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    Unimech Aerospace and Manufacturing Q1 FY27 earnings call

    UNIMECH
    Capital Goods·8 Aug 2026
    Management Summary

    Unimech Aerospace reported a strong Q1 FY27, with revenue growing 71% YoY to INR 108 crores and a robust EBITDA margin of 36.5%. The quarter was marked by the integration of Hobel Bellows and a significant long-term supply agreement with FACC Austria. While the order book remains healthy, the company anticipates an increase in working capital days due to its evolving business mix and long-cycle projects.

    Highlights

    5

    • Revenue grew 71% YoY to INR 108 crores, driven by strong demand and Hobel Bellows acquisition.

    • EBITDA margin remained robust at 36.5%, demonstrating operational excellence.

    • PAT grew 46% YoY to INR 28 crores, with a healthy 24% PAT margin.

    • Secured a USD 7.5 million long-term supply agreement with FACC Austria, marking entry into recurring aerospace component supplies.

    • Consolidated order book stood at INR 280 crores as of June 30, 2026, with constructive order inflows.

    Concerns

    3

    • Other income significantly reduced to INR 7 crores (from INR 15 crores in Q4 FY26) due to treasury surplus deployment for the Hobel acquisition.

    • Working capital days are projected to increase from 130 to 160 days by year-end due to new business acquisitions and long-cycle programs.

    • Potential modest dilution in Unimech's ownership in Dheya Engineering Technologies due to upcoming funding rounds.

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹108 Cr+71%YoY
    2. 02Gross Margins65%
    3. 03EBITDA Margin36.5%
    4. 04PAT₹28 Cr+46%YoY
    5. 05PAT Margin24%

    Segment breakdown

    Aero Tooling
    76% Revenue Contribution
    Precision Component & Assembly (incl. Nuclear, Semiconductor, Aerospace, Hobel Bellows)
    24% Revenue Contribution
    Hobel Bellows
    21% Revenue Contribution
    List

    Order Book

    high confidence

    Total Value

    ₹ 280 crores

    as of 2026-06-30

    quantified

    Execution

    Nuclear orders (INR 87 crores) will be across H2 FY27 and next year. Precision parts for next six months.

    Composition

    Nuclear(product)
    ₹ 87 crores

    Pipeline

    other

    Order book is even larger, including forecast, beyond the confirmed INR 280 crores.

    "Order inflows remain constructive, with momentum driven by strong customer procurement and sustained demand. The reduction in the consolidated order book reflects strong execution and customer pull-ins."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Hobel Bellows

    acquisition · integrated

    Liquidity

    Liquidity disclosed

    Treasury surplus was deployed towards the acquisition of Hobel Bellows, leading to lower other income.

    Guidance & targets

    12
    CategoryTargetPriority
    Profitability
    EBITDA Margins
    34-35%
    		High
    Profitability
    Gross Margins
    65%
    		High
    Profitability
    ROCE
    15-16% (calendar year), up to 20-21% (with improved utilization)
    		Medium
    Working Capital
    Working Capital Days
    160 days plus
    		Medium
    Revenue
    Hobel Bellows Revenue Contribution
    higher
    		High
    Order Book
    Nuclear Order Execution (INR 87 crores)
    50% in H2 FY27, rest next year
    		High
    Growth
    Nuclear Business Growth
    15-20%
    		Medium
    Efficiency
    Asset Turns (Precision Component)
    2.5-3x
    		Medium
    Capital Allocation
    Dheya Funding
    USD 10 million
    		High
    Capital Allocation
    Saudi JV Investment Infusion
    USD 10 million
    		High
    Capital Allocation
    Fundraising (QIP)
    up to INR 750 crores
    		High
    Compliance
    Minimum Public Shareholding
    achieve
    		High

    What to watch in Q2 FY27

    5

    Hobel Bellows Revenue Contribution

    next quarter
    Current21% of total revenue in Q1 FY27 (for 2 months)
    TargetHigher revenue contribution in Q2 FY27 (full 3 months)

    Why it matters

    Hobel Bellows is a key acquisition, and its full contribution is essential for overall revenue growth and validating the acquisition thesis.

