Unimech Aerospace and Manufacturing Limited, originally incorporated as "Unimech Aerospace and Manufacturing Private Limited" on August 12, 2016, and later converted to a Public Limited Company on June 21, 2024, is a global high-precision engineering solutions provider. The company specializes in the manufacturing of complex products for critical industries including aerospace, defence, energy, and semiconductors.
UAML serves as a key manufacturing partner for gas turbine and airframe/airport tooling. These are essential for maintenance, repair, and overhaul (MRO) activities, as well as line maintenance for aircraft and aircraft engine manufacturers such as Airbus, Boeing, Dassault Aviation, GE, and Rolls-Royce. The company's core offerings include the manufacturing of aero tooling, precision components, and mechanical assemblies. Furthermore, Unimech has strategically expanded its capabilities into complex component manufacturing for the Defense, Power Generation, and Semiconductor sectors.
Unimech has established itself as a leading manufacturer of complex tooling and precision components, producing over 2,500 Stock Keeping Units (SKUs) for major international clients. With a significant 95% of its FY25 revenue derived from exports, Unimech operates as a global entity rather than solely a domestic player.
The company manufactures and sells a diverse range of products, including:
- Tooling
- Mechanical assemblies
- Electro-mechanical turnkey systems
- Precision components
These components cater to various needs within the aerospace sector, such as aircraft maintenance, repair, and overhaul (MRO) tools and structures, engine MRO tools, line maintenance tools, engine stands, and ground support equipment. Unimech's expertise extends across the aerospace, defense, energy, space, power generation, and semiconductor industries, with its products exported to key markets including the United States, Germany, and the United Kingdom, among others internationally.
As of July 2025, Unimech Aerospace and Manufacturing Ltd holds a market capitalization of ₹6,580 Crore. The company reported a revenue of ₹243 Crore and a profit of ₹83.5 Crore. A key highlight of Unimech's financial trajectory is its impressive revenue Compound Annual Growth Rate (CAGR) of 88% from FY22 to FY25. The company also maintains a robust EBITDA margin of 38%, demonstrating strong profitability despite its rapid scale-up.
Recent Quarterly Performance:
- Q4 FY25: The company witnessed strong growth momentum, with net profit rising by 48.07% to ₹29.20 crore compared to ₹19.72 crore in Q4 FY24. Sales increased by 9.66% to ₹68.37 crore in Q4 FY25, up from ₹62.35 crore in Q4 FY24.
- Q3 FY25: In contrast, the company experienced a decline in Q3 FY25, with net profit decreasing by 23.60% to ₹15.57 crore and sales declining by 16.72% to ₹53.90 crore, when compared to Q3 FY24.
Key Financial Metrics:
- ROCE: 25.2%
- ROE: 33.1%
- Price to Book Value: 9.85 times
- Promoter Holding: 79.8%
- FY25 Revenue Growth: 16%
- FY26 Revenue Guidance: 40%
Unimech has significantly bolstered its manufacturing capabilities, increasing its production capacity by 240% in FY25. This expansion has been accompanied by the addition of seven new customers and a strategic focus on high-growth sectors like nuclear, defense, and semiconductors. The company has invested in advanced machinery, adding 48 new machines to its fleet, bringing the total to 141, and has expanded its operational floor space to 2,13,000 sq. ft.
Following a successful Initial Public Offering (IPO) in December 2024, Unimech strategically acquired a 30% stake in Dheya Engineering, aiming to co-develop micro gas turbine engines. At the end of FY25, the company maintained a strong financial position with INR 1,417.6 crore in cash and equivalents, providing substantial resources for future strategic expansions and acquisitions.
- Ministerial Visit: In July 2025, Union Minister Piyush Goyal visited Unimech's Devanahalli facility, acknowledging and endorsing the company's contributions to the 'Make in India' initiative.
- Analyst Target Price: Anand Rathi has raised its target price for Unimech Aerospace to ₹1,610, citing strong growth potential and the company's ambitious revenue goals. The company is actively pursuing significant expansion in the aerospace tooling and nuclear sectors.
Unimech Aerospace and Manufacturing Ltd's rating is supported by its established market position, the extensive experience of its promoters in the aerospace and defense industry, a robust product portfolio, and a healthy financial risk profile.
However, potential investors should consider the following factors:
- Cyclicality: Exposure to the cyclical nature of end-user industries.
- Customer Concentration: A degree of reliance on a few key customers.
- Working Capital: The need for substantial working capital.
The company's strategic emphasis on diversification across aerospace, defense, nuclear, and semiconductor sectors positions it favorably for future growth. Unimech is actively transitioning from being a mere vendor to becoming a critical manufacturing partner across these strategic industries. With its strong export orientation and established partnerships with global aerospace giants, Unimech appears well-positioned to capitalize on the increasing global demand for precision engineering solutions within the aerospace and defense sectors.
