Universal Autofoundry has released its investor presentation for the quarter and half-year ended September 30, 2026. The company reported a revenue of ₹615 million for Q2 FY27, marking a 12% YoY growth and a 13% QoQ increase. Capacity utilization rose to 57%. Key highlights include strategic investments in new machinery and a focus on diversifying across new geographies.
Q2 FY27 Financial Performance
Universal Autofoundry Limited announced its financial highlights for the second quarter of fiscal year 2027 (Q2 FY27), ending September 30, 2026. The company reported a revenue of ₹615 million, representing a 12% year-over-year (YoY) growth and a 13% quarter-over-quarter (QoQ) increase. Capacity utilization improved to 57%, up from 55% in Q1 FY27.
Despite a YoY fall in gross margins by approximately 250 basis points to 41.0% due to higher raw material prices, profitability was also impacted by increased depreciation costs associated with the ferrous line and a newly commissioned solar plant. Borrowings saw an increase due to solar plant financing and a term loan for equipment upgrades.
Operational Highlights for Q2 FY27
Production in Q2 FY27 was 6,009 MT, a 4% YoY decrease but a 5% QoQ recovery. Capacity utilization continued to rise, reaching 57%. A significant development was the commissioning of the second solar plant at Churu (4.8 MW AC), with an investment of ₹25 crore capitalized. Cost benefits from this solar plant are anticipated in H2 FY27. The M&HCV segment showed strong volume growth, increasing its revenue share to 20%. Exports also saw a substantial 29% YoY increase to ₹32 million, although global conditions remain volatile.
Future Roadmap and Strategy
Universal Autofoundry’s future strategy focuses on concentrating on high-growth sectors, aiming for non-tractor revenue to exceed 75% within 3-5 years. This involves reducing reliance on the cyclical tractor segment. The company plans to improve utilization and efficiency, targeting 65% capacity utilization from FY27. Investments in new machinery are planned, with an approximate investment of ₹600 lakh in FY27. Diversification across new geographies is also a key objective, with exports projected at ~15% of revenue within 3 years.
Company Overview and Strengths
The company operates as a world-class manufacturer and exporter of machined grey iron and ductile iron castings. It holds certifications including IATF 16949:2016, ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015. Universal Autofoundry has a diversified product profile catering to commercial vehicles, construction, tractors, earthmoving, engineering, and export markets. Its marquee clients include major players like Escorts, Sonalika, Ashok Leyland, Volvo, and JCB.
Source: BSE
