Universal Autofoundry targets over 75% non-tractor revenue

Universal Autofoundry Limited aims for commercial vehicles, construction, engineering and other non-tractor businesses to contribute more than 75% of revenue within three to five years. The target starts from a Q2 FY27 revenue mix in which tractors represented 55%, while medium and heavy commercial vehicles and earthmoving each contributed 20%.

What revenue shift is Universal Autofoundry targeting?

Universal Autofoundry is targeting a non-tractor revenue share exceeding 75% within three to five years. Its roadmap identifies medium and heavy commercial vehicles, construction, engineering and other businesses as the contributors to this target, while describing the aim as a reduction in reliance on the cyclical tractor segment.

Tractors had historically supplied more than 50% of revenue in FY25 and FY26, according to the presentation. At the Q2 FY27 mix, the 55% tractor share implies a 45% non-tractor share, based on the company’s segment percentages. Reaching more than 75% would therefore require non-tractor activities to add over 30 percentage points of revenue share from that base.

Universal Autofoundry’s product range covers the intended sectors. Commercial-vehicle products include cylinder hydraulics, pulley dampers and rear hubs, while construction products include differential cases and trunnion supports. The company has installed capacity of 42,000 metric tonnes a year across three units in and around Jaipur, producing grey iron and ductile iron machined castings.

How did Universal Autofoundry's revenue mix change in Q2 FY27?

Universal Autofoundry’s Q2 FY27 revenue mix moved away from tractors compared with Q2 FY26. Tractor share fell by 5 percentage points to 55%, while medium and heavy commercial vehicles, or M&HCV, gained 3 percentage points and earthmoving gained 2 percentage points.

The 45% combined non-tractor share in Q2 FY27 consisted of 20% M&HCV, 20% earthmoving and 6% construction and other activities, subject to rounding in the disclosed figures. The comparison indicates that M&HCV and earthmoving supplied most of the year-on-year shift rather than construction and other activities.

Production reached 6,009 metric tonnes in Q2 FY27, down 4% from 6,237 metric tonnes in Q2 FY26 but up 5% from 5,725 metric tonnes in Q1 FY27. Capacity utilisation similarly improved to 57% from 55% in Q1 FY27, although it remained below the 59% recorded a year earlier.

Revenue was Rs 61.5 crore in Q2 FY27, up 12% year on year and 13% quarter on quarter. Earnings before interest, tax, depreciation and amortisation were Rs 1.9 crore, down from Rs 4.1 crore in Q2 FY26, while EBITDA per kilogram declined to Rs 3.2 from Rs 6.5 as gross margin fell about 250 basis points year on year to 41.0%.

What operating plans support Universal Autofoundry's mix target?

Universal Autofoundry expects capacity utilisation of 65% from FY27, compared with an average of 54% in FY26. The company says this expectation includes Unit 3, whose RHINO high-pressure moulding line has annual capacity of 12,000 metric tonnes and produces castings weighing 20 kilograms to 50 kilograms.

The company plans about Rs 6 crore of machinery investment in FY27, covering trimming, vertical turning lathe, Sinto and vertical machining centre equipment. Management said the machinery was due for installation by the end of FY27, and that borrowings had increased for solar-plant financing, equipment upgrades and these new machines.

Universal Autofoundry also commissioned its second Churu solar plant with 4.8 megawatts alternating-current capacity in Q2 FY27. It capitalised Rs 25 crore for the plant, taking total solar capacity to 8.4 megawatts alternating current, and management expects scale and cost benefits from the installations in H2 FY27.

Which markets could support Universal Autofoundry's plan?

M&HCV and earthmoving-construction demand provide the main disclosed support for Universal Autofoundry’s planned revenue mix change. M&HCV accounted for 20% of Q2 FY27 revenue, and industry M&HCV volumes rose 37% year on year to 1.2 lakh units in the quarter, according to data cited in the presentation.

Total commercial-vehicle volumes rose 28.7% year on year in Q2 FY27, which the presentation describes as a record quarter. The Society of Indian Automobile Manufacturers expects H2 FY27 growth to be supported by freight movement and infrastructure activity, while the company’s outlook groups earthmoving and construction at 25% of revenue, rather than presenting them separately as in the Q2 segment table.

For FY27, the Indian Construction Equipment Manufacturers’ Association estimated domestic construction-equipment demand growth of 9% to 12% and export growth of 30%. The presentation also cites Union capital expenditure of Rs 12.2 lakh crore in the FY27 Budget Estimates as part of the backdrop for construction activity.

Tractors remain Universal Autofoundry’s largest single segment despite the diversification plan. Tractor wholesale increased 19% year on year in April to July 2026, after FY26 wholesale growth of 23.5%, while ICRA’s cited FY27 outlook is domestic growth of 1% to 4% from that record base.

How does Universal Autofoundry plan to grow exports?

Universal Autofoundry projects exports of about 15% of revenue within three years through investment, partnerships and a deeper presence in existing markets. Exports were Rs 3.2 crore in Q2 FY27, up 29% from Rs 2.5 crore in Q2 FY26 but down 38% from Rs 5.1 crore in Q1 FY27.

Management identified geopolitical uncertainty and higher freight-container prices as current export constraints. The presentation says the India-European Union free-trade agreement concluded on 27 January 2026 could create export upside from FY28 as component duties are phased out over five to 10 years, though the agreement was not yet in force; a February 2026 United States framework proposed an 18% reciprocal rate, with an auto-parts quota not yet notified.

Conclusion

Universal Autofoundry’s plan links a measurable revenue-mix objective with existing exposure to commercial vehicles, earthmoving, construction and engineering. The move from a 60% tractor share in Q2 FY26 to 55% in Q2 FY27 shows an initial change, but the more-than-75% non-tractor target requires gains of over 30 percentage points from the current 45% non-tractor base.

The next disclosed milestones are the planned Rs 6 crore machinery installation by the end of FY27, expected 65% utilisation from FY27 and anticipated solar-cost benefits in H2 FY27. Progress toward exports representing about 15% of revenue within three years, alongside M&HCV and construction demand, will indicate whether the targeted mix change is taking hold.