Unimech Aerospace and Manufacturing Limited reported challenging Q3 FY26 results with revenue declining to Rs 34 crores from Rs 61 crores in the previous quarter, primarily attributed to elevated U.S. tariffs and seasonal slowdown in December. However, the company achieved a record order book of Rs 210 crores, providing strong visibility for future quarters.

Financial Performance Overview

The company's financial metrics for Q3 FY26 reflected the impact of external headwinds, though operational fundamentals remained resilient.

The aero tooling segment contributed 77% of revenue over the nine-month period, with the remaining portion from precision components. Despite lower revenue absorption, gross margins remained strong at 71% for Q3, demonstrating the resilience of the company's cost structure.

Record Order Book Achievement

Unimech achieved its highest-ever order book of Rs 210 crores as of February 12, 2026, representing double the past order bookings and providing substantial execution visibility.

The company reported receiving orders worth Rs 1.20 million in the first week of February alone, indicating improved order momentum following tariff reductions.

Strategic Initiatives and Expansion

Free Trade Warehousing Zone (FTWZ)

The company continues advancing its FTWZ establishment, with facility setup largely complete and regulatory approvals pending. Management expects to conclude the approval process during Q4 FY26, subject to regulatory timelines. Once operational, the FTWZ will enable customers to maintain duty-free inventories and ensure regular order flows.

Saudi Arabia Joint Venture

Unimech established a strategic joint venture with Yusuf Bin Ahmed Kanoo Group in Saudi Arabia, with the company holding 51% controlling stake. Key highlights include:

Business Segment Performance

Aero Tooling Business

Q3 performance was impacted by inability to ship orders due to elevated tariffs and year-end holiday slowdown. However, inventory build-up remained strong, positioning the company for improved revenues in Q4. The recent tariff reduction from 50% to 18% significantly improves customer economics and is expected to restore order confidence.

Precision Components and Nuclear

The precision components segment continues steady progress with 24 new First Article Approval (FAA) requests received. In semiconductors, the company secured production orders with 52 weeks visibility. The nuclear segment contributed Rs 68 crores to the order book, with additional orders expected before fiscal year-end.

Outlook and Guidance

Management expressed confidence in Q4 FY26 recovery, targeting to surpass last year's revenue of Rs 240 crores. The company expects:

• Gradual order pickup with deeper recovery towards quarter-end
• Year-end EBITDA margins of 25% and PAT margins of 25%
• Improved capacity utilization from current 60% levels
• Working capital stabilization in 150-160 days range

With Rs 30 crores worth of finished goods ready for shipment and Rs 60-70 crores under production, the company appears well-positioned for Q4 execution. Management emphasized that temporary volatility does not alter long-term fundamentals or business model scalability.

Source: Exclusive content

Unimech aerospace and manufacturing Limited has announced the resignation of its Company Secretary and Compliance Officer, marking a significant change in the company's key management personnel.

Key Personnel Change

Mr. Akash Shetty has tendered his resignation from the position of Company Secretary and Compliance Officer, effective from the close of business hours on March 3, 2026. The resignation was submitted through a formal letter dated February 16, 2026, citing personal reasons for his departure.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was formally communicated to both the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) on February 17, 2026.

Whole-time Director Ramakrishna Kamojhal signed the official communication to the stock exchanges, ensuring compliance with all applicable SEBI regulations and circular requirements.

Succession Planning

Unimech Aerospace has confirmed that it is actively engaged in identifying and hiring a suitable candidate for the Company Secretary and Compliance Officer position. The company has committed to informing the stock exchanges once the vacancy is filled, ensuring continuity in regulatory compliance and corporate governance functions.

In his resignation letter, Shetty expressed gratitude to the Board of Directors and Group CFO for the opportunity to work with the organization, acknowledging the support and guidance received during his tenure. He specifically requested the company to complete all necessary formalities, including filing requisite e-forms with the Registrar of Companies and making appropriate disclosures to maintain regulatory compliance.