Uniparts India Ltd.

Uniparts India Limited conducted an earnings conference call on May 26, 2026, to discuss its audited financial results for Q4 and full year FY26 ended March 31, 2026. The transcript was filed with exchanges pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Q4 FY26 Results:

  • Revenue from operations: INR339 crores (up 34% YoY and 21% QoQ)
  • EBITDA: INR81 crores (up 95% YoY and 32% QoQ)
  • Profit after tax: INR51 crores (up 124% YoY and 53% QoQ)
  • EBITDA margin: 24%
  • Operating cash flow: INR52 crores

Full Year FY26 Results:

  • Revenue growth: 21% over FY25
  • EBITDA margin: 22% for full year
  • Operating cash flow: INR174 crores
  • Trailing 12-month EPS: INR35.07 (80% higher than FY25)
  • Net working capital: 136 days on trailing 12-month revenue
  • Net cash position: INR160 crores as of March 2026
  • Capex: INR12 crores for Q4

Business and Operational Updates

Fire Incident:

  • A fire incident occurred in the finishing shop at one of the company's Ludhiana facilities towards the end of Q3 FY26
  • Swift interim arrangements were implemented using subsidiary operations and limited external partners to ensure uninterrupted customer supplies
  • The incident is fully covered under insurance policy, with claim filed during the quarter
  • Rebuilding efforts are underway with normal operations expected to return on schedule

Geopolitical Impact:

  • Fresh escalation in West Asia in March introduced supply chain uncertainty
  • Teams implemented alternate arrangements rapidly to ensure uninterrupted customer supplies
  • Increasing input prices due to geopolitical situation, partially mitigated by favorable exchange rates

Industry Outlook and Guidance:

  • Management expects Q1 FY27 to be in line with Q4 FY26
  • Second half of FY27 expected to be stronger than first half
  • FY27 growth expected to be in line with FY26's 21% growth
  • Supported by improving industry cycle, execution of recent business wins, and gradual recovery across end markets

Market Segment Analysis:

Construction Equipment Industry:

  • North America: Continued growth expected in FY27, with second half better than first half
  • Supported by investment in data centers, advanced manufacturing, and digital infrastructure spending
  • Europe: Construction equipment market passed cyclical low with early signs of recovery in Q4 FY26
  • Demand for compact equipment has been a bright spot
  • Infrastructure-led spending supported by fiscal stimulus, defense investment, and energy transition projects

Agriculture Segment:

  • Small agriculture in North America on path of recovery with ~5% growth expected in FY27
  • Europe small agriculture showing early signs of stabilization after prolonged softening
  • India tractor industry demand remains stable, dependent on monsoon performance
  • Large agricultural machinery working through down cycle with Q4 FY26 representing cyclical trough
  • North America large tractor volumes tracking down mid-to-high teens YoY
  • Europe sentiment gradually improving

Strategic Business Wins:

  • Trailing 12-month business wins exceeding INR225 crores, growing over 12.5% quarter-on-quarter
  • Wins distributed across segments and geographies
  • Majority of new business from large agriculture and precision machine parts (PMP) segments
  • Revenue split between 3-point linkage (3PL) and PMP business now approximately 50-50

Capital Allocation:

  • Company declared special dividend of INR101 crores during Q3 FY26
  • Total dividend distributed for FY26: INR170 crores
  • Capex strategy remains at 2.5% to 3.5% of revenue
  • Focus on balancing capex rather than additional capex for new business

Q&A Session Highlights

Margin Sustainability:

  • Management stated that 20% EBITDA margin is sustainable over the cycle
  • Q4 margin of 24% driven by operating leverage and higher warehousing sales (highest margin segment)
  • Expect to operate comfortably above 20% level as volumes build through FY27

Currency Impact:

  • Currency depreciation benefits netted off against inflation increases in customer negotiations
  • Inventory valuation gain from currency depreciation was approximately 2% impact on material cost in Q2 and Q4

Capacity and Growth:

  • Company has adequate capacity to support growth with capex in range of 2.5%-3.5% of revenue
  • Capacity fungible between 3PL and PMP business lines to certain extent
  • Not constrained to any peak revenue level

Working Capital:

  • Net working capital improved from 155 days in FY25 to 136 days in FY26
  • Inventory reduced from 146 days in FY25 to 134 days in FY26
  • Receivable and payable days brought almost at par in FY26
  • Management believes current working capital levels are sustainable

Acquisition Strategy:

  • Company evaluated about a dozen targets since IPO across target platforms
  • Clear framework requires acquisitions to add meaningful third platform, be manageable in size, and ROE/ROCE accretive
  • Special dividend paid in Q3 FY26 partly due to decision not to proceed with an acquisition opportunity

Product Segments:

  • Large agriculture segment now represents approximately 20% of revenue
  • PMP business focus continues with growth opportunity from increasing share of customers' total relevant spend
  • Company supplies pins, bushings for articulated joints critical for agricultural and construction equipment

Geographic Revenue Mix (FY26):

  • North America: 53%
  • Europe: 25%
  • Other regions: 14% from other regions, 5% Japan, 1.5% Asia, <1% Rest of World

Management Commentary

Management emphasized that FY26 tested the team beyond usual business cycles, including navigating tariff headwinds, West Asia crisis uncertainty, and fire disruption. The company remains focused on executing strategy with discipline, deepening customer partnerships, and broadening presence across segments and geographies.