Jyoti CNC Automation has secured MeitY approval for a ₹1,020.65 crore capital investment plan to expand manufacturing at its Rajkot facility.

The approval came through on 17 August under the government’s Electronic Components Manufacturing Scheme, and will be spent over the next five years.

The money is earmarked for expanding the company’s manufacturing capacity and building a backward-integrated facility to produce the electronic devices that go inside CNC machines, components Jyoti CNC currently doesn’t make in-house.

Under the scheme, the company stands to get a capital expenditure incentive of up to 25% on the approved investment.

The approval letter will now go before Jyoti CNC’s board for formal consideration. This isn’t a surprise move.

On the company’s Q1 FY27 earnings call on 7 August, chairman and managing director Parakramsinh Jadeja had already told analysts that Jyoti CNC was designing its own drives, motors and CNC controllers in-house, with a working human machine interface already in place.

He expected an in-house controller to be commercially ready within two years.

Jadeja had also said at the time that the company had applied for these incentives and was counting on roughly 25% support from the central government, matched by a similar amount from the state, together covering close to half the project’s cost.

The MeitY approval now brings that plan a step closer to reality. The timing lines up with other expansion work already underway at the company.

Jyoti CNC is adding capacity for 10,000 more machines a year, taking its total to 16,000, and that project remains on track for commissioning by the end of September, barring a slight delay in the foundry section.

The company has set aside close to ₹450 crore for that expansion. Plant utilisation at the existing 6,000-machine capacity stood at 86% during the quarter.

Its order book stood at ₹4,848 crore as of early August, led by aerospace and defence work at 38%, followed by general engineering and automotive components.

Management has stuck to its guidance of 25 to 30% revenue growth for FY27, with EBITDA margins expected to hold around 25% for the full year.

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