Concall AI

United Heat Transfer Limited — Q4 FY26 earnings call

Call held 5 Jun 2026

Company page: United Heat Transfer share price, financials & guidance record

Management summary

UHTL concluded FY26 with a strong order book of INR37 crores and is poised for significant growth in FY27, targeting 30-35% revenue increase. Key drivers include a new strategic partnership with Vertiv for data center cooling solutions, an INR7 crore order from NPCL, and ongoing capacity expansion. While raw material volatility and geopolitical issues remain watch items, management is optimistic about margin improvement and export growth.

Highlights

Current order book is robust at INR37 crores, providing good visibility.
Secured a trial order from Vertiv for critical cooling distribution unit (CDU) components, with a potential annual business of INR10-20 crores.
Successfully registered with Nuclear Power Corporation (NPCL) and secured an INR7 crore order for a pressurizer, opening doors for future defence and nuclear projects.
Ongoing workshop expansion and automation initiatives are expected to enhance efficiency and reduce manufacturing cycle times within 5-6 months.
Management anticipates 30-35% revenue growth and improved EBITDA margins for the current financial year (FY27).

Concerns

Geopolitical issues are a concern that could become a hurdle if not settled soon.
Volatility in raw material prices (metals) has affected margins in the past, requiring efforts to minimize operating costs.
Trial order from Hitachi Global was delayed due to tariff issues, though now scheduled for supply.

What they filed

Q4 FY26: revenue up 28.8%, net profit up 11.8% against the same quarter last year.

₹ Cr · quarterly

Line item	Q4 FY24	Q2 FY25	Q4 FY25	Q2 FY26	Q4 FY26
Revenue	40	28	38	21	51 +29%
Expenses	36	22	34	19	44
EBITDA	4	6	5	3	8 +97%
Margin	10%	23%	13%	12%	15%
Other income	4	1	1	1	0
Interest	2	2	1	1	1
Depreciation	1	1	1	1	1
Profit before tax	5	4	3	1	6 +19%
Tax rate	21%	25%	26%	26%	26%
Net profit	4	3	2	1	4 +12%
EPS	—	2.20	1.18	0.44	2.19

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.

Order book

high confidence

Total value

₹37 Cr

as of 2026-03-31 quantified

Composition

OEM (Auto OEM, Compressor Manufacturers) (client type)
EPC Project Operating Companies (client type)
Pressurizer (Nuclear Power Plant) (product) ₹7 Cr
Export (Direct/Indirect) (geography)

Pipeline

deal pipeline tcv

Potential annual business from Vertiv for data center cooling solutions, and inquiries from coal gasification projects.

The current order book is healthy, and there are significant opportunities in data center cooling and the defence sector, which are expected to drive future growth.

Source: Q&A

Capital allocation

medium confidence

Capex Capex disclosed
- Workshop area extension by 50,000 square feet
- Improvement in machineries and adding automated/semi-automated processes
Again, we are now in the process of extending the workshop area for which we have got approval and the construction has started and we expect that to be completed in next say 5 to 6 months. So, this is mainly because we are getting some opportunities or inquiries from the client where we see that the shop floor area will become a limiting factor. So, that is the reason we decided to expand that area. ... We are already in the process of extension of this workshop and some improvement in some machineries or adding some automated or semi-automated machineries to improve the process.

Guidance & targets

Revenue

Revenue Growth Revenue · FY27 · Medium confidence 30-35%

As you mentioned, you are expecting 30%, 35% revenue growth.

— Vinayak Parab

Profitability

EBITDA Margin (Data Center Cooling) Profitability · Ongoing · Medium confidence higher side compared to existing

But we expect the EBITDA margin to remain a little bit on the higher side compared to the existing.

— Vinayak Parab
Overall EBITDA Margin Profitability · FY27 · Medium confidence little bit improvement

What we expect little bit improvement in this, if the situation comes into control, if it is way out of our control or say become worse than current situation, then it is very difficult for us to maintain the margin.

— Vinayak Parab

Order Inflow

Vertiv Annual Business Order Inflow · Annual · Medium confidence INR10-20 crores

But it may add another INR10 crores, INR20 crores business in annual. But this year it will take time to complete the process.

