AI assistant
Uniparts India Limited Call Transcript 2026
60772_rns_2026-06-01_97812d59-eff7-4ee8-ba06-4d21eff6fe07.pdf
Call Transcript
Open in viewerOpens in your device viewer
UNIPARTS INDIA LTD.
June 01, 2026
| BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 | National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai – 400 051 |
|---|---|
| Scrip Code: 543689 | Symbol: UNIPARTS |
Subject: Regulation 30: Transcript of Earnings Call pertaining to the Audited Financial Results for the quarter and financial year ended March 31, 2026
Dear Sir/Madam,
In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed transcript of earnings call on the Audited Financial Results of the Company for the quarter and financial year ended March 31, 2026, which was held on Tuesday, May 26, 2026.
The same is also being uploaded on website of the Company at https://www.unipartsgroup.com/home/quarterly_financial_results.
You are requested to take the above on record.
Thanking You,
Yours faithfully,
For Uniparts India Limited
Jatin
Mahajan
Jatin Mahajan
Head Legal, Company Secretary and Compliance Officer
Encl: As above
Regd. Office: Gripwel House, Block-5, LSC, C 6&7, Vasant Kunj, New Delhi-110070, India | Tel: +91 11 26137979 | Fax: +91 11 26133195
Corporate Office: 1st Floor, B 208, A1 & A2, Phase-II, Noida-201305, (U.P.), India
Tel: +91 120 4581400 | Fax: +91 120 4581499
E-mail: [email protected]; website: www.unipartsgroup.com
An ISO 9001:2008 & 14001:2004 Company
CIN : L74899DL1994PLC061753
UNIPARTS GROUP
Page 1 of 18
UNIPARTS GROUP
"Uniparts India Limited
Q4 & FY26 Earnings Conference Call"
May 26, 2026
MANAGEMENT: MR. GURDEEP SONI – CHAIRMAN AND MANAGING DIRECTOR – UNIPARTS INDIA LIMITED
MS. TANUSHREE BAGRODIA – WHOLE TIME DIRECTOR AND GROUP CHIEF EXECUTIVE OFFICER – UNIPARTS INDIA LIMITED
MR. SANDEEP TANEJA – GROUP CHIEF FINANCIAL OFFICER – UNIPARTS INDIA LIMITED
MODERATOR: MS. PRAYASI PATEL – GO INDIA ADVISORS
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Earnings Conference Call for Uniparts India Limited hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.
I now hand the conference over to Ms. Prayasi Patel from Go India Advisors. Thank you, and over to you, ma'am.
Prayasi Patel:
Thank you, Rutuja. Good afternoon, everyone, and welcome to Q4 and FY26 Earnings Call of Uniparts India Limited. We have on the call Mr. Gurdeep Soni, Chairman and Managing Director; Ms. Tanushree Bagrodia, Whole-Time Director and Group CEO; and Mr. Sandeep Taneja, Group CFO.
We must remind you that the discussion in today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risk that company may face. I will now request Mr. Soni to take us through the financial and the business update, subsequent to which we can open the floor for Q&A. Thank you, and over to you, sir.
Gurdeep Soni:
Thanks a lot. Good afternoon, everyone. It is a pleasure to welcome you to the Unipart's quarter 4 and full year financial '26 earnings call. The final quarter of FY26 provided further evidence that the global agriculture and construction equipment cycle is turning.
Order books strengthened sequentially compared to the quarter 3 FY26, although the pace of recovery varied across geographies and industry segments. At Uniparts, we had been observing these trends over the past few quarters, and we are, therefore, pleased to have delivered performance exceeding the guidance shared earlier.
Therefore, to start with in quarter 4 FY26, we delivered approximately 31% year-on-year revenue growth and about 18% sequential growth over quarter 3. At the same time, for the full year FY26, the revenue grew by 21% over FY25. This was higher against the guidance of mid-teens growth that was given earlier.
As communicated previously, towards the end of quarter 3, one of our facilities in Ludhiana experienced a fire incidents in the finishing shop. In order to ensure continuity of supplies, we swiftly implemented interim arrangements, primarily leveraging our subsidiary operations and to a limited extent, select external partners.
I am happy to share that these measures enabled uninterrupted support to our customers with minimal disruption. And in parallel, the rebuilding effort is well underway. The incident is fully covered under our insurance policy and the claim was filed during the quarter. We expect normal operations to return on schedule.
In March, a fresh escalation in West Asia introduced supply chain uncertainty that required swift action. Our teams responded with agility, putting alternate arrangements in place rapidly to ensure uninterrupted customer supplies. While the evolving geopolitical situation has resulted in increasing input prices, some of this inflation is being mitigated by favourable exchange rates.
