Order Book
₹210 cr
+100% YoY
Record order book includes ₹68 cr nuclear orders; provides strong near-term visibility.
UNIMECHAEROSPACEANDMANUF
Manufacturing
12 Feb 2026
Unimech Aerospace and Manufacturing Ltd — Q3 FY26
Unimech reported Q3 FY26 revenue of ₹34 cr, sharply down from ₹61 cr in Q2, with PAT of ₹2.4 cr and EBITDA margin of 4.6%.
✓ Verified against BSE filing
2-Min Summary
Unimech reported Q3 FY26 revenue of ₹34 cr, sharply down from ₹61 cr in Q2, with PAT of ₹2.4 cr and EBITDA margin of 4.6%. The miss was driven by a temporary slowdown in aero tooling due to elevated US tariffs (since reduced from 50% to 18%) and seasonal December effects. Management emphasized the weakness was not structural, citing a record order book of ₹210 cr (including ₹68 cr nuclear) and ₹30 cr of finished goods ready for shipment. Guidance targets surpassing last year's revenue of ₹240 cr for FY26, with Q4 expected to recover to ₹90-100 cr. Key risks include delays in FTWZ regulatory approvals and slower-than-expected order conversion in precision components.
Key Numbers
Capacity Utilization
50%
flat QoQ
Utilization remains low due to tariff headwinds; expected to improve as demand normalizes.
Gross Margin
71%
+300bps QoQ
Gross margins resilient despite low revenue, reflecting strong cost structure.
Fixed Asset Turnover
1.4x
-0.6x QoQ
Lower utilization dragged asset turns; target is 3x over medium term.
Management Guidance
FY26 revenue to exceed ₹240 cr
Management targets surpassing last year's revenue of ₹240 cr for full year FY26, implying Q4 revenue of ~₹81 cr.
revenueQ4 FY26 revenue guidance of ₹90-100 cr
Expect Q4 revenue between ₹90-100 cr, driven by order book conversion and FTWZ operationalization.
revenueFY26 EBITDA margin to touch 25%
Full-year EBITDA margin expected at 25% level, implying strong margin recovery in Q4.
marginsSaudi JV to target $30M revenue by year 5
JV with Yusuf bin Ahmed Kanoo Group targets $30M revenue by year 5 with 35% EBITDA margin and 20% PAT margin.
expansionKey Risks
FTWZ regulatory approval delays
FTWZ facility is complete but awaiting regulatory approvals; any delay could impact revenue recognition and customer inventory buildup.
high · management_commentaryOrder conversion in precision components slower than expected
Precision component segment has long qualification cycles; revenue contribution may take longer to materialize, as noted in analyst Q&A.
medium · analyst_questionGeographic concentration in US market
95% of exports go to US; despite tariff reduction, any future trade disruptions could impact revenue. Management acknowledged need to reduce US exposure.
medium · analyst_questionWorking capital strain
Working capital usage increased to ₹70 cr from ₹50 cr QoQ; management expects it to stabilize at 150-160 days, but further buildup could pressure cash flows.
medium · data_observationNotable Quotes
The softness witnessed in the business was never structural. The elevated tariffs had temporarily pushed customers to move from inventory-led procurement to essential drop shipment only ordering.
We are expecting a decent business in the coming quarter and targeted to surpass the revenue of last year 240 crores.
While we will push the throttle in the current industry, it has also taught us that diversification is the right strategy whether it is industry or geography.