Unimech Aerospace released its Investor Presentation for Q3 FY26, detailing challenging market conditions offset by strategic execution. Revenue for 9M FY26 was ₹1,586.9 Mn (down 9% YoY), while EBITDA stood at ₹398.8 Mn (down 38% YoY). The company secured a solid order book near ~₹210 crore, boosted by a new nuclear pipeline of ~₹68 crore. Strategic steps include a JV in Saudi Arabia and easing of US tariffs.
Chairman’s Message: Strength Amidst Challenges
The Chairman & Managing Director, Anil Kumar P, noted that the first nine months of FY26 presented challenging market conditions, though strategic execution advanced meaningfully. Key achievements include expanding the international footprint via a joint venture in Saudi Arabia and building a nuclear order pipeline of about ~Rs 68 crore. The overall order book reached nearly ~Rs 210 crore as of February 12, 2026. The easing of elevated U.S. tariffs is expected to restore customer confidence.
Financial Performance Highlights (9M FY26 vs 9M FY25)
The presentation provided a clear contrast between the first nine months of FY26 and the previous year:
- Revenue from operations decreased by (9%), moving from ₹1,745.5 Mn (9M FY25) to ₹1,586.9 Mn (9M FY26).
- EBITDA saw a decline of (38%), falling from ₹645.6 Mn to ₹398.8 Mn. The corresponding EBITDA margin dropped from 37% to 25%.
- Profit After Tax (PAT) decreased by (32%), from ₹542.6 Mn to ₹371.8 Mn, with the margin reducing from 29% to 19%.
Quarterly Comparison (Q3 FY26 vs Q3 FY25)
The third quarter showed significant year-over-year pressures:
- Revenue fell sharply by (37%), from ₹539.0 Mn to ₹337.2 Mn.
- EBITDA plummeted by (90%), from ₹156.9 Mn to just ₹15.4 Mn.
- PAT experienced an (85%) drop, falling from ₹155.8 Mn to ₹23.9 Mn.
Consolidated Trends and Key Metrics
Over the longer term, the company noted a strong historical CAGR of 88.4% in revenue, though recent performance (9M FY26) showed an EBITDA margin of 25% and PAT margin of 19%.
The Fixed Asset Turnover Ratio has trended down to 1.4 times (9M FY26). The company noted that Capex addition in 9MFY26, while establishing future capacity, pulled down ROCE, ROE, and FA turnover.
Strengthening Order Book
The Order Book Position shows substantial growth:
- Order Book as on 10th February 2026 stands at INR 2,098 million, a significant increase from INR 1,048 million in Sep’25.
- Order wins in the Nuclear business this quarter totaled INR 680 million.
- Orders received from Apr’25 to Jan’26 were worth INR 3,010 million, considerably higher than the previous corresponding period.
Key Business Updates and Strategic Expansion
Strategic Investment (M&A)
Unimech increased its stake to ~30% from 16% in Dheya Engineering Technologies. This includes an exclusive manufacturing agreement for micro gas turbine engines, where technical milestones like a 65,000 RPM bench test have been achieved.
Geographical Expansion: Saudi Arabia JV
In January 2026, Unimech formed a 51:49 JV with the Yusuf Bin Ahmed Kanoo (YBAK) Group to create an Advanced Machining & Remanufacturing Platform in Dammam. This USD 30 million project targets the oil & gas, utilities, and mining sectors, aiming for ~USD 30 million revenue by Year 5.
Capacity and Business Growth
The company detailed growth across its two primary business segments:
- Aero Tooling / MRO Tooling / GSE: Capacity grew by 7% since Mar’25. Growth factors include increasing global aircraft fleet and demand for MRO services.
- Precision Components and Assemblies: Capacity expanded by 30% since Mar’25, supported by the acquisition of 62,000 sq ft in the quarter. This segment benefits from growth in end-user industries and increasing procurement from India.
Key Growth Strategies
The path forward is defined by five core strategies:
- Market Development: Enhancing global footprints in strategic regions.
- Market Penetration: Capturing higher market shares, focusing on growth in MRO, aircraft fleet, and the nuclear industry.
- Product Development: Manufacturing high-precision, high-mix, low-volume products for nuclear, semiconductors, and robotics.
- Capacity Expansion: Increasing capacity domestically and internationally to meet rising demand.
- Diversification: Focusing on growth via opportunistic inorganic acquisitions and customer partnerships.
Source: BSE
