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Unimech Aerospace and Manufacturing LtdQ4 FY26 earnings call

· All quarters

Summary generated by AI from the official transcript Unimech Aerospace and Manufacturing Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries

The short read

Unimech Aerospace reported Q4 FY26 revenue of approximately Rs. 82 crore net of tariff concessions, with full-year FY26 revenue crossing Rs. 240 crore net (Rs. 257 crore gross). Management attributed the sequential recovery to normalization in aerospace tooling demand following moderation of U.S. tariffs, and reported EBITDA margin of approximately 43% for Q4 and 31% for the full year. The company also discussed completion of the Hobel Bellows acquisition, progress on the Kanoo Saudi JV, and an order book of approximately Rs. 314 crore as of May 2026.

Numbers mentioned

Revenue: approximately Rs. 82 crores (Q4 FY26)

p. 5
Revenue from operations net of tariff concessions for Q4 FY26 stood at approximately Rs. 82 crores, taking full year FY26 revenue crossed Rs. 240 crores.

Ramakrishna Kamojhala, page 5 of the filed PDF · View the filing

Revenue (gross): Rs. 257 crores (FY26)

p. 5
It means at gross level, the revenue was at Rs. 257

Ramakrishna Kamojhala, page 5 of the filed PDF · View the filing

Order book: approximately Rs. 314 crores (as of May 2026)

p. 4
our order book as of May ‘26 stands at approximately Rs. 314 crores on a consolidated basis, including Hobel, more than double our historical levels

Anil Kumar Puttan, page 4 of the filed PDF · View the filing

Nuclear order wins: approximately Rs. 87 crore (cumulative to date)

p. 4
we have secured order wins amounting to approximately Rs. 87 crore in this space, a portion of which is expected to be executed during the current financial year

Anil Kumar Puttan, page 4 of the filed PDF · View the filing

Other income growth: approximately 90% year-on-year (FY26)

p. 6
other income increasing approximately 90% year-on-year to around Rs. 47 crores

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Gross margin: approximately 73% (Q4 FY26)

p. 6
Q4 gross margin is at approximately 73% supported by higher contribution from tooling-related orders.

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Gross margin: approximately 70% (FY26)

p. 6
For the full year FY26, gross margin stood at approximately 70%.

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

EBITDA margin: approximately 43% (Q4 FY26)

p. 6
EBITDA margin for Q4 improved significantly to approximately 43%, driven by stronger revenue and normalization of operating leverage after several quarters of lower fixed-cost absorption.

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

EBITDA margin: approximately 31% (FY26)

p. 6
For FY26, EBITDA margins stood at approximately 31%, broadly in line with guidance we had previously shared.

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Employee cost as % of revenue: approximately 22% (FY26)

p. 6
Employee cost remained elevated approximately 22% as a percentage of revenue, which is grown by 16% in FY26 compared to last year

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Finance cost: approximately Rs. 15.3 crores (FY26)

p. 7
Finance cost, which increased to approximately Rs. 15.3 crores during the year.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

PAT: approximately Rs. 26 crores (Q4 FY26)

p. 7
Profitability recovered strongly during Q4 with PAT for the quarter at approximately Rs. 26 crores taking full year FY26 PAT to approximately Rs. 63 crores.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

ROCE: 22% (Q4 FY26)

p. 7
ROCE and ROE for the quarter improved meaningfully at 22% and 26% respectively for the quarter.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

ROCE: 10% (FY26)

p. 7
While full year FY26 ROCE and ROE stood at 10% and 16% respectively.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Working capital days: approximately 120 to 125 days (FY26 year-end)

p. 7
working capital days stood at approximately around 120 to 125 days at the year-end

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Fixed assets turnover: approximately 1.4x (FY26)

p. 7
Fixed assets turnover for FY26 stood at approximately 1.4x.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Plant utilization: approximately 50% (current)

p. 8
Current plant utilization levels are approximately 50% and we remain confident of steadily improving asset productivity over the next 30 to 36 months as order execution ramps up.

