Mayur Uniquoters Ltd — Q1 FY26 earnings call

Call held 7 Aug 2025

Management summary

Mayur Uniquoters reported a stable Q1 FY26 with consolidated revenue growing 1% QoQ to ₹215.88 crores and PBT up 7%. Standalone revenue saw stronger growth at 6% QoQ. The company secured new export orders, particularly from US and OEM suppliers, driving positive momentum. However, plans for the Mexico CAPEX have been postponed, and management expressed concern over a potential 50% US tariff, while noting the domestic market was subdued in Q1.

Highlights

  • Consolidated revenue from operations reached ₹215.88 crores, up 1% QoQ.

  • Consolidated PBT increased by 7% QoQ to ₹54.97 crores and PAT by 2% QoQ to ₹40.73 crores.

  • Standalone revenue grew 6% QoQ to ₹206.41 crores, with PBT up 21% and PAT up 19%.

  • Received good export orders from US and OEM suppliers, with increased momentum expected to continue for 2-3 years.

  • Expanded retail distribution network to approximately 1000 dealers and adding more product lines.

Concerns

  • Mexico CAPEX plans have been postponed due to recent 'confusions' and external factors.

  • A potential 50% tariff on US exports is considered a 'worry' by management, though 25% tariff has no impact.

  • Domestic market was 'a bit subdued' in Q1, though expected to improve in subsequent quarters.

Key financials

  1. Consolidated Revenue ₹215.88 Cr +1%QoQ
  2. Consolidated PBT ₹54.97 Cr +7%QoQ
  3. Consolidated PAT ₹40.73 Cr +2%QoQ
  4. Standalone Revenue ₹206.41 Cr +6%QoQ
  5. Standalone PBT ₹55.32 Cr +21%QoQ
  6. Standalone PAT ₹41.23 Cr +19%QoQ
  7. Total Volume Q1 FY26 72.44 lakh meters
  8. Total Volume Q4 FY25 77 lakh meters

What they filed

Q1 FY27: revenue up 19.9%, net profit up 43.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue216 195 214 206 238 +10%237 +22%261 +22%247 +20%
EBITDA48 46 45 43 59 +23%58 +26%87 +93%63 +47%
Net profit41 30 35 41 48 +17%53 +77%61 +74%59 +44%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
Domestic ₹126.36 Cr 30.8%
Total Exports ₹80.05 Cr 19.5%
Export OEM ₹53.1 Cr 12.9%
Footwear (Domestic) ₹44.42 Cr 10.8%
Auto OEM (Domestic) ₹43.08 Cr 10.5%
Replacement (Domestic) ₹31.32 Cr 7.6%
Export General ₹24.95 Cr 6.1%
Furnishings (Domestic) ₹5.6 Cr 1.4%
Others (Domestic) ₹1.92 Cr 0.5%

Guidance & targets

Revenue

  • Topline Growth Revenue · FY26 · High confidence 10%-15%
    We have already discussed and told you in our last conference call that we will be expecting 10%-15% increase in our topline and 15%-20% increase in bottomline.

    — Vinod Kumar Sharma

Profitability

  • Bottomline Growth Profitability · FY26 · High confidence 15%-20%
    We have already discussed and told you in our last conference call that we will be expecting 10%-15% increase in our topline and 15%-20% increase in bottomline.

    — Vinod Kumar Sharma

Export Business

  • Increased Momentum Export Business · next 2-3 years · Medium confidence Continue
    this increased momentum is expected to continue in next 2-3 years.

    — Vinod Kumar Sharma

What to watch in Q2 FY26

Mexico CAPEX Resumption

next quarter
Current Postponed due to 'confusions'
Target Update on resumption or alternative location

Why it matters

The Mexico plant is a key strategic expansion for OEM exports to the US, and its delay impacts long-term growth plans.

But it is intact. As soon as these confusions are completed, we will start it. Everything was done. It was just to push the button, but suddenly, these things have happened, which has created big confusion in the mind.

Risks & concerns

  • Potential 50% US Tariffs

    high

    While 25% tariffs have no impact, a potential 50% tariff on US exports is a 'worry' for the company.

    But definitely, 50% tariff is a worry. We don't know whether it will stay or whether it is just a negotiation skill, time will only tell.

    Management acknowledged

  • Postponement of Mexico CAPEX

    medium

    Mexico CAPEX plans are postponed due to 'confusions' and external factors, delaying strategic international expansion.

    And we were about to go about it, but suddenly, one month back, this kind of thing has happened. So, we have postponed for the time being.

    Management acknowledged

  • Increasing Competition in Leather Cloth Manufacturing

    medium

    Number of leather cloth manufacturers increasing annually, leading to price competition.

    See, leather cloth manufacturers are increasing by 10-15 companies every year. And they go for competition. What is the competition? Decreasing the price.

    Management acknowledged

  • Subdued Domestic Market in Q1

    low

    Domestic market was 'a bit subdued' in Q1, but expected to improve with festive season.

    Domestic market, 1st quarter was a bit subdued, but not very bad for Mayur. Obviously, growth was not there. Obviously, July, August, September is always a good quarter for everyone because India is a very festive oriented market.

    Management downplayed

Q&A highlights

6 direct
Mexico CAPEX Status Direct
You see, Mexico's status was clear, we decided, we have found out the land and we made all the planning. And we were about to go about it, but suddenly, one month back, this kind of thing has happened. So, we have postponed for the time being.

