Mayur Uniquoters Ltd — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Mayur Uniquoters delivered strong standalone performance in Q2 FY26 with 15% QoQ revenue growth and 17% QoQ PAT growth. Consolidated results, however, showed slower growth due to inventory in transit and provisions for old stock. The company is operating at 75-77% capacity, with export business showing robust growth, and plans for new capacity in South India are under discussion, while the Mexico plant decision is deferred.

Highlights

  • Standalone revenue from operations increased by 15% QoQ to INR 237.76 crores.

  • Standalone PBT and PAT both increased by 17% QoQ to INR 64.63 crores and INR 48.10 crores respectively.

  • Consolidated revenue from operations increased by 8% QoQ to INR 240.31 crores.

  • Gross margin increased 2% QoQ and 2% YoY on a consolidated basis.

  • PU business volume increased 12.5% QoQ and value by 48% QoQ, reaching INR 7.80 crores.

Concerns

  • Consolidated PBT increased by only 1% QoQ to INR 55.61 crores, significantly lower than standalone growth.

  • The difference between standalone and consolidated PAT/PBT is due to inventory in transit/warehouse, impacting consolidated results.

  • Consolidated gross margins were impacted by provisions for old inventories.

  • The PU business incurred a loss of INR 5.8 crores due to depreciation, and new deals are yet to materialize.

  • The Mexico plant capex decision is on hold until March 2026 due to strategic reasons and market uncertainty.

Key financials

  1. Standalone Revenue ₹237.76 Cr +15%QoQ
  2. Standalone PAT ₹48.1 Cr +17%QoQ
  3. Consolidated Revenue ₹240.31 Cr +8%QoQ
  4. Consolidated PAT ₹40.84 Cr +1%QoQ
  5. Capacity Utilization 75%
  6. PU Business Revenue ₹7.8 Cr +48%QoQ

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
Others (Domestic) ₹138 Cr 29.1%
Total Exports ₹100 Cr 21.1%
Export OEM ₹71 Cr 15.0%
Auto OEM Domestic ₹49 Cr 10.3%
Footwear ₹43 Cr 9.1%
Replacement ₹36 Cr 7.6%
Export General ₹29 Cr 6.1%
Furnishing ₹8 Cr 1.7%

Capital allocation

high confidence
  • Liquidity Cash ₹450 Cr Net cash balance on the balance sheet, earmarked for capex, new capex or any new projects.
    Okay. Last question. On the cash, what are our plans for the surplus cash? Because I think we have about INR450 crores in net cash balance on the balance sheet. So, what do we have plans for the use of this? That will be -- we are keeping for the capex, new capex or any new projects.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY26 · High confidence 12% to 15%
    Yes. We are sticking to our earlier guidance, I think. So more or less, things will be around that figure only.

    — Vinod Sharma

  • Domestic Business Growth Revenue · Medium confidence 8% to 10%
    So overall business plan, the domestic business should grow between 8% to 10%.

    — Arun Bagaria

  • Export Business Growth Revenue · Medium confidence 15% or somewhere more than that
    The export business will grow 15% or somewhere more than that.

    — Arun Bagaria

  • Total Exports Revenue · Current Year · Medium confidence INR 350 crores to INR 400 crores
    It will be around INR350 crores to INR400 crores. Up to July INR100 crores. April to September...

    — Vinod Kumar Sharma

Profitability

  • Profit Growth Profitability · FY26 · High confidence 15% to 20%
    Yes. We are sticking to our earlier guidance, I think. So more or less, things will be around that figure only.

    — Vinod Sharma

Capacity

  • South India Plant Capacity Addition Capacity · Medium confidence INR 4 lakhs to INR 5 lakhs per month or INR 5 million to INR 6 million a year
    capacity will be adding around INR4 lakhs to INR5 lakhs per month or INR5 million to INR6 million a year.

