Macpower CNC Machines Limited (MACPOWER) Earnings Call Transcript
July 30, 2026
Earnings Call Speaker Segments
Ladies and gentlemen, on behalf of Captivei Consulting Investor Relations team, I welcome you all to the Q1 FY '27 Post Earnings Conference Call of Macpower C&C Machines Limited. Today on the call from the management, we have with us Mr. Rupesh Mehta, Chairman and Managing Director; Mr. Vishal Mehta, Chief Financial Officer; Mr. Kishore Kitani, Company Secretary; and the management team. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended June 2026, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.
Thank you very much, Vinay and team Captivei to arranging the nice con call of quarter 1. Good afternoon, everyone. I warmly welcome all of you to our Q1 FY '27 post results conference call. Thank you for taking time out of your busy schedule to join us. We truly value your continued interest and support. The financial results and presentation have been uploaded on the company's website. I hope you have had a chance to review them. I will bring my walking you through the key highlights of our Q1 '27 performance followed by an update on our strategic initiative and growth outlook. After that, we will be happy to take your questions. We are pleased to state that quarter 1 FY '27, the company delivered its highest ever performance across revenue, EBITDA and PAT for quarter 1. Revenue stood at INR 95.24 crores registered a Y-o-Y growth of 56.6%, EBITDA stood INR 15.3 grown by 9% Y-o-Y and EBITDA margin of 16.2%. PAT stood INR 9.5 crores, grown by 110% Y-o-Y with the PAT margin of 10.06%. Average machines realization around INR 20 lakh. Capex during the quarter 1 was INR 2.25 crores. Internal Capex has led to corresponding increase in depreciation. Robust order book and strong demand in pipeline, pending order book of stands at INR 456 crores, reflecting 32% Y-o-Y growth. Nexa series contribution around 40% of the pending order book. Domestic bid submitted INR 739 crores, tender bid under evolution, INR 304 crores and domestic quotations is in pipeline for INR 1,000-plus crores, INR 1,043 crores. New product innovation. Recently, we have successfully developed and launched several new models in quarter 1 like DCM2518 double column machines, LX1000 and TO 200 with Y-axis. Infrastructure expansion for future growth. In line with our aggressive growth strategy and sustained momentum in order flow, we have selected 13 acre 9 plus 4 for green zone of land on a 30-year long-term legally registered lease near our existing plant. The new facility will be enable debottlenecking, congestion, backward integration and significant scaling of our operations to support our long-term growth ambitions. State-of-the-art assembly facility will be centrally air conditions shop floor on approximately 1.5 lakh to 2 lakh square feet. Targeted completions of this facility within 12 months. Estimated investment of this expansion is INR 50 crores. Benefit of this expansion from Viksit Gujarat new industrial policy 2026 is including 25% capital subsidy plus 7% interest subsidy. Funding is expected through a prudent mix of internal accruals and debt, focus on captive solar power to reduce the energy costs. We are also expanding our market presence currently operating new 10 branches off and technology center. Recently opened new branches in Kolkata, upcoming branches in Nashik, upcoming technology center in Pune, Kolhapur, Mumbai Western part. Expanding the sales and service networks, participating and spending the marketing budget by exhibitions, future guidance with a strong order book of INR 456 crores, almost Y-o-Y 32% grown by last year to this year and expanding high-end product portfolio and ongoing CapEx, we are confirm our delivering another year of robust growth and are looking at plus 30%. Now we are changing our last con call, we had committed 28% to 30% growth. But now look at the -- our raw material situation is in our hand, manpower is in our end and the huge order book. So we are slightly -- we are increasing our growth target by 30-plus percentage in this coming year. We remain focused on profitable growth, operational excellence and long-term value create for our stakeholders. I would now like to open the floor for questions. Then you once again thank you for your participation. [Technical Difficulty]
[Operator Instructions] We'll take the first question from Agastya Dave.
Sir, but I would like to point out last year, same quarter was a low base effect. [Foreign Language]
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We'll take the next question from Sanjay Lada.
Congratulations on a very good set of numbers sir. [Foreign Language]
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So my another question would be [Foreign Language]
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The next question from Deepak Pandey.
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Sir, the bookkeeping question is, order book if you can help me understand [Foreign Language]
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Two questions, clap into one, what is the update on JV and tech partnership? And second, how is your 5-axis machine doing in the market?
5-axis is a tricky business, which restrictions we have, agreements we sign [Foreign Language]
And sir on the JV part?
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We'll take the next question from Mahik Kalati.
Congratulations on a good set of numbers. [Foreign Language]
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We'll take the next question from Bhargav Buddhadev..
Congratulations for a very good set of numbers. [Foreign Language]
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so we'll take two questions from Q&A box it's from Vishal Vishwas Singhal he's asking, in Q4 you mentioned that 80 fully built machines were sitting in opening inventory waiting for customer bank loan signatures and subsidies and stated that these would clear within 7 to 10 days. Did those 80 machines actually get built and converted to liquid cash in Q1? Furthermore, what is the current inventory level of finished machines sitting at your tech centers today?