Reveals a strategic CAPEX plan for international expansion has been put on hold due to external 'confusions', impacting future growth drivers.

Asked by Arnav

FY26 Revenue and Profit Guidance Direct
Yes, we are trying our all efforts to achieve the discussed results in terms of topline and bottomline.

Confirms the company's commitment to previously stated FY26 guidance of 12-15% revenue growth and 15-20% profit growth, providing clarity on management's expectations.

Asked by Arnav

Impact of Tariffs on Exports Direct
Till 25% tariff is there, we see no major reason for us to worry in terms of our sale to that market is concerned. In fact, no worry at all. Mr. Poddar has asked me to add there is no worry till 25% tariff is there. We will be competitive because there will be tariff to other countries also 25% or 20% or 30% whatever it is. 50% was announced yesterday only and it is applicable only for shipment from 27th August. So, that we will understand, analyze and then we can give you a proper answer for 20%-50% tariff. But definitely, 50% tariff is a worry.

Highlights management's assessment of tariff impacts, indicating resilience up to 25% but significant concern for a 50% tariff, which could affect future export strategy.

Asked by Kautuk Yemdey

Disclosure of Sales Volume Partial
We don't share the volume. We only share the values. We cannot share the volume in an open forum. ... No, we can give you the total volume numbers. ... You can note down. Total volume is 72.44 lakhs meters during the quarter.

Management initially resisted providing volume data, which is a key metric for understanding demand and pricing power, but eventually disclosed it after persistence.

Asked by Saiganesh

OEM Order Growth Strategy Direct
My idea is to increase the sales of automotive companies. How that will happen? Number one, by supplying to their more and more models. Number two, find out the new companies.

Outlines the strategy for expanding OEM business, focusing on increasing product offerings to existing clients and onboarding new automotive companies, crucial for long-term growth.

Asked by Saiganesh

Drivers of Margin Improvement Direct
the margin, change in margin or increase in margin we are expecting, and it is based on the mix of our sales mix and other impacts, say our raw material and operating efficiency, productivity, etc. So, product mix also is getting changed. So, that is why we are expecting increase in our bottomline because of increase in exports and efficiency improvement.

Clarifies the factors contributing to expected margin expansion, including product mix changes, raw material management, operating efficiency, and increased exports.

Asked by Janish Shah

Opportunity from Global Supply Chain Rejig Direct
Other countries are also getting the impact. So, there is going to be an imbalance in terms of the cost structure. And also a lot of automobile companies will be re-looking at their supply chains, be it in Europe or be it in the US as well.

Management acknowledges the potential for Mayur Uniquoters to benefit from global supply chain realignments, positioning the company as a potential beneficiary of geopolitical shifts.

Asked by Janish Shah

2 min read 5 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Mayur Uniquoters reported a consolidated revenue from operations of ₹215.88 crores for Q1 FY26, marking a 1% quarter-on-quarter increase. Consolidated PBT grew by 7% to ₹54.97 crores, and PAT increased by 2% to ₹40.73 crores. On a standalone basis, revenue from operations stood at ₹206.41 crores, reflecting a 6% QoQ growth, with standalone PBT and PAT increasing by 21% and 19% respectively. The company aims to achieve 10-15% topline growth and 15-20% bottomline growth for the full FY26.

Export Strategy and OEM Focus

Total exports contributed 40% of the standalone revenue, amounting to ₹80.05 crores, comprising ₹24.95 crores from general exports and ₹53.10 crores from OEM exports. The company has received significant export orders from US and OEM suppliers, with this momentum expected to continue for the next 2-3 years. Management's strategy for OEM growth involves supplying more models to existing automotive companies and onboarding new clients. Currently, Mayur supplies 30,000-35,000 meters of artificial leather to each of BMW and Mercedes in South Africa.

Domestic Market Dynamics and Product Diversification

The domestic market accounted for 60% of standalone revenue, totaling ₹126.36 crores, with contributions from Auto OEM (₹43.08 crores), Replacement (₹31.32 crores), Footwear (₹44.42 crores), Furnishings (₹5.6 crores), and others (₹1.92 crores). While the domestic market was 'a bit subdued' in Q1, improvement is anticipated in the festive-oriented Q2. The company is actively diversifying into footwear, leather goods, and garments, targeting multinational brands that prioritize quality and offer better pricing, with the footwear segment expected to see significant growth in 1-1.5 years.

Mexico CAPEX and Tariff Impact

Plans for the Mexico CAPEX have been postponed due to recent 'confusions' and external factors, despite land acquisition and planning being complete. Management confirmed that the project remains intact and will proceed once the situation stabilizes. Regarding US tariffs, the company is unaffected by tariffs up to 25% due to its Tier-1 supplier status and material being exported to Mexico for automotive interiors. However, a potential 50% tariff, announced for shipments from August 27, 2025, is a 'worry' and its impact is being assessed.

Retail Distribution and CSR Initiatives

The company's retail distribution network is improving, with the number of dealers increasing to approximately 1000. Mayur Uniquoters is also adding more product lines to this segment. Beyond business, the company continues its Corporate Social Responsibility (CSR) efforts, focusing on regular plantations, adopting 'happy schools' for children's education, healthcare initiatives, and community welfare programs, which have been recognized by the state government.

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