidance for FY26 is 300-350 Cr with 17-18% EBITDA Margins.
• Q1 contributes 15-20%, Q2 contributes 20-25%, Q3 contributes 20-25% and Q4 contributes 30-35% in Revenue.
• Company is going to cater some direct export orders from Middle East in Q2.
• Nexa Machines contributes about 27% in Q1.
• Company has 30-40 Cr of Credit facility, so there will not be shortage of working capital for the company.
• In Q1 gross margins was 38.5% vs Last Yr Q1 37.3% Vs Last Yr Q4 38.3%.
• Current Maximum Revenue Capacity of company (including 500 Machines) will we 450-460 Cr for full year.
• Company also supplied some machines to Naval Companies and also done one project for Mazagon Dockyard. Now also bidded for Cochin Shipyard as well.
• Company also supplying machines to indirect players in defense sectors such as bombshell manufacturers.
• Company can easily make machines upto 400-420 Cr this year but because of delay from the customer end in term of financing etc company will end up 50-60 Cr which will be going forward.

[Tushar_Gupta1]

Financial Model For FY26

Assumptions:

• Revenue - Management guided for 300-350, I have taken the middle of that.
• Margins - Management guided for 18%, to be conservative i have taken 17.5% and 18% is easily achievable because of higher value orders this year.
• Interest and Other Income - Negligible so taken as per past trend and on the basis of borrowings.
• Depreciation - Sightly increases because of new capex.
• Tax Rate - 25%

This gives the PAT of 37 Crore, which is almost 50% growth from last year.

[Puneet31]

@Tushar_Gupta1

Revenue guidance for FY26 is 300-350 Cr with 17-18% EBITDA Margins.

That gives them PE 30 with 30% growth
getting into undervalued zone around 750

[Jitendrapd94]

Disc:Invested

[Tushar_Gupta1]

MACPOWER CNC AGM NOTES

• New Land will be allotted by the January 2026.

• Orders – 20% growth YoY in order book as Revenue also increase which leads to utilisation of Order Book to get future visibility company is increasing its order book size at a pace of Revenue increases. Company is getting 1-1.5 Cr order daily other than tenders. Demand is very high, order shortage will never be a problem. New Order starts floating but not opened yet which shows the demand Strength.

• GST Impact – Huge order inflows are possible, many new enquiries started coming in. Majorly because of GST cut down in many sectors like Automobile Sector.

• Company is taking 3 machines to Germany for Event – 5 Axis Machine, High Speed Die and Mould Machine and One for Medical Components.

• German Event Expense 1.5 Cr, Half was booked in Q1, remaining will be in Q2.

• JV process is going on, many calls happened. Company is also open for component business for export in that Controllers and Enclosures were of Collaborator and rest all inner machines and components will be from Macpower. This way company starts Export exposure, Business will increases and Margins in this business remains same. This is successful as Europe Players have higher cost, it will help those Euro Players to get Machinery at lower cost and sell at high margins.

• New 500 Machines capacity will be live from First Navratri and will be fully utilised. Current Capacity can do the maximum revenue of 500 Cr.

• New plant will increase the realisation per machine. As separate line for each category will help increasing production for higher value machines.

• New Plant:

  • 25 Cr land cost.
  • Foundry Setup.
  • Backward integration for some components.
  • Separate line for Defence Segment.
  • Whole FY27: Phase 1 will be completed. (Phase 1 will increases capacity by 2500 Machines).
  • New plant leads to backward integration which leads to increase in margins to 22-25% consolidated basis.
  • Phase 1 needs total of 100 Cr including Land cost (25 Cr).
  • Whole 100 Cr will be mix of Debt and Internal Accruals. No dilution in Phase 1 as company will get Debt at just 4% Rate.

• New plant cannot generate any revenue in FY27 as whole year will go for setting up the plants.