— Vinayak Parab

Export

Export Growth Export · next 2 to 3 years · Medium confidence good level

So we expect to grow the export in next 2 to 3 years to a good level.

— Vinayak Parab

Overall Performance

Performance vs Last Year Overall Performance · FY27 · Medium confidence better

And we feel that next financial year we will be able to do better than what we did in last financial year.

— Vinayak Parab

Overall Growth

Growth Momentum Overall Growth · next 8-10 months · Medium confidence good, reasonably good growth

So current financial we are looking at a good, reasonably good growth over the period of say next 8-10 months.

— Vinayak Parab

What to watch in Q1 FY27

Workshop Expansion Completion

next 5-6 months

Current Under construction

Target Completed

Why it matters

Completion of the workshop expansion is crucial for increasing capacity and addressing bottlenecks, directly impacting future revenue growth.

Again, we are now in the process of extending the workshop area for which we have got approval and the construction has started and we expect that to be completed in next say 5 to 6 months.

Risks & concerns

Geopolitical issues
medium

Ongoing geopolitical issues could become a hurdle if they do not settle down soon.

Management acknowledged
Raw material price volatility
medium

Volatile metal prices have affected margins, requiring efforts to minimize operating costs to maintain the bottom line.

Management acknowledged
Tariff issues impacting orders
low

Tariff issues previously caused a standstill for an order from Hitachi Global, though it has now been reopened.

Management acknowledged
Competition from Chinese manufacturers
low

Chinese competitors are facing issues, which could be an opportunity for UHTL, but also indicates market shifts.

Management acknowledged

Q&A highlights

7 direct

Vertiv order size and potential opportunity Direct

See the trial order is of a small value. It might be somewhere around INR10 lakhs, INR20 lakhs only. But thing is that this is a trial order. So generally what they do they give us a trial order... But it may add another INR10 crores, INR20 crores business in annual.

Quantifies the initial and potential scale of the new Vertiv business, a significant new customer.

Asked by Rohit Barwani

EBITDA margin outlook amidst raw material volatility Partial

See what I say, right now what we see the material prices are volatile, little bit volatile. So in this scenario, it is very difficult for me to predict the EBITDA margin. But we expect the EBITDA margin to remain a little bit on the higher side compared to the existing. ... What we expect little bit improvement in this, if the situation comes into control...

Addresses concerns about profitability in a volatile environment and provides directional guidance for margins, especially for the new data center segment.

Asked by Rohit Barwani

Criticality and validation of product supplied to Vertiv Direct

See, we are supplying the cooling distribution unit. It is a critical component, but they have already validated at our end, the product which we have manufactured is of good quality. So, some operations which right now they are doing and where they are getting some issues and even existing vendor is not able to, they have some people or they are procuring from somebody else, so they are not meeting the quality standard which we have already. They have certified or validated that we are meeting the standards in the trial production.

Highlights UHTL's competitive advantage in quality and engineering, securing a critical supply for Vertiv where other vendors struggled.

Asked by Deepak Poddar

Development and qualification timeline for Vertiv product Direct

It has taken around say, I may say that it has taken around from initiations to now the product delivery, it has taken around a year's time.

Provides insight into the R&D and qualification cycle for new, complex products, indicating the company's capability and commitment.

Asked by Meet

Capacity utilization and future CapEx needs Direct

Our existing plant, we have capacity to generate a revenue of both the plant put together around INR200 crores, INR250 crores... we are now we are extending the shop floor by another, say, 50,000 square feet. Reason behind this, sometime it happens that the space, shop floor space become a constraint or bottlenecking.

Explains the rationale behind current CapEx plans and the revenue potential of existing and expanded capacity, addressing growth bottlenecks.

Asked by Vivek Chadha

Status of Hitachi Global continuous supply Direct

No, not at the same position. That time, it was a general discussion. Then you are also aware that tariff issues have started. And everything has gone on the standstill. Now, then that order got reopened last, I think, two or three months back. And we have manufactured the product and it is scheduled to supply now.

Clarifies the delay in a previously discussed significant order and confirms its current status, providing transparency on execution challenges.

