Mayur Uniquoters Q4 FY26 earnings call

Mayur Uniquoters reported strong Q4 FY26 results, with standalone revenue reaching INR 260.55 crores, a 22% YoY increase, and PAT growing 73% YoY to INR 60.71 crores. Consolidated figures also showed robust growth, with revenue at INR 273.35 crores (up 9% YoY) and PAT at INR 59.43 crores (up 43% YoY). The company highlighted increased momentum expected to continue over the next 2-3 years, driven by its market leadership in synthetic leather.

Raw material prices, particularly paste PVC and yarn, saw significant increases in March but have since softened, with availability issues resolved. Management noted a short-term impact on margins due to the time required to pass on price increases to customers, but expects this to average out over the long term^⏳. Q4 margins were strong, driven by increased export business, good export prices, and foreign exchange gains, with a long-term target of 25-30%.

The company achieved a standalone export growth of 35.43% in FY26, reaching INR 386 crores, significantly higher than its 15-20% guidance. Auto OEM exports grew nearly 50% to INR 290 crores in FY26. Management is focusing on the automotive sector for future growth and expects export to constitute 40-45% of total revenue value next year. Pricing for automotive exports is fixed on a dollar basis, providing a competitive advantage from currency depreciation.

Mayur Uniquoters plans a CAPEX of approximately INR 300 crores for a global location (e.g., Mexico) and an additional INR 50 crores for a new coating line in an existing domestic facility. The domestic coating line, expected to be operational by the end of calendar year 2026, is projected to add an average of 5 lakh meters monthly capacity and INR 120-150 crores in annual revenue. The company is actively analyzing the global location for its larger CAPEX.

The PU business remains muted, with FY26 revenue at INR 27.08 crores. Despite being approved as a vendor by a large customer after an audit, commercial settlement for pricing has not yet occurred. Management indicated that the business has not matured significantly, and they are actively talking to various brands to develop this segment.

Employee expenses saw a QoQ increase from INR 14 crores to INR 17 crores, primarily due to the provisional impact of new labor codes effective from November 21, 2025, and new hiring. Other expenses declined due to reduced freight costs (attributed to the war situation) and better control over maintenance and consumables, alongside improved operating efficiency, contributing to overall margin improvement.

The company continues its Corporate Social Responsibility efforts, having planted over 45,000 plants and planning more large-scale plantations. It has also adopted many schools, focusing on education for underprivileged children, healthcare initiatives, water for all, sanitation, and distribution of essential items. These initiatives have been recognized by the state government.