Uniparts India Ltd (NSE: UNIPARTS) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Monali Jain — Sr Research Analyst
Gurdeep Soni — Chairman and Managing Director
Rohit Maheshwari — Chief Financial Officer
Tanushree Bagrodia — Whole Time Director and Group Chief Operating Officer
Analysts:
Viraj Kacharia — Analyst
Madhur Rathi — Analyst
Sunil Jain — Analyst
Richa Agarwal — Analyst
Anubhav Mukherjee — Analyst
Jinesh Gandhi — Analyst
Disha — Analyst
Abhishek Shah — Analyst
Dheeraj Kumar Reddy — Analyst
Srinjana Mittal — Analyst
Madhur Rati — Analyst
Vishvender Singh — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Uniparts India Limited Q3FY26 earnings conference call hosted by Go India Advisors LLP. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Monali Jain from Go India Advisors. Thank you. And over to you.
Monali Jain — Sr Research Analyst
Yeah, thank you Ikra. Good morning everyone and welcome to Q3. And 9 month FY26 earnings call of Uniparts and delimited we have on the call Mr. Gurdeep Soni, Chairman and Managing Director. Ms. Tanushi Bagrodia, Director and Group CEO Mr. Rohit Maishwari, Group CFO and Mr. Kumar Sunit, VP, SPN and IR. We must remind you that the discussion. Today’S call may include certain forward looking. Statements and must be therefore viewed in conjunction with the risk that company may face. I will now request Mr. Soni to take us through the financials and business updates subsequent to which we can open the floor for Q and A. Thank you. And over to you sir.
Gurdeep Soni — Chairman and Managing Director
Thanks a lot. Good afternoon everyone and thank you for joining the quarter three earnings call for the year 26 of Unipax India Limited. As we look at the industry today, the operating environment is becoming progressively more constructive. Although the pace and shape of recovery continues to vary across segments and geographies, different end markets are at different stages of stabilization and recovery. Against this backdrop, Unipar’s diversified presence across off highway industry segments and geographies is enabling us to benefit from this unequal recovery. Over the last four quarters we have seen steady improvement in our order book and our quarter three FY26 performance reflects this momentum.
We delivered a 35% year on year growth in quarter three revenues and with a small improvement over the quarter two FY26. And despite Q3 typically being this seasonally weakest quarter of the year, our business model continues to demonstrate its resilience. Our dual shore manufacturing and near shoring delivery models combined with long standing customer relationships allows us to respond effectively as demand returns across markets. Importantly, warehouse led sales now account for over 50% of revenues in the first nine months of FY26. Which is where we create the highest value of our customers through agility, resilience and proximity.
These are capabilities that are not easily replicable. Let me give you an overall industry overview in our business performance. Let’s talk about the construction equipment industry in the new year 2026, the construction equipment industry is expected to progress through a phase of steady measured growth supported by different demand drivers across geographies starting with the United States. The construction activity continues to be underpined by infrastructure spending, investment in data centers and energy transition projects. Our customer commentary suggests sequential improvement through the year with demand expected to strengthen in the second half of year 26. Coming to Europe, the recovery remains uneven but is gradually improving.
Infrastructure spending, ESG driven refurbishment and selective recovery in residential construction are supporting demand. Overall, the European construction market is expected to remain stable with modest improvement through current year 26. Across regions, construction demand is characterized by lower volatility and better visibility compared to other end markets supported by multi year project pipelines and relatively stable replacement demand. In fact, the new business wins coupled with an improving industry cycle are driving growth momentum in this segment for our company Unipaths. Let me talk a little about the small agriculture the small ag is recovering ahead of large ag.
Industry expectations indicate flat to low single digit growth for the segment across North America and Europe. In India, demand remains robust supported by favorable monsoons and healthy reservoir levels, GST reductions and steady farmer sentiment with inventory replenishment beginning across markets. Uniparts, with a strong market share and diversified presence in this segment is expecting to see a healthy growth. Talking about the large agriculture based on current industry indications, the cycle progression, it is fair to say that large agriculture is moving past the most challenging phase of the cycle. Although the recovery remains gradual and uneven across regions, say for example in North America, the rate of decline has moderated materially with current expectations indicating a 15 to 20% contraction which is meaningful improvement over the year 25.
This moderation is consistent with late cycle stabilization dynamics. Europe appears to be further along the recovery curve with industry expectations pointing to flat to modest growth supported by improving farm economics and export demand, particularly for uniparts, this segment continues to present an attractive opportunity underpinned by new business wins in Europe and the company’s diversified exposure positioning it well as demand normalizes. Finally, on the aftermarket, the business continues to be stable contributor. While tariffs had some short term impact, the structural fundamentals of the aftermarket remain intact and diversification across regions and customer segments provide additional resilience.
Since we’ve had this tariff reductions now on the tariffs, I would just say that the recent changes in tariffs will help all segments of the business, but especially aftermarket and construction equipment. As here we may be able to reactivate the China plus one project we were working on before the tariff went up. Our New Strategy Our business awards pipeline remains to be strong and approximately 200 crore, providing good visibility into future growth across segments and geographies. As I had mentioned, the Mexico warehouse became operational in October 25, strengthening our near shoring footprint and further enhancing delivery reliability for customers.
