Universal Autofoundry Limited conducted its 5th board meeting for the financial year 2025-26 on January 20, 2026, approving several strategic business decisions aimed at enhancing operational efficiency and financial flexibility. The meeting was held in hybrid mode at the company's registered office in Jaipur, demonstrating the company's commitment to sustainable energy solutions and diversified banking relationships.

Key Board Approvals

The board meeting resulted in approval of multiple significant initiatives that will impact the company's operational and financial structure:

Solar Power Initiative

The board's approval for installing a solar power plant of up to 8 MW capacity represents a significant step towards sustainable energy adoption. This solar installation will be dedicated to captive consumption, allowing Universal Autofoundry to generate electricity for its own operational requirements. The move aligns with the growing trend among manufacturing companies to reduce dependency on grid electricity and lower operational costs through renewable energy sources.

Banking Arrangements Restructuring

In a strategic financial move, the board approved obtaining credit facilities from two additional nationalised banks, expanding the company's banking relationships beyond its current arrangements. The board also sanctioned the partial or full shifting of existing credit facilities from HDFC to other nationalised banks. This restructuring aims to establish multiple banking arrangements, potentially providing the company with better terms, increased credit access, and reduced dependency on a single financial institution.

Corporate Governance Updates

The board addressed corporate governance matters by approving the re-constitution of the Internal Complaints Committee, also known as the POSH (Prevention of Sexual Harassment) Committee. This action ensures compliance with regulatory requirements and maintains the company's commitment to providing a safe workplace environment for all employees.

Meeting Details

The board meeting commenced at 14:30 hours IST and concluded at 16:20 hours IST on January 20, 2026. The meeting was conducted in hybrid mode, allowing both physical and virtual participation of board members. Company Secretary and Compliance Officer Jayanti Jha Roda signed the official communication, confirming the meeting outcomes and ensuring regulatory compliance under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Universal Autofoundry Limited (UAL), a leading manufacturer of graded grey iron and ductile iron components, has reported robust financial performance for the first half of fiscal year 2026 (H1 FY26).

Financial Highlights

• Revenue grew by 54% year-over-year to Rs 1,688.61 million in H1 FY26, compared to Rs 1,097.99 million in H1 FY25.
• EBITDA increased by 86% to Rs 122.88 million, with EBITDA margin expanding to 7.3% from 6.0% in the same period last year.
• Profit After Tax (PAT) surged by 145% to Rs 240.61 million, with PAT margin improving to 14.2% from 8.9% year-over-year.
• Earnings Per Share (EPS) for H1 FY26 stood at Rs 2.96, up from Rs 1.21 in H1 FY25.

Operational Performance

• Production volume grew by 19% to 13,452 MT in H1 FY26.
• Capacity utilization improved to 50% in Q2 FY26, up from 46% in Q1 FY26.
• Export revenue increased by 24% year-over-year to Rs 274 million in H1 FY26.

Strategic Developments

UAL announced a 7-year strategic collaboration with Kranti Industries for integrated casting and machining operations, effective from January 1, 2026. This partnership is expected to enhance UAL's value proposition and expand its addressable market.

The company's new ferrous line (HPML Line) is now operational with a production capacity of 12,000 MT/year. Additionally, a 5MW solar power plant was commissioned in July 2025, which is anticipated to reduce power and fuel costs from Q3 FY26 onwards.

Market Segment Performance

The tractor segment showed strong performance during the peak season, while earthmoving equipment volumes remained soft. The company's diversified presence across various sectors including tractors, commercial vehicles, and other industrial applications has helped in maintaining growth momentum.

Management Commentary

Vimal Chand Jain, Chairman and Managing Director of Universal Autofoundry, stated, "Our strong performance in H1 FY26 reflects the resilience of our business model and the successful execution of our growth strategies. The strategic collaboration with Kranti Industries and our investments in capacity expansion and renewable energy underscore our commitment to sustainable growth and operational excellence."

Universal Autofoundry continues to strengthen its position in the auto components industry with its focus on quality, innovation, and customer satisfaction. The company's robust financial performance and strategic initiatives provide a solid foundation for future growth in the evolving automotive and industrial landscape.