Unimech Aerospace (UNIMECH) Q2 FY27 Revenue Doubles as Order Execution Accelerates
The precision manufacturer's revenue nearly doubled year-on-year to ₹123 crore, driven by the execution of long-term aerospace agreements and the integration of Hobel Bellows.
Unimech Aerospace's Q2 FY27 revenue surged 98.5% YoY to ₹123 crore, with profit more than doubling. Growth was fueled by serial production from key aerospace programs and a consolidated order book of over ₹850 crore.
For a precision manufacturer, the shift from making tools to making the parts that fly is the ultimate test. Unimech Aerospace passed it decisively this quarter, with revenue nearly doubling as long-term supply agreements moved into serial production.
The numbers show a business hitting its stride. Revenue jumped to ₹123 crore, up 98.5% from a year ago and 14.3% from the previous quarter. Profit grew in lockstep, rising 102.7% year-on-year to ₹31.77 crore. The net profit margin held steady at a healthy 25.8%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 123.0YoY +98% | 107.62 | 61.98 |
| Profit (₹ Cr) | 31.77YoY +103% | 27.86 | 15.67 |
| Net Profit Margin (%) | 25.8YoY +2% | 25.9 | 25.3 |
The Engine Behind the Surge
The near-doubling of sales was not a one-off. According to reports from Sahi and ScanX, it was driven by the execution of long-term Tier-1 aerospace agreements and the full consolidation of the Hobel Bellows acquisition. The company is transitioning from short-cycle tooling to recurring 'flying part' manufacturing for programs linked to major engine makers like LEAP, Pratt & Whitney, and Rolls-Royce.
This operational shift delivered significant leverage. A ScanX report notes the EBITDA margin expanded by nearly 10 percentage points year-on-year, as the cost base did not grow in line with revenue. The profit surge was primarily operational, with other income playing a smaller role.
Funding the Next Phase of Growth
With a consolidated order book of ₹855 crore reported by ScanX, visibility is strong. Management is now funding capacity to meet this demand. The company plans to double its gross block by the end of FY27, backed by a proposed ₹750 crore QIP and a $10 million infusion into a Saudi joint venture, as noted in a Sahi report.
This aggressive expansion comes with a near-term trade-off: working capital. Management expects working capital days to stretch from 130 to over 160 due to longer production cycles in new aerospace and nuclear programs, a point highlighted in a StockWatch report.
Key Points
- Revenue nearly doubled year-on-year to ₹123 crore, marking a decisive shift into serial production of precision aerospace components.
- Profit growth of 102.7% YoY was driven by operating leverage, with EBITDA margins expanding sharply.
- A robust ₹855 crore order book provides clear near-term revenue visibility.
- Capacity is being doubled to meet demand, funded by a planned QIP, though this will stretch the working capital cycle in the interim.
Hexa Perspective
The quarter confirms Unimech's successful pivot from a tooling specialist to a serial production partner for global aerospace OEMs. The financials now reflect the operating leverage inherent in that model.
The coming test is execution at scale. The planned capital expenditure is necessary to convert its large order book, but the rising working capital requirement signals that cash flow will trail reported profits for several quarters. Investors are paying for this future scale, with the stock commanding a premium valuation to its industry peers.
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