Future growth expectations in earnings/operating earnings/profits/EPS?

FY '26: Margins expected to be around 30%-32% due to cost of capacity expansion and investments. EBITDA margins will be under some pressure owing to increased employee count and operating expenses. Long term: Targeting 35% EBITDA margins as operating leverage kicks in from FY '27 onwards. Revenue Growth: Moderate growth in near term with FY '26 expected revenue growth at 35%-40%, supported by tooling, precision, and nuclear segments. Capacity Utilization: Utilization expected to rise from ~55%-58% currently, to 70%-75% in FY '26, reaching around 85%-90% by FY '28, supporting revenue and mar

Any current/future new fundraising through debt or equity?

The company raised some long-term debt last year, which is expected to be repaid in the coming months as mentioned in their IPO objectives. Despite having IPO funds and cash on their books, they utilized debt partially for strategic reasons including potential M&A opportunities. There is no explicit mention of any immediate new fundraising through debt or equity planned currently. The company is open to acquisitions and is actively evaluating precision manufacturing companies but will proceed only when targets meet criteria. Cash utilization plans include capex investment of INR 75-80 crores a

Any current/future capex/capital investment/strategic investment?

For FY '26, management plans capex investment of INR 75 to 80 crores primarily in machinery and infrastructure. Working capital investment planned around INR 60 crores, with INR 35 crores utilized in FY '26 and INR 30 crores reserved for the next year. Capacity expansions include increasing machine hour capacity from around 6.33 lakh hours to 8 lakh hours, with factory floor space exceeding 3 lakh square feet. Majority (60-70%) of FY '25 capex already incurred; remaining to be spent partly in FY '25-26. Expansion supports growth in aerospace, nuclear, and precision segments, targeting optimal

Future growth expectations in sales/revenue/volumes?

Targeting 35% to 40% revenue growth in FY '26, driven by tooling, precision, and nuclear segments. Aim to grow at a 40% CAGR for the next 4 years, with ambition to reach INR 1,000 crore sales by FY '29. Capacity utilization expected to increase from current ~55-58% to 70-75% in FY '26, and optimistically up to 80%. By FY '28, machine capacity utilization expected at 85-90%, supporting higher revenue growth. Expansion into aerospace, defense, nuclear, semiconductor, and energy sectors to diversify order book and boost volumes. M&A activities considered to deepen technical capabilities and expan

Current/ Expected Orderbook/ Pending Orders?

Current order book stands close to INR 93-100 crores, holding good for approximately 3 to 4 months of revenue. The order book was over INR 100 crores at the end of last quarter but reduced due to better execution and revenue materialization. The company continues to receive daily and weekly customer inquiries, which keeps the order book evolving. In the nuclear segment, several tenders are expected to open in the next 1-2 quarters, including refurbishment and new projects like EMCCR. Deliveries for certain nuclear orders are pending and expected in Q1 and Q2 of the new financial year. The prec

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Unimech Aerospace and Manufacturing LtdQ1 FY25Aerospace & Defense

Unimech Aerospace and Manufacturing Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,148P/E: 76.8Market Cap: ₹5.1K CrSector: Aerospace & Defense

Management growth scorecard

Revenue

Category 1

Margin

Category 4

Fundraise

Yes

Order

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→Targeting 35% to 40% revenue growth in FY '26, driven by tooling, precision, and nuclear segments.
→Aim to grow at a 40% CAGR for the next 4 years, with ambition to reach INR 1,000 crore sales by FY '29.
→Capacity utilization expected to increase from current ~55-58% to 70-75% in FY '26, and optimistically up to 80%.
→By FY '28, machine capacity utilization expected at 85-90%, supporting higher revenue growth.
→Expansion into aerospace, defense, nuclear, semiconductor, and energy sectors to diversify order book and boost volumes.
→M&A activities considered to deepen technical capabilities and expand customer base.
→Overall, stable long-term margins around 35% expected after short-term compression in FY '26 due to increased costs and investments.

Margin guidance

Category 4

→FY '26: Margins expected to be around 30%-32% due to cost of capacity expansion and investments. EBITDA margins will be under some pressure owing to increased employee count and operating expenses.
→Long term: Targeting 35% EBITDA margins as operating leverage kicks in from FY '27 onwards.
→Revenue Growth: Moderate growth in near term with FY '26 expected revenue growth at 35%-40%, supported by tooling, precision, and nuclear segments.
→Capacity Utilization: Utilization expected to rise from ~55%-58% currently, to 70%-75% in FY '26, reaching around 85%-90% by FY '28, supporting revenue and margin growth.
→Ambition to achieve INR 1,000 crore sales by FY '29 with consistent 40% growth over next 4 years.
→Profitability and returns expected to improve post FY '26 as foundational investments bear fruit with sustainable margins above 35% EBITDA.

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Fundraise plans

Yes

→The company raised some long-term debt last year, which is expected to be repaid in the coming months as mentioned in their IPO objectives.
→Despite having IPO funds and cash on their books, they utilized debt partially for strategic reasons including potential M&A opportunities.
→There is no explicit mention of any immediate new fundraising through debt or equity planned currently.
→The company is open to acquisitions and is actively evaluating precision manufacturing companies but will proceed only when targets meet criteria.
→Cash utilization plans include capex investment of INR 75-80 crores and working capital allocation about INR 60 crores over this year and next.
→They indicated earmarking funds for M&A opportunities but no fresh capital raise for that purpose has been stated.

Order book

→Current order book stands close to INR 93-100 crores, holding good for approximately 3 to 4 months of revenue.
→The order book was over INR 100 crores at the end of last quarter but reduced due to better execution and revenue materialization.
→The company continues to receive daily and weekly customer inquiries, which keeps the order book evolving.
→In the nuclear segment, several tenders are expected to open in the next 1-2 quarters, including refurbishment and new projects like EMCCR.
→Deliveries for certain nuclear orders are pending and expected in Q1 and Q2 of the new financial year.
→The precision segment is actively onboarding new customers with a growing order pipeline.
→Overall, management is confident of achieving over 40% revenue growth in FY '26 supported by strong order inflows in aero tooling, precision, and nuclear segments.

Capex plans

Yes

→For FY '26, management plans capex investment of INR 75 to 80 crores primarily in machinery and infrastructure.
→Working capital investment planned around INR 60 crores, with INR 35 crores utilized in FY '26 and INR 30 crores reserved for the next year.
→Capacity expansions include increasing machine hour capacity from around 6.33 lakh hours to 8 lakh hours, with factory floor space exceeding 3 lakh square feet.
→Majority (60-70%) of FY '25 capex already incurred; remaining to be spent partly in FY '25-26.
→Expansion supports growth in aerospace, nuclear, and precision segments, targeting optimal utilization of 85-90% machine capacity over 3 years.
→Strategic investments include ongoing M&A efforts targeting precision manufacturing companies, mainly in India and the U.S., aiming to expand technical capabilities and customer base.
→No immediate plan to fully acquire Dheya Engineering; further stake will be acquired post engine approval.
→The focus is also on building infrastructure to handle emerging orders, including engine stands.

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