Page 2 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Our foremost priority has remained business continuity and customer service, and we continue to closely monitor developments and will respond proactively as the situation evolves. Let me now come specifically to the industry developments and then start with the construction equipment industry.
In North America, customers' commentary and industry data point to continued growth in FY27 for construction equipment, with demand expected to gradually strengthen through the year and the second half being better than the first half. The construction market is supported by investment in data centers, advanced manufacturing and broader digital infrastructure spending in the United States.
Specifically coming to Europe, the construction equipment market appears to have passed its cyclical low with early signs of recovery becoming more visible in quarter 4 of '26. In fact, the demand for compact equipment has been a bright spot and infrastructure-led spending supported by fiscal stimulus defense investment and energy transition projects is expected to provide a more stable demand environment throughout the year.
This recovery is gradual with the outlook of modest growth anticipated for the full year. Therefore, taken together, these trends reinforce our view that the construction segment continues to offer strong visibility across regions plus combined with new business awards that we have had in Uniparts and the improving industry environment is supporting growth momentum for Uniparts.
Coming to the agriculture side, let me break it up into 3 segments. Let's start with the small agriculture. The small agriculture market in North America is on the path of recovery. Livestock and dairy production is leading demand, while the higher end of the smaller ag sector range is also showing resilience. As farmers begin to cycle through equipment replacement.
Overall, the segment is poised for approximately 5% growth in FY27, in line with industry estimates. In Europe, the small agriculture market is showing early signs of stabilization after a prolonged period of softening. The recovery is gradual across markets with momentum expected to build through the second half of the year.
Overall, the outlook for FY27 is positive with modest growth anticipation. And coming to India, the tractor industry demand remains stable, although we have to see how it reacts to the monsoons. With inventory replenishment gaining traction and order book strengthening, Uniparts is well positioned to capitalize on the improving cycle.
Our strong market share and diversified presence in this segment give us confidence in delivering very healthy growth through '27. Let me talk about the large agricultural machinery, continues to work through the current down cycle with leading OEMs affirming that quarter 4 of '26 represents a cyclical trough.
In North America and particularly, the industry volumes for large tractors continues to track down in the mid-to-high teens year-on-year. However, in Europe, the sentiment is gradually improving.
Page 3 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
For Uniparts, in particular, the new program wins in Europe and a diversified presence across tractor platform positions the company well to participate in the recovery as production volumes normalize through the year. We also have the aftermarket sector, and the aftermarket continues to be a stable contributor for Uniparts across North America and Europe.
Therefore, sequentially, we expect Q1 to be in line with Q4. And overall, we expect second half of FY27 to be stronger than the first half of '27. Overall, we do expect the growth in FY27 to be in line with what it was in FY26, supported by an improving industry cycle, execution of recent business rewards and wins and a gradual recovery across the end markets.
So if I talk about the strategic outlook, our new business momentum actually has gained meaningful traction with trailing 12-month business wins exceeding INR225 crores, growing over 12.5% over quarter-on-quarter. And encouragingly, these wins are distributed across segments and geographies, and this pipeline provides Uniparts with good visibility into the future growth.
A brief on the financial position for quarter 4 FY26, Uniparts delivered an EBITDA margin of 24% and 22% EBITDA margin for the full year FY26. The cash flow remains strong, and the company continues to be net debt free with a net cash position of INR160 crores as on March 2026. The strong balance sheet and margin profile provides a solid foundation for sustainable EPS improvement as volumes recover and operating leverage plays out.
In fact, the trailing 12-month EPS post the quarter 4 results is INR35.07, which is 80% higher than that at the end of FY25. This performance actually accounts for INR3.4 crores impact on profitability due to the new wage code introduced in November 2025.
During Q3 of FY26, the company declared a special dividend of INR101 crores. In fact, the total dividend distributed for FY26 was INR170 crores, underscoring our commitment to disciplined capital allocation and shareholders' return.
With these few words, I would like to invite our CFO, Sandeep Taneja, to present the financial highlights for Q4 of FY26. Thanks. Over to you, Sandeep.
Sandeep Taneja:
Thank you, sir. Good evening, everyone. Here are the key financial and operational highlights for the quarter ended 31st March 2026. The revenue from operations stood at INR339 crores, up 34% year-over-year and 21% quarter-over-quarter. EBITDA was INR81 crores, up 95% year-over-year and 32% quarter-over-quarter.
