💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 reached INR 5,619 Mn, a 9.7% YoY growth. By market segment, Agriculture contributes 59.0% and Construction, Forestry, and Mining (CFM) contributes 41.0%. The Aftermarket (AFM) segment is expected to grow in single digits YoY, while the company is positioned for mid-teen growth in export linkages.

Geographic Revenue Split

As of H1 FY26, the Americas remain the largest market at 52.2% of revenue, followed by Europe at 25.1%, India at 14.9%, Japan at 5.5%, and the Rest of the World at 2.3%. This distribution reflects a heavy reliance on the North American and European OHV markets.

Profitability Margins

Gross Profit Margin for Q2 FY26 improved significantly to 69.4% from 62.4% in Q2 FY25. PAT margins increased from 8.6% in Q2 FY25 to 13.9% in Q2 FY26, driven by operating leverage and a shift toward higher-margin delivery channels like warehousing.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 21.7%, up from 17.2% in H1 FY25. Q2 FY26 EBITDA was INR 640 Mn, representing a 52.6% YoY increase, primarily due to operating leverage as revenue growth outpaced fixed cost increases.

Capital Expenditure

CAPEX outflow for Q2 FY26 was approximately INR 6 Cr. In FY25, the company spent INR 30.22 Cr on property, plant, and equipment and capital work-in-progress, down from INR 35.00 Cr in FY24.

Credit Rating & Borrowing

Uniparts is a net debt-free company with a group net cash position of approximately INR 226 Cr as of September 30, 2025. Debt-to-equity ratio remains low at 0.10x in H1 FY26, indicating minimal reliance on external borrowing.

⚙️ Operational Drivers

Raw Materials

Cost of materials consumed was INR 3,117.97 Mn in FY25, representing approximately 32.3% of total income. Specific raw materials include steel and forged components used for 3PL and PMP products.

Import Sources

Not explicitly disclosed in available documents, though the company operates manufacturing facilities in India and the US to serve global OEMs.

Capacity Expansion

The company maintains a fixed asset turnover of 1.7x as of H1 FY26. While specific MTPA capacity is not listed, the company has 250+ engineers and technical diploma holders supporting its manufacturing base across India and the US.

Raw Material Costs

Material costs are subject to FX fluctuations; in Q2 FY26, FX impacted material costs, though EBITDA margins still improved YoY. The company uses a mix of local production and direct exports to manage costs.

Manufacturing Efficiency

Operating leverage is a key driver; as revenue grows, margins expand because fixed costs are spread over a larger base. EBITDA margins improved from 17.0% to 22.6% YoY in Q2 FY26 due to this efficiency.

Logistics & Distribution

Margins are highly sensitive to delivery channels: Warehouse sales (highest), Direct Export (base), and Locally Produced/Delivered (lowest).

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through a healthy new business pipeline, with INR 200 Cr in annualized potential value awarded over the last 12 months. Strategy involves capturing mid-teen growth in export linkages and leveraging the 'turning corner' in the construction equipment segment. Approximately 11-12% of the 15% growth target is expected from new business wins.

Products & Services

3-Point Linkage systems (3PL), Precision Machined Parts (PMP), Power Take-Off (PTO) components, and Fabrication parts for Off-Highway Vehicles (OHV).

Brand Portfolio

Uniparts India Limited.

New Products/Services

New business awards totaling INR 200 Cr in annualized potential value are expected to contribute significantly to FY26 and FY27 growth.

Market Expansion

Focusing on horizontal and vertical growth with existing customers across all geographies to deepen wallet share and mitigate risk.

🌍 External Factors

Industry Trends

The OHV industry is seeing a recovery in construction. Uniparts is positioning itself to benefit from this by diversifying its product mix (3PL vs PMP) and focusing on export linkages where it expects mid-teen growth.

Competitive Landscape

Competes in the global precision component market for OHVs, primarily against other specialized engineering firms in India and international markets.

Competitive Moat

The moat is built on a diversified global manufacturing and warehousing model. High-margin warehousing sales (highest margin) create a competitive advantage by offering localized, just-in-time supply to global OEMs, which is difficult for pure exporters to replicate.

Macro Economic Sensitivity

Highly sensitive to global CAPEX cycles in Agriculture and Construction. The management noted that 'construction is turning the corner,' which is expected to drive future demand.

Consumer Behavior

Demand is driven by OEM production schedules rather than direct consumer behavior, making the company a Tier-1/Tier-2 supplier sensitive to industrial output.

Geopolitical Risks

Trade barriers or economic shifts in the US and Europe could impact 77.3% of the total revenue base.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act, 2013. Internal financial controls were audited by S.C. Varma and Co. and found to be operating effectively as of March 31, 2025.

Taxation Policy Impact

Effective tax rate for Q2 FY26 was approximately 22% (INR 111 Mn tax on INR 505 Mn PBT).

Legal Contingencies

The company maintains internal financial controls to prevent fraud and errors; no specific pending high-value court cases were detailed in the provided snippets.

⚠️ Risk Analysis

Key Uncertainties

Operating deleverage is a risk if growth slows, as seen in historical margin fluctuations. FX volatility remains a primary uncertainty for material costs.

Geographic Concentration Risk

High concentration in the Americas (52.2%) and Europe (25.1%), totaling over 77% of revenue.

Third Party Dependencies

84.4% of revenue is dependent on OEM customers, making the company vulnerable to the production cycles of a few large global manufacturers.

Technology Obsolescence Risk

The company mitigates this through a large engineering team (250+) focused on innovation in 3PL and PMP verticals.

Credit & Counterparty Risk

Working capital days of 155 indicate a significant amount of capital tied up in receivables and inventory, though the net cash position of INR 226 Cr provides a liquidity buffer.