Mayur Uniquoters Ltd — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Mayur Uniquoters delivered strong Q3 FY26 results, driven by robust export growth and improved profitability. Consolidated revenue increased 14% YoY to ₹237.48 crores, with PAT up 66% to ₹50.73 crores. The company is strategically focusing on higher-margin export markets and evaluating significant capex for a new PVC plant to support future expansion. However, challenges persist in the domestic footwear segment due to competition and in the PU division due to underutilization and cheap imports.

Highlights

  • Consolidated revenue grew 14% YoY to ₹237.48 crores, demonstrating robust top-line performance.

  • Consolidated PBT increased 58% YoY to ₹67.16 crores, and PAT rose 66% YoY to ₹50.73 crores, indicating strong profitability expansion.

  • Export business is a key growth driver, with total export revenue at ₹97.18 crores, and management expects this momentum to continue for the next 2-3 years.

  • The company aims to maintain or slightly improve its current margin levels (24-25%) due to a favorable export-heavy product mix.

  • Strategic evaluation of a new PVC plant capex (₹200-300 crores) signals commitment to future capacity expansion and market leadership.

Concerns

  • Domestic business, particularly footwear, faces intense competition and low-price margins, hindering growth in these segments.

  • The PU division's utilization and profitability remain a challenge, with management not providing specific timelines for optimal utilization due to cheap imports from China.

  • Potential for tariffs in key export markets like Mexico (though currently not impacted) and the degrowth in the European automotive industry pose future risks to export growth.

Key financials

  1. Consolidated Revenue ₹237.48 Cr +14%YoY
  2. Consolidated PBT ₹67.16 Cr +58%YoY
  3. Consolidated PAT ₹50.73 Cr +66%YoY
  4. Standalone Revenue ₹236.99 Cr +22%YoY
  5. Standalone PBT ₹70.08 Cr +71%YoY
  6. Standalone PAT ₹52.93 Cr +77%YoY
  7. Total Volume 76.3 lakh meters
  8. PU Volume 2.56 lakh meters
  9. PU Value ₹6.17 Cr

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 ₹139.81 Cr 37.1%
Export ₹97.18 Cr 25.8%
Domestic Auto OEM ₹52.01 Cr 13.8%
Domestic Footwear ₹39.93 Cr 10.6%
Domestic Replacement ₹38.84 Cr 10.3%
Domestic Furnishing ₹6.47 Cr 1.7%
Domestic Others ₹2.56 Cr 0.7%

Capital allocation

high confidence
  • Capex Capex disclosed
    • New PVC plant in South India ₹200 Cr
    • New PVC plant on global scale ₹300 Cr
    • Initial capacity of 500,000 millimetres per month, scaling to 1 million millimetres per month
    So if we are evaluating which one we have to go for first. But if we do in South, it's approximately INR200 crores. If we do on a global scale, it will be INR300 crores over there. ... So once the decision is taken, it takes approximately 2 years for the plant to start. And we will start with 500,000 millimetres per month initially. But obviously, the capacity will be to make 1 million millimetres per month.

Guidance & targets

Revenue

  • Revenue Growth (Value) Revenue · coming year / next 2 years · High confidence 15%
    So we have said that we are targeting a 2-digit growth in the coming years. This year also and the coming years. So we have kept potential outlook for 15% growth in the coming year also. So the percentage is similar if we calculate. ... I am not talking about the volume, I am talking about the value. ... Okay, value 15% for next 2 years and margin more or less similar level. On an average, yes.

    — Vinod Kumar Sharma

Margin

  • Margin Level Margin · foreseeable future · High confidence maintain current level / slightly better
    So, obviously, we should be able to maintain this level of margin. ... it will remain in the similar levels where we are right now, and it can go slightly better also.

    — Vinod Kumar Sharma

Export Revenue

  • Export Revenue Growth Export Revenue · future · High confidence improve / not go down
    our growth in the export market will be more than our domestic growth. Obviously, it is not going down. So whatever figures we have done in the past will improve in the future, not go down.

    — Vinod Kumar Sharma

Domestic Revenue

  • Domestic Revenue Growth Domestic Revenue · High confidence 8% to 10%
    target for Domestic growth is between 8% to 10%.

    — Vinod Kumar Sharma

What to watch in Q4 FY26

Decision on new PVC plant location (South India vs. Global)

Next quarter
Current Evaluating options (INR 200 crores for South, INR 300 crores for Global)
Target Final decision announced

Why it matters

Determines future capacity expansion, market focus, and capital expenditure, crucial for long-term growth.

So we are in the process of evaluation. Once we have a final decision that is made, we will let you know.

Risks & concerns

  • Potential tariffs in export markets (Mexico, South Africa)

    medium

    Mexico government imposed tariffs, but management states no current impact. Management is unaware of South Africa tariffs.

    Analyst downplayed

  • Deglobalization trends and need for overseas plant

    medium

    The world is moving towards deglobalization, prompting the company to evaluate setting up a plant outside India as a counter-measure.

    Management acknowledged

  • Intense competition and low margins in domestic footwear business

    medium

    The footwear business is not growing due to local competition and low-price margins.

    Management acknowledged

  • Cheap imports from China affecting PU division and overall outlook

    medium

    A lot of cheap imports are coming from China, impacting the outlook for PU division utilization and profitability.

    Management acknowledged

  • Degrowth in European automotive industry

    low

    The European automotive industry is not growing, rather showing degrowth, which might affect OEM business there.

    Management acknowledged

Q&A highlights

6 direct
Capex plans for new PVC plant (South vs Global) Direct
So if we are evaluating which one we have to go for first. But if we do in South, it's approximately INR200 crores. If we do on a global scale, it will be INR300 crores over there.