Profit after tax stood at INR51 crores, up 124% year-over-year and 53% quarter-over-quarter. Operating cash flow was INR52 crores in Q4 and INR174 crores in FY26. Trailing 12-month EPS stands at INR35.07.
Net working capital is 136 days on our trailing 12-month revenue as of March 2026. Net cash position, INR160 crores as of March 2026. capex stands at INR12 crores for the quarter and the new business awards were over INR225 crores in annualized potential over last 12 months.
With that, I'll hand the call back to the moderator for Q&A.
Page 4 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Moderator:
Thank you very much. The first question is from the line of Madhur Rathi from Counter Cyclical PMS.
Madhur Rathi:
Sir, I wanted to understand with the market in recovery mode right now, is there any new product or SKU that you expect to supply to the OEMs going forward?
Tanushree Bagrodia:
So, hi, Madhur. This is Tanushree Bagrodia and thank you for joining us again today. Madhur, as Chairman mentioned, for FY27, we expect a growth, which is coming from -- for FY27, we are expecting a growth in line with FY26.
And this growth is, of course, coming not only from the industry cycle turning, but also from the new project wins that we've had. And some of these new project wins are new products that we are supplying to customers. And so yes, the growth is anticipated to come from there.
Madhur Rathi:
So, ma'am, please can you tell me what kind of products are we supplying and to which segment will it be majorly towards -- if you could help me understand, will it be towards the construction segment? Or the -- how should I look at from the construction and agriculture mix these new product lines?
Tanushree Bagrodia:
Right. So, Madhur, as Chairman explained, our new wins in the trailing 12 months have been about INR225 crores, and they are broad-based. They come from the construction and the agriculture industry. Our emphasis on growth has been in the large ag and the PMP segments. So, a majority of the new business that has come in from these 2 segments.
And these are the 2 segments in which we will be supplying products. So, these are 3-point linkage in the large ag and precision machine parts in the PMP segment. These products technically remain overall similar to what we are manufacturing, but there are certain features and specifications of products that keep differing order to order.
Madhur Rathi:
So, madam, we did 24% EBITDA margin in the fourth quarter. So, is it sustainable going forward?
Tanushree Bagrodia:
So, I think if you look at our improving profitability, this is driven -- this is driven by 2 things, right? First, the operating leverage is now clearly visible at the full year level as volumes have now started to increase. Second, we have maintained conscious cost discipline through the year.
So, expenses have been incurred only where necessary with most increases being limited to either being inflation-driven increases or variable expenses or variable expenses that has to be done, right? So as the last year has demonstrated, operating leverage is now working in our Favor with margins expanding meaningfully.
The full year revenue expanded at 21%, while the EBITDA has grown north of 55%. We have said consistently that 20% EBITDA is sustainable over the cycle. And as volumes build through FY27, we expect to operate comfortably above that level. The exact outcome of the EBITDA will depend on the pace of the revenue ramp-up and the mix of the delivery channels.
Page 5 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Madhur Rathi:
Sure. And also, madam, now our rupee has significantly depreciated. So, are we passing on the benefit of rupee depreciation? Or are we retaining it? And also, steel prices also are at all-time high or near-abouts. So how are these 2 factors, I mean, coming together?
Tanushree Bagrodia:
So, Madhur, as we all know that the depreciation of the currency is linked to inflation. And so, when we speak to our customers and we talk about FX pass-throughs, we also, at the same time, net it off against the inflation increase that happens. And that's how given the customer contracts are designed and the customer negotiations happen.
Madhur Rathi:
And madam, lastly, if you could tell us about the capex plan that we have for the foreseeable future?
Tanushree Bagrodia:
Madhur, our capex plans remain unchanged at about 2.5% to 3.5% of our revenue, and that is consistent, and we will not be deviating from there.
Madhur Rathi:
Great. Madam, just a feedback. Madam, we -- our company has a great track record of paying huge dividends, and we are thankful for that. But if you could -- now with recent changes in tax policy, share buyback has become far more tax efficient.
So, I mean, straight away instead of 36% taxation on dividend, the buyback tax is for the shareholders, it ranges from 12.5% to 20%. And even for the promoters, it is 30%. So even the promoters will straight away say 17% of the tax outgo if the company does a share buyback instead of a dividend. So, madam if you could kindly consider that suggestion. Thanks a lot.
Moderator:
The next question is from the line of Sunil Jain from Nirmal Bang Securities.
Sunil Jain:
Congratulations for great numbers. My question relates to the fire because of that; you might have done outsourcing and all. So, was there any impact on the margin because of that? And if yes, then how much was the impact?