Ramakrishna Kamojhala, page 8 of the filed PDF · View the filing

Aero tooling revenue contribution: approximately 90% (Q4 FY26 and FY26)

p. 6
Our aero engine and airframe complex tooling offerings contributed approximately 90% for the quarter and over 90% of revenue for the full year FY26.

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

What management said it would do

A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.

Q1 FY27 revenue — surpass Q4 FY26 revenue · Q1 FY27

stated firmly by Ramakrishna Kamojhala

p. 8
We will strive for improving our quarterly revenue base and will target Q1 FY27 revenue to surpass the Q4 FY26 revenues.

Ramakrishna Kamojhala, page 8 of the filed PDF · View the filing

EBITDA margin — better than FY26 · FY27

stated conditionally by Ramakrishna Kamojhala

p. 8
From a profitable standpoint, we expect consolidated EBITDA margins to remain healthy and would be better than FY26.

Ramakrishna Kamojhala, page 8 of the filed PDF · View the filing

Tariff sharing burden — approximately 5% · ongoing

stated conditionally by Ramakrishna Kamojhala

p. 6
we may continue to absorb approximately 5% tariff sharing on parts and tooling consumed within the U.S. market

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Core business capex — no significant capex · FY27

stated firmly by Ramakrishna Kamojhala

p. 7
we do not foresee very significant core business CAPEX requirement during FY27

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Kanoo JV breakeven — breakeven · three-year horizon

stated as an aspiration by Rajanikanth Balaraman

p. 10
we expect this venture to achieve breakeven over a three-year horizon

Rajanikanth Balaraman, page 10 of the filed PDF · View the filing

Kanoo JV joint investment — $30 million · first three years

stated firmly by Aakash Jaiswal

p. 17
we are planning an overall $30 million of joint investment in the Saudi JV, that is the Kanoo JV

Aakash Jaiswal, page 17 of the filed PDF · View the filing

AS9100 certification — certification completion · six to nine months

stated conditionally by Rajanikanth Balaraman

p. 11
there’s a plan to basically start the certification on that, which might take anywhere between six to nine months for the certification to complete

Rajanikanth Balaraman, page 11 of the filed PDF · View the filing

First article inspections (FAIs) — double previous year's ~200 FAIs · current financial year

stated as an aspiration by Aakash Jaiswal

p. 15
In the previous financial year, assume we had done around close to 200 first articles, this year, the target is to double that as well.

Aakash Jaiswal, page 15 of the filed PDF · View the filing

Employee cost as % of revenue

stated as an aspiration by Ramakrishna Kamojhala

p. 7
will target employee cost as a percentage of revenue to moderate gradually as revenues scale up

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Working capital days — 150 to 160 days range · over time

stated conditionally by Ramakrishna Kamojhala

p. 7
working capital intensity may gradually increase towards the 150 to 160 days range over time

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Q&A highlights

Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.

Certification could take six to nine months, followed by further NADCAP-type approvals; aerospace qualification cycles typically take 2-3 years or more.

Answered by Rajanikanth Balaraman

Asked by Balasubramanian: What is the timeline for AS9100 certification for Hobel and aerospace cross-sell revenue expectations?

p. 12
we think aerospace is an area which takes 2-3 years or more for the qualification cycles to complete

Rajanikanth Balaraman, page 12 of the filed PDF · View the filing

The amount will appear as consolidated goodwill/intangibles but will not be amortized; ROCE and ROE are currently in the 10-16% range but expected to improve as the business scales.

Answered by Ramakrishna Kamojhala

Asked by Balasubramanian: How will the Rs. 450 crore Hobel acquisition cost be treated on the balance sheet and what happens to ROCE?

p. 12
But over the year, when business scales up, and this will meaningfully improve that.

Ramakrishna Kamojhala, page 12 of the filed PDF · View the filing

Order book excluding Hobel is around Rs. 200 crore-plus, with nuclear scaling up to about Rs. 87 crore and tooling contributing over Rs. 100 crore, while precision components are a smaller but growing contributor.