Clarifies potential investment amounts and locations for future capacity expansion, indicating strategic growth initiatives.

Asked by Viraj

Impact of Mexico tariffs on export business Direct
We are not I can just tell you in brief right now, we are not impacted right now. How we can explain later on, that will be lengthy process, but we are not impacted right now.

Addresses a potential risk to export business, indicating no immediate impact but acknowledging the complexity of the situation.

Asked by Viraj

Sustainability of 24-25% margins with higher export mix Direct
our concentration towards our export business is much more and our growth in the export market will be higher than the growth in the domestic market. So, obviously, we should be able to maintain this level of margin.

Provides confidence in the margin outlook, driven by the strategic shift towards higher-margin export business.

Asked by Awanish Chandra

Outlook for PU division utilization and profitability Partial
So, we are not looking at a big margin at the moment. We want to process... first time. ... until and unless we have something confirmed in hand, I don't want to comment anything.

Highlights ongoing challenges and uncertainty in the PU division, with no clear path or timeline for optimal utilization or profitability.

Asked by Gunit Singh

Domestic business growth challenges, especially in Auto Replacement, Footwear, Furnishing Direct
your data is somewhere wrong. We did not say our Domestic business is not growing. We said our focus is more towards the Export business. ... target for Domestic growth is between 8% to 10%. ... Footwear business is not growing because of local competition, because of price -- low price margin.

Clarifies management's strategy for the domestic market (focus on bottom line) and acknowledges specific challenges in certain segments.

Asked by Vedic

Raw material import vs. domestic sourcing mix Partial
Normally, imports are nearly 1/3 of our total raw material cost. ... I think it should be around 60%, 65%, but we will check and get back to you.

Indicates a significant portion of raw materials are imported and management needs to confirm the exact mix, which can impact cost and forex exposure.

Asked by Vedic

Breakdown of other income, particularly foreign exchange gain Direct
This quarter, other income has the major part of foreign exchange gain around 50% and remaining is our treasury income.

Explains a significant component of other income, clarifying its nature (partially non-operational forex gain).

Asked by Vedic

Impact of EU-India Free Trade Agreement on European market presence Direct
impact of zero duty, it will take almost like 10 to 12 months for the papers to be signed by EU and all the European nations, okay? So it will definitely help us improve our non-automotive business very strongly for sure.

Outlines a significant future opportunity for the non-automotive business in Europe due to trade agreements, though with a lead time for implementation.

Asked by Jaymin

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Mayur Uniquoters delivered strong financial results for Q3 FY26. Consolidated revenue from operations grew 14% year-on-year to ₹237.48 crores. Consolidated PBT increased by 58% to ₹67.16 crores, and consolidated PAT rose by 66% to ₹50.73 crores. Standalone figures also showed robust growth, with revenue at ₹236.99 crores (up 22% YoY), PBT at ₹70.08 crores (up 71% YoY), and PAT at ₹52.93 crores (up 77% YoY). This performance reflects the company's ability to leverage emerging opportunities in both domestic and international markets.

Export-Led Growth Strategy and Outlook

The company's strategic focus on higher-margin export markets is a key driver of its growth. Total export revenue for Q3 FY26 stood at ₹97.18 crores, significantly contributing to the overall top and bottom line. Management anticipates this strong export momentum to continue for the next 2-3 years, targeting an average 15% growth in value for the coming years. This strategy is also expected to help maintain or slightly improve the current margin levels of 24-25%.

Domestic Market Dynamics and Challenges

While the domestic business is targeted to grow between 8% to 10%, it faces intense competition, particularly in the footwear segment. The footwear business is currently not growing due to local competition and low-price margins. The company emphasizes a focus on bottom-line growth over top-line in the domestic market. For Q3 FY26, total domestic revenue was ₹139.81 crores, with Auto OEM domestic contributing ₹52.01 crores.

Strategic Capex for Future Capacity Expansion

Mayur Uniquoters is actively evaluating significant capital expenditure for a new PVC plant. Options include a plant in South India, estimated at approximately ₹200 crores, or a larger facility on a global scale, costing around ₹300 crores. The new plant is planned to have an initial capacity of 500,000 millimetres per month, eventually scaling up to 1 million millimetres per month. The commissioning of this plant is expected to take about two years after a final decision is made, serving as a strategic response to global deglobalization trends.

Margin Stability and Raw Material Pricing

The company expects to maintain its current margin levels, which are around 24-25%, or even see a slight improvement. This stability is primarily attributed to a favorable product mix with a higher contribution from the export business and efficient raw material management. While the dollar's appreciation from 85 to 92 has a minor positive impact, management noted that PVC and plasticizer prices have started to increase, suggesting that raw material costs are unlikely to soften further and may even rise.

EU-India Free Trade Agreement Opportunity

The upcoming EU-India Free Trade Agreement is poised to create a significant opportunity for Mayur Uniquoters, particularly for its non-automotive business in Europe. The implementation of zero-duty benefits, expected within 10-12 months after the agreement is signed, will enhance the company's price competitiveness. Mayur Uniquoters already has a subsidiary in Europe and supplies to major OEMs like Mercedes-Benz and BMW, currently from South Africa, positioning it well to capitalize on this development.

Corporate Social Responsibility Initiatives

Beyond its business interests, Mayur Uniquoters is committed to corporate social responsibility. Under its CSR programs, the company has contributed to extensive tree plantation drives, having planted over 45,000 trees with plans for more large-scale initiatives. Additionally, it supports education for underprivileged children, healthcare, and provides essential amenities like water, sanitation, books, and clothes in local villages, with these efforts recognized by the state government.

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