UHTL H2 FY26 revenue rises 34%, net profit grows 86%
United Heat Transfer Limited reported robust H2 FY26 results with revenue rising 33.9% to ₹514.4 Mn and net profit increasing 85.8% to ₹41.7 Mn, driven by operational efficiency. EBITDA grew 61.1% to ₹79.0 Mn, improving margins to 15.4%. The company is expanding its Talegaon plant and foraying into data centre cooling with Vertiv, targeting 30–35% revenue growth in FY27. Management confirmed full utilization of IPO proceeds and provided an order book update of approximately ₹36–37 crore during a recent conference call.
*this image is generated using AI for illustrative purposes only.
United Heat Transfer Limited reported a strong financial performance for the second half and full year ended March 31, 2026, driven by robust order execution and operational efficiency improvements. For H2 FY26, revenue from operations increased by 33.9% year-on-year to ₹514.4 Mn, while net profit surged 85.8% to ₹41.7 Mn. The company's order book stood at ₹341.52 Mn as of May 29, 2026, reflecting strong demand momentum.
For the full financial year FY26, revenue from operations rose to ₹728.8 Mn from ₹668.1 Mn in the previous year. Net profit for the year stood at ₹50.1 Mn, compared to ₹53.0 Mn in FY25. The Board of Directors approved the audited standalone financial results during a meeting held on May 27, 2026. The statutory auditors, M/s Kayde & Associates, issued an unmodified opinion on the financial statements.
H2 FY26 Operational Performance
The company achieved significant margin expansion during the second half, with EBITDA growing 61.1% YoY to ₹79.0 Mn and EBITDA margins improving by 259 basis points to 15.4%. Net profit margins also expanded by 226 basis points to 8.1%. Working capital days improved significantly to approximately 182 days in FY26 from 256 days in FY25, demonstrating enhanced working capital management.
Key Financial Metrics (H2 FY26 vs H2 FY25)
| Metric | H2 FY26 (₹ in Mn) | H2 FY25 (₹ in Mn) | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 514.4 | 384.1 | 33.9% |
| EBITDA | 79.0 | 49.0 | 61.1% |
| Net Profit | 41.7 | 22.4 | 85.8% |
Strategic Expansion and Growth Outlook
United Heat Transfer is expanding its manufacturing infrastructure at the Talegaon plant to support increasing customer demand. Construction of a new 50,000 sq. ft. building has commenced and is expected to be operational by Q3 FY27. The expansion aims to improve manufacturing throughput, enhance operational efficiency, and reduce delivery timelines to 8–10 weeks from the current 14–16 weeks.
The company is also making strategic inroads into the data centre cooling segment, having onboarded Vertiv as a new customer and successfully developed a Cooling Distribution Unit (CDU) solution. The first commercial supply is proposed to be delivered by June 30, 2026. During H2 FY26, the company added 57 new customers, comprising 41 domestic and 16 international clients. Management targets 30–35% revenue growth in FY27, supported by capacity expansion, operational efficiency initiatives, and entry into high-growth sectors like data centres and defence.
Corporate Governance and Fund Utilization
The Board appointed M/s Anuj Joshi & Associates, Chartered Accountants, as the internal auditor for FY27, effective from April 1, 2026. The company confirmed that the entire net proceeds of ₹27.083 crore raised through its Initial Public Offer have been utilized for the original objects, including repayment of loans and funding working capital requirements, with no deviation in fund usage.
Post Earnings Conference Call
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company conducted a Post Earnings Conference Call for H2 FY 2026 on Wednesday, June 3, 2026, via virtual mode. Analysts and investors participated in the interaction held between 12:00 P.M. and 1:15 P.M. IST. The company confirmed that no Unpublished Price Sensitive Information (UPSI) was shared during the call. The audio and video recording of the conference call is available on the company's website.
During the call, management highlighted that the current order book is approximately ₹36–37 crore. The company is engaging with new customers including Hitachi, Chart, and Nuclear Power Corporation of India Limited (NPCL) for pressure vessels. Management noted that the data centre cooling opportunity with Vertiv is a long-term scalable business, with potential revenue estimated between ₹10 crore and ₹20 crore annually upon full conversion, though initial trial orders are valued between ₹10 lakh and ₹20 lakh. The company expects operating profit margins to improve as metal prices normalize and operational efficiencies take effect. The expansion at the Talegaon plant is designed to address bottlenecks related to shop floor space and height requirements for air-cooled exchangers, with current capacity estimated to support revenue of ₹200–250 crore.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0SMR01011/1cb61400fdc440e8.pdf
Historical Stock Returns for United Heat Transfer
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.89% | -8.57% | -4.46% | +87.39% | +50.72% | +62.63% |
What are the specific risks or challenges associated with entering the highly competitive data centre cooling market alongside established players?
How will the company's capital structure and leverage ratios be impacted now that IPO funds are fully utilized and it relies on internal accruals for the Talegaon expansion?
What is the expected timeline for the trial orders with Vertiv to convert into the projected ₹10–20 crore annual revenue stream?
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