Jyoti CNC Automation has received approval from the Ministry of Electronics and Information Technology for a capital investment proposal worth Rs 1,020.65 crore over the next five years. The approval, granted under the government’s Electronic Components Manufacturing Scheme, was communicated to the company on August 17, according to a regulatory filing.

The Rajkot-based machine tool maker said the investment will go towards expanding installed capacity and setting up a backwards-integrated manufacturing facility for electronic devices used in building CNC machines.

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Under the scheme, the company will be eligible for a capital expenditure incentive of up to 25% on the investment, subject to conditions laid out in the approval letter. The company said the letter will be placed before its board of directors for consideration.

Jyoti CNC plans in-house CNC controllers, drives and motors 

The approval follows through on plans the company’s chairman and managing director, Parakramsinh Jadeja, had outlined on Jyoti CNC’s Q1 FY27 earnings call held on August 7. Jadeja had told analysts the company was designing and developing its own drives, motors and CNC controllers, and that its human-machine interface was already ready. He said commercialisation of an in-house controller was likely within two years.

At the time, Jadeja had said the company had applied for production-linked incentives and was eligible, with plans ready to be executed once clearance came through. He had pegged capital subsidy support at around 25% from the central government, matched by a similar amount from the state government, taking total support to roughly half the project cost. The MeitY approval brings that plan a step closer to execution.

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Jyoti CNC’s Q1FY27 performance

On a consolidated basis, revenue for the quarter stood at Rs 508.5 crore against Rs 410.2 crore a year earlier. Consolidated adjusted EBITDA was Rs 119 crore compared with Rs 100 crore in the year-ago quarter. Reported consolidated EBITDA stood at Rs 109 crore. Consolidated PAT was Rs 57 crore.

Jyoti CNC expands annual capacity to 16,000 machines 

Jyoti CNC’s expansion project, which will add capacity for 10,000 machines annually, remains on track for commissioning by the end of September, Jadeja said, with only the foundry section running about a month behind schedule. The company has budgeted close to Rs 450 crore for the project. Plant utilisation for the existing 6,000-machine capacity stood at 86% in the quarter.

The company’s order book stood at Rs 4,848 crore as of the call date, led by aerospace and defence at 38%, followed by general engineering at 20% and automotive and auto components at 19%. The company sold 1,406 machines during the quarter compared with 1,117 a year earlier, driven largely by entry-level machines.

Management reiterated its guidance of 25 to 30% revenue growth for FY27, with EBITDA margins to be maintained around 25% on a full-year basis.

Jyoti CNC share price rises nearly 1% after MeitY approval 

Jyothi CNC’s share price has been up almost 1% as of the market opening on August 18, 2026. The company’s stock price has been up 7.82% in the past month. However, the share price has been down 5.99% in the past year.