Macpower CNC FY26: ₹333 Cr Revenue and a ₹100 Cr Defence Bet

Section 1 — At a Glance

Macpower CNC Machines Ltd reported a revenue of ₹333.18 Cr for FY26, representing a 27% growth over the previous year. This revenue figure is underpinned by an order book of ₹406 Cr, suggesting that demand for their domestic CNC machining capability remains robust. The company generated a net profit of ₹33.87 Cr in FY26, translating to an EPS of ₹33.87. Operating profit (EBITDA) stood at ₹53.90 Cr for the same period.

The company maintains a lean balance sheet, with borrowings at a negligible ₹0.68 Cr, effectively making it debt-free. However, investors should monitor the working capital cycle, as the company has increased its inventory to support “ready-to-ship” manufacturing, a strategy that ties up capital but aims to cut delivery lead times.

While the company is scaling through a 13-acre leased expansion and a long-term plan for a 60-acre government-allotted facility, the transition from SME-scale operations to a larger, defence-oriented manufacturing setup carries execution risks. With a P/E multiple hovering around 29.7x, the market is pricing in a high-growth trajectory, assuming that the transition to specialized aerospace and defence products executes without significant margin slippage. The next 18 months will test whether this “ready-to-ship” inventory strategy is a masterstroke or a cash-drainer.

Section 2 — Introduction

Macpower CNC is essentially the “we make the machines that make the parts” company. Based out of Rajkot—which seems to be the unofficial headquarters of Indian industrial engineering—they manufacture everything from basic turning centers to complex, multi-spindle machines. They have been aggressively expanding their tech centers and branch offices, turning themselves from a regional player into a pan-India manufacturing entity with a sudden, intense crush on the defence and aerospace sector.

Section 3 — Business Model: WTF Do They Even Do?

Macpower’s business model is a testament to the “more is more” philosophy. They offer 315+ variants across 27 product segments. That is a lot of metal. They aren’t just selling a lathe; they are selling a solution to every engineer who ever thought, “I wish I had a slightly different spindle speed for this specific piece of automotive junk.”

Their Nexa vertical is the “premium” section of the store, handling the high-value machines like Vertical Turret Lathes (VTL) and Horizontal Machining Centers (HMC). It’s a classic strategy: start by selling the affordable, reliable turning centers to the local auto-ancillary guys, then upsell them the fancy, automated Nexa stuff once they’ve got a bigger factory and an even bigger ego.

Section 4 — Financials Overview

Figures are consolidated, in ₹ crore.

The March quarter results are a reminder that while topline growth is exciting, manufacturing remains a game of inches. With revenue crossing the ₹100 Cr mark for the quarter, the scaling is real. However, keep an eye on those “other expenses” and the inventory build. Every time management says “strategic inventory,” accountants hear “cash hiding in the warehouse.”

Section 5 — Valuation Discussion: Fair Value Range Only

To value a company