Right now, that 80 machines is almost, I think, 90% machine is executed. And right now, we have more than -- I think we have to keep the same inventory for each and every quarter without that inventory because suppose in this quarter, I think end of this month, tomorrow is the last day of month. So many of the machines will forward for next month because we are waiting for the payment, maybe fourth, second, third, maybe it's not possible. Every month, 70% payment is received out of 100 names or 100% names. So for example, we have 300 names, then 65% payment received. Another 65% payment will receive on first week or before that. So this is the trend. So every month, some of the machines is forward on month-on-month basis and quarter-on-quarter basis. Secondly, right now in our tech centers, I think we almost is empty. There is no machines except 1 or 2 machines in tech center or another tech center. So right now, we are struggling for the delivery for our customers. So inventory or any demonstration machine is also sold out. So there is no machines in tech centers.
Okay, sir. His next question is Nexa machines accounted for 40% of your INR 406 crores order book in Q4. What was the exact revenue share of Nexa series machines in Q1 FY '27 versus lower margin traditional models?
So I think we already calculated is nearly the same, 39% to 40% is executed in quarter 1 by Nexa.
Okay. And out of INR 376 crores in defense and aerospace bids under evaluation, what is the time line and conversion rate we should expect in H1 FY '27?
Nobody can predict that area because since 2 years old tender is not yet open. So I think we cannot predict. But normally, the quarter 3 and quarter 4 because they have a budget. And if they will not open and not place the order, their budget will, I think, skip for the next financial year. And they have to give the lots of reason and they have to apply the new budget for that CapEx. So quarter 3 and quarter 4 is the maximum realization of opening the tender.
We'll take the next question from Arnav Sakhuja.
So my first question is, I just wanted a bit more clarity on the guidance. So you raised the revenue guidance to over 30% revenue growth. But is there any change in the EBITDA and profitability guidance? Or does that remain the same?
I think right now, in quarter 1 is we already achieved 16%. So I'm expecting that some of the percentage definitely will increase in the EBITDA margin also on quarter-on-quarter, all these 3 quarters.
And so my next question is given the whole West Asia war that took place during the entire quarter 1 and is still taking place, has that affected our business performance in any way? Or does it not really impact us?
That area is not, I think, we are working. So it's a 0% effect on this war or anything because we are not focusing on any export or -- and we have a 1-year inventory for our one component we are buying from Taiwan, only Bosco and LM right ways by one company. So I think this war or anything is not that much affected to the manpower.
We'll take the next question from Kumar Saurabh.
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we'll take the next question from Piyush Jain.
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[Foreign Language] Can you confirm that number? The basis which I just want to ask, what is the order pipeline which you see because uh suppose I haven't calculated for the last quarter of march if [Foreign Language].
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We take the next question from Gavitra Jain.
I have one question. If you could give me a range of the price of the machines, which are high end versus low end or mid-end machines? And like how does this price then rise across the industries like aerospace and defense and general industrial machines so that I can estimate how much is the realization or average selling price difference we are expecting with the change in the order book mix?
Already, I think I've given this question that average price realization is INR 20 lakh. Now in our new order book, it is increased by INR 20 lakh...
I'm asking, average I got, but if you could give me the price the low-end machine [Foreign Language].
Is INR 12 lakh to INR 20 lakh and middle range machine is INR 20 lakh to INR 30 lakh and INR 30 up to INR 2 crore machine is a higher-end machine for us.
Okay. And sir, is there any price change we have taken this quarter because of the increase in the raw material prices?
Yes, definitely, we increased the price by 4% to 6%. And this first quarter, we had given the chance to our customer who have given the order that if you are not lifting the machine, you have to -- you are eligible to give us the 4% to 6% new price increment. So from the 1st June, already the new price is affected and all the in is by the new price.
Okay. Okay. And one last question, if you could give any volume growth in terms of units, if you could give for quarter 1?
Volume growth, definitely, without volume growth, I think.
How much was it, number of units, if you can give me?
Almost I think the revenue growth percentage is same by the number of growth because... Almost same, yes.
We'll take the next question from Rahil Shah.
[Foreign Language] Cash conversion cycle... Consist over the past 3 years. So is this more like a permanent feature of doing business with defense and large buses just a working capital issue? [Technical Difficulty]
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We'll take the next question from Aryan Vijayan.
Sir, I wanted to ask, what is the future target in terms of revenue and profitability of the something?
What's the target of?
Revenue and profitability target in the future.
I think your own year, we are targeting that will deliver you more than 28 to 30% y-o-y in terms of change.
What about the margins do you expect to in?
Terms of almost margin also in EBIT also in Avenue also and in the pay.
And sir what is the building pipeline currently of the company. [Technical Difficulty] what is the current build pipeline for the company?
What is what is the current order pipeline for the company?
Order pipeline I think we given everything I think 456 crore order is received with the advance and 1000 plus domestic quotation bid. Everything is in presentation.
We'll take the next question from Gaurav Shukla.
Congratulations on good sets of numbers. [Foreign Language]
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We'll take the follow-up question from Mahik Talaki.
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We'll take the last question from Aniket Jain.
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We'll take the last question from Nexus Equity.
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Sir, since that was the last question, would you like to give any closing comments?
Thank you very much all the shareholders to believe in your company and thank you very much Vinayji, Mosin bhai to arranging the highest number of people in this meeting. I think these are also a record break like Macpower result that we have more than 120-135 people in this meeting. I think this time we break this number of people's record also. So congratulations Team Captivei and thank you very much once again everyone.
Thank you to the management team and thank you to all the participants for joining on this call. This brings us to the end of this conference call. Thank you.
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