Unimech Aerospace reported a strong H1 FY27, with revenue climbing 85% to 231 crore and PAT rising 71% to 60 crore. Driven by a massive 715% expansion in its order book to 855 crore, the firm is transitioning toward long-term aerospace supply agreements. Management also announced plans for a potential equity fundraise in early 2027 to support capacity expansion and meet public shareholding norms.
Unimech Aerospace Posts 85% Revenue Growth, Order Book Hits 855 Crore
H1 FY27 Revenue: INR 231 crore (+85% YoY); H1 FY27 PAT: INR 60 crore (+71% YoY).
Reader Takeaway: Strong order book growth boosts visibility, but rising working capital requirements and potential dilution from upcoming fundraising warrant caution.
What just happened
Unimech Aerospace and Manufacturing Ltd reported robust financial results for the first half of FY27. Consolidated revenue surged 85% year-on-year to INR 231 crore, while Profit After Tax (PAT) grew 71% to INR 60 crore. The firm maintained strong operational efficiency, reporting an EBITDA margin of 38% for the period, with Q2 margins climbing to 40%.
Why this matters
The company’s order book has expanded by 715% compared to the previous year, now standing at INR 855 crore. This shift from short-cycle tooling to long-term agreements (LTAs) with industry leaders like Honeywell Aerospace and FACC provides significant revenue predictability. The inclusion of Hobel Bellows and the strategic 27% stake in Dheya Engineering have further diversified the company's manufacturing capabilities into propulsion and precision assemblies.
Future Outlook and Guidance
Management expects H2 performance to outpace H1, driven by the conversion of the current order pipeline. The firm has set a medium-term revenue goal of INR 1,000 crore. To support this growth and address public shareholding requirements, the company is evaluating an equity fundraise in early 2027. Commercial production at its new Saudi Arabia facility is expected to begin in March or April 2027.
Risks to watch
Investors should monitor the working capital cycle, which is projected to lengthen from 110 days to approximately 160 days by FY27-end due to the shift in program lengths. Additionally, management has signaled a potential 1-2% compression in long-term margins as R&D spending increases and the product mix evolves. Execution remains key as the company scales serial production of qualified parts.