Let me briefly touch upon the financial position of Uniparts for the quarter 3 FY26. Uniparts delivered an EBITDA margin of 21.5%. Cash flows remain strong and the company continues to be net debt free with a net cash position of 153crores as on 31st December 2025. This strong balance sheet and margin profile provide a solid foundation for sustainable EPS improvement as volumes recover and operating leverage plays out. In fact, the trailing twelve month EPS post Q3 results is rupees 28.80 and this is after accounting for a 3.4 crore impact on profitability due to the new wage code introduced in November 2025.
Let me also mention that during Q3 FY26 the company declared a special dividend of 101 crores. The total dividend distributed up to 31st December stands at 139 crores. Underscoring our commitment to disciplined capital allocation and shareholder returns, we have in fact also announced a dividend of a second interim yesterday. With this I would like to invite my CFO Rohit Maheshwari to present the financial highlights for Q3FY26. Thank you. Over to you Rohit.
Rohit Maheshwari — Chief Financial Officer
Thank you sir. Good afternoon everyone. Here are the key financials and operating highlights for the quarter ended 31st December 2025. Revenue from operations is 281 crores, up 35% year on year and 1.5% quarter on quarter. EBITDA stood at 61 crores up 65% year on year. Profit after tax 33 crores up 74% year on year. This includes the impact of 3.4 crores due to the new wage code introduced in November 2025. Operating cash flow 36 crores in Q3 122 crores in 9 months of FY26. Trailing EPS after including the impact of new wage code is 28.80 rupees.
Trailing EPS excluding the impact of new wage code is 29.37 rupees. Net working capital is 144 days of trailing revenue inventory plus receivable and payables as on 31st December 2025. Net cash position is 153 crores. At the end of December 2025. Capex during the quarter was rupees 5 crores. New business awards stood at 200 crores in the analyzed potential over the last 12 months. The company has also declared a special dividend of 101 crores in Q3FY26. And total dividend pay till December 2025 is INR 139 crores. With that I will hand the call back to the moderator for question and answer session. Thank you.
Gurdeep Soni — Chairman and Managing Director
Thanks.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from Simple. Please go ahead.
Viraj Kacharia
Yeah. Hi. Thanks for the opportunity. A couple of questions. First is if you can share the revenue mix as per channel for the quarter and nine months in a warehouse and direct.
Tanushree Bagrodia
Hi, Viraj Tanushree here. So Viraj, our warehousing sales is roughly about 50% of our total revenue and our direct expense exports are around about 25%. 25% India sales is about 15% and then the balance is local delivery in. The US
Viraj Kacharia
And for nine months.
Tanushree Bagrodia
Nine months is pretty pretty much similar as well. Actually this Data is for 9 months and it’s fairly similar for 9 months and the 4th quarter.
Viraj Kacharia
Okay, second question is. Sorry,
Tanushree Bagrodia
sorry for third quarter I mentioned fourth quarter.
Viraj Kacharia
Okay, second question is if you can give some more color on the new order win for the quarter gone by. And you know when you say this analyzed win rate of say around 200 crores, you know if you can give some more granular color in terms of you know which major geographies or products or customers you’re seeing the traction. So that is second question.
Tanushree Bagrodia
So I think Viraj when we say our new order business for the trailing 12 months is about 200 crores, it means that this is the business awards that we have got which will be now operationalized over a different points in time. These come from across geographies. So we’ve won new business in the US We’ve won new business business In Europe we’ve won your business. In India, we’ve won your business in Asia as well. And these are across segments. And I think when you look at this it is also evident in how our industry segmentation is also represented on slide 10 of our presentation. Right. So if you see in FY24 agriculture was 67.7% of our revenue and construction was 37% for nine months of FY26 construction is at 41.6% and agriculture is at 58.4. So the new business wins have been across geographies and across segments.
Viraj Kacharia
See the reason I ask is the commentary we have been making is that there’s a recovery in certain segments and in some segments like Rajag, the market is now almost to or bottom out. But if I look at our annualized new win run rate for last few quarters we’ve been around 200, 250, you know, it’s been in a similar band. So I’m just trying to understand you know, you know, you know where which products or which customers, you know, which is driving this and incrementally, you know, any fellow you can give how this win rate can, you know, evolve over next one, two years for.
Tanushree Bagrodia
Right. So I think again Viraj, I will go back and I’ll give you a little bit of trend to help you understand where the efforts are being put in. Right. So we’ve been, we’ve been mentioning on a couple of our calls that in the large ag space we’ve one new business and this is in Europe. Large ag remains a segment which is under penetrated for us and here we continue to make efforts to grow business. And you know the numbers that I just told you also indicate that our new business wins in construction have been quite meaningful and hence the you know, diversification of the sectors is also visible.
