Unimech Aerospace and Manufacturing Ltd

Unimech Aerospace and Manufacturing Ltd announced credit rating actions from multiple agencies, with CARE Ratings Limited assigning a CARE A; Stable rating to its Issuer Rating, valid for one year from September 10, 2026, and also assigning an Issuer Rating of CARE A; Stable, alongside a surveillance/review process with updates available on www.careratings.com; additionally, CARE Ratings Ltd. noted a document is enclosed for consideration and available on the company website, while CareEdge Ratings indicated their ratings reflect opinions as on the date of the rating for Bank facilities/instruments, with no specific amounts or ratings detailed.

Unimech Aerospace and Manufacturing Ltd announced today that CARE Ratings Limited has assigned an Issuer Rating of CARE A; Stable to the company, alongside an Issuer Rating of CARE A; Stable, both valid for one year from September 10, 2026, with details available in an enclosed document, while no ratings were provided by CareEdge Ratings, CARE Ratings Ltd., or any other agency, and no instruments were rated.

Unimech Aerospace and Manufacturing Limited acquired 850 equity shares of Dheya Engineering Technologies Private Limited for an aggregate consideration of Rs 2,99,82,364.50 through a secondary purchase, increasing its total shareholding to 35.07%, according to a regulatory filing on September 7, 2026. Dheya Engineering Technologies Private Limited, which has a turnover of Rs 206.03 lakhs, is developing gas turbine engines for defense and energy applications and is considered a “Related Party” of Unimech Aerospace and Manufacturing Limited, although the investment does not constitute a related party transaction.

The company reported significant shifts in its environmental and sourcing practices during fiscal year 2025-26, according to recently released data. While the company has achieved Environmental Management System (EMS) certification across all units and claims compliance with environmental regulations, recycled waste decreased sharply from 95.42 tonnes in FY24 to 6.4 tonnes in FY25, and the percentage of input materials sourced from within India fell from 92.54% to 73%. The report, which notes that FY25-26 data may not be directly comparable to the previous year due to methodological revisions, also revealed a lack of data regarding consumer complaints and rehabilitation/resettlement projects, raising questions about reporting practices. The company maintains a Key Accounts Manager to address stakeholder concerns and has a framework in place for cybersecurity and data privacy.

Unimech Aerospace and Manufacturing Ltd share price ticked higher by 2.19% to Rs 1260.65 after the company's net profit grew slightly 6.59% to Rs 28.0 crore, while revenue from operations gained significantly 31.56% to Rs 107.62 crore in Q2FY26 over Q1FY26. The market capitalization of Aerospace & Defense industry group stocks on BSE stood at Rs 8.46 lakh crore, climbing 13.23%. It has eased by 0.98% over last one week and eased lower by 0.66% in last one month while the market capitalization of Unimech Aerospace and Manufacturing Ltd has marginally improved by 4.92% and 22.75% in the same period respectively. Profit before tax (PBT) of Unimech Aerospace and Manufacturing Ltd stood at Rs 36.69 crore in Q2 FY26, surging by 51.61% year-on-year, and rallying 16.14% quarter-on-quarter. EBITDA came in at Rs 32 crore, jumping 281.94% YoY and expanding by 55.91% sequentially. Total expenses witnessed a sharp rise of 42.07% to Rs 76.32 crore in Q2FY26 over Q2FY25. During the quarter, cost of materials consumed stood at Rs 26.95 crore, witnessing a sharp rise of 60.13% YoY, while employee benefits expense was at Rs 16.25 crore, inching up 4.30% YoY. For the TTM ended FY26, revenue from operations grew 16.36% to Rs 242.93 crore, while net profit jumped 43.68% to Rs 83.52 crore, compared to previous TTM. EBITDA witnessed a strong improvement of 7927% to Rs 67.29 crore, and PBT surged 33.20% to Rs 101.9 crore compared to previous TTM. The company's consolidated net cash flow from operating activities stood at Rs 81.41 crore in FY26, as against Rs 46.87 crore in FY25. Unimech Aerospace and Manufacturing Ltd headed higher 7.20% in last one year, significantly outperforming the benchmark BSE Sensex which has eased by 3.81% during the same period.

Unimech Aerospace & Manufacturing Ltd. announced its unaudited financial results for the quarter ended June 30, 2026, reporting total revenue of Rs 1,149.5 million, a 54% year-over-year increase, and Rs 1,076.2 million in revenue from operations, up 71% year-over-year. The company’s EBITDA grew to Rs 392.5 million, a 98% increase year-over-year, and profit after tax stood at Rs 278.6 million, up 46% year-over-year, while also signing a long-term supply agreement with FACC Operations GmbH, Austria, for precision-engineered aerospace components.

Unimech Aerospace and Manufacturing Limited informed the National Stock Exchange of India Ltd. and BSE Limited that it has experienced a deviation or variation in the utilization of funds raised through its Initial Public Offering on December 31, 2024, amounting to Rs 2500 millions, due to changes in business dynamics, vendor variations, long-term objectives, growth through inorganic routes, mergers and acquisitions, greenfield projects, and joint ventures, as approved by shareholders on December 17, 2025.

Unimech Aerospace and Manufacturing Limited informed the National Stock Exchange of India Ltd. and BSE Limited that its board approved a Qualified Institutions Placement (QIP) to raise up to Rs 750,00,00,000 or an equivalent amount in one or more tranches, subject to shareholder approval at the company's Annual General Meeting.

A recent report examining the deployment of initial public offering (IPO) proceeds has raised concerns regarding the company's financial management and strategic execution. Funds initially earmarked for debt repayment were reallocated to mergers and acquisitions, greenfield projects, and joint ventures, a shift from the original plan presented to investors. The report also highlighted instances of funds designated for general corporate purposes being used for M&A activities and transfers of unutilized funds to Axis Bank fixed deposits and a public issue account, suggesting a lack of immediate investment opportunities. Investors are urged to seek further clarification from the company regarding the rationale behind these decisions and a detailed breakdown of general corporate purpose fund utilization, as the report itself lacks this detail. The Monitoring Agency, CARE Ratings, emphasizes that the report relies on management information and does not constitute an audit or independent verification.

Unimech Aerospace and Manufacturing Limited will hold a board meeting on August 3, 2026, to consider and approve the un-audited standalone and consolidated financial results for the quarter ended June 30, 2026, and to approve the raising of funds through a Qualified Institutions Placement of equity shares and/or other eligible securities.