1. At a Glance – The Rajkot Machine That’s Printing Profits
Macpower CNC Machines Ltd is currently trading at ₹889 with a market cap of ₹890 crore. The stock has delivered a modest 3.31% return in the last 3 months, but over one year it’s down 25.9% — classic “results good, stock moody” behaviour.
Now let’s talk Q3 FY26 (Quarterly Results confirmed — we are locking this as quarterly).
Revenue for the December 2025 quarter came in at ₹86.15 crore, up 42.6% YoY.
PAT jumped to ₹9.79 crore, up a whopping 119% YoY.
Operating margin? A neat 18.08%.
ROCE stands at 27.1%, ROE at 19.8%, Debt-to-equity is basically 0.01 — which means the company’s balance sheet is cleaner than your CA’s Excel sheet.
And then comes the kicker — an order book of ₹375 crore and a ₹100 crore greenfield capex plan.
So the real question:
Is this a serious smallcap engineering story or just a defence-themed dream machine?
Let’s open the gearbox.
2. Introduction – Rajkot’s Silent CNC Ninja
Macpower isn’t a glamorous startup. It doesn’t sell AI dreams or fintech fantasies.
It sells machines. Big, heavy, expensive machines that cut metal.
And believe me — in India, if you’re cutting metal profitably, you’re doing something right.
Founded in Gujarat’s industrial heartland, Macpower manufactures Computerised Numerical Control (CNC) machines and Lathe machines. Translation: they make the machines that make everything else.
Cars? Machines.
Defence equipment? Machines.
Industrial components? Machines.
They currently offer 315+ variants, serve 27+ product segments, and have installed 11,259+ machines.
That’s not startup vibes. That’s industrial muscle.
Operationally:
- 9M FY25 sales: 966 machines
- FY24 sales: 1,235 machines
- Realisation: ₹18.7 lakh per unit (9M FY25)
So volumes slightly lower than FY24 full year, but realisations remain strong.
They have:
- 6 branch offices
- 7 tech centres
- 9 business associates
- 947+ employees
This is not a two-shed factory operation.
And then comes defence. And when Indian smallcaps say “defence,” investors suddenly sit straighter.
But is it hype or horsepower?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Imagine you’re an auto component manufacturer.
You need machines that cut, drill, shape, and mill metal with ridiculous precision.
Macpower builds those machines.
Their portfolio includes:
- Turning Centers
- Twin Spindle Turning Centers
- Twin Turn Mill Centers
- Grinders
- Pro Turning
- Pro Milling
Under the “Nexa” vertical, they sell high-value machines like:
- VTL
- HMC
- DCM
- Advanced VMC machines with automation
Basically, standard machines for regular industry and fancy ones for heavy-duty applications.
Order book mix:
- Turning Center: 60%
- Nexa Products: 35%
- Tender + L1: 5%
Capacity:
- 2,000 machines per annum
- Expanding to 2,500 machines annually via ₹15 crore capex
They’ve also signed an MoU with Gujarat Government for ₹100 crore aerospace & defence CNC facility.
So the story is evolving from:
“Rajkot lathe company”
to
“Defence-capable CNC manufacturer.”
Now tell me — does this sound like a boring engineering firm or a future Make-in-India beneficiary?
4. Financials Overview – The Numbers Don’t Lie (Usually)
EPS:
- Q1 FY26: ₹4.56
- Q2 FY26: ₹9.38
- Q3 FY26: ₹9.79
Average EPS (Q1+Q2+Q3)/3 = 7.91
Annualised EPS = 7.91 × 4 = ₹31.64
Current price: ₹889
Recalculated P/E = 889 / 31.64 ≈ 28.1
Very close to reported 27.1. Good.
Quarterly Comparison (₹