I hope that gives you a little bit of color on how we are thinking about new business growth, where new business is coming from and geographically this remains across U.S. europe, India and Asia. I also like to mention. So Viraj, I’d also like to mention at this stage that you know, with the recent announcement of the tariffs that has come in where the reciprocal tariffs for India have come down to 18% and the Russian oil tariffs have been removed, this actually as chairman also mentioned bodes well for all segments but in particular for our after market and construction business, you know, where some of the new projects had stalled, this could now fuel the pickup of those projects. So hope that gives you a color on where we are on the new business.
Viraj Kacharia
Okay. Just two questions. I’ll come back in queue. One is on aftermarket again. So if I Look at say nine months, you know the share of aftermarket compared to 25, you know it’s come down from 19% to so again any color what’s happening there. And if I look at TSE or Midwest, you know and look at the coverage in terms of total stores they have, what will be our coverage as of you know as of today?
Tanushree Bagrodia
So Bharaj, as far as our share with our top aftermarket customers, growth that remains constant. I think what has happened is that with with the tariffs going to 50% there was some sensitivity in the aftermarkets due to which the growth rate in the aftermarket slowed down and that got the other segments to grow. And hence you are saying that the total share of the aftermarket has come down in the business. But otherwise there is actually no change in our share of wallet or our coverage either with TSC or midst of other markets or other aftermarket customers that we have.
Viraj Kacharia
But in terms of total stores, what they have and our coverage, where would we be right now?
Tanushree Bagrodia
So Viraj, let’s connect offline and we’ll give you that data. I’ll get you the precise data. I have approximate data but if you connect offline we can give you precise data.
Viraj Kacharia
Sure. Happy to. I’ll come back. Thank you.
operator
Thank you. Participants who wish to ask question may press star and one at this time. The next question is from the line of Madhur Rati from Countercyclical Investment. Please go ahead.
Madhur Rathi
Thank you for the opportunity. I wanted to understand with both of our products PMP and 3 PL going towards 0% tariff under the new. Under the new agreement that has been done so so how do we see market share improvement in PMP segment where China Chinese players have already always dominated and sub question would be we were trying to get for the larger sized PMP products where the value of per part would be much higher. So any color on that?
Tanushree Bagrodia
Sorry. Yes Madhur, sorry. So Madhur, as far as tariffs are concerned what has been notified is that Russian oil tariff is going down to zero effective 7th of February 2026. What we have all read is that reciprocal tariff has gone down to 18 but the date of notification is not available and the section 232 tariff which said 50% tariff on the steel or aluminum content remains as it is. So that remains unchanged as we are mentioning. This actually gives a real resurrection to the China plus one strategy because now China has 45% tariffs and India is at 18% reciprocal tariffs.
We do believe this will be beneficial, especially for aftermarket and precision machine parts business, which is like you said, which is where competition from China was coming up. We did have some new projects that had stalled because of these tariffs and we do expect them to pick up and discussions to start happening again soon enough. And as there is something concrete that comes up, we will definitely share it with the analyst and the investor community.
Madhur Rathi
Okay. And ma’, am, I wanted to understand regarding product expansion with our aftermarket customers. So although that stalled earlier, so if you could just help us understand pre tariffs, what were our discussions and how do we see that extending beyond the two products that we make currently?
Tanushree Bagrodia
So in the af. So when we talk about the three point linkage and the precision machine part, this is largely for the OEM customer. The range for the aftermarket customers is much wider and it covers a significant number of parts that we may be manufacturing and we are actually manufacturing only for our aftermarket customers. So it’s not just these two products. What we were talking about were new products for the aftermarket, you know, when the discussions stalled. And this is what will pick up now that the new tariff news is out.
Madhur Rathi
Got it. So with all these improvements, what where do we see our revenue for FY27? And I think our margins have been very good because of the warehousing mix increasing. So can we expect a further improvement on the these margins level in FY27?
Tanushree Bagrodia
Sorry Madhur, if you could repeat your question.
Madhur Rathi
Yes, ma m. M am, I wanted to understand what kind of revenue do we expect revenue growth for FY27 and on the margin front, do we expect even further improvement with the after warehousing share increasing?
Tanushree Bagrodia
Right. So Madhu, that’s. Thank you for that question. Right. So I think if you see for the first nine months of FY26 we have delivered the 17% revenue growth. We remain committed to closing the full year with the mid teens growth. Right. And this is consistent with the outlook that we have reiterated over the past three quarters. Given that all segments, or at least the construction and the small AG segments of the industry in the recovery phase and also the large AG seeing the worst behind us at this point in time, we do believe that FY27 should be a mid teens growth here on the margin side, you know, the last three quarters have demonstrated that operating leverage is now working in our favor with margins expanding meaningfully.
So alongside a 17% growth in our revenue, EBITDA has increased 46% year on year for the nine months. Right. I think importantly, if you see EBITDA for the first nine months of FY26 is nearly 10% higher than the full year EBITDA of FY25. So this reinforces our confidence that a 20% EBITDA margin profile is sustainable over the cycle.
Madhur Rathi
Right. That is from mine, sir. Thank you so much and all the best.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead.
Sunil Jain
Yeah, thanks for taking my question and congrats on good results. So 20% EBITDA you said through the cycle. So we had lower rate, lower EBITDA in the previous year. So average out to 20% what you say in the cycle.
