Unimech Aerospace and Manufacturing Limited has scheduled a meeting of its Board of Directors for Thursday, May 28, 2026. The primary agenda of the meeting is to consider and approve the audited standalone and consolidated financial results of the company for the quarter and year ended March 31, 2026. The board will also review the Report of the Auditors thereon.

Board Meeting Details

The meeting is convened in accordance with Regulation 29(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was addressed to the National Stock Exchange of India Ltd. and BSE Limited, with the company trading under the symbol UNIMECH.

Trading Window Closure

In compliance with the Code of Conduct for Prevention of Insider Trading in Securities of the company, the trading window for dealing in the securities of Unimech Aerospace and Manufacturing Limited shall remain closed. The closure will be in effect until 48 hours after the declaration of the financial results. This measure is intended to regulate, monitor, and report trading by designated persons and their immediate relatives, pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015.

The company has informed all designated persons and their immediate relatives regarding the closure of the trading window to ensure adherence to regulatory norms.

Unimech Aerospace and Manufacturing Limited has announced the acquisition of Hobel Bellows, a specialized manufacturer of metallic bellows and precision engineered assemblies, for an enterprise value of INR450 crores. The all-cash transaction includes a 10% holdback for one year. The announcement was made during an analyst and institutional investor conference call held on April 28, 2026.

For the year ended March 31, 2026, Hobel Bellows reported approximately INR129 crores in revenue with EBITDA margins exceeding 50%. The acquisition is margin accretive and debt-free, with the target business generating a return on capital employed of over 50% prior to acquisition. The deal was funded through internal funds, with no additional borrowings planned.

Strategic Capabilities and Infrastructure

Hobel Bellows brings complementary capabilities across metal forming, hydroforming, precision pipe fabrication, advanced welding processes, and automated testing validation systems. The business operates from a 200,000 square foot manufacturing facility and a 20,000 square foot warehouse in the Visakhapatnam SEZ. The company utilizes robotics and automation to ensure repeatable precision, with quality control processes including CMM and shadowgraph testing.

The target company serves marquee global OEMs, with nearly 90% of revenues derived from exports to markets including the UK, United States, Singapore, and China. Its product portfolio includes metallic bellows ranging from 2 inches to 16 inches (500 grams to 330 kg weight), designed for engines spanning 900 to 9,000 BHP across diverse industries.

Financial Metrics and Growth Outlook

The management expects conservative growth of 15% to 17% over the next 3 to 4 years, driven by organic momentum and synergy-led opportunities. The global metallic bellows market is estimated at $2.6 billion with expected annual growth of 6%. Current capacity utilization provides sufficient headroom to support growth without requiring additional capex in the near term.

Synergies and Strategic Fit

The acquisition enables Unimech to increase wallet share with existing customers through a broader and more integrated offering. The company plans to expand presence in industrial locomotive and power sectors, strengthen positioning in aerospace, defense, nuclear, and other high-entry barrier segments, and accelerate time-to-market by gaining access to capabilities that would otherwise take years to build organically.

Management noted that the most meaningful synergies are on the revenue side through cross-selling bellows into nuclear and industrial segments, leveraging Hobel's presence in marine and naval ecosystems. The company will work towards AS9100 certification to enter aerospace segments, with NPCIL certification expected to take approximately one year for nuclear applications.

Customer Concentration and Valuation

The target company has customer concentration with two key OEM groups contributing approximately 93% of revenue. However, this exposure is distributed across multiple entities operating in different geographies and end-use segments including power generation, automotive engines, industrial systems, and locomotive engines. The valuation of approximately 3.5x revenue represents about 6x to 7x EBITDA multiple, which management characterized as attractive given the high-margin nature of the business.

The acquisition rationale includes the absence of a succession plan at the target company, with the owner having reached retirement age and family members settled abroad. Unimech was identified as a suitable partner to continue and grow the business.