Jyoti CNC Automation has received approval for a ₹1,020.65 crore capital investment proposal over the next five years at its existing manufacturing facility in Rajkot. According to the company's stock exchange filing, the investment proposal has been approved under the Electronic Components Manufacturing Scheme (ECMS) of the Ministry of Electronics and Information Technology (MeitY). The proposed investment will be used to expand installed manufacturing capacity and set up a backward-integrated facility for the production of electronic devices used in CNC machines. The formal letter of approval from MeitY was received on August 17, 2026, with the company announcing this significant development today.
The company will be eligible for a capital expenditure incentive of up to 25% on the proposed investments under the scheme, subject to the stipulations of the ECMS and the approval letter issued by MeitY on August 17, 2026. Despite the investment approval, Jyoti CNC reported mixed Q1FY27 results with net profit declining 20.2% year-on-year to ₹57 crore compared with ₹71.4 crore in the corresponding quarter last year. However, revenue rose 24% to ₹508.5 crore from ₹410.2 crore a year ago, indicating strong top-line growth despite margin pressures.
At the operating level, EBITDA increased 8.6% year-on-year to ₹108.8 crore, compared with ₹100.2 crore in the year-ago quarter. However, the EBITDA margin contracted sharply to 21.4% from 24.4%, indicating pressure on profitability despite revenue growth. The Gujarat-based company's mixed performance reflects the challenges in maintaining margins while scaling operations. The new backward-integrated facility is expected to enhance operational efficiencies and strengthen the company's supply chain for key components.
The stock settled over 3.2% higher on the NSE today, quoting at ₹853.50. However, the stock has corrected more than 14% so far this year and the one-year gain is negative by over 7%. The five-year return remains positive at 92%, according to market data. Jyoti CNC Automation has an average share price target of ₹888, according to Trendlyne analysis. The company's board of directors will consider this significant development at their upcoming meeting to decide on necessary actions.