Tanushree Bagrodia
So Sunil, I think we also need to look at the fact that there will be impact. When I say the cycle, I mean over a period of time and let’s say even quarters. Right. Because what you will also see that there is currency impact that happens on our EBITDA. So we remain robust at a 20% level over the year. Right. You may see fluctuations quarter on quarter.
Sunil Jain
Yeah, so I, I understood that it’s over a cycle means like three year up cycle, three or five year cycle, whatever it may be. Some years you are lesser than 20 to some year you may be over 20 also.
Tanushree Bagrodia
Yes. So in, in FY25 we were at about 18% EBITDA. And this year nine months we are at about 21%, 21.6% EBITDA.
Sunil Jain
Okay, fine. Second thing about the acquisition which you were considering earlier and maybe looking at it, you may start looking at it now after this tariff correction. So is there any development or anything you can talk about that the Sunil.
Tanushree Bagrodia
Tariffs had nothing to do with our decision not to pursue or to drop the opportunities or pause the opportunities that we were looking at. As an organization, we are not looking at a distressed asset which needs a deep turnaround. We are looking at acquiring assets that are value accretive right from the beginning for all our stakeholders. And that evaluation continues.
Sunil Jain
Okay, so anything on table or. No.
operator
Mr. Rain, sorry to interrupt you. I request you to please rejoin the queue for more questions.
Sunil Jain
Okay, fine. Thank you.
operator
Thank you. The next question is from the line of Richa from Equity Masters. Please go ahead.
Richa Agarwal
Thank you for the opportunity and congrats on a good set of numbers. My question is regarding this mix of warehousing which has come to 50%. So I think one of the reasons what could have also promoted an increase in warehousing share is, you know, uncertain. Demand in the end market and the. Customer may not want to take the inventory on their books. But with the demand scenario improving, do. You expect the share of warehousing to. Go down and hence have implication on margins? Also, what kind of trade off is. There between working capital cycle and this share of warehousing in the entire revenue mix?
Tanushree Bagrodia
Right. So Richard, I think the way to look at warehousing is that this is more about business with the customer rather than just a demand. Because once we start supplying to a customer, we actually are supplying to them for their production. We do the entire value added services from our warehouse and supply material to them. The warehousing sales doesn’t mean that our inventory in the warehouse has gone up because of demand. Right. 80% of our business caters to OEMs where the demand schedules are fairly fixed and their orders also come to us in a very visible manner.
So I think the shift to the warehousing sales really has been because as a strategic partner to customers, they are seeing the value that we offer with the near shoring model and that’s how they’ve been working more closely with us. That’s also a reason that, you know, we get new business wins. So the increase in warehousing sales is something which is driven by our business model, the strength of the business model, which gives us a strategic partnership with the customer.
Richa Agarwal
So what I was going to ask. Is that this is more of structural. Rather than, you know, cyclical. Is that understanding correct? The share of warehousing is likely to.
Tanushree Bagrodia
Structural and not cyclical.
Richa Agarwal
Okay. Okay, thank you.
operator
Thank you. The next question is from the line of Anubhav Mukherjee from Preston Capital. Please go ahead.
Anubhav Mukherjee
Hello. Am I audible?
Tanushree Bagrodia
Yes.
Anubhav Mukherjee
Congrats on a great set of numbers. So in this quarter, was there any one time impact in the gross margin, like the previous quarter quarters? There was some one time gain from inventory revaluation. So is this for this quarter? Is the gross margin normalized or was there any one time impact?
Tanushree Bagrodia
So Anubhav, last quarter we had our cost of materials at 30.5% which was lower than the normal trend of material cost that was actually driven by the currency impact because the rupee had depreciated nearly three and a half rupees against the dollar and the euro. In quarter three of FY26, the material cost is about 32.5%, which is more of a Normal level. Given that the currency impact was not very significant, I don’t think these were one offs, but these were more due to the currency movement.
Anubhav Mukherjee
So if the currency like I know it’s slightly hypothetical, but if currently remains at the exchanges remain that current level. So this is like very much sustainable is what we should interpret.
Tanushree Bagrodia
So I think Anubhav, you know, we’ve always said that our normal material cost remains at about, you know, in the range where it is right now, let’s say 33 to 36%. What changes our material cost is what Richard was also mentioning on the previous call. How much of our sales is through the warehousing, how much is local deliveries and how much is domestic exports. So as long as the delivery model continues to be where it is, there is stability in the material costume.
operator
Sorry to interrupt you. Can you please rejoin the queue for more questions? Thank you. The next question is from the line of Jinesh Gandhi from Oakland Capital. Please go ahead.
Jinesh Gandhi
Yeah, hi, I’m audible. Yeah, hi. My question pertains to large Ag or can you talk about orders are from which country? And the second part question to you that is given the changes which are happening on the tariff side, particularly to Europe where large eggs might be again quite relevant, do we expect that also to change our trajectory for the large business where we are just starting with and how should we think about from three to five perspective for large AG in that context? Would it be largely Europe led or we see some scope in US as well?
