Macpower CNC Machines Ltd Q2 FY26 Results – ₹85.7 Cr Revenue, ₹9.38 Cr PAT, and a ₹350 Cr Orderbook That’s Spinning Faster Than Its Lathes
1. At a Glance
If precision cutting had a mascot, it would probably look like Macpower CNC Machines Ltd. The Rajkot-based CNC manufacturer has quietly machined its way to a ₹979 crore market cap — debt-free, high on ROCE (27%), and cleaner than a newly polished lathe bed. For Q2 FY26, the company delivered ₹85.7 crore in revenue, up 20.6% YoY, and a PAT of ₹9.38 crore, up 13% YoY, despite a flat industry. The stock, priced at ₹979, trades at a P/E of 35.5x, perfectly mirroring the sector’s obsession with “precision” — even in valuation multiples.
In 9M FY25, the company sold 966 CNC machines, down from 1,235 units last year, but with average realisation of ₹18.7 lakh per unit, management isn’t exactly crying — they’re just focusing on higher-margin, premium automation models under the Nexa vertical.
The order book of ₹320–350 crore ensures the Rajkot engineers won’t be idle anytime soon. In fact, they’re expanding capacity from 2,000 to 2,500 machines annually by FY25-end with a modest ₹15 crore capex — because apparently, even machines need to scale up for “Make in India 2.0.”
2. Introduction
CNC stands for Computer Numerical Control, but at Macpower, it might as well mean Cash Never Ceases. Founded and headquartered in Gujarat, this company builds the kind of machines that build other machines — from the nuts of your Hero bike to the turbine housings of your fighter jet.
Their journey is as desi as it gets: small-town Rajkot lads turning spindles into success stories. Started as a mid-sized lathe manufacturer, Macpower today sells 315+ variants of CNC machines across 27 product segments, with 11,259+ installations — making it one of the few homegrown players competing toe-to-toe with Japanese and Taiwanese CNC imports.
But here’s the spicy part — despite all this industrial glamour, the company is still run with Gujarati frugality. Almost debt-free, decent dividends, and clean books (no pledges, no drama). Promoters hold 73%, and even the Massachusetts Institute of Technology (yes, MIT) once popped up in the shareholding. Talk about “precision investing”!
3. Business Model – WTF Do They Even Do?
If you ever wondered how factories make “machines that make machines,” here’s your answer. Macpower manufactures CNC Turning Centres, Vertical Machining Centres (VMCs), Twin Spindle Turn-Mill Centres, Grinders, and automation-integrated machining systems. In simpler words — they make the machines that shape metal into automotive, aerospace, and defense components.
Under its Nexa vertical, Macpower markets high-end, large-format machines like VTL (Vertical Turning Lathe), HMC (Horizontal Machining Centre), DCM (Double Column Machining), and automation-ready VMCs. Think of Nexa as the “iPhone Pro” version of their machines — high margins, less price sensitivity, and the kind that Defence PSUs drool over.
Revenue segmentation is roughly 60% Turning Centers, 35% Nexa Products, and 5% Tender/L1 orders. That’s a smart mix — steady cash flow from bread-and-butter turning centres, plus the high-margin glamour of Defence and Aerospace contracts.
So yes, they’re the Maruti Suzuki of industrial cutting tools, except their latest Nexa line is trying to be Mercedes-AMG.
4. Financials Overview
Quarterly Results – Q2 FY26 (₹ Crore)
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
85.71
71.10
61.03
20.6%
40.4%
EBITDA
14.16
12.75
7.92
11.0%
78.7%
PAT
9.38
8.30
4.56
13.0%
105.7%
EPS (₹)
9.38
8.30
4.56
13.0%
105.7%
That’s a serious QoQ rebound — revenue up 40%, PAT up 100%, and an EBITDA margin back to 16.5% after a temporary dip. It’s like the machines themselves got offended by a weak Q1 and decided to overperform.
Annualised EPS now works out to ₹37.5, making the P/E ≈ 26x on forward basis — a discount to peers like Jyoti CNC (66x) or Kaynes (97x). Who knew being cheaper could look so premium?
5. Valuation Discussion – Fair Value Range (for Educational Purposes Only)
