Unimech H1 revenue rises 85%, with H2 set to exceed H1

Unimech Aerospace and Manufacturing Limited reported consolidated H1 FY27 revenue of Rs 231 crore, up 85% year on year and equal to 96% of FY26 revenue. Management expects H2 FY27 revenue to exceed the first-half level, driven by semiconductor-equipment deliveries, nuclear-order execution and steady sales across other businesses, with similar margins.

How fast did Unimech grow in H1 FY27?

Unimech reported consolidated revenue of Rs 231 crore in H1 FY27, an 85% increase from a year earlier. Q2 FY27 revenue was about Rs 123 crore, rising 14% sequentially and 98% year on year, meaning the second quarter accounted for more than half of first-half revenue.

The H1 revenue total reached 96% of Unimech's full-year FY26 revenue, according to management. H1 profit after tax was Rs 60 crore, up 71% year on year and nearly 94% of FY26 profit after tax, while Q2 profit after tax was about Rs 32 crore, up 14% sequentially and 103% from Q2 FY26.

Aero Tooling generated about 67% of H1 revenue, compared with 33% from precision components and assemblies, or PCA. Hobel Bellows contributed 30% of consolidated H1 revenue, leaving about 3 percentage points of revenue from PCA outside Hobel; management said PCA's revenue share should increase in coming quarters.

Why does Unimech expect H2 FY27 revenue to exceed H1?

Management expects H2 FY27 revenue to exceed H1's Rs 231 crore, based on its order book and delivery schedules. It identified higher deliveries to semiconductor capital-goods original equipment manufacturers, or OEMs, nuclear-order execution and steady run-rate performance in other businesses as the drivers.

Semiconductor revenue was small in H1, management said, despite PCA representing 33% of consolidated revenue. Unimech has one established semiconductor customer and two in the pipeline, supplying machined metal and plastic components and mechanical assemblies for equipment that turns wafers into chips.

The company had qualified 60 semiconductor parts and targeted another 20 components and assemblies by the end of calendar 2026. Management said the qualified parts were moving into revenue production and that further qualifications could lead to a long-term supply agreement, but it did not quantify expected semiconductor revenue in H2.

Can Unimech maintain margins as sales rise?

Management expects H2 FY27 margins to be similar to H1, when consolidated gross margin was 67% and earnings before interest, tax, depreciation and amortisation, or EBITDA, margin was 38%. Q2 gross margin was 69% and EBITDA margin was 40%, above the first-half measures, which management attributed to high-value orders and business mix.

Employee cost represented 15% of H1 revenue and operating expenses represented 14%, with 1,332 employees on board. Subcontracting costs were 2% of revenue, and management said the H1 cost structure represented its expected sustainable margin range for the remainder of FY27.

Management does not disclose margins by customer, product or vertical, including Aero Tooling and PCA. The prospective mix change is notable because Hobel represented 30% of total H1 revenue, while management expects the non-Hobel PCA business, including semiconductor programmes, to contribute a higher share as qualifications convert into production.

What does Unimech's order book show about future production?

Unimech reported a consolidated order book of Rs 855 crore, up 715% year on year, comprising firm purchase orders, long-term supply agreements and award letters. Of this amount, Rs 589 crore related to long-term wins spanning five to 10 years, so the figure includes programmes requiring continuing qualification before serial production.

Management cited three aerospace customers within the Rs 589 crore long-term visibility. These include a five-year FACC aerostructure agreement, a 10-year Honeywell Aerospace agreement that can be extended by two years for engine and control-system components, and a 10-year French Tier 1 aircraft-door programme.

Unimech expects to have more than 590 qualified parts across its customer ecosystem by the close of FY27, combining more than 250 established qualified parts and more than 340 parts in throughput. It is also targeting qualification of over 320 parts across precision aerospace customers in FY27, with first-article inspections expected to support serial production from FY28 onwards.

The French Tier 1 programme covers components used in aircraft doors across Boeing, Airbus and Embraer platforms. Management said the FACC agreement's five-year term and value could potentially double as qualification and discussions progress, but this remains a potential outcome rather than a disclosed contract amendment.

How will working capital and capacity shape Unimech's execution?

Unimech reported working capital of about 110 days in Q2 FY27 and expects this to rise gradually to 150 to 160 days by the end of FY27. Management linked the projected increase to longer inventory and execution cycles associated with aerospace and nuclear programmes.

Manufacturing facilities were operating at about 65% utilisation, including 15% to 20% of available capacity allocated to new production introductions, prove-outs and customer qualifications. Management said existing capacity should meet customer indications for roughly the next two years, although it may initiate expansion if demand requires it.

Dedicated automated special-process cells and assembly lines are being installed at the existing facility for anodising, electroless nickel plating, passivation, zinc and cadmium plating, heat treatment, surface finishing and non-destructive testing. Trial runs were under way, with commissioning targeted for December 2026 and National Aerospace and Defense Contractors Accreditation Program, or Nadcap, certification targeted for March 2027.

Unimech is also progressing a Saudi Arabia facility through its joint venture with Kanoo, targeting commercial manufacturing readiness in March or April 2027. Management said it was evaluating an equity fundraise in early calendar 2027, subject to final requirements and market conditions, to support expansion and minimum public shareholding requirements.

Conclusion

Unimech's H1 FY27 results indicate a substantially higher revenue and profit pace than FY26, with Rs 231 crore of revenue already equalling 96% of the prior full-year total. Management's higher-H2 expectation rests on stated delivery schedules for semiconductor equipment and nuclear orders, while its 67% H1 gross margin and 38% EBITDA margin provide the benchmark for its similar-margin outlook.

The next points to watch are semiconductor deliveries in H2, working-capital movement toward the 150-to-160-day FY27 range and conversion of qualified parts into serial production. Management has scheduled special-process commissioning for December 2026, targets Nadcap certification in March 2027, and expects the Saudi joint-venture facility to be commercially ready in March or April 2027.