Tanushree Bagrodia
So Dinesh, thank you for that question. I think, you know, we’ve always maintained that increasing our presence and penetration with the large AG, both in the U.S. and in Europe is quite key for us. I think large AG customers are headquartered out of the U.S. and Europe and we continue to work with them and hence we’ve won new business with a large AG European customer that you know, we’ve also shared in the past calls. We continue to work with the other customers as well on winning new business. So this is an ongoing effort. It’s a key effort for us. Some of this new business that we have won has also been productionized.
Jinesh Gandhi
Okay. And would you be able to share some details on the market itself? Large end market, is the current supply largely local production in US and Europe or we also have some competition from China or non US European manufacturing. The reason I’m asking you, given the duty changes, I believe large 3 PL will be about 4.5percent import duty in Europe. So is that a material change for us to see acceleration in other winds if we are competing with local production or Chinese production.
Tanushree Bagrodia
So Dinesh, I think if you look at the 3 PL market, the players and the 3 PL, the suppliers and the small AG, and you’ve not asked, but let me just give you a color of the 3 PL market. Smallag is India is largely India. And then in large ag you do have European and the American, you know, the OEMs manufacture it themselves as well. And then you have European suppliers who do supply 3 PL large Ag. In large Ag, we typically don’t see China as competition. And when we start looking at our European peers who also supply to our, you know, our customers, I think we still have to see that India does have a cost advantage over Europe. So I think that remains and it only gets strengthened with the FTA that India and EU have signed.
Jinesh Gandhi
Got it. And lastly, large will be 2/3 of the. Hello, Sorry, my question is done the 3 PL market breakdown between large and small.
operator
Yeah, thank you. The next question is from the line of Disha from Sapphire Capital. Please go ahead.
Disha
Hello.
Tanushree Bagrodia
Hi Disha.
Disha
Yeah, Am I audible?
Tanushree Bagrodia
Yes.
Disha
Yeah, thank you so much for this opportunity. So can you just help me out? What’s the current order book for us right now?
Tanushree Bagrodia
So Disha, the way we’ve, you know, we’ve always maintained over the last three calls and it’s been demonstrated is that we’re looking at a mid teens growth for FY26 and that’s pretty much intact. And you know, I just mentioned that given that the industry is also looking at recoveries and different phases for different cycles, we’re looking at FY27 also at mid teens growth.
Disha
My question is on the order book side, but.
Tanushree Bagrodia
Our business is order book driven. Right. So this is what we are seeing, that there is a growth distraction.
Disha
Okay. Similar kind of number we can expect for the order going ahead. Right?
Tanushree Bagrodia
Yeah.
Disha
Okay. And just from the OEM and replacement split, I think this quarter we saw replace, like the 9 month FR26 replacement number has gone down. So where do we see this split going ahead?
Tanushree Bagrodia
So you know, typically we have 80% OEMs and 20% aftermarket. And I think, you know, the range is 80 to 85 and 15 to 20%. So I think that’s the typical split that we will always be in at, you know, different points in time.
Disha
Okay, okay. Margins we see sustaining over 20%. So you mentioned there’ll be some cyclical variation. We might see quarter on quarter, but then there’ll not be like a very big difference. Right. It’ll be in the range of between say 19 to 21%. Is that a fair understanding?
Tanushree Bagrodia
So again, Disha, like I was mentioning, the last three quarters have demonstrated, you know, the operating leverage playing in our favor and we remain very confident to be delivering a 20% EBITDA.
operator
All right, all right. Okay. Thank you.
operator
Thank you. The next question is from the line of Abhishek Shah from Wellcore Capital. Please go ahead.
Abhishek Shah
Thank you for the opportunity. Sorry, I’m just harping on the same question, you know, asked by past participants. I just want to understand. December is generally weak for exports and you know, we’re more focused on domestic growth, which is domestic is generally lower margin. So just want to understand if you know, the sharp margin expansion that has happened, can we attribute some part of it due to currency depreciation? Because I’m sure that would have been in our favor in a big way in the last quarter.
Tanushree Bagrodia
Abhishek, if you actually see our quarter 4 margins are lower on a quarter, on quarter basis. We’ve, you know, we’ve had. And that’s what I was just explaining because our material cost has gone up in quarter four. Sorry, quarter three, my bad, quarter three. So quarter three versus quarter two, our EBITDA is down because of the increase in the material cost. And then additionally in quarter three we also have the wage code impact that has come in which has further reduced the pat. What has happened in quarter three this year, which is different, is that our top line went up 1.5% which is coming from small ag and from construction. So you know, there was a demand in India for small ag, but also the construction business cycle recovery has contributed to a small increase in the top line.
Abhishek Shah
Got it, got it. And ma’, am, since material prices, I’m presuming a big part of it would be metal prices going up. I’m presuming we do have a pass through mechanism where, you know, so let’s say if we’ve taken a 2 percentage point hit in this quarter, you know, can we assume that in the coming quarters it will be more than compensated and you could see margin expansion two.