Asked by Prabal Jain

Opportunity in nuclear power plant sector and specific order details Direct

With NPCL, Nuclear Power Corporation. ... Pressurizer. It is around INR7 crores. ... See, it is see, what happened now, if we supply one order to them in a larger scale in successful way, all doors will open.

Reveals a new, high-value order in a strategic sector (nuclear) and outlines the potential for future business based on current performance.

Asked by Mukesh

Vertiv's global sourcing channel and export vs domestic supply Direct

See, they have the global sourcing channel, through which we approached them and are supplying them. Once we get approved by global channel, we can supply locally. There is no issue in that. ... But as of date, only export is planned.

Explains the mechanism for engaging with global clients like Vertiv and clarifies the initial export-focused strategy, with potential for domestic supply later.

Asked by Rahil Dasani

3 min read 7 chapters

Detailed narrative

Overview of Operations and Product Portfolio

United Heat Transfer Limited (UHTL), incorporated in 1995, has evolved into a prominent heat exchanger manufacturing company. The company fabricates heat exchangers, pressure vessels, skids, and moisture separators, primarily focusing on shell and tube, and air-cooled heat exchangers. UHTL holds significant certifications including U stamp (American Society of Mechanical Engineering), Canadian, Australian DOSH, and CPD for Europe, enabling global product exports. The company emphasizes end-to-end engineering solutions, from design to manufacturing, catering to specific customer requirements.

Strategic Expansion and Operational Efficiency

UHTL's second plant in Talegaon, near Nashik, became operational in 2021, focusing on heavy engineering equipment. The company is currently undertaking a workshop expansion at its Ambad plant, adding approximately 50,000 square feet, expected to be completed within 5-6 months. This expansion aims to alleviate space constraints, particularly for air-cooled heat exchangers, and improve overall efficiency through automation and machinery upgrades. These initiatives are critical to reducing manufacturing cycle times and meeting increasing client demands.

Customer Segmentation and Market Focus

UHTL serves a diverse customer base, segmented into OEM (including auto OEM and compressor manufacturers) and EPC project operating companies. Key regular OEM customers include Kirloskar, Weichei, Milikron, Vetus, Greaves, and ASB. The company's primary market focus areas are data centers, HVAC, oil & gas, refineries, compressors, and heavy engine manufacturers. UHTL also supplies to the defence sector through its OEM partners and is actively pursuing opportunities in the Asia-Pacific and European markets.

Data Center Cooling Opportunity with Vertiv

UHTL has recently onboarded Vertiv, a major global player, as a new customer for cooling distribution unit (CDU) components, including piping, walls, and nozzles. While the initial trial order is small (INR10-20 lakhs), the potential annual business from Vertiv is estimated to be INR10-20 crores. Management highlighted UHTL's ability to meet stringent quality standards for these critical components, where other vendors have faced issues. The company plans to leverage this partnership to expand its presence in the rapidly growing data center cooling market.

Engagement in Defence and Nuclear Sectors

UHTL has a long-standing involvement in the defence sector, supplying heat exchangers for marine applications, submarines, and ships through its OEM partners. The company has also registered with the Nuclear Power Corporation (NPCL) and secured an order for a pressurizer valued at approximately INR7 crores. This order, supplied through an OEM partner, is seen as a significant entry point into the nuclear power sector, with expectations of further opportunities upon successful execution and quality validation.

Export Market and Global Standards Adherence

UHTL maintains a strong commitment to global standards, holding certifications such as U stamp, Canadian, Australian DOSH, and CPD for Europe. The company directly exports to countries like France, Italy, Germany, and the US, and indirectly to other parts of the world. Management aims to significantly grow its export business to a 'good level' within the next 2-3 years, leveraging its quality track record and compliance with international specifications.

Outlook and Growth Expectations

UHTL anticipates a robust performance in the current financial year (FY27), projecting a revenue growth of 30-35%. Management expects an improvement in overall EBITDA margins, particularly in the data center cooling business, provided raw material price volatility normalizes. The company is focused on maintaining momentum from its strong H2 FY26 performance and aims to achieve 'good, reasonably good growth' over the next 8-10 months.

This is an AI-generated summary of a publicly available earnings call transcript.

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