Future growth expectations in sales/revenue/volumes?

Capacity to produce 2,500 machines will be operational from May 2025, up from 2,000 machines, increasing revenue capacity from INR 400 crores to around INR 425-450 crores. Average realization per machine expected to rise to INR 23-25 lakhs in FY26 due to higher-end machines like double column, HMC, VTL, and 5-axis. Sales growth expected to be 20-25% CAGR next financial year, driven by increased capacity, higher realization, and targeting big corporates and exports. Margins expected to improve due to backward integration and focus on higher value products. Continued bullishness and aggressive m

Future growth expectations in earnings/operating earnings/profits/EPS?

PAT margin expected to remain at double digits in the next financial year, despite rising depreciation and expenses. EBITDA margin projected around 20%, supported by reduced material consumption (4%-5%) due to higher-end products and backward integration. Top-line growth anticipated at 20%-25% next year, driven by higher realization from bigger corporates and increased order bookings after targeting multinationals. Capacity expansion to 2,500 machines by May FY26 expected to support growth, with further phase-wise Capex of INR 100 crores each planned from FY28 onwards to scale capacity b

Current/ Expected Orderbook/ Pending Orders?

Current order book is around INR 362 crores (Page 11, 4). Ready-to-use machines worth approximately INR 125 crores including production and inventory (Page 11). Capacity increased from 2,000 to 2,500 machines expected next year (Page 4). New orders, including IMTEX exhibition orders (INR ~42 crore) are expected to add to the order book (Page 14, 19, 23). Order book expected to be substantial in Q4 and likely to increase with new orders and rollovers (Page 19, 23). Orders worth INR 115-120 crores planned for dispatch in Feb-Mar (Page 19). Around 10-15% of customers place bookings and bill withi

Any current/future new fundraising through debt or equity?

No large amount of debt is expected despite ongoing Capex, as growth will be funded largely through profits. Temporary fund utilization from working capital, such as credit on materials, may be used, but not substantial debt. Interest cost increase (INR 0.28 crore) is due to short-term working capital utilization and bank processing charges rather than new significant debt. Capex guidance is INR 10-15 crores annually for routine expansion and backward integration; major Capex is considered separately. No explicit mention of equity fundraising or large-scale debt in the call. Management intends

Any current/future capex/capital investment/strategic investment?

Macpower CNC Machines plans phased capital expenditure on its 32-acre land expansion: - Phase 1: INR 100 crores - Phase 2: Another INR 100 crores (land cost approx. INR 120 crores, so separate) Routine annual Capex guidance: - FY25 (9 months): INR ~7.8 crores spent, total expected INR 10-12 crores - FY26: Target INR 12-15 crores for backward integration and production capacity expansion Capacity expansion: - Adding 500 machines from May, increasing machine capacity from 2,000 to 2,500 - Future capacity plans consider 2,000 additional machines post land acquisition, but phased to co

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Macpower CNC Machines LtdQ4 FY26Industrial Manufacturing

Macpower CNC Machines Ltd Q4 FY26 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 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 2

→Capacity to produce 2,500 machines will be operational from May 2025, up from 2,000 machines, increasing revenue capacity from INR 400 crores to around INR 425-450 crores.
→Average realization per machine expected to rise to INR 23-25 lakhs in FY26 due to higher-end machines like double column, HMC, VTL, and 5-axis.
→Sales growth expected to be 20-25% CAGR next financial year, driven by increased capacity, higher realization, and targeting big corporates and exports.
→Margins expected to improve due to backward integration and focus on higher value products.
→Continued bullishness and aggressive market approach as company holds only about 4% market share, leaving room for growth.
→Capex phased with INR 100 crores in first phase and another INR 100 crores in second phase for expansion starting 2028 on new land.
→Export and aerospace sectors targeted for higher growth alongside domestic manufacturing demand.

Margin guidance

Category 1

→PAT margin expected to remain at double digits in the next financial year, despite rising depreciation and expenses.
→EBITDA margin projected around 20%, supported by reduced material consumption (4%-5%) due to higher-end products and backward integration.
→Top-line growth anticipated at 20%-25% next year, driven by higher realization from bigger corporates and increased order bookings after targeting multinationals.
→Capacity expansion to 2,500 machines by May FY26 expected to support growth, with further phase-wise Capex of INR 100 crores each planned from FY28 onwards to scale capacity beyond 2,500.
→EPS growth expected to be strong, fueled by revenue growth, EBITDA margin expansion, and controlled operating costs despite new exhibition-related expenses.
→Focus on sectors like aerospace and exports aims to diversify revenue and sustain growth momentum.

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Fundraise plans

Yes

→No large amount of debt is expected despite ongoing Capex, as growth will be funded largely through profits.
→Temporary fund utilization from working capital, such as credit on materials, may be used, but not substantial debt.
→Interest cost increase (INR 0.28 crore) is due to short-term working capital utilization and bank processing charges rather than new significant debt.
→Capex guidance is INR 10-15 crores annually for routine expansion and backward integration; major Capex is considered separately.
→No explicit mention of equity fundraising or large-scale debt in the call.
→Management intends to fund growth and expansions primarily through internal accruals and controlled working capital usage.

Order book

Yes

→Current order book is around INR 362 crores (Page 11, 4).
→Ready-to-use machines worth approximately INR 125 crores including production and inventory (Page 11).
→Capacity increased from 2,000 to 2,500 machines expected next year (Page 4).
→New orders, including IMTEX exhibition orders (INR ~42 crore) are expected to add to the order book (Page 14, 19, 23).
→Order book expected to be substantial in Q4 and likely to increase with new orders and rollovers (Page 19, 23).
→Orders worth INR 115-120 crores planned for dispatch in Feb-Mar (Page 19).
→Around 10-15% of customers place bookings and bill within the same month (Page 21).
→Payment delays from banks/PSUs can impact timely billing and realization but overall positive outlook on highest-ever top line (Page 11, 19, 20).
→The company targets INR 500 crore order book in the new financial year including rollovers (Page 23).

Capex plans

Yes

→Macpower CNC Machines plans phased capital expenditure on its 32-acre land expansion:
→ - Phase 1: INR 100 crores
→ - Phase 2: Another INR 100 crores (land cost approx. INR 120 crores, so separate)
→Routine annual Capex guidance:
→ - FY25 (9 months): INR ~7.8 crores spent, total expected INR 10-12 crores
→ - FY26: Target INR 12-15 crores for backward integration and production capacity expansion
→Capacity expansion:
→ - Adding 500 machines from May, increasing machine capacity from 2,000 to 2,500
→ - Future capacity plans consider 2,000 additional machines post land acquisition, but phased to control operating costs and ROI
→Capex financed through internal accruals and working capital utilization; minimal need for large debt
→New infrastructure needed for backward integration (foundry, component machining, assembly shops) and product diversification including higher-end machines

How does Macpower CNC Machines Ltd rank vs peers in Industrial Manufacturing?

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