Q2 FY27 · NSE: UNIMECH

Unimech Aerospace and Manufacturing

Results filed 28 October 2026 · Market cap ₹8,039 crore · PE 91.2

GrowthGuidance maintainedTranscript read

Revenue: +98.5%; on a year ago
EBITDA: +164.3%; on a year ago
Profit to shareholders: +102.8%; on a year ago
EBITDA margin: 39.8%; +3.4 pts on last quarter

Unimech delivered 98% YoY revenue growth in Q2 FY27 to INR 123.0 crore with EBITDA margins expanding to 39.8%, significantly aided by the consolidation of Hobel Bellows which contributed 30% of H1 revenue. The consolidated order book expanded to INR 855 crore, although INR 589 crore represents multi-year LTAs and award letters spanning 5 to 10 years rather than confirmed purchase orders. Management guided for higher revenues in H2 with steady margins, while flagging an extension in working capital to 150-160 days and plans for an equity fundraise in early CY2027.

Unimech Aerospace and Manufacturing Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	123	108	+14.3%	61.98	+98.5%
Operating profit (EBIT)	39.96	31.3	+27.7%	12.2	+227.5%
Operating margin	32.5%	29.1%	+340 bps	19.7%	+1280 bps
Other income	6.98	7.33	−4.8%	9.87	−29.3%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	44.91	36.69	+22.4%	20.68	+117.2%
Profit to shareholders	31.78	27.86	+14.1%	15.67	+102.8%
Share of joint ventures' and associates' profit	−0.75	−0.14	n.m.	−0.11	n.m.
Earnings per share (₹)	6.24	5.48	+13.9%	3.08	+102.6%

Source: Unimech Aerospace and Manufacturing Limited’s filing to NSE, 27 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

Top-line growth of 98% YoY in Q2 was heavily aided by the inorganic acquisition of Hobel Bellows
Source
Hobel contributed 30% of total H1 consolidated revenue following its consolidation effective May 1, 2026 (Ramakrishna Kamojhala, Concall Transcript p. 7; Investor Presentation p. 6, 8).
Headline order book grew over 700% YoY to INR 855 crore, but 69% of it comprises long-term agreements and award letters rather than firm purchase orders
Source
Total order book stands at INR 855 crore, consisting of INR 266 crore in confirmed POs and INR 589 crore in LTAs and award letters spanning 5 to 10 years (Investor Presentation p. 7; Concall Transcript p. 9).
Significant goodwill recognized post-acquisition, and equity dilution is planned for early CY2027
Source
Balance sheet reflects INR 322.0 crore in goodwill post-Hobel acquisition, and management stated they expect to consider an equity fundraise in early CY27 to fund expansion and meet MPS requirements (Balance Sheet, Investor Presentation p. 25; Ramakrishna Kamojhala, Concall Transcript p. 8).

Guidance

Metric	Guidance	Period
H2 FY27 Revenue Source Ramakrishna Kamojhala, Concall Transcript p. 8: 'Based on our current order book and delivery schedules, we expect H2 revenue to be higher than H1'	H2 revenue expected to be higher than H1 (which was INR 231 crore)	H2 FY27
EBITDA Margin Source Ramakrishna Kamojhala, Concall Transcript p. 8: 'with similar margins'; Aakash Jaiswal, Concall Transcript p. 13	Margins in H2 expected to be similar to H1 (~38-40%)	H2 FY27
Working Capital Days Source Ramakrishna Kamojhala, Concall Transcript p. 7: 'we expect working capital days to gradually move towards the 150 to 160-day range by end of FY27'	150 to 160 days	End of FY27
Part Qualifications Source Rajanikanth Balaraman, Concall Transcript p. 6: 'We will have more than 590 qualified parts across our customer ecosystem by close of FY27'	Over 590 qualified parts	End of FY27
Long-term Revenue Aspiration Source Aakash Jaiswal and Ramakrishna Kamojhala, Concall Transcript p. 12, 14-15	INR 1,000 crore revenue target based on INR 500 crore gross block at 2x-2.5x asset turns (with Hobel contributing ~20%)	Next 2-3 years

Tailwinds

Robust operating leverage and mix shift driving EBITDA margins to 40% in Q2
Source
Q2 EBITDA margin expanded to 39.8% from 29.9% in Q2 FY26 due to higher gross margins (69%) and lower subcontracting costs at 2% (Ramakrishna Kamojhala, Concall Transcript p. 7; Investor Presentation p. 8).
Marquee multi-year LTA contract wins expanding long-term revenue visibility
Source
Signed 10-year LTA with Honeywell Aerospace, USD 7.5 million 5-year LTA with FACC, and received a USD 43 million 10-year award letter from a French Tier-1 aerospace company (Investor Presentation p. 7).
Rapid scaling of component qualification pipeline
Source
250 FAIs proved across PCA customers, with an additional 346 FAIs in pipeline targeting over 590 qualified parts by close of FY27 (Investor Presentation p. 7; Rajanikanth Balaraman, Concall Transcript p. 6).

Headwinds

Working capital cycle is lengthening significantly as business mix evolves
Source
Working capital stood at 110 days in Q2 and is guided to deteriorate to 150 to 160 days by end of FY27 due to longer-cycle aerospace and nuclear programs (Ramakrishna Kamojhala, Concall Transcript p. 7).
Trade receivables nearly doubled over the six-month period
Source
Consolidated trade receivables increased from INR 64.8 crore as of March 31, 2026 to INR 122.6 crore as of September 30, 2026 (Balance Sheet, Investor Presentation p. 25).
Anticipated margin dilution as precision components mix increases towards 50%
Source
Management indicated that precision components carry slightly lower margins than aero tooling, expecting 1-2% margin compression plus R&D expenses as mix reaches 50:50 (Ramakrishna Kamojhala, Concall Transcript p. 16).