    — Vinod Kumar Sharma

What to watch in Q3 FY26

Consolidated EBITDA Growth for Full Year

Next quarter (Q3 FY26) and H2 FY26
Current Flat in H1 FY26
Target Significant increase in H2 to achieve 20% profit growth for FY26

Why it matters

To verify if the company can achieve its 20% profit growth target for FY26, given flat H1 consolidated EBITDA, implying a strong H2 performance.

So definitely, we are expecting a good increase in EBITDA for the year.

Risks & concerns

  • Impact of inventory provisions on consolidated gross margins

    medium

    Provisions for old inventories are impacting the reflection of gross margin improvement on a consolidated basis.

    Both acknowledged

  • Delay in materialization of PU business deals

    medium

    Despite talking to many customers, deals for the PU business are still waiting to get materialized.

    Management acknowledged

  • Uncertainty and postponement of Mexico plant capex

    medium

    The decision on the Mexico plant capex, which is a huge number, has been put on hold until next March due to strategic reasons and market situation, including a 'US problem'.

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
Difference between Standalone and Consolidated PAT Direct
In current scenario, where the demand is increasing for the automotive supplies in U.S., especially in U.S. where they provide us the three months or four months the requirement in advance, so we dispatch the material from India to U.S. And that's why in the quarter, we have dispatched the material, which resulted into increase in our bottom line and top line, both in standalone. But the material is some of the material is still in transit and some have already reached to the destination, which is still in warehouse. So till the material is in warehouse, the actual realization will not reflect in consolidated results, where that material will be ultimately sold from the warehouse, then it will reflect in our consolidated results.

Explains the significant discrepancy in profitability metrics between standalone and consolidated results, attributing it to inventory accounting for US exports.

Asked by Awanish Chandra

Consolidated Gross Margin Contraction YoY Partial
Consolidated basis also increased 2% on Y-o-Y basis. 2% because we are keeping some provisions for old inventories also. Therefore, it is not getting full reflection. But yes, it is increasing, gross margin is also increasing on a consolidated basis. But because of that provisions for old inventories, this impact is coming.

Addresses the analyst's concern about gross margin contraction despite PVC price correction, linking it to provisions for old inventory, which impacts the reported consolidated margin.

Asked by Vaidik

Impact of Tariffs on Exports Direct
Tariff burden? So far, we have not impacted with tariff because we are supplying through Mexico, our warehouse. And the customers who are taking material from us all are located in Mexico-U.S. border. They are taking the material in Mexico and making the seat covers and supplying to their customers in U.S. So, this tariff is not impacting us so far.

Clarifies that the company's export model through Mexico mitigates direct tariff impacts, providing insight into their supply chain strategy.

Asked by Dhaval Shah

PU Business Performance and Strategy Partial
Our volume from PU plant is, for the quarter, 314,000 and value is INR7.8 crores, which has increased by 21% in quantity and 32% in value over the last quarter. Last quarter, it was INR5.8 crores loss -- actual, there is no cash loss, but the loss is because of depreciation. See, we are talking to many customers, but we're still waiting for the deal to get materialized.

Provides specific numbers for PU business growth and loss, and indicates that while customer engagement is ongoing, significant deals are yet to be finalized, suggesting a slower ramp-up than desired.

Asked by Manoj Dua

Achievability of 20% Full-Year Profit Growth with Flat H1 Consolidated EBITDA Direct
I'll tell you. If you see, our standalone EBITDA has definitely shown the increase. But there is a flat EBITDA is in consol results. And I already told you that this is because of inventory lying in warehouse. And second, the provisions which we have considered for the old inventory in U.S. warehouse. So, that will not come in second part of this year. So definitely, we are expecting a good increase in EBITDA for the year.

Management explains how the full-year profit target remains achievable despite H1 consolidated EBITDA being flat, by clarifying the temporary impact of inventory and provisions, implying a stronger H2.

