Unimech Aerospace and Manufacturing Limited , a key player in the aerospace and defense manufacturing sector, reported a 6% year-on-year revenue growth for Q1 FY26, reaching ₹63.00 crores. The company maintained its annual guidance of 35-40% revenue growth despite ongoing tariff discussions affecting shipment timing.

Financial Highlights

• Q1 FY26 revenue stood at ₹63.00 crores, up 6% year-on-year
• EBITDA reported at ₹20.00 crores with a 31% margin
• PAT for the quarter was ₹19.00 crores, representing 26% of revenue
• Order book as of June 2025 end was ₹81.00 crores

Operational Performance

• Aero tooling segment contributed 82% of revenue, while precision and assembly segment accounted for 18%
• The company delivered 4,769 SKUs, adding 381 new ones during the quarter
• Capacity utilization remained at 58%, with management targeting 85-90% utilization in the next 24 months
• Employee costs increased to over 20% due to new hiring, ESOP implementation, and salary increments

Business Expansion and Opportunities

• Added three new customers across defense, electronics, and medical robotics, bringing the total customer count to 35
• Submitted four EMCCR (En-masse Coolant Channel Replacement) tenders worth ₹400.00+ crores for nuclear power stations
• Expecting more nuclear reactor tenders worth ₹500.00+ crores each
• Participated in tenders worth over ₹800.00 crores in the last 1-2 months for nuclear projects

Future Outlook

• Management maintains FY26 guidance of 35-40% revenue growth
• Expects EBITDA margins to remain in the 30-32% range for FY26
• Anticipates a shift towards more drop shipments to minimize tariff impact for non-U.S. goods
• Plans to increase domestic revenue share, targeting a 75-25 export-domestic mix in about two years

Strategic Initiatives

• Exploring M&A opportunities and joint ventures in the US and Europe to enhance global presence
• Focusing on nuclear and defense segments for domestic market expansion
• Continuing to invest in capacity building and new customer onboarding

Unimech Aerospace remains optimistic about its growth trajectory, leveraging its strong position in the aero tooling segment while expanding into precision components and nuclear projects. The company's management expressed confidence in maintaining its guidance despite potential challenges from tariff uncertainties, banking on operational efficiencies and strategic expansions to drive growth.

Unimech Aerospace and Manufacturing Limited , a key player in the aerospace and defense manufacturing sector, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported a mixed performance, with revenue growth accompanied by a slight decline in profitability.

Financial Highlights

Operational Performance

The company reported several operational updates:

• Qualified SKUs increased to 4,769 as of June 2025, up from 4,388 in March 2025.
• Employee count grew to 845 as of June 2025, compared to 793 in March 2025.
• Orders in hand stood at ₹810 crore as of June 2025, with expectations of larger order flow in Q2 and Q3.
• Capacity utilization reached 58% of installed machine capacity at 658,590 machine hours in June 2025, a significant increase from 222,990 machine hours in March 2024.

Management Commentary

Anil Kumar P, Chairman & Managing Director of Unimech Aerospace, commented on the results: "FY26 has begun on a steady note with revenues of ₹630 million. Focused margin management delivered a gross margin of 66%, while EBITDA margin at 31% remained aligned with our guidance. We added three new customers this quarter, driven by strong market interest and continued momentum from last year."

He further added, "Our strategy to build a resilient, diversified business is yielding results, with growing presence in precision engineering for tier-1 and OEM clients across aerospace, defense, semiconductors etc. Improving capacity utilization is a key near-term priority. Our active engagement across industries is expected to strengthen the order book, supported by nuclear projects and OEM component manufacturing."

Corporate Updates

In addition to the financial results, Unimech Aerospace announced several corporate updates:

1. Appointment of New Company Secretary: Mr. Akash Shetty has been appointed as the Company Secretary and Compliance Officer, effective July 24, 2025. Mr. Shetty brings over a decade of experience in governance and compliance across the manufacturing and IT sectors.

2. New Internal Auditors: The company has appointed RSM India as its Internal Auditors for the Financial Year 2025-26. RSM India, a member of RSM International, has been operating in India since 1996 and brings extensive experience in internal audit, risk advisory, and consulting services.

3. Strategic Initiatives: The company continues to explore inorganic expansion opportunities and is evaluating potential M&A targets for strategic and operational synergies. Unimech has also acquired a 30% stake in Dheya Engineering Technologies Pvt Ltd, securing an exclusive manufacturing agreement for micro gas turbine engines.

4. Geographical Expansion: Unimech is expanding its presence in the USA and European countries by onboarding new customers and increasing wallet share with existing clients. The company is also evaluating the establishment of warehouses in global locations to reduce lead times and improve responsiveness to customer demands.

Despite the challenges reflected in the quarterly results, Unimech Aerospace remains optimistic about future growth opportunities, citing its diversified business model, expanding customer base, and strategic initiatives as key drivers for sustainable growth in the coming quarters.