Tanushree Bagrodia
Parts to this question. Right. Number one, the 2% hit doesn’t come because of the price increase. It actually comes due to the currency impact that is sitting in our material cost. That, and this is what I was explaining, that in quarter one to quarter two the rupee depreciated roughly about three, three and a half rupees both against the dollar and the euro. While from quarter two to quarter three that depreciation was just About a rupee and a rupee and a half. Right. So that meant that 30.5, which was our material cost in Q2 became 32.5% in Q3. To answer your other question, yes. We have very clear contracts with customers where we do pass on price increases to customers.
Abhishek Shah
Right? Right. Fair enough. And is there a 1/4 lag as such?
operator
Sorry to interrupt you, Mr. Abhishek. Can you please rejoin the queue for a follow up question?
Abhishek Shah
Sure, I’ll come back in the queue.
operator
Thank you. The next question is from the line of Dheeraj Kumar Reddy from Alpha Square. Please go ahead.
Dheeraj Kumar Reddy
Hello. Yeah. Am I audible?
Tanushree Bagrodia
Yes, Dheeraj,
Dheeraj Kumar Reddy
thanks for the opportunity. I just wanted to understand, you know, because of this operating leverage, I’m sure in the next two years, I mean, I don’t know why are we underestimating the EBITDA curve? I mean should it go beyond 23, 24%? Because I think you guys have done a commendable job in controlling the costs in FY25 and 26 because of the fixed cost remaining pretty flat. I’m sure in the next one to two years this EBITDA curve can go as high as 24, 25%. If I’m not wrong, right? Or is my understanding along somewhere?
Tanushree Bagrodia
So Dheeraj, what we have always said is that at the given capacities that we have we can reach our former peak of close to 1400, 1500 crore number. And at that level we will maintain 20%. And you know, we, we definitely believe that 20% EBITDA margins are what we will deliver. I think we also have to see that to be able to get to a higher growth. We will also need CapEx. Right.
And as we do Capex, there could be some addition to fixed costs. So I think that’s the way a business would work. I would not want to sort of comment on numbers of 23 and 24% because you know, I don’t know the business model that you’ve put together. And there have to be different elements that go into it. But from our perspective with the current capacity we definitely can, we, you know, we can, we can grow. We don’t have a problem. And the 20% EBITDA margins are very, very real.
Dheeraj Kumar Reddy
Got it. Got it. That’s helpful, ma’. Am. And my next question is on one side there is this company called Dynamic Technologies which is also into hydraulic segment. Right. And they are saying they want to wind down or they want to really restructure. They are focusing more on the aerospace division. I’m not understanding phase. Look at their numbers. I don’t know there they have single digit EBITDA margins. Maybe because they are doing some manufacturing uk I’m also not very sure. Is there any way management also. I mean you can figure out because we are also entering into this hydraulic. We have intentions to get into this hydraulics as a. As a segment. Is there any way you are looking to like think about acquiring these units from companies which are not very much interested but you have capability, you can do the.
Tanushree Bagrodia
So Dheeraj, we are an off highway equipment supplier and hydraulics, power takeoffs and fabrications are growth areas for us where they bring synergies with our current customer base and our industry base of highway. And in those segments we are constantly evaluating operations opportunities of acquisition which are not deep turnaround stories. So we will continue to do those evaluations and you know, as and when something fructifies which is worth closing and then at the right time we will bring it and share it.
Dheeraj Kumar Reddy
Thanks, that’s helpful. Thanks.
operator
Thank you. Ladies and gentlemen, you are requested to restrict your questions to two per participants. If you have a follow up question, please rejoin the queue. The next question is from the line of Srinjana Mittal from Ms. Capital. Please go ahead.
Srinjana Mittal
Hi. Thank you for the opportunity. I had two questions. One is related to the fire that happened in our surface finishing plant. Can you give some color on how that has impacted our business operations and also quantify the impact for us in terms of the claims that we have with the insurance company and if. If there was any inventory loss that happened.
Tanushree Bagrodia
Right. So Shanjana, thank you for that question. So on the 27th of December 2025, we had a fire in one of our factories in Ludhiana which impacted the surface finishing area of the plant and it was contained to just that area. From a business continuity standpoint, we could quickly mitigate the disruption because certain processes were transferred to our sister company in Ludhiana which allowed us to restart those processes and hence the production within five days. For the remaining operations we put in place suitable alternate internal arrangements and qualified outsourcing partners. What we also did was we proactively informed all customers and several customers since then have visited the compacted facility and the interim processing locations.
So with these measures we have ensured continuity of supply and there has been no significant delays to orders or production schedules and none are envisaged for Q4 and nothing significant is envisaged for Q4. 2020. Q4 2026. On the insurance front, we are adequately covered on insurance we are covered both for plant and building inventory machinery as well as business interruption loss. So we are very adequately covered. Insurance company and the surveyor were also promptly informed and the surveyors came and finished their survey rounds as well.
Srinjana Mittal
Understood? No, that’s very clear. Just one more question. We have seen a 17% year on year growth in the nine months. If you were to break it between the new business led growth and the day’s business growth, how much would have been from a new business contribution to this 17th of December?
