Jyoti CNC Q1 profit falls 20 pc to Rs 57 crore; shares drop over 10 pc

Mumbai, Aug 7 (IANS) Machine tools manufacturer Jyoti CNC Automation on Friday reported a 20.2 per cent year-on-year (YoY) decline in net profit for the June quarter (Q1 FY27), as pressure on operating margins offset strong revenue growth.

The Gujarat-based company’s consolidated net profit fell to Rs 57 crore in the first quarter of FY27, compared with Rs 71.4 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.

The weaker-than-expected profitability triggered a sharp sell-off in the stock, with shares falling more than 10 per cent during Friday’s trade.

Revenue from operations, however, climbed 24 per cent to Rs 508.5 crore from Rs 410.2 crore a year ago.

At the operating level, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 8.6 per cent to Rs 108.8 crore from Rs 100.2 crore in the year-ago quarter.

However, EBITDA margin contracted sharply to 21.4 per cent from 24.4 per cent, as per its regulatory filing.

Investors reacted negatively to the earnings performance, with margins remaining a key concern.

Shares of Jyoti CNC Automation declined more than 10 per cent during Friday’s session, hitting an intra-day low of Rs 738.90 on the NSE.

The June-quarter performance follows a weaker-than-expected March quarter, during which profitability had also come under pressure.

In the fourth quarter of FY26, the company reported a 16.9 per cent year-on-year decline in consolidated net profit to Rs 90.6 crore, even as revenue increased 4.2 per cent to Rs 600 crore.

EBITDA for the March quarter fell 16.6 per cent to Rs 148.2 crore, while EBITDA margin narrowed significantly to 24.7 per cent from 30.8 per cent in the corresponding quarter of the previous year.

The decline was attributed to higher operating expenses and a sharp rise in finance costs. Standalone finance expenses during the quarter more than tripled year-on-year to Rs 19.4 crore.

–IANS

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