UCAL Limited FY26 Financial and Operational Performance Summary

Reporting Period: Financial Year 2025-26

Document Dates: May 27, 2026 (Financial Statements) & August 31, 2026 (Annual Report)

Financial Performance Highlights

Revenue Growth with Profitability Challenges:

  • Standalone revenue increased 11% to ₹64,664.34 lakhs (FY25: ₹58,279.83 lakhs)
  • Consolidated revenue grew 4.43% to ₹83,782.06 lakhs (FY25: ₹80,229.47 lakhs)
  • PBDIT declined to ₹5,866.56 lakhs (FY25: ₹7,495.87 lakhs)
  • Standalone net loss of ₹9,676.68 lakhs (FY25: Profit of ₹2,260.38 lakhs)
  • Consolidated net loss of ₹3,332.32 lakhs (FY25: Loss of ₹1,628.00 lakhs)
  • EPS: Standalone ₹(43.76); Consolidated ₹(15.07)

Exceptional Items Driving Losses:

  • Subsidiary dilution loss: ₹10,368.27 lakhs from stake reduction in UCAL Holdings Inc. from 100% to 10%
  • Labor code impact: ₹239.08 lakhs (standalone) from new labor code implementation notified November 21, 2025
  • Profit Before Tax (before exceptional items): ₹1,409.04 lakhs (2.18% of turnover)

Financial Position:

  • Total standalone assets: ₹63,040.34 lakhs (FY25: ₹71,968.35 lakhs)
  • Equity: ₹27,966.59 lakhs (FY25: ₹37,494.80 lakhs)
  • Current ratio: 0.93 (FY25: 0.84); Debt-equity ratio: 0.65 (FY25: 0.53)
  • Return on equity: (29.56%) (FY25: 6.20%)

Strategic Corporate Action: Subsidiary Restructuring

Major Ownership Change:

  • On March 15, 2026, UCAL Holdings Inc. issued 9,000 equity shares to new investor
  • Company's stake diluted from 100% to 10%, ceasing to be a subsidiary
  • Step-down subsidiaries Ucal Systems Inc. and Amtec Molded Products Inc. also ceased to be subsidiaries
  • Shareholder approval obtained through postal ballot on February 13, 2026
  • Investment reclassified to equity instrument at FVTPL with carrying value reduced to ₹0.01 lakhs

Current Subsidiary Structure:

  • Ucal Polymer Industries Limited remains wholly-owned subsidiary

Operational and Business Performance

Strong Product Segment Growth:

  • New products revenue grew 150% year-on-year
  • Aftermarket segment grew 32%
  • OES (Spares) segment grew 21%
  • OE segment grew 19%
  • Four new OEM customers added during the year

Manufacturing Expansion:

  • New throttle body production lines at Bawal and MM-1 Plants
  • Crankcase manufacturing capabilities established at Bawal Plant
  • E-Purge production line at MM-1 Plant
  • Water outlet manufacturing facility at SEZ Plant, Mahindra World City
  • Capital expenditure: ₹33.97 crore during the year

Quality Achievements:

  • Platinum Award in Quality and Delivery Performance for 12 consecutive months
  • 100% Supplier Performance Rating from leading 4-wheeler major
  • Zero PPM Quality Performance for global 4-wheeler manufacturer

Corporate Governance and Management Changes

Board Composition:

  • 8 Directors total: 3 Executive, 1 Non-Executive Non-Independent, 4 Independent Directors
  • 7 Board meetings held during FY26 with full attendance

Key Managerial Changes:

  • Mr. Jaisankar T resigned as CEO effective June 30, 2026
  • Mr. Adithya Srivatsa Jayakar appointed as CEO effective August 13, 2026 (in addition to Deputy MD role)

Committee Structure:

  • Audit Committee: 5 meetings (Chairman: Mr. S. Balasubramanian)
  • Nomination and Remuneration Committee: 1 meeting
  • Stakeholders Relationship Committee: 1 meeting
  • CSR Committee: 1 meeting

Regulatory Compliance and Disclosures

Statutory Appointments:

  • Statutory Auditors: M/s. R. Subramanian and Company LLP (until 41st AGM)
  • Secretarial Auditors: M/s. P. Muthukumaran and Associates
  • Cost Auditor: Mr. L. Thriyambak (remuneration ₹3,00,000)
  • Internal Auditors: M/s. P. Chandrasekar, LLP

Compliance Framework:

  • Prepared in accordance with Ind AS per Companies (Indian Accounting Standards) Rules, 2015
  • Compliance with Companies Act, 2013 and SEBI (LODR) Regulations, 2015
  • MSMED Act, 2006 disclosures provided
  • Comprehensive risk management framework in place

AGM Details:

  • 40th Annual General Meeting on September 29, 2026 at 4:00 PM IST via video conferencing
  • Key agenda items include adoption of financial statements, director reappointment, and remuneration approvals

Additional Significant Disclosures

Capital Structure and Dividend:

  • Paid-up equity share capital: ₹22,11,36,250 (2,21,13,625 equity shares of ₹10 each)
  • No dividend recommended for FY26 to preserve cash flow for future capex requirements
  • Major shareholders: Carburettors Limited (51.19%), Southern Ceramics Private Limited (7.05%)

CSR Activities:

  • CSR obligation: ₹30,43,105 (2% of average net profit)
  • Contributions to Dr. V. Krishnamurthy Educational Foundation (₹25,43,105) and Udavum Ullangal Public Charitable Trust (₹5,00,000)

Contingent Liabilities (Standalone):

  • Sales Tax/Tax: ₹3,990.48 lakhs
  • Excise Duty/Service Tax/GST: ₹386.87 lakhs
  • Income Tax: ₹1,586.06 lakhs
  • Capital Commitments: ₹2,610.29 lakhs

Auditor Emphasis and Key Audit Matters

Auditor's Report Highlights:

  • Unmodified opinion with emphasis on reliance on management-certified financial position of UCAL Holdings Inc. as of March 14, 2026 for dilution accounting
  • Key audit matters included evaluation of uncertain tax positions and valuation of inventories (₹7,215.92 lakhs, 10.61% of total assets)
  • Confirmed adequate internal financial controls operating effectively as of March 31, 2026

Cash Flow Performance:

  • Net cash from operating activities: ₹6,760.99 lakhs (FY25: ₹422.81 lakhs)
  • Net cash used in investing activities: ₹(3,051.31) lakhs (FY25: ₹418.38 lakhs)
  • Net cash used in financing activities: ₹(3,659.02) lakhs (FY25: ₹(407.99) lakhs)

Forward-looking Statements and Outlook

The company continues to monitor new labor code implementation and final rules for further accounting impacts. Management assessment indicates capability to meet liabilities as they fall due within one year, with no dividend declared for FY26 to conserve resources. Forward-looking statements are subject to risks including macroeconomic conditions, government regulations, and market dynamics.