Asked by Keshav Garg

Plans for South India Capacity Expansion Partial
We have not taken a definitive plan, but we can say very soon. I cannot give you a number that we will start from tomorrow. We are discussing about it. We will take a decision soon. We have not decided on the time exactly right now. ... it will be one line basis and capacity will be adding around INR4 lakhs to INR5 lakhs per month or INR5 million to INR6 million a year.

While confirming the intent and potential capacity of a South India plant, management indicates that the exact timeline for groundbreaking and commercialization is still undecided, highlighting ongoing planning.

Asked by Nikhil

Use of INR 450 Crores Net Cash Balance Direct
That will be -- we are keeping for the capex, new capex or any new projects. ... Actually, Mexico's capex number, that is a huge number. And as we have told you, we were almost in the process of finalizing that capex. But seeing our situation, we kept the decision on hold. We will see, until next March. On that basis, we will take a final call whether we actually want to go over there or we want to keep that decision pending only. And then we will take a call on what we want to do with the excess surplus of...

Management confirms the significant cash balance is reserved for capex, but the specific allocation, particularly for the large Mexico project, is on hold, indicating strategic caution and pending decisions.

Asked by Viraj Kacharia

Succession Planning in the Company Evasive
The day it happens, we will announce it. We are also as worried as you are.

Management provides a non-committal response to a critical governance question, indicating that succession planning is a sensitive topic they are not ready to discuss publicly.

Asked by Anil Jain

2 min read 5 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

Mayur Uniquoters reported a strong standalone performance for Q2 FY26, with revenue from operations reaching INR 237.76 crores, marking a 15% quarter-on-quarter increase. Standalone PBT and PAT also saw significant growth of 17% QoQ, amounting to INR 64.63 crores and INR 48.10 crores respectively. On a consolidated basis, revenue grew 8% QoQ to INR 240.31 crores, however, consolidated PBT increased by only 1% QoQ to INR 55.61 crores, and PAT to INR 40.84 crores.

Standalone vs. Consolidated Profitability Discrepancy

A notable difference in profitability metrics between standalone and consolidated results was observed. Management clarified that this discrepancy primarily stems from inventory accounting for US exports; material dispatched from India is recognized in standalone results but remains in transit or warehouse, not reflecting in consolidated results until actual sale from the overseas warehouse. This inventory effect, coupled with provisions for old inventories, also impacted consolidated gross margins, which, despite increasing 2% YoY, did not fully reflect underlying improvements.

Export Market Focus and Growth

The company's total exports for Q2 FY26 stood at INR 100 crores, with export OEM contributing INR 71 crores and general exports INR 29 crores. Management emphasized its endeavor to become a preferred supplier for leading OEMs in overseas markets, particularly the US and European regions. This focus has resulted in good export orders and increased momentum, which is expected to continue for the next 2-3 years, with export business projected to grow faster (15%+) than domestic business (8-10%).

PU Business Update and Challenges

The PU business experienced a volume increase of approximately 12.5% QoQ and a value increase of 48% QoQ, reaching INR 7.8 crores in total volume. However, the PU plant incurred a loss of INR 5.8 crores, which management attributed to depreciation rather than a cash loss. The current utilization of the PU plant is low, between 23% to 25%. While the company is actively engaging with many customers, new deals are yet to materialize, posing a challenge for ramping up production.

Capacity Expansion and Capital Allocation Strategy

Mayur Uniquoters is currently operating at 75-77% capacity utilization and acknowledges the need for additional capacity. Plans for a new plant in South India are under discussion, with an estimated capacity addition of 4-5 lakh units per month or 5-6 million units per year, though the exact timeline for groundbreaking and commercialization is not yet decided. The previously considered Mexico plant capex, a 'huge number,' has been put on hold until March 2026 due to strategic reasons and market uncertainties, including a 'US problem.' The company holds a net cash balance of INR 450 crores, earmarked for future capex and new projects.

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