Uniparts records Rs 379 crore quarter as construction rises 49%

Uniparts India Limited recorded its highest quarterly revenue of Rs 379 crore in Q2 FY27, up 37% year on year, as construction sales rose 49% and large-agriculture sales increased 10% despite an approximately 17% decline in relevant industry volumes. Revenue was also 9% higher than in Q1 FY27.

Why did Uniparts reach a record quarter?

Uniparts reached record Q2 FY27 revenue through growth in construction, new-business execution and a recovery in smaller agriculture markets. Revenue from operations was Rs 379 crore for the quarter ended September 30, 2026, compared with year-on-year growth of 37% and sequential growth of 9%. Chairman and Managing Director Gurdeep Soni said construction offset continuing pressure in parts of agriculture.

Construction sales grew 49% year on year. Management linked North American construction activity to data centres, power generation, artificial-intelligence-related infrastructure and smart manufacturing. In Europe, it cited infrastructure and energy-transition projects, while noting that non-residential construction was expanding faster than residential construction. Management said Uniparts' construction growth was higher in the U.S. than in Europe and its participation in Indian construction remained limited.

Management identified three drivers of construction growth: new customer business, increased demand from existing programmes, and higher-than-expected demand for products launched by customers. It described U.S. data-centre and smart-manufacturing contracts as multi-quarter programmes and European infrastructure and energy-transition contracts as multiyear programmes. Those comments represent management's assessment of demand visibility, not a revenue forecast.

How did Uniparts' agriculture and aftermarket businesses perform?

Uniparts grew sales in both agriculture categories despite sharply different underlying markets. Large-agriculture sales rose 10% year on year while industry volumes for tractors above 100 horsepower and four-wheel-drive tractors were down roughly 17% during the year. Management said its large-agriculture growth came entirely from new business rather than the market cycle, as programmes moved through sampling, testing, approval and regular production.

Small-agriculture sales increased 25% year on year after three years of continuous market decline. Management attributed improving order books partly to depleted inventories and replacement demand. Its outlook was mixed: small-agriculture industry demand was expected to be flat to up 5% in the U.S. and Canada, flat in Europe, down about 15% to 20% in South America, and up 4% to 6% in India.

The aftermarket accounted for 16.5% of quarterly revenue, up from 12.4% in Q1 FY27 and 14.7% in Q2 FY26. In absolute terms, aftermarket revenue grew more than 50% year on year. Management said an inflation-driven pause in buying had normalised through the year, while cautioning that discretionary aftermarket purchases can create quarter-to-quarter variability.

What did Uniparts report for profit, cash and working capital?

Uniparts reported Q2 FY27 earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 89 crore and profit after tax of Rs 54 crore. EBITDA increased 38% year on year and was broadly flat sequentially, while profit after tax rose 37% year on year. The 23.4% EBITDA margin was above management's stated through-cycle target of 20%.

Uniparts closed September 30, 2026 with net cash of Rs 172 crore after paying a Rs 41 crore dividend in Q2 FY27. Net working capital was 137 days of trailing-12-month revenue, while trailing-12-month earnings per share were Rs 43.30. Quarterly capital expenditure was about Rs 10 crore for capability enhancement, productivity improvements and customer-led growth initiatives.

What investment and new-order plans has Uniparts disclosed?

Uniparts said new business wins continued to exceed Rs 225 crore, concentrated largely in construction and large agriculture. The awards covered three product platforms: three-point linkage systems, precision machined parts and fabrications. Management said awards secured over recent quarters were ramping as planned, but it did not disclose individual-award timing or revenue conversion schedules.

The company plans capital expenditure of around Rs 60 crore over the next year, with most projects approved and advances paid, according to the Group Chief Financial Officer. Management said the restoration of the Ludhiana finishing shop was on track for operation by the end of calendar 2026. It also said the first customer dispatch from Mexico would take place in November 2026.

Fabrication represented roughly 12% to 15% of new business wins despite being a smaller current revenue contributor. The Ludhiana facility, established about two to three years earlier, produces small and medium-sized fabricated products. Management expects fabrication to become a meaningful contributor within 18 to 24 months through organic customer programmes, with any large-fabrication acquisition acting as an addition to that plan.

What could affect Uniparts' next quarters?

Uniparts' near-term performance will depend on new-award conversion, construction programme demand and the pace of agricultural recovery. Management said large agriculture in Europe remained muted and was expected to recover in 2027. The 10% growth in Uniparts' large-agriculture sales during an approximately 17% industry-volume decline shows the current importance of programme ramp-ups over the market cycle.

Raw-material pricing remains an operating variable. Management said material cost was 34.3% of Q2 FY27 revenue, within its usual 34% to 37% range, despite rising steel prices. Customer contracts provide for raw-material price pass-throughs, but with a lag, and management said some Q2 material cost had yet to be passed through to customers.

Management was evaluating about half a dozen acquisition opportunities after walking away from two recent opportunities. It said an acquisition would need to be strategic, add customer value and be value-accretive, and that it did not intend to pursue a deep-turnaround transaction. No acquisition, value or timetable was disclosed.

Conclusion

Uniparts combined record Q2 FY27 revenue of Rs 379 crore with growth across construction, large agriculture, small agriculture and aftermarket activity. Construction's 49% sales growth was the largest disclosed segment increase, while 10% large-agriculture growth came as relevant industry volumes fell by roughly 17%.

The next disclosed milestones are the Mexico customer dispatch in November 2026 and the Ludhiana finishing-shop restoration by the end of calendar 2026. Progress in more than Rs 225 crore of new business wins, around Rs 60 crore of planned capital expenditure and management's 18-to-24-month fabrication plan will indicate how the current growth programmes are converting.