Unimech Aerospace and Manufacturing Ltd (NSE:UNIMECH BSE: 544322), a precision engineering company focused on aerospace, defense, nuclear and semiconductor sectors, reported weaker profitability for the third quarter and nine months ended December 31, 2025, reflecting softer market conditions even as it expanded capacity, pursued strategic acquisitions and strengthened its global footprint.
Founded in 2016, Unimech manufactures aero tooling, precision components and electro-mechanical assemblies for aerospace, defense, nuclear, energy and semiconductor industries. The company serves around 35 customers across seven countries, generates roughly 86% of revenue from exports and operates manufacturing facilities in Bengaluru with over 2.75 lakh sq. ft. of capacity. The firm caters to OEMs, Tier-1 engine tooling licensees, defense companies, nuclear PSUs and semiconductor equipment manufacturers.
Financial Performance – Q3 FY26 & 9M FY26
- Q3 revenue from operations declined 37% year-on-year to ₹337.2 million.
- EBITDA fell 90% to ₹15.4 million.
- Profit after tax plunged 85% to ₹23.9 million as margins contracted sharply amid increased costs and softer demand conditions.
- For the nine-month period, revenue slipped 9% year-on-year to ₹1,586.9 million.
- EBITDA dropped 38% to ₹398.8 million.
- PAT declined 32% to ₹371.8 million.
- EBITDA margins narrowed to about 25% from 37% a year earlier.
Operational & Business Highlights
- The company strengthened manufacturing capacity, added new facilities and expanded into Saudi Arabia through a joint venture with the Kanoo Group to establish an advanced machining platform.
- Increased its stake to around 30% in Dheya Engineering Technologies to support micro gas turbine engine development and propulsion initiatives.
- Unimech’s order book stood at about ₹2,098 million as of February 2026, supported by nuclear segment orders worth around ₹680 million.
Strategic Developments
- During the period, Unimech expanded its manufacturing footprint with new facilities and advanced capacity additions, which temporarily impacted utilization levels and return ratios as fresh capex ramped up.
- The company highlighted an upcoming collaborative manufacturing and technology park to strengthen long-term engineering capabilities.
- Operationally, export-led business remained strong with a diversified SKU portfolio and specialized NADCAP-certified processes enhancing precision manufacturing depth.
Management Commentary
Chairman and Managing Director Anil Kumar P said the company faced a softer phase in revenue and profitability but noted easing U.S. tariff pressures and improving customer confidence. Added that diversified growth drivers, international expansion and a strong order pipeline provide medium-term visibility.
Management also noted progress on the FTWZ initiative to stabilize aero-tooling performance and deepen customer engagement, while cumulative order inflows during April 2025–January 2026 remained robust, reinforcing medium-term revenue visibility despite near-term margin pressures.
Geographic Presence & Target Markets
The firm exports to multiple global markets, focusing on aerospace OEMs, defense clients, nuclear projects and semiconductor equipment manufacturers while expanding into Middle Eastern industrial markets through its Saudi joint venture.
Market Sentiment & Key Takeaway
While short-term profitability remains under pressure due to higher costs and ongoing investments, management expects improved stability supported by a healthy order book, expanding nuclear opportunities and easing external headwinds. Despite near-term earnings weakness, Unimech’s capacity expansion, strategic partnerships and strong export-driven order pipeline position it for recovery as market conditions improve.