Uniparts India Ltd Q1 FY27 Earnings Analysis

- Uniparts India Limited expects FY27 growth in line with FY26, driven mainly by volume growth as industry cycles turn. - Growth is anticipated from new project wins, particularly in large agriculture (large ag) and precision machine parts (PMP) segments, which together account for about 70% of new business wins. - OEM customers are showing recovery, especially in the small ag segment (~5% growth expected in North America) and stronger growth expected in Europe in the second half of FY27. - The company continues to deepen customer partnerships and broaden presence across segments and geographies. - New products are under continuous development across segments in collaboration with customers. - Capacity is managed via balancing capex within 2.5%-3.5% of revenue to ensure scalability. - The order book remains robust, with roughly INR 200-225 crores in new business wins annually, indicating healthy revenue visibility.

- FY27 growth is expected to be in line with FY26, driven by industry recovery, new business wins, and gradual market recovery. - Operating leverage is positive; EBITDA grew over 55% in FY26, outperforming revenue growth of 21%. - Sustainable EBITDA margin expected above 20%, with actual level dependent on revenue ramp-up and delivery channel mix. - Trailing 12-month EPS post Q4 FY26 is INR 35.07, 80% higher than FY25 end, despite a INR 3.4 crore impact from new wage code. - New business momentum (INR 225+ crore annualized wins) provides visibility into future growth. - Strong balance sheet (net cash INR 160 crores) supports sustainable EPS improvement as volumes grow. - Management confident in maintaining profitability with disciplined cost control and capacity utilization balancing capex at 2.5%-3.5% of revenue.

- The company maintains a consistent capex plan of 2.5% to 3.5% of revenue for the foreseeable future. - Capex investments focus on balancing capex to support new business growth without additional large-scale investments. - Investments aim to enhance capabilities and improve operating costs, including recent insourcing at the U.S. factory. - Despite recent challenges (e.g., fire incident), the company continues investing in capabilities across the group, including building warehousing or nearshoring models such as the investment in Mexico. - The steady-state EBITDA of 20% supports ongoing reinvestment in the business, even during downturns. - The company is actively evaluating acquisition targets that add meaningful platforms, are manageable in size, and are ROE and ROCE accretive; no concrete acquisition has been announced yet. - Capital allocation remains disciplined, with recent special dividend payout reflecting careful evaluation of investment opportunities.

- Uniparts India Limited has been evaluating about a dozen acquisition targets, but no concrete deals have been finalized yet. - The company follows a clear capital allocation framework, focusing on targets that add meaningful platforms, are manageable in size, and are ROE/ROCE accretive. - No current or imminent fundraising through debt or equity has been announced. - A special dividend was paid out in Q3 FY26 after deciding not to proceed with a potential acquisition opportunity. - Management emphasizes disciplined capital allocation and will update investors when any concrete action occurs regarding fundraising or acquisitions.

- As of March 31, FY26, Uniparts India Limited has INR 225 crores of new order wins, representing the annualized potential of new projects won in the trailing 12 months. - The order wins number has held steady at around INR 200 crores+ for a few quarters, indicating consistent new business acquisition. - The company has been winning roughly INR 200 crores of new business annually and converting older wins into actual revenue as the industry cycle improves. - The exact total outstanding order book is not explicitly stated, but the steady INR 200-225 crores of new order wins reflects good visibility for growth. - Growth outlook for FY27 is expected to be in line with FY26, driven by these order wins and industry recovery.