• As company is taking a Debt for Phase 1 if the debt will be of 100 Cr so the cost will be just around 4% which means 4 Cr. So that will not impact profitability significantly.

• For FY28, New plant will be live and the opportunity size increase to the next level with 25% margins.

• Promoter said now company will be run by professionals not by family, His son is doing Engineering in mechanicals and will starts working in the company as well. Management already hired some professionals. (Nexa Division Head, Export Head at a salary of 4 Lakhs Monthly).

[richbandit]

The recent announcement from Jaykay regarding the LOA from Ircon- Design, Supply, Installation, Commissioning, & Training of various types of Conventional machineries for MSME training centers located at different places in India on turnkey basis.

J K Phillips LLP, a 50:50 Joint Venture between Jaykay Enterprises Limited and Phillips Machine Tools India Private Limited (a subsidiary of Phillips Corporation, USA), has received an Order/Letter of Acceptance (“LOA”) from Ircon International Limited (a Navratna Company and a Govt. of India Undertaking) for a contract value of Rs. 139.48 Crores (including GST).

[Samarth_Nagpal]

MACPOWER_26092025144539_BusinessUpdate26Sep25.pdf (1.0 MB)

Business Update from EMO exhibition. Targeting exports now which if materialises could help the company in terms of delivering numbers plus opening up new avenues & brand visibility.

Now exports was something they weren’t very keen on if one goes back in time, with domestic demand being heavily bet upon.

Disc: Not authorised to recommend & biased

[Tushar_Gupta1]

Solid Results by Macpower CNC in Q2 FY26

Highest Ever Quarterly Revenue and PAT till date

[gauravtambade75]

Does anyone here have solid reasons as to why Macpower would be able to win Aerospace and Defence orders, despite competitors like Ace Micromatic, Jyoti CNC and Bharat Fritz Werner being present in this segment since a long time?

[Tushar_Gupta1]

Great set of numbers by Macpower CNC in Q3 FY26

[Tushar_Gupta1]

In earlier concall company is getting 50 Acres of land but in today’s commentary management stated 60 Acres of land. This is a very good news for the company and Expected to be alloted by Feb End.

[Kedar_Kailaje]

Company is increasing its capacity by 5x. Why such a huge increase? Does the company have that much visibility in terms of orders. Even if it is able to build the capacity, still they would need to undergo trials etc given they are targeting defence and aerospace sectors. So the utilization may not increase at a very rapid pace.

Would appreciate the community’s views on this.

[Balaji1974]

Immediate capex is to double from 2500 machines to 5000. Their long term plan is 10,000 machines.

Almost 40 to 50 % of the machines are imported and the Indian companies aggressively doing capex for this. Right now they have full orders. What i like about this company is their prudent financial management ( everything happening without external debt) and the development of in house controllers.

My question to the learned community is what are the key risk CNC machine manufactures face when the tide turns

[hamir_asher]

CNC Machines are used in manufacturing and agnostic of any specific industry. They will be in trouble if the industry and in turn manufacturing goes down. Currently, as I understand it, the scope is of supply due to modernization, efficiency and expansion of factories. If you hear the comments from MacPower and Jyoti CNC ( peer but of different scale and size ) they both say that the market share of Indian companies is miniscule (imports are > 50% i think for the industry and for high end machines maybe > 80%) and they are looking at not only replacing imports but also growing their pie by going for exports.

Important to note that they are currently selling low end machines and trying best to get into higher value machines which sells at rates > Rs 1 Crs.

The promoter is very nice and transparent person and if you hear his con calls you will understand that this is a genuine person and looks to add value to his company and shareholders.

[Alvish9031]

Agree to points. Here are the responses from promoter on ‘Why China is not a threat’ and ‘Addressing the imports of foreign machines’. By setting up a new land and manufacturing line for a Tech. transfer partner from Germany, they should be able to provide the machines which are on the level with foreign companies.

Trend of Average machine sell price is on incremental trajectory. A positive sign.