Key Financial Performance

Q4 FY26 Performance:

  • Revenue from operations (net of tariff concessions): ₹82 crores
  • Gross margin: 73%
  • EBITDA margin: 43%
  • PAT: ₹26 crores
  • ROCE: 22% (quarterly)
  • ROE: 26% (quarterly)

Full Year FY26 Performance:

  • Revenue from operations (net): ₹240+ crores
  • Gross revenue (before tariff concessions): ₹257 crores
  • Gross margin: 70%
  • EBITDA margin: 31%
  • PAT: ₹63 crores
  • Employee cost: 22% of revenue (increased 16% YoY)
  • Operating expenses: 16% of revenue (increased 28% YoY)
  • Depreciation: ₹7 crores per quarter
  • Finance cost: ₹15.3 crores (includes ₹9.6 crores one-time exchange loss)
  • Core finance cost: ₹5.7 crores
  • ROCE: 10% (full year)
  • ROE: 16% (full year)
  • Fixed assets turnover: 1.4x
  • Working capital days: 120-125 days

Operational Highlights

  • Order book as of May 2026: ₹314 crores (consolidated, including Hobel)
  • Aerospace tooling and components contributed ~90% of Q4 and FY26 revenue
  • Executed over 200 First Article Inspections (FAIs) across aerospace, semiconductor, and defense
  • Qualified SKU base approaching 6,000 components
  • Current plant utilization: ~50%
  • Operates over 150 CNC machines across Bangalore facility

Strategic Initiatives

Hobel Bellows Acquisition (Completed April 2026):

  • Acquisition cost: ₹450 crores
  • Strategic capability addition in metallic bellows, flexible tubing, and precision-engineered assemblies
  • EPS accretive acquisition
  • Provides exposure to locomotive, industrial power generation, and heavy-duty engine ecosystems
  • Plans to pursue AS9100 certification (6-9 month timeline)
  • Aerospace qualification expected in 2-3 years

Saudi Arabia JV with Kanoo Group:

  • Established regional precision manufacturing platform
  • Received approval from Saudi Ministry of Investment
  • Total planned investment: $30 million (Unimech share: 51%)
  • Focus on energy sector manufacturing
  • Expected breakeven over three-year horizon

Nuclear Energy Business:

  • Order wins: ₹87 crores to date
  • Focus on EMCCR projects for Tarapur and Madras reactors
  • Execution timeline: 12-18 months
  • Qualified for more than 10 sub-systems/semi-assemblies

Free Trade Warehousing Zone (FTWZ):

  • Received all regulatory approvals
  • Final stage of enabling shipping documentation (ice gate portal)
  • Focus on non-US territory supply chain

FY27 Outlook

  • Expect stronger growth and improved operating leverage
  • Target Q1 FY27 revenue to surpass Q4 FY26 levels (₹82+ crores)
  • Expect consolidated EBITDA margins to be better than FY26 (31%)
  • Growth drivers: normalization in tooling demand, precision component opportunities, nuclear order execution, Hobel contribution
  • No major core business CAPEX planned for FY27
  • Working capital expected to increase to 150-160 days range
  • Kanoo JV CAPEX to occur as planned

Management Commentary

  • Q4 marked meaningful inflection point for business momentum
  • Industry faced tariff-related disruptions in US, customer inventory rationalization in FY26
  • Long-term aerospace and precision manufacturing outlook remains favorable
  • Strategy focused on qualifying additional components for long-term recurring production
  • Business entering execution and scaling phase

Other Income & Treasury

  • Other income: ₹47 crores in FY26 (increased ~90% YoY)
  • Expected to be moderate in FY27 due to M&A deployment

Capital Structure

  • Acquisition funded through available capital base
  • Hobel acquisition structured through subsidiary (goodwill to appear on consolidation)
  • No amortization of intangibles planned