Quarterly Financial Highlights Demonstrate Significant Growth
The December 2025 quarter marked a milestone for Macpower CNC, with net sales surging to ₹86.15 crores, the highest quarterly figure in the company’s history. This represents a substantial improvement over previous quarters and reflects strong demand for the company’s CNC machinery products. Operating profitability also expanded notably, with PBDIT reaching ₹15.58 crores, the highest recorded to date.
Operating profit margin, measured as operating profit to net sales, climbed to 18.08%, underscoring enhanced cost efficiencies and pricing power. Profit before tax (excluding other income) rose to ₹12.98 crores, while net profit after tax (PAT) hit ₹9.79 crores, both all-time highs for the company. Earnings per share (EPS) correspondingly improved to ₹9.79, signalling robust shareholder returns for the quarter.
Financial Trend Shift: From Flat to Very Positive
Macpower CNC’s financial trend score has dramatically improved from a flat rating of 2 to a very positive 20 over the last three months, reflecting the company’s successful execution of its growth strategy. This shift is particularly notable given the broader industrial manufacturing sector’s mixed performance, where many peers continue to face margin pressures and subdued demand.
The company’s mojo score currently stands at 67.0, earning it a “Hold” grade, upgraded from a previous “Sell” rating on 2 February 2026. This upgrade reflects the market’s recognition of the company’s improving fundamentals and operational momentum.
Stock Price and Market Performance
Macpower CNC’s stock price has responded positively to the strong quarterly results, rising 6.61% on 10 February 2026 to close at ₹903.50, up from the previous close of ₹847.50. Intraday trading saw a high of ₹1,015.00, indicating strong buying interest. The stock remains below its 52-week high of ₹1,298.35 but well above the 52-week low of ₹601.20, reflecting a recovery phase.
When compared to the broader Sensex index, Macpower CNC’s returns have been mixed in the short term but impressive over the long term. The stock outperformed the Sensex by delivering a 6.58% gain over the past week versus the Sensex’s 0.81%. However, it lagged over the one-month and year-to-date periods, with returns of -5.93% and -12.3% respectively, against Sensex gains of 0.98% and -0.74%. Over a three-year horizon, the stock has delivered a stellar 191.69% return compared to the Sensex’s 45.24%, and an extraordinary 841.15% over five years versus the Sensex’s 71.68%.
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Operational Challenges and Areas for Improvement
Despite the strong quarterly performance, certain operational metrics warrant attention. The debtor turnover ratio for the half-year period has declined to 5.25 times, the lowest in recent history, indicating a slower collection cycle that could impact working capital management. Additionally, cash and cash equivalents have dropped to ₹0.75 crores, also the lowest level recorded, which may constrain liquidity in the near term.
These factors suggest that while revenue growth and profitability have improved markedly, the company must focus on optimising its receivables and cash management to sustain its positive momentum.
Industry Context and Sectoral Comparison
Macpower CNC operates within the industrial manufacturing sector, a space characterised by cyclical demand and capital-intensive operations. The company’s ability to deliver record quarterly sales and margin expansion at this juncture is a testament to its competitive positioning and operational discipline. Compared to peers, Macpower CNC’s recent financial trend upgrade to “very positive” is a standout, as many industrial manufacturers continue to grapple with margin contraction and subdued order books.
Its market capitalisation grade of 4 reflects a mid-sized company with room for growth, and the recent upgrade in mojo grade from “Sell” to “Hold” signals cautious optimism among analysts and investors alike.
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Outlook and Investor Considerations
Looking ahead, Macpower CNC’s recent quarterly results provide a strong foundation for sustained growth, provided the company can address its working capital challenges. The robust revenue growth and margin expansion suggest that demand for CNC machinery is recovering, potentially driven by increased capital expenditure in manufacturing sectors.
Investors should weigh the company’s improved financial trend and upgraded mojo grade against the liquidity constraints and slower debtor turnover. The stock’s long-term outperformance relative to the Sensex is encouraging, but short-term volatility remains a factor to monitor.
Overall, Macpower CNC’s transition from a flat to a very positive financial trend marks a pivotal moment, signalling a potential inflection point in its growth trajectory within the industrial manufacturing sector.
Historical Performance and Market Positioning
Over the past decade, Macpower CNC has demonstrated remarkable resilience and growth, with a five-year return of 841.15%, vastly outperforming the Sensex’s 71.68% over the same period. This long-term performance underscores the company’s ability to capitalise on industrial automation trends and expand its market share.
However, the recent one-year return of -29.59% compared to the Sensex’s 10.92% gain highlights the cyclical nature of the business and the impact of macroeconomic headwinds. The current quarter’s strong results may mark the beginning of a recovery phase, which investors will watch closely in the coming months.
Valuation and Market Sentiment
At a current price of ₹903.50, Macpower CNC trades below its 52-week high but well above its 52-week low, reflecting a cautious but improving market sentiment. The upgrade from a “Sell” to a “Hold” mojo grade indicates that while the stock is no longer viewed negatively, further confirmation of sustained growth will be necessary to warrant a more bullish stance.
Market participants should consider the company’s improving fundamentals alongside sectoral dynamics and broader economic indicators when making investment decisions.
Conclusion
Macpower CNC Machines Ltd’s latest quarterly performance marks a significant turnaround, with record revenues, expanded margins, and improved profitability signalling a positive shift in its financial trajectory. While operational challenges such as debtor turnover and cash reserves require attention, the company’s upgraded mojo grade and strong market response reflect growing investor confidence.
As the industrial manufacturing sector navigates a complex environment, Macpower CNC’s ability to sustain this momentum will be critical. Investors should monitor upcoming quarters for confirmation of this positive trend and consider the company’s long-term growth potential within the evolving manufacturing landscape.
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