Uniparts India Limited demonstrated strong operational momentum in Q3 FY26, delivering significant growth across key financial metrics while maintaining its resilient business model amid improving industry conditions.

Financial Performance Highlights

The company reported impressive financial results for the quarter ended December 31, 2025, with revenue growth accelerating across multiple segments.

For the nine months of FY26, the company achieved 17% revenue growth with EBITDA increasing 46% year-on-year, demonstrating effective operating leverage as volumes recovered.

Strategic Business Model Gains Traction

Warehouse-led sales have emerged as a key growth driver, now accounting for over 50% of revenues in the first nine months of FY26. This strategic positioning enables the company to create higher value for customers through enhanced agility, resilience, and proximity - capabilities that management emphasizes are not easily replicable.

The revenue mix breakdown shows warehousing sales at approximately 50%, direct exports at 25%, India sales at 15%, and local delivery in the US comprising the balance. This diversified delivery model provides stability across different market conditions and customer requirements.

Industry Recovery Supports Growth Momentum

The construction equipment industry continues to show steady improvement, supported by infrastructure spending, data center investments, and energy transition projects in the United States. European markets are experiencing gradual recovery with infrastructure spending and ESG-driven refurbishment supporting demand.

In the agriculture segment, small agriculture is recovering ahead of large agriculture, with industry expectations indicating flat-to-low single-digit growth across North America and Europe. Indian demand remains robust, supported by favorable monsoons, healthy reservoir levels, and GST reductions.

Tariff Changes Create New Opportunities

Recent tariff modifications present significant opportunities for the company's growth strategy. The reduction in reciprocal tariffs to 18% and removal of Russian oil tariffs are expected to benefit all business segments, particularly aftermarket and construction equipment. Management indicated these changes could reactivate China Plus One projects that had previously stalled due to higher tariff structures.

Strong Financial Position and Capital Allocation

The company maintains a robust balance sheet with a net cash position of Rs.153 crores as of December 31, 2025. During Q3 FY26, the company declared a special dividend of Rs.101 crores, with total dividend distribution reaching Rs.139 crores by December 2025. Additionally, a second interim dividend of Rs.7 was announced, demonstrating commitment to shareholder returns.

Outlook and Growth Prospects

With a strong new business awards pipeline of approximately Rs.200 crores providing visibility into future growth, the company expects to maintain mid-teens growth for FY27. The Mexico warehouse became operational in October 2025, strengthening the near-shoring footprint and enhancing delivery reliability for customers.

Management remains confident in sustaining 20% EBITDA margins over the cycle, supported by operating leverage benefits and the company's diversified business model across segments and geographies.

Uniparts India Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, demonstrating robust performance across key financial metrics. The Board of Directors approved the results at their meeting held on February 09, 2026, under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

The company delivered exceptional growth in the third quarter with significant improvements across revenue and profitability metrics:

Nine Months Performance

For the nine months ended December 31, 2025, the company maintained strong momentum:

Dividend Declaration

The Board of Directors declared a second interim dividend for FY 2025-26:

Exceptional Items and Key Developments

The company reported an exceptional item of ₹28.05 million related to the impact of Labour Codes implemented by the Government of India. These codes consolidate twenty-nine existing labour laws and introduce changes including uniform wage definitions and enhanced leave benefits.

Additionally, a fire incident occurred at the company's Ludhiana plant on December 27, 2025, causing damage to building, plant, equipment, and inventory. The damage is adequately covered under existing insurance policies, and the claim process has been initiated.

Consolidated Performance

On a consolidated basis, the company reported revenue from operations of ₹2,810.03 million for Q3 FY26 compared to ₹2,083.08 million in Q3 FY25, representing growth of 34.90%. Consolidated net profit stood at ₹333.22 million versus ₹191.38 million in the previous year.