New businesses and products

partnership · Under construction; first equity tranche deployed

Kanoo-Unimech Joint Venture in Saudi Arabia

Expected benefit: Establish localized manufacturing platform in Dammam for Middle East oil & gas, energy, defense, and mining
Risks: Regional dynamics, geopolitical exposure, and execution risk across overseas operations
Timeline: Commercial manufacturing readiness targeted by March or April 2027
Investment: Total JV investment ~USD 30 million (INR 200-250 crore capex outlay); initial equity tranche of SAR 15.3 million deployed by Unimech

Source

Anil Kumar Puttan and Rajanikanth Balaraman, Concall Transcript p. 3, 5-6, 11; Investor Presentation p. 14

capacity expansion · Installation underway; trial runs in progress

Automated Special Process Cell and Assembly Lines

Expected benefit: In-house anodizing, plating, heat treatment, NDT, improving lead times and margins
Risks: Audit delays or qualification hurdles for aerospace certifications
Timeline: Commissioning by December 2026; Nadcap certification targeted by March 2027
Investment: Not disclosed separately

Source

Anil Kumar Puttan, Concall Transcript p. 4; Investor Presentation p. 6, 16

partnership · Advanced development and testing; CEMILAC Phase 1 cleared

Dheya Engineering Propulsion Partnership

Expected benefit: Exclusive manufacturing rights for indigenous micro gas turbine engines (20kg to 100kg thrust variants)
Risks: Lengthy defense certification and platform integration cycles before commercial revenue realization
Timeline: Critical design review before Dec 2026; final design approval certification targeted by Feb 2027; commercial revenues expected around FY28/FY29
Investment: Unimech holds ~27% equity stake; Avaana Capital valued Dheya at ~INR 200 crore on Sept 26

Source

Rajanikanth Balaraman, Concall Transcript p. 6, 14

new product · 60 FAIs qualified; commercial revenues initiated

Semiconductor Precision Components and Mechanical Assemblies

Expected benefit: High-volume precision metal and plastic components and sub-assemblies for semiconductor capital goods OEMs
Risks: Customer qualification timelines and cyclicality of semiconductor capex
Timeline: Sharp revenue step-up expected in H2 FY27; 20 additional parts targeted by end of CY2026
Investment: 20-month development cycle completed

Source

Rajanikanth Balaraman and Aakash Jaiswal, Concall Transcript p. 5, 8

Things to check

Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Substantial balance sheet goodwill of INR 322.0 crore created following the INR 450 crore Hobel Bellows acquisition
Source
Goodwill stands at INR 3,219.9 Mn on net worth of INR 7,981.6 Mn, with intangibles at INR 492.2 Mn (Investor Presentation p. 12, 25).
Sharp surge in short-term borrowings alongside sharp rise in trade receivables
Source
Current borrowings increased by 54% from INR 84.6 crore in FY26 to INR 130.7 crore in H1 FY27, while receivables increased from INR 64.8 crore to INR 122.6 crore (Balance Sheet, Investor Presentation p. 25).
Over 68% of the reported order book consists of non-binding award letters and multi-year LTAs rather than committed purchase orders
Source
Confirmed POs are only INR 266 crore out of the INR 855 crore headline order book, with INR 589 crore dependent on multi-year prove-outs and call-offs (Investor Presentation p. 7; Concall Transcript p. 9).

How the call went

The call was reasonably informative regarding commercial contract traction and capacity initiatives, but management adhered strictly to consolidated disclosure policies, limiting visibility into unit economics and individual division margins.

Specific or vague: Management gave good color on program awards, customer pipelines, and FAI numbers, but declined to provide vertical-specific margins and product-level details citing NDAs and internal policy.
Candour: Candid about working capital elongation (moving up to 150-160 days) and acknowledging that PCA margins will be slightly lower than tooling; however, deflected questions on European trade agreements.
The hard questions: Analysts probed conversion timelines of award letters into firm POs, peak revenue of existing assets, and specific margin differences across verticals, with management offering high-level aggregate targets instead.

What analysts pressed on

Substance of the INR 589 crore LTA/award letters vs confirmed firm POs and their qualification risk
Capacity constraints for FY28 given 65-70% utilization levels and peak revenue limits of existing plants
Revenue run-rate and commercial delivery timeline from the semiconductor OEM business
Margin sustainability once revenue shifts from high-margin tooling to precision components

Answers that sidestepped

Declined to specify segment- or product-level margins for Honeywell contract: 'strictly report on a consolidated basis, not on a vertical or customer basis' (Aakash Jaiswal, Concall Transcript p. 10)
Deflected question regarding the incremental impact of UK/Europe FTAs to offline discussions (Aakash Jaiswal, Concall Transcript p. 16)

Numbers against the story

Management emphasized that the business is pivoting rapidly to recurring precision components (PCA); however, financial disclosures show that Aero Tooling still constituted 67% of H1 FY27 revenue, and out of the remaining 33% PCA revenue, 30% came from newly acquired Hobel Bellows, meaning organic standalone PCA remains only ~3% of revenue. Additionally, while management highlighted order book strength of INR 855 crore, confirmed POs represent only INR 266 crore, with the rest dependent on multi-year OEM qualification schedules.

Sources

Concall transcript · filed 31-Oct-2026
Press release · filed 27-Oct-2026
Investor presentation · filed 27-Oct-2026
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.