Answered by Aakash Jaiswal

Asked by Ananya Nichani: Why has the order book excluding Hobel stayed flat year-on-year?

p. 13
If you see excluding the Hobel number, it is roughly around the Rs. 200 crores plus value.

Aakash Jaiswal, page 13 of the filed PDF · View the filing

Management said there is no structural loss and that order book improved once tariffs came down.

Answered by Aakash Jaiswal

Asked by Ananya Nichani: Is there structural weakness in aero tooling due to a client moving MRO tooling in-house?

p. 13
There has not been any structural loss to say.

Aakash Jaiswal, page 13 of the filed PDF · View the filing

Consolidation from Hobel will begin from Q1 FY27 onward, but exact contribution was not disclosed.

Answered by Aakash Jaiswal

Asked by Garvit Goyal: Will Q1 FY27 include revenue from the newly acquired entity, and how much?

p. 15
Quarter 4, we haven’t, but it will likely come from Quarter 1 onwards.

Aakash Jaiswal, page 15 of the filed PDF · View the filing

On a gross basis the company achieved the guided range (Rs. 257 crore for the year), but tariff-related concessions brought the net figure down to Rs. 82 crore for the quarter.

Answered by Aakash Jaiswal

Asked by Sudhir K.: Why did Q4 revenue fall short of the previously guided Rs. 90-100 crore range?

p. 17
Without the tariff concession, it would have been Rs. 96 crores- Rs. 97 crores of revenue for the quarter.

Aakash Jaiswal, page 17 of the filed PDF · View the filing

Hobel aligns with the precision component, assembly, and turnkey systems offering, which management views as a much larger addressable market.

Answered by Rajanikanth Balaraman

Asked by Sudhir K.: What is the strategic rationale for the Hobel acquisition given its different product profile from aerospace tooling?

p. 17
The precision component assembly and turnkey system is a much larger market and we think that that’s a very important piece to add capabilities to.

Rajanikanth Balaraman, page 17 of the filed PDF · View the filing

All approvals are complete except final ICEGATE enablement; the zone will let customers maintain inventory for non-US supply and is attracting interest from tooling and other precision customers.

Answered by Ramakrishna Kamojhala

Asked by Namril: What is the status of the Free Trade Warehousing Zone (FTWZ) and its benefits?

p. 18
free trade warehouse, the setup is completed from all approval point of view.

Ramakrishna Kamojhala, page 18 of the filed PDF · View the filing

Risks flagged

Elevated tariff-related disruptions in the U.S. affecting aerospace supply chains during FY26

p. 3
Over the course of FY26, the industry witnessed elevated tariff-related disruptions in the U.S., customer inventory rationalization, and softer shipment schedules across aerospace supply chains.

Anil Kumar Puttan, page 3 of the filed PDF · View the filing

Ongoing tariff sharing burden absorbed on U.S. market shipments

p. 6
we may continue to absorb approximately 5% tariff sharing on parts and tooling consumed within the U.S. market

Ramakrishna Kamojhala, page 6 of the filed PDF · View the filing

Evolving geopolitical environment and ongoing regional conflicts globally

p. 5
we are also conscious of the evolving geopolitical environment and ongoing regional conflicts globally

Ramakrishna Kamojhala, page 5 of the filed PDF · View the filing

One-time foreign currency borrowing losses from currency depreciation increasing finance costs

p. 7
This was primarily due to one-time exchange difference in foreign currency borrowing followed by sharp currency depreciation being losses booked to the tune of Rs. 9.6 crores in the quarter.

Ramakrishna Kamojhala, page 7 of the filed PDF · View the filing

Geopolitical developments in the GCC region affecting the Saudi JV

p. 10
Despite ongoing geopolitical developments in the GCC region, our discussion with the customers and stakeholders continue to remain constructive.

Rajanikanth Balaraman, page 10 of the filed PDF · View the filing

Quarterly phasing influenced by pace of aerospace order execution and nuclear project timelines

p. 8
the pace of aerospace order execution, timing of nuclear project milestone and conversion timelines for long-term qualification programs into production revenues will continue to influence quarterly phasing of performance

Ramakrishna Kamojhala, page 8 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.