Company Update : Unimech Aerospace and Manufacturing Ltd by Choice Broking Ltd
We visited Unimech Aerospace and Manufacturing Ltd.’s Bengaluru facility. Our interaction with the management reinforced our view that it is building for scale rather than chasing short-term gain. UNIMECH stands out as a rare Indian precision engineering player with credible exposure in aerospace tooling, defence, nuclear and semiconductors
In our view, UNIMECH is positioning itself to ride the twin tailwinds of “Make in India” and global supply-chain diversification. Management’s 35–40% FY26 revenue guidance seems achievable, given its order pipeline in aero tooling, nuclear energy and precision components.
Recent capacity expansion and continuous SKUs’ qualifications are transforming its customer profile — with several global names onboarded. Balance between growth and profitability was impressive: In FY25, GP and EBITDA margin, respectively, remained to be around 69% and 38% despite heavy investments. Long-term aspiration of reaching INR 1,000 Cr revenue by FY29 is backed by capital raising, strong demand drivers and disciplined M&A ambitions
* Aerospace: A significant growth catalyst is the ongoing deployment and maturation of high-volume engine programmes, such as for LEAP, Pratt & Whitney and Rolls-Royce. UNIMECH is not only expanding their assembly lines to meet rising demand but also entering the critical MRO phase, creating demand. Orders for LEAP engines surpassed 10,000 units; hence, new tools and MRO components’ demand is shoot up.
* Semiconductors: India is emerging as a strategic manufacturing hub in the this value chain, with increasing focus on producing critical components and subsystems. Govt’s US$ 10 Bn mission, PLI scheme and a favourable investment climate will attract crucial capital, thus accelerating sectoral growth from FY27E.
* Nuclear Power: India, under ‘Viksit Bharat,’ is increasing its nuclear power ambitions, targeting 100 GW of installed capacity by 2047. 24 reactors are operational, 6 are under construction and a few under development. Plans are afoot for large-scale Parks and Small Modular Reactors, with at least 5 SMRs targeted by 2033. This expanding ecosystem is set to create new and MRO opportunities.
Our View: UNIMECH is at a structural inflection point, transitioning from an aero-proxy to a diversified advanced engineering platform. It is well-positioned to cash in on strong tailwinds from the indigenisation policy
The near-term order volatility may keep numbers lumpy. Its execution discipline, scalable export-driven model and entry barriers mitigate risks. Circumventing US tariff woe, it now supplies directly to its end users.
Strategic optionality in nuclear and jet engines offer growth avenues. With prudent capital allocation and margin management, we believe UNIMECH is well-positioned to emerge as India’s benchmark midcap aerospace and defence precision play in the next 3–5 years.
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