    I would also like to highlight that the quarter includes only 2 months of revenue from Hobel Bellows following its acquisition being completed in 27th April 2026. Accordingly, we expect a higher revenue contribution in the coming quarters⏳.

    Risks & concerns

    3
    RiskSeverity

    Increased Working Capital Intensity

    Working capital days are expected to increase from 130 to 160 days by year-end due to new business acquisitions, long-cycle aerospace programs, and nuclear tenders requiring higher inventory commitments. — Management acknowledged

    medium

    Potential Dilution in Dheya Ownership

    Unimech's percentage ownership in Dheya Engineering Technologies may see a modest dilution depending on the final structure of the upcoming USD 10 million equity funding rounds. — Management acknowledged

    low

    Tariff-Related Disruptions

    Potential impact from US tariffs on India, though mitigated by strategies like free trade warehousing zones and geographic diversification to European and Saudi markets. — Both acknowledged

    medium

    Q&A highlights

    8

    “So, firstly, what I want to say is that in the, INR280 plus crores order book that we say, these are confirmed POs... Nuclear, that is the INR87 crores will be across by H2 next year. So, yes, nuclear would be some part would be H2 and the remaining part would be next year. The on the on the precision parts it's basically for the next six months or so.”

    Clarifies the conversion timeline for the confirmed order book, especially for the newly acquired nuclear segment and precision parts.

    asked by Akshay

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Driven by Acquisitions and Demand

    Unimech Aerospace and Manufacturing Limited reported a robust Q1 FY27, with revenue growing 71% year-on-year to INR 108 crores. This performance was significantly boosted by the acquisition of Hobel Bellows, which contributed 21% of the total revenue for two months. The company also benefited from strong customer procurement behavior and sustained demand across its core businesses, validating the momentum observed in Q4 FY26.

    02

    Robust Profitability and Margin Profile

    The company maintained a healthy profitability profile, with consolidated gross margins at 65% and a strong EBITDA margin of 36.5%. Profit after tax (PAT) for the quarter stood at INR 28 crores, representing a 46% year-on-year growth and a PAT margin of 24%. Management expects to sustain gross margins at 65% and achieve EBITDA margins of 34-35% for the full FY27, indicating confidence in continued operational efficiency.

    03

    Strategic Milestones: FACC Agreement and Hobel Integration

    A key milestone in Q1 FY27 was the signing of a long-term supply agreement with FACC Austria, an aerospace Tier-1 supplier, valued at USD 7.5 million over five years. This agreement marks Unimech's entry into recurring aerospace component supplies. The integration of Hobel Bellows is progressing well, broadening Unimech's exposure to power generation, locomotive, and advanced industrial markets, with AS9100 certification for the Vizag facility targeted by Q4 FY27.

    04

    Expanding Order Book and Qualification Pipeline

    The consolidated order book, including Hobel Bellows, stood at approximately INR 280 crores as of June 30, 2026. This figure primarily reflects strong execution and customer pull-ins. The company completed 165 First Article Inspections (FAIs) and engaged with six additional prospective customers, indicating a growing pipeline. Nuclear order wins currently stand at INR 87 crores, with execution planned for H2 FY27 and next year, further diversifying the order book.

    05

    Capital Allocation for Growth and Strategic Flexibility

    Unimech is advancing additional capacity investments earlier than planned to capitalize on opportunities, with the gross block expected to approximately double by FY27. A USD 10 million infusion into the Saudi joint venture is anticipated this month. The board has also approved a resolution to raise up to INR 750 crores via QIP, primarily to provide strategic flexibility and achieve minimum public shareholding within 18 months, rather than for immediate fundraising.

    06

    Working Capital and Efficiency Management

    While the company's manufacturing facility utilization is currently at 58%, with 10% dedicated to new product introduction and qualification, working capital days are expected to increase from 130 to 160 days by year-end. This is attributed to new business acquisitions and longer production cycles for aerospace and nuclear programs. Management is focused on maximizing in-house capability utilization to maintain efficiency and manage the evolving business mix.

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