Uniparts India Ltd.

Financial Performance Highlights

Quarter Ended September 30, 2026 (Q2 FY27):

  • Revenue from operations: INR379 crore, representing 37% year-over-year growth and 9% sequential growth
  • EBITDA: INR89 crore, showing 38% year-over-year growth
  • EBITDA margin: 23.4%
  • Profit After Tax (PAT): INR54 crore, representing 37% year-over-year growth
  • Operating cash flow generated: INR34 crore
  • Trailing 12-month EPS: INR43.30
  • Net working capital: 137 days of trailing 12-month revenue
  • Net cash position: INR172 crore (after dividend payment of INR41 crore in Q2)
  • Capital expenditure: INR10 crore

Half Year Ended September 30, 2026 (H1 FY27):

  • Revenue from operations: INR726 crore, representing 32% growth over H1 FY26
  • EBITDA: INR178 crore, representing 67% of FY26 full-year EBITDA
  • PAT: INR111 crore, representing approximately 70% of FY26 full-year PAT

Segment Performance Analysis

Construction Equipment Segment:

  • Grew 49% year-on-year
  • North American demand driven by data centers, power generation, and AI-related infrastructure
  • European market steadier with activity driven by infrastructure and green energy projects
  • Nonresidential construction growing faster than residential construction in Europe

Large Agriculture Segment:

  • Industry volumes down approximately 17% year-on-year
  • Company revenue grew 10% year-on-year despite industry decline
  • Growth driven entirely from new business wins rather than market cycle
  • New business awards concentrated in this segment

Small Agriculture Segment:

  • Grew 25% year-on-year
  • After 3 years of continuous decline, cycle has started to turn
  • Regional outlook mixed: U.S. and Canada expected flat or up 5%; Europe expected flat; South America down 15-20%; India growth estimated 4-6%

Aftermarket Segment:

  • Improved to 16.5% of revenue (vs. 12.4% in Q1 FY27 and 14.7% in Q2 FY26)
  • Grew over 50% year-on-year in absolute terms

Business Development and New Orders

  • New business wins exceeded INR225 crore
  • Wins concentrated largely in construction and large agriculture segments
  • Approximately 12-15% of new business wins in fabrication segment
  • Awards secured over previous quarters are ramping up as planned
  • 70% of new business awards in construction or large agriculture space
  • 35% of new business awards specifically in large agriculture segment

Operational Updates

Ludhiana Facility:

  • Restoration of finishing shop on track to be operational by end of calendar year 2026

Mexico Operations:

  • First customer dispatch took place in November 2026
  • Expected to generate single-digit million dollar revenue in H2 FY27
  • Working with 3 customers, starting with one customer initially

Fabrication Business:

  • Currently less than 2% of total revenue
  • 12-15% of new business wins in this segment
  • Expected to become meaningful contributor (high single digits to 10% of revenue) within 18-24 months
  • Facility established in Ludhiana 2-3 years ago for small and medium-sized fabrication

Capital Allocation and Future Plans

Capital Expenditure:

  • Planning capex of approximately INR60 crore over next year
  • Most projects approved with advances already paid
  • Focused on capability enhancement, productivity improvements, and customer-led growth initiatives
  • Capex typically around 4% of revenue

Acquisition Strategy:

  • Evaluating approximately half a dozen acquisition opportunities
  • Focus areas: hydraulics vertical, power takeoff vertical, and large fabrication vertical
  • Open to global acquisitions for hydraulics and PTO technology
  • Large fabrication acquisitions likely India-focused
  • Priority use of cash would be towards acquisitions

Dividend:

  • Paid dividend of INR41 crore in Q2 FY27

Guidance and Outlook

FY27 Guidance:

  • Expect FY27 revenue to be 24% higher than FY26
  • Q3 FY27 expected to be seasonally lowest quarter, broadly in line with Q1 FY27
  • Second half growth percentage expected to be lower than first half due to higher base in H2 FY26
  • Over cycles, company targets delivering mid-teens growth year-on-year

Margin Outlook:

  • Company targets 20% EBITDA margin through the cycle
  • Comfortably exceeded target with 23.4% margin in Q2 FY27
  • Structurally positioned to maintain 20%+ margins

Working Capital Management

  • Working capital days at 137 days as of September 30, 2026 (vs. 136 days at March end)
  • Expected to remain around 136-140 days due to business model
  • Inventory management includes 2 months inventory on sea and 2 months in warehouse
  • Some payment delays from 2 OEM partners in U.S. market - one resolved, other expected to be resolved by November

Raw Material and Cost Structure

  • Material cost typically ranges between 34-37% of revenue
  • Q2 material cost at 34.3%
  • Contracts include pass-through of raw material increases to customers with quarter lag
  • Freight cost increase contributed to higher other expenses, expected to be passed to customers with quarter lag

Market Context

  • Construction equipment manufacturer reported 18% year-on-year increase in construction equipment sales with record order backlog
  • Agriculture industry volumes for tractors above 100 horsepower down roughly 17%
  • Small agriculture segment showing signs of recovery after 3 years of decline