Tanushree Bagrodia
Yeah, sorry Shanjana, can you just repeat the question? Your voice is a little feeble.
Srinjana Mittal
Sure. So I was just saying that in the nine months we have seen a 17% year on year growth. If you were to break it between. Break it to between the new business led growth and the base business growth, how much would have been from new business?
Tanushree Bagrodia
Sorry, about 9 to 10% of the growth will come from. From new business has come.
Srinjana Mittal
Has come. Understood? Understood. No, thanks. Thanks a lot for taking my questions and all the.
operator
Thank you. Ladies and gentlemen, you are requested to restrict your questions to one per participant. Next we have the follow up question from the line of Madhur Rati from Counter Cyclical Investment. Please go ahead
Madhur Rati
ma m. Thank you for the opportunity. Once again if you could just help us understand in what products have we received this new order wins and what will it take for these two skills? Will it be that whenever OEMs launch new platforms or new vehicles in their mix, will that scale up then or how do we see these scaling? If you could just help us understand
Tanushree Bagrodia
Madhur The new business that we have won has been across three point linkage and precision machine paths. They have been across small ag, large AG and construction industries. They’ve been across all geographies. So I think the effort is to keep growing and keep diversifying. And the way new business comes in is either there is a new launch or a new vehicle or a new upgrade that the customer is producing.
If there is any resourcing that the customer is doing or if they are making any changes to any systems or components, even though a new vehicle may not be launched, the scale up of this happens. As in the case of a new vehicle, the scaling happens as the customer new platform, new production starts to gain market traction and otherwise the scale up actually happens because you start supplying a certain quantity and then that that quantity supplies then start increasing over a period of time.
Madhur Rati
Got it. And just. Ma’, am, if you could just help us understand where are we in the mining component supply for the mining vehicle and platform chain because it seems that that will be one of the biggest drivers for these OEMs.
Tanushree Bagrodia
So our OEMs, Madhur, are structured differently. So different OEMs have different divisions that make different equipment. We do supply to a division of our customers that does manufacture mining equipment. But it will be very difficult for me to say whether it’s only mining because, you know, they’re all structured differently, whether it’s also going into other vehicles or not. Today, in our construction equipment business, we do supply to verticals that are construction and heavy construction related and also mining related.
Madhur Rati
Got it. Thank you so much and all the best.
operator
Thank you. The next question we have from the line of Viraj from Simple. Please go ahead.
Viraj Kacharia
Yeah, just two questions. One is, you know, if I look at the commentary in terms of the share of warehousing, which would structurally keep on improving, and then if I also think in terms of the normalization of aftermarket, which traditionally owns higher margins, and the Euro inr, you know, which is also depreciative, one would think that the margin structure for us also would be quite materially higher than what we have done in the past. So just trying to understand where is the distance?
Tanushree Bagrodia
Sorry, Viraj, can you repeat your question again? There’s disturbance in your. There’s disturbance in the voice.
Viraj Kacharia
Okay. Is it better now?
Tanushree Bagrodia
Yeah, yeah.
Viraj Kacharia
So I was just trying to understand that if I look in context of share of warehousing, which will keep on increasing, you know, which is typically a higher margin and similarly for aftermarkets. And then if I also think in context of the euro INR, which has also depreciated by more than 15, 20%, one would think that our margin structure would be much better going forward than what we have done in the past. So just trying to understand where is the disconnect.
Tanushree Bagrodia
So our margins are dependent on, of course, the sale that we do. Right. We do warehousing sale boat from the US and in Europe, we also. So if you see the 50% warehousing sale that is there, you know, it contains both Europe and US sales. The second aspect is that US is roughly about, I think roughly about 50% of our total sale. And Europe is about 25%, 15% is India, and the balance is rest of the world. Right. So that’s the mix that we look at. And in that context, there is a material cost and a gross margin, and then there is a currency impact.
So all of these put together then come down and impact the EBITDA that we make.
Viraj Kacharia
No, I understand that basically where I’m coming from is your higher margin segments or channels, the share of diet will keep on increasing and then you know, you have also had this tailwind of a euro inr which also aid in at least some bit of margin enhancement. But our commentary has been that we’ve been, you know, we expect margins to be around 20%. So I’m just trying to understand which segments or you know, markets or products.
Tanushree Bagrodia
Yeah. So Viraj, I think we also grew our direct business as much. We also want to grow our India business as much. Right. There is a deeper penetration that we can have in India. There is a deeper penetration that we can have with customers that are direct export customers. And so I think we also have to look at that fact and we’ve always maintained that the currency movements will cause an impact on the margins. That aspect remains. But I think we can’t look at warehouse sales growing and aftermarket sales growing in isolation because there are other opportunities also that, that are in front of us where we can grow.
Viraj Kacharia
And just an added question, any color you can give in terms of the Mexico operations and the scale up to Caterpillar, how large is that account now for us?
