Macpower CNC Machines LtdQ3 FY25
Macpower CNC Machines Ltd Q3 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹1,318P/E: 33.1Market Cap: ₹1.1K CrSector: Industrial Manufacturing
Management growth scorecard
Revenue
Category 2
Margin
Category 2
Fundraise
Yes
Order
No
Capex
Yes
2 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Macpower CNC Machines Limited expects 20% to 30% year-on-year growth in revenue and EBITDA for FY26 and continuing into the next financial year.
- →The company targets approximately INR 500 crore revenue potential by fully utilizing the current 2,500 machine capacity in FY27.
- →Further capacity expansion is planned with an additional 7,500 units over the next 5 years, aiming to increase total capacity to 10,000 machines.
- →Growth is driven by both volume expansion and an anticipated increase in average selling price, especially for high-end machines.
- →EBITDA is expected to grow in line with revenue, with margins possibly improving due to the absence of large exhibition-related expenses.
- →The company plans to maintain a focus on bottom-line growth, cautious credit policies, and strategic partnerships for technology transfer to support future growth.
Margin guidance
Category 2- →The company expects a revenue growth of 25% to 30% year-on-year for FY26 and continuing into FY27.
- →EBITDA is projected to reach INR 50 crore for the current financial year, with a similar 20% to 30% growth expected in EBITDA and PAT.
- →Margins are anticipated to improve slightly in upcoming quarters due to the absence of big exhibition expenses and cost efficiencies from backward integration.
- →Expansion plans include increasing plant capacity to 2,500 machines currently, and up to 10,000 machines over five years with a new plant.
- →Financial discipline remains strong with no significant debt; working capital facilities are in place but minimally utilized.
- →The company is targeting sustainable margin growth by focusing on bottom-line profitability rather than just top-line growth.
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Fundraise plans
Yes- →Macpower CNC Machines Limited plans to fund the INR125 crore CapEx for phase one expansion primarily through debt from SIDBI or their bank.
- →No equity fundraising or dilution is planned in phase one.
- →They may issue stake to a foreign strategic/technology partner as part of collaboration but not as a fundraise.
- →Currently, the company is debt-free and has a INR30 crore cash credit facility primarily for import LCs and bank guarantees, which is rarely utilized.
- →For working capital, they are not expecting cash flow problems and do not plan equity raises for growth.
- →Future fundraising considerations include completing the project report for SIDBI/bank loans; no immediate plans for equity issuance.
- →Strategic focus is on debt for expansion with no plans for equity dilution in the near term.
Order book
No- →As of November 14, 2025, Macpower CNC Machines Limited's pending order book is INR 350 crore.
- →Domestic bid submissions total INR 627 crore.
- →Tender bids currently under evaluation amount to INR 360 crore.
- →Total bids submitted stand at INR 987 crore.
- →The company is actively engaged in defence and aerospace tender business, aiming for the highest ever revenue booking in the current financial year.
- →Order received in Q2 FY26 was INR 88 crore, slightly down from INR 93 crore in Q2 FY25.
- →Despite this, execution in the current quarter is higher than the previous quarter.
- →Order book from Nexa constitutes 27%, with 27% already executed in the quarter.
- →The company targets closing the year-end order book between INR 300 crore to INR 330 crore.
- →Weekly sales meetings track strong inquiries to project order receipts monthly or quarterly.
Capex plans
Yes- →Planned CapEx of INR 125 crore for phase one of new plant expansion, including land acquisition.
- →Expansion to add 2,500 machine capacity initially, with a total planned capacity of 10,000 machines over five years in three phases.
- →Phase one includes backward integration for components like foundries to reduce manufacturing cost and improve margins.
- →Funding for INR 125 crore CapEx to come primarily from debt via SIDBI or banks; no immediate equity funding planned.
- →Potential strategic partnership with foreign/global technology partners, possibly offering stake as part of collaboration.
- →Design and construction to start after land allotment with turnkey projects aimed for completion within 12-15 months.
- →Discussions ongoing with international companies for technology transfer and joint ventures aligned with new plant.
How does Macpower CNC Machines Ltd rank vs peers in Industrial Manufacturing?
Pro feature1Macpower CNC Machines Ltd
Rev 2Mar 2
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