1. At a Glance
Unimech Aerospace is flying high in narrative, but Q1 FY26 results show the landing gear might need servicing. With ₹19 Cr profit on ₹63 Cr revenue, and a wild 74x P/E, it’s priced like HAL but with startup stress. Throw in 617 working capital days, and Houston, we have a liquidity problem.
2. Introduction with Hook
Imagine a fighter jet—sleek, loud, expensive—and now imagine it’s powered by a scooter engine. That’s Unimech’s Q1. They boast clients like Airbus and GE, but the margins are stalling like Air India’s check-in counters.
Two speed-breakers:
- Working Capital Days = 617. That’s nearly 2 financial years in inventory limbo.
- Other Income = ₹34 Cr out of ₹82 Cr PAT. So… is this aerospace or asset flipping?
3. Business Model (WTF Do They Even Do?)
Unimech manufactures high-precision components and tooling for the who’s-who of aviation: Airbus, Boeing, GE, Dassault, Rolls Royce. In theory, it’s India’s aerospace prodigy.
In practice:
- 2,500+ SKUs.
- Aerospace, defense, power, semiconductors—all rolled into one ambitious punch.
- Also does MRO and line maintenance tooling.
Basically, they’re making fighter jet parts… and probably also the screwdriver to fix them.
4. Financials Overview
Let’s strap into the cockpit of Q1 FY26:
| Metric | Q1 FY25 | Q1 FY26 |
|---|---|---|
| Revenue | ₹59 Cr | ₹63 Cr |
| EBITDA | ₹26 Cr | ₹20 Cr |
| EBITDA Margin | 43% | 31% |
| Net Profit | ₹21 Cr | ₹19 Cr |
| PAT Margin | 35.6% | 30.2% |
Profit dipped despite revenue growing. The ₹11 Cr “Other Income” might’ve kept the bird in the air.
5. Valuation
Unimech is trading at dream-level multiples:
a) P/E Valuation
- EPS TTM = ₹16.35
- Industry P/E median ~40x
- Fair Value = ₹16.35 × 40 = ₹654
b) EV/EBITDA
- EBITDA TTM = ₹86 Cr
- EV/EBITDA peer range = 18–24x
- Fair EV = 86 × 20 = ₹1,720 Cr → Market Cap: ₹6,000+ Cr
- Conclusion: EV/EBITDA suggests massive overvaluation. FV Range: ₹600–₹850
So yeah, you’re paying F-16 prices for a Tejas prototype.
6. What’s Cooking – News, Triggers, Drama
- Other Income of ₹34 Cr: That’s 40% of full-year PAT. From what? Real estate? Rent? Divine blessings?
- Capex Explosion: Assets jumped to ₹807 Cr in FY25 from ₹176 Cr in FY24. That’s some serious infrastructure. Or serious accounting.
- High Profile Clients: Airbus, Rolls Royce etc. But no word yet on contract size or pipeline conversion.
- New Appointments: Internal auditor and Co. Secretary onboarded. Let’s hope they find what retail can’t.
7. Balance Sheet
| Item | FY25 | Commentary |
|---|---|---|
| Equity Capital | ₹25 Cr | Increased via equity issue |
| Reserves | ₹643 Cr | Exploded post IPO and PAT gains |
| Borrowings | ₹84 Cr | Manageable, but increasing |
| Total Liabilities | ₹807 Cr | 4x jump over 2 years |
| Fixed Assets | ₹162 Cr | Capex in high gear |
| Investments | ₹344 Cr | Wait… what are we investing in? |
Balance sheet is rich—but so are the questions.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹1 Cr | ₹-6 Cr | ₹3 Cr | ₹-2 Cr |
| FY24 | ₹24 Cr | ₹-24 Cr | ₹6 Cr | ₹5 Cr |
| FY25 | ₹81 Cr | ₹-461 Cr | ₹515 Cr | ₹135 Cr |
Huge financing inflow = IPO proceeds?
CFI = Did they buy a stadium? ₹461 Cr sunk into “assets/investments.”
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 23.8% | Respectable |
| ROE | 21.5% | Above-average |
| PAT Margin | 30.2% | Inflated by other income |
| P/E | 74x | Jet fuel pricing |
| D/E | ~0.13x | Not alarming |
So yes, it’s capital-efficient… if you ignore 617 working capital days like your gym resolution.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY22 | ₹36 | ₹8 | ₹3 |
| FY23 | ₹94 | ₹35 | ₹23 |
| FY24 | ₹209 | ₹79 | ₹58 |
| FY25 | ₹243 | ₹92 | ₹83 |
Solid growth, but FY25’s “Other Income” is padding the bottom line harder than a CXO’s LinkedIn post.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Hindustan Aeronautics | 30,981 | 8,360 | 37.5 |
| Bharat Electronics | 23,769 | 5,321 | 54.7 |
| Zen Technologies | 974 | 280 | 60.1 |
| Data Patterns | 708 | 215 | 72.4 |
| Unimech | 247 | 82 | 74.2 |
Unimech’s P/E is sky-high despite being a minnow in revenue. Like a fresh graduate asking CEO salary.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 | Jun 2025 |
|---|---|---|
| Promoters | 79.82% | 79.82% |
| FIIs | 0.44% | 0.16% |
| DIIs | 7.76% | 6.41% |
| Public | 11.98% | 13.63% |
Retail exposure growing. FIIs quietly ghosting. Promoter holding tight like your first salary cheque.
13. EduInvesting Verdict™
Unimech Aerospace has potential. Strong client base, decent margins (if you ignore the other income), and no debt drama. But the current price assumes it’s the next HAL with a moonshot TAM.
Meanwhile, the stock trades at 9x book, 74x earnings, and 617 working capital days. The fundamentals are somewhere between “aspirational” and “wait and watch.”
A decent runway. But don’t expect takeoff without turbulence.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Unimech Aerospace, Aerospace, Defense, EduInvesting Premium