Tanushree Bagrodia
So Caterpillar today is a top three customer for us. It has, it has. It’s a relationship that, that we are very honored to be a partner to. We’ve grown steadily with them in the last three years, four years. And what was your other question? Sorry Viraj. New Mexico Corporation warehouse was operational in October 25th and we are now waiting for customers to start placing orders from there. One of our customers over there was waiting for their IMAX registration which has now come through in this quarter. So hopefully those supplies will start from the next quarter.
Viraj Kacharia
Okay, thank you. Good luck.
operator
Thank you. The next question is from the line of Vishwendra Singh from Prudent Equity. Please go ahead.
Vishvender Singh
Hi team. Am I audible?
Tanushree Bagrodia
Yeah ma’. Am.
Vishvender Singh
I wanted to ask what was the capex quantum for Q3?
Tanushree Bagrodia
We had 5 crores of CapEx that was made in Q3.
Vishvender Singh
Okay. And another after this tariff removal are you looking to, you know, grow the quantum of annual capex of 30 to 40 crore to sort of again edge over competitors.
Tanushree Bagrodia
So Vishween, today we have sufficient capacity to be able to grow our business and cater to the demand that we are seeing from the customers. We have invested in upgradation capex in the past and that we will continue to do where we upgrade our technology. Our capex remains to be about 3%, 2 and a half to 3% of our revenue and we continue to be within that limit.
Vishvender Singh
Okay, not enough. Thank you.
operator
Thank you. We’ll take the last question from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Saket Kapoor
Namaskar ma’. Am. Thank you for the opportunity. Hope I’m audible.
Tanushree Bagrodia
Namaskar sake. P.S. you’re audible.
Saket Kapoor
Yeah. Ma’, am, firstly we, we were certified at SER by Caterpillar for in 2024. So in terms of the certification, what are our terms with with them and what are we exactly getting to them in their product profile?
Tanushree Bagrodia
So Saket, we are an scr, we continue to be an SEO certified supplier of Caterpillar and we supply precision machine parts to Caterpillar across various divisions that they have across various manufacturing units that they have in the world.
Saket Kapoor
And currently those are skewed towards the only detector segment or the mining equipment also the end product
Tanushree Bagrodia
Caterpillar. The equipment that we supply to Caterpillar largely falls under the construction and mining equipment category.
Saket Kapoor
And pertaining to our capital work in progress ma’, am, there was some closing balance as on September. So for, for the nine months what have been our capex and what is the capacity augmentation that we anticipate that will get commercialized going ahead? And secondly ma’, am, what is the current understanding from post this GST cut and, and the, and the good demand we have seen from tractors? How are things shaping up for Q4 and onwards? We have reported back to back very good set of numbers for Q2 and Q3. So if you could just throw some more light. I joined late in the call.
Tanushree Bagrodia
So Saket, our capex for Q3 has been 5 crores. We are like I was just saying on the previous question, you know our capex estimates always are between 2 and a half to 3% of our revenue. We remain on within that limit. The large CWIP that you saw in quarter two which was there was towards a capability upgradation that we were doing or addition that we were doing and that has been commercialized. So I think that’s on the capex side on the revenue growth side because all parts of industry, whether it’s construction, whether it’s large ag, whether it’s small AG across the world or in India have started seeing recovery from the sharp downturns that they had seen. It is leading to better order books for our customers and hence helping in our growth.
Saket Kapoor
If I may add just one small point on the nature of the other income part, we see that to be also a substantial part of our profits. So if you could just dwell greater on the Nature of the same and is it a part of the from the core operation only or what constitute it and what factors attribute to its to. To the. To the growth ahead?
Tanushree Bagrodia
The other income that we have is largely from the gains that we have on our investors. The company generates roughly, you know, 10 crores of cash a month and I think those are then reinvested and that forms a part of our other income. I hope. And then there are other. And then there are other smaller aspects to it as well. But I hope that gives you an answer.
Saket Kapoor
My question was Ma’, am, 56 crore is our net profit and if we take the other income component that is 34 crore so significant portion of our profitability attributable from the other income part, is that understanding also correct? How should one read into it?
Tanushree Bagrodia
9 month FY26. At a consolidated level our revenue is 83, 831.5. Other income is 17.1 crores. Total income is 848. And our total PAT for 9 months 26 is 107.1.
Saket Kapoor
Okay ma’, am.
Tanushree Bagrodia
Our revenue is 281 crores. Our other income is 5.7 crores. Total income is 286.7 crores. Our PAT is 33.2 crores.
Saket Kapoor
Yes, I’m sorry for the mission reporting I’ve done. Sorry, I looked at the standalone number wherein the console speaks a different story altogether. Thank you.
operator
Thank you ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for the closing comments.
Gurdeep Soni
Thank you. Thank you everyone. I just want to conclude by saying that we remain committed to leveraging our core strengths to build an even stronger and more resilient business while continuing to partner closely with our customers and support their growth journeys. At the same time, we stay focused on delivering value to all our stakeholders, that is the employees, the shareholders, partners and the communities that we are operating in. Thank you all for joining today’s call and we sincerely appreciate your time, engagement and continued trust in Unipaths. Thank you so much everyone.
operator
On behalf of GoIndia Advisors LLP. That concludes this conference. Thank you for joining us and you may now disconnect your lines.