Universal Autofoundry Limited received a claim petition for ₹3.56 crore from M/s Precision Autocastings Private Limited under the Micro, Small and Medium Enterprises Development Act, 2006.

The intimation was received from the Micro and Small Enterprises Facilitation Council (MSEFC), Jaipur, on October 6, 2026. The claim relates to outstanding dues towards supplies made by the claimant to the company.

Claim details and legal status

The petition was filed under Section 18(1) of the MSMED Act, 2006. The matter has been registered on the MSME Online Dispute Resolution (ODR) Portal with Case No. CP/15471(RJ)/2026. As of the disclosure date, the case remains pending.

Disclosure and company response

Universal Autofoundry disclosed this development to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company expressed regret over the delay in informing the stock exchange, attributing it to an oversight.

Management stated it is examining the matter and will take appropriate steps in accordance with applicable law. Further updates regarding the proceedings will be disseminated to the stock exchange in due course.

Universal Autofoundry Limited reported a net loss of ₹161.40 lakh for the quarter ended June 30, 2026, widening from a profit of ₹68.38 lakh in Q1FY26. The deterioration in profitability occurred despite a 16.7% year-on-year rise in revenue from operations to ₹5441.72 lakh, as margin compression was driven by a 16.8% surge in material costs and a 54.7% jump in finance expenses to ₹127.45 lakh. The Board of Directors approved the unaudited standalone financial results on July 27, 2026.

The divergence between top-line growth and bottom-line contraction underscores intense cost pressures within the manufacturing segment. While revenue expanded, the company was unable to fully pass on input cost increases to customers. Finance costs rose significantly due to higher borrowing associated with ongoing capacity expansion projects, including the installation of new machinery and solar plants. The trading window for directors and designated persons will open 48 hours after the declaration of these results, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Revenue from operations stood at ₹5441.72 lakh in Q1FY27, up from ₹4662.74 lakh in the corresponding period of FY26. Total expenses increased to ₹5639.16 lakh from ₹4689.68 lakh year-on-year, resulting in an operating loss before tax of ₹166.52 lakh. A deferred tax benefit of ₹5.12 lakh narrowed the final net loss to ₹161.40 lakh. Basic earnings per share (EPS) were negative ₹1.30, compared to positive ₹0.55 in the previous year.

Operational Updates and Capacity Expansion

Production increased by 11% year-on-year to 5,725 MT, supported by sustained volume growth and improved plant throughput. Capacity utilisation improved to 55% from 49% in Q1FY26, enhancing operating leverage. However, EBITDA per kg moderated to ₹4.6 from ₹6.8 in Q1FY26, as raw-material inflation offset the benefits of higher capacity utilisation. Exports grew by 7% year-on-year to ₹51 million, with management expecting this momentum to continue.

Total assets expanded to ₹18277.01 lakh as of June 30, 2026, primarily driven by a substantial increase in Capital Work-in-Progress (WIP) to ₹2173.16 lakh from ₹253.84 lakh. This reflects ongoing capacity expansion, including a second solar plant expected to be capitalised in Q2FY27. The 6.5 MW solar plant at Churu is scheduled for commissioning in two to three months, with cost benefits expected to accrue in the second half of FY27.

Strategic Roadmap and Market Diversification

Universal Autofoundry is actively reducing its reliance on the cyclical tractor segment, which formed more than 50% of total revenues in FY25-26. The company aims for Medium & Heavy Commercial Vehicles (M&HCV), Construction, Engineering, and other sectors to form more than 75% of the overall revenue mix over the next three to five years. Capacity utilisation is expected to improve to 65% from FY27 onwards, inclusive of Unit-3 capacity. Exports are projected to contribute approximately 15% to revenues over the next three years, leveraging trade deals with the EU and US.

What the Numbers Show

The financial data reveals a classic volume-margin trade-off. While Universal Autofoundry successfully drove an 11% increase in production and 16.7% revenue growth, the inability to control input costs resulted in EBITDA per kg falling by nearly one-third to ₹4.6. The sharp rise in finance costs, linked to debt-funded capex for solar and machinery upgrades, further eroded profitability. Investors should monitor whether the upcoming commissioning of the solar plant and diversification into non-tractor segments can restore margins in subsequent quarters.