Unimech Aerospace and Manufacturing , a key player in the aerospace industry, has released its Q2FY26 financial results, revealing a mixed performance amidst challenging market conditions. The company's growth has been significantly impacted by US export tariffs, affecting order pickups from American customers.

Financial Highlights

Revenue and Profitability

Unimech Aerospace and Manufacturing reported a modest 1% year-on-year increase in revenue, reaching ₹62.00 crores for Q2FY26. Despite the challenging environment, the company maintained a robust EBITDA margin of 30.00%, demonstrating its operational efficiency.

Impact of US Export Tariffs

The company's growth trajectory has been significantly affected by US export tariffs, which have led to a slowdown in order pickups from American customers. This external factor has created uncertainty in the market, prompting Unimech Aerospace and Manufacturing to withdraw its FY26 growth guidance.

New Order and Order Book

Despite the headwinds, Unimech Aerospace and Manufacturing secured a notable order worth $4.00 million for ground support equipment under the LEAP engine program. This new contract showcases the company's continued relevance in the aerospace supply chain.

The company's order book stands at ₹105.00 crores, providing some visibility for future revenues. However, the sustainability of this order book may be subject to ongoing tariff uncertainties.

Outlook

Unimech Aerospace and Manufacturing faces a challenging period ahead due to the uncertainties surrounding US export tariffs. The company's decision to withdraw its FY26 growth guidance reflects the unpredictable nature of the current market environment.

While the company has demonstrated resilience with its stable EBITDA margin and new order acquisition, the coming quarters may require careful navigation of the evolving international trade landscape.

Investors and industry observers will likely keep a close watch on how Unimech Aerospace and Manufacturing adapts its strategies to mitigate the impact of these external pressures and maintain its market position in the aerospace sector.

Unimech Aerospace and Manufacturing Limited , a key player in the aerospace and defense manufacturing sector, has reported a mixed set of financial results for the second quarter and first half of fiscal year 2026.

Revenue Growth

The company's consolidated revenue from operations for Q2 FY26 stood at ₹6,198.19 crore, marking a slight increase from ₹6,145.03 crore in the same quarter last year. For the first half of FY26, revenue grew to ₹12,497.04 crore, up from ₹12,065.56 crore in H1 FY25, representing a year-on-year growth of 3.57%.

Profit Performance

Despite the revenue growth, Unimech Aerospace and Manufacturing's profitability faced some headwinds. The consolidated profit after tax for Q2 FY26 was ₹1,567.09 crore, down from ₹1,805.16 crore in Q2 FY25. For H1 FY26, profit after tax decreased to ₹3,479.52 crore from ₹3,868.14 crore in the corresponding period last year, representing a decline of 10.05%.

Expense Increase

The decline in profitability can be attributed to a significant increase in expenses. Total expenses for Q2 FY26 rose to ₹5,117.01 crore from ₹4,171.39 crore in Q2 FY25. For H1 FY26, expenses increased to ₹10,139.67 crore from ₹7,774.20 crore in H1 FY25.

Key Expense Components

Notable increases were observed in:

Balance Sheet Highlights

As of September 30, 2025:

• Total assets stood at ₹87,024.21 crore, up from ₹80,977.31 crore as of March 31, 2025
• Total equity increased to ₹70,627.53 crore from ₹66,890.72 crore

IPO Fund Utilization

Unimech Aerospace and Manufacturing has utilized ₹13,292.00 crore out of the ₹23,091.10 crore raised through its IPO. The funds have been used for various purposes including capital expenditure, working capital requirements, and investments in its subsidiary.

Management Commentary

Anil Puttan Kumar, Chairman & Managing Director, stated, "While we are pleased with our revenue growth, we acknowledge the impact of increased expenses on our profitability. We are actively working on optimizing our cost structure while continuing to invest in growth opportunities."

Future Outlook

The company's board has approved changes to the allocation of unutilized IPO proceeds, subject to shareholder approval, indicating potential shifts in strategic priorities. Unimech Aerospace and Manufacturing's focus on expanding its manufacturing capabilities and addressing working capital needs suggests a continued emphasis on growth and operational efficiency.

Investors will be watching closely to see how the company navigates the challenges of rising costs while capitalizing on the growth opportunities in the aerospace and defense sectors.