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Unimech Aerospace rebounds from a tariff-hit year; order book triples to ~Rs. 314 crore as scale becomes its competitive moat

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| June 12, 2026 10:56:32 AM IST
VMPL

Bengaluru (Karnataka) [India], June 12: Unimech Aerospace & Manufacturing Ltd., a Bengaluru-based high precision engineering solutions provider, has returned to growth after a year of temporary disruption in global customer ordering. Its consolidated order book has tripled to approximately 314 crore as of 26 May, 2026, from about 100 crore a year earlier, and the fourth quarter marked a decisive turn.

Through much of FY26, a wave of CY2025 tariff measures, baseline US duties, and reciprocal tariffs, led global buyers to pause and defer orders. For FY26, Unimech's total revenue stood at 287.5 crore. EBITDA of 75.1 crore and PAT of 63.3 crore moderated largely by design: the company front-loaded investment in capacity, capability and talent to build ahead of the recovery.

For Q4 FY26, total revenue rose to 96.6 crore, up 116% sequentially and 23% year-on-year; EBITDA recovered to 35.2 crore from 1.5 crore in Q3 FY26, and PAT to 26.1 crore from 2.4 crore in Q3 FY26. More than 200 first-article qualifications completed during the year, some of which are now converting into production. Collectively, the current order book, provides strong revenue visibility over the next 12 months and beyond.

Unimech's advantage rests on a deeply integrated manufacturing and qualification platform -- spanning nearly 6,000 SKUs, a qualification engine that approved over 200 first articles last year and is targeting a meaningful scale-up in FY27, and a manufacturing footprint exceeding 600,000 sq. ft. Each qualified part strengthens Unimech's integration within customer supply chains, gradually increasing switching costs over time. In precision engineering, particularly within aerospace, energy and high-spec industrial applications, supplier qualification is a long and rigorous process involving process validation, repeatability checks, documentation standards and customer approvals. Once a supplier is qualified and embedded into an OEM or Tier-1 programme, replacement becomes both time-consuming and operationally expensive.

As seen with some of India's strongest precision-engineering suppliers, durable competitive advantages are not built purely on production volume, but on the breadth of qualified capabilities, process reliability and customer embedment. Every additional approved component expands the company's relevance within existing programmes while opening adjacencies across platforms and customers. Over time, this creates a compounding moat driven by qualification depth, engineering credibility and execution consistency rather than scale alone.

The acquisition of Hobel Bellows was also aligned with Unimech's long-term growth and capability strategy. The transaction strengthens the group's manufacturing depth and engineering capabilities, enabling Unimech to offer larger and more integrated solution packages to customers while increasing wallet share across existing relationships. The acquisition also enhances the company's positioning in high-precision and critical application segments, where customers increasingly prefer integrated suppliers with broader manufacturing capabilities. Additionally, during the year, the company received about 87 crore of nuclear orders tied to the Tarapur and Madras stations, positioning Unimech for India's Nuclear Energy Mission target of 100 GW by 2047 (from under 9 GW currently).

Building on the capabilities, Unimech's associate entity Dheya Engineering Technologies is developing indigenous micro gas turbine engines under the Make in India initiative, strengthening its position in advanced propulsion technologies. Unimech's exclusive manufacturing partnership for several of these offerings creates meaningful long-term opportunities for Unimech in advanced propulsion and defence applications.

The company is also expanding its international footprint through a joint venture with the Yusuf Bin Ahmed Kanoo Group in Saudi Arabia. Phase I of the project, involving a planned investment of US$30 million, is already underway, with investment approvals secured and facility finalisation and machine procurement activities initiated. The platform is expected to emerge as an important long-term growth driver for the company.

Unimech enters FY27 against a supportive backdrop, as global manufacturers accelerate sourcing from India, with utilisation expected to substantially improve from its current 50% levels over the next 30 to 36 months.

About Unimech Aerospace and Manufacturing Limited

Unimech Aerospace and Manufacturing Limited (BSE: 544322 | NSE: UNIMECH) is an advanced precision engineering platform founded in 2016, and headquartered in Bengaluru, serving global customers across aerospace, defence, energy, oil & gas and semiconductors. Operating from in excess of 600,000 sq. ft. AS9100-certified facility with 150+ CNC machines, Unimech delivers complex build-to-print components, assemblies and engineered sub-systems with micron-level precision. Recent initiatives include the proposed acquisition of Hobel Bellows and a strategic joint venture in Saudi Arabia with YBA Kanoo. The Company is certified to AS9100, ISO 9001:2015, and ISO 45001, reflecting its commitment to quality, safety and compliance for globally regulated industries.

For more information, visit www.unimechaerospace.com.

(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same.)

 
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