The financial year 2026 has been a year of strategic investment and strong momentum for Unimech Aerospace and Manufacturing Limited with a strong focus on expanding capacity through new facilities, sealing high value engine tooling operations and strengthening the order book among its customer base across both domestic and global aerospace markets. Unimech Aerospace posted Q2FY26 financial performance better than expectations despite the headwinds from critical mineral additional US export tariffs that have significantly increased duties for Indian defence companies.
India has emerged as a key market in the global aerospace manufacturing value chain on the back of focused investment in the infrastructure sector and possessing high skill development, thereby well positioning the country to capture a larger market share over the next decade. The government’s UDAN scheme of connecting more and new routes indicate sustained growth in aircraft demand and benefitting companies like Unimech Aerospace.
Meanwhile, large Global aircraft and engine manufacturers are accelerating their production cycles through capacity expansion along with support of supply chain localisation. Airbus has ramped up assembly lines across Asian and western geography, targeting a production of around 75 A320 aircrafts per month over the next two years. Similarly, LEAP engines are scaling up their production and have delivered 500 engines during the quarter.
From a segment wise business perspective, Unimech’s tooling division accounts for nearly 78% of the total Q2 FY26 revenue inspite of prevailing geopolitical uncertainties arising due to the current tariff issue. There have been significant order wins of about $4 million for ground support equipment under the engine program with a potential to secure more long term orders in the future.
The Precision engineering segment has on boarded new aerospace customers, establishing a foothold in developing sub assemblies for unmanned aircraft system used for tracking and surveillance. On the other hand, the semiconductor segment can have huge order potential with many FAI articles being developed and in the final stage of approval. Additionally, Unimech Aerospace has been boarding robotics, medical equipment manufacturers and other defence OEMs for over 50 different FAIs turning these qualifications into orders indicating strong execution capability for the company.
The future is extremely bright for Unimech Aerospace with it in advanced onboarding discussion with several global OEMs, signing a long term agreement with a Tier one company for single aisle aircraft parts as well as developing precision components for oil and gas drilling companies. The domestic Nuclear segment is a fast growing sector on the back of government’s growing emphasis on harnessing nuclear energy and Unimech is at the forefront having submitted bids for nuclear projects of around Rs 800 crores.
To mitigate the effect of these tariff uncertainties, Unimech Aerospace is establishing a free trade zone that should commence operations in Q4FY26. The company is also exploring acquisition opportunities and other inorganic business options for its long-term growth agenda. The company management has commented in its last con call with analysts during November 2025 that though the revenue targets may surpass the given guidance, margins may be lower as compared to the previous year. Hence, investors can purchase the Unimech Aerospace stock currently at Rs 922 on the bourses in a phased systematic manner with very small quantities for solid long-term appreciation.