Tanushree Bagrodia:
So, hi, Sunil, and thank you for your good wishes. The management and the team have worked very hard to deliver these results in a volatile year. As far as the fire incident is concerned, we are very well covered under an insurance policy.
This insurance policy does not only cover the fixed assets in the inventory, but any loss of profits that we have, which includes any costs that we are -- increased costs that we incur due to the fire. So, all of that is comprehensively covered under our insurance.
Sunil Jain:
Okay, fine. So even if it will -- when it will come back, first of all, when it is likely to come back and even if it comes back, then will not have any impact on the margin?
Tanushree Bagrodia:
Right. So, Sunil, the efforts are underway to rebuild and to be online by the end of the year. And I think the LOP will ensure that any additional cost that is incurred due to the fire is the loss of profit. LOP is loss of profit. So, any additional costs incurred due to the fire are a part of that claim.
Page 6 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Moderator:
Sorry to interrupt you, Mr. Jain, may we request you to please in the queue. We have other participants waiting for the turn. The next question is from the line of Ashutosh Tiwari from Equirus Asset Management.
Ashutosh Tiwari:
Congrats on very good numbers. So firstly, if I look at the 3PL revenue over the last 3, 4 years, almost come down by 30% because tractor market has come down. But in this, we have not lost any market share, right?
Tanushree Bagrodia:
Hi, Ashutosh. So, I think what has happened is we have grown with our customers in the construction segment. And that's a very clear derisking strategy that the company has deployed. And that's why you see that today, your revenue from 3PL and PMP is almost 50-50 split. So, we haven't lost any market share. We continue to maintain our SOBs, and we continue to grow with our ag customers. At the same time, we are growing with the PMP business as well.
Ashutosh Tiwari:
Okay. So, sir, I want to understand, like, say, next 2, 3, 4 years period, if you again go back to the peak, our revenues in the 3PL will be higher than what we had at peak earlier, right?
Tanushree Bagrodia:
Ashutosh, as we are growing with different customers and different product lines, the idea is to maintain this derisking and to ensure that our growth is there in both segments of 3PL and PMP and in both industries of ag and construction. So, we will maintain our derisking.
Moderator:
Sorry to interrupt, may we request Mr. Tiwari to please rejoin the queue. Thank you. The next question is from the line of Sujal Jain from Wallfort PMS.
Sujal Jain:
First of all, congrats on a very good set of numbers, delivering well above your guidance. I just had a couple of questions from my side. Firstly, on working capital, we saw an improvement from like 155 to 136 days, driven by both your inventory and receivable improvement. So, is this level sustainable going forward?
Tanushree Bagrodia:
So, thanks Sujal, and thank you for that question. You know our business model, right? We do have nearshoring for our customers where we make in India, we ship to our warehouses overseas and then supply to customers just in time. With that, our inventory levels remain high, and there has been a lot of conscious effort put in to reduce the inventory, which is what has reduced our inventory from 146 days in FY25 to 134 days in FY26.
The endeavour is to continue maintaining these levels. At the same time, we've brought the receivable days and the payable days almost at par in FY26. And again, we are continuing efforts to ensure that these are maintained. So yes, we do believe that with the efforts, these should be sustainable.
Sujal Jain:
Okay. Thank you. Another question. Is there any update on the acquisition that we have been talking about?
Tanushree Bagrodia:
So Sujal, thank you for asking that question. And I think I'm going to address that quite directly. We acknowledge that this has been talked about for a long time and investors really want an update. I think what I want to share today is that we have evaluated about a dozen targets since
Page 7 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
IPO across the platforms that we want to grow in. We have been close on 2 occasions, and both fell apart for varied reasons.
Internally, at Uniparts, when we are looking at an acquisition, we have a clear framework where the target must add meaningful third platform. It should be manageable in size, and it should be ROE and ROCE accretive, right? We don't want to do something just for the sake of being able to say that we've made an acquisition.
The special dividend that we paid out in Q3 of FY26 is partly because we evaluated an opportunity carefully and then decided not to proceed. So, we do take our capital allocation very seriously, and we will update investors as soon as something concrete is on the table.
Moderator: The next question is from the line of Viraj from SiMPL.
Viraj: Congratulations to you and the team for a very good set of numbers in such a challenging environment. A couple of questions. First, if you can give what will be the gain from forex in the fourth quarter and full year FY26?
And if you can also give the revenue mix by delivery channel, both for quarter and FY26. And I think earlier, you also used to share a brief set of major components of the order wins by, say, segment and region, just a brief. So, if you can also give that on an annualized basis.
And last is on the aftermarket. I think post the tariff now normalized, while we have seen a growth sequentially, we have not seen to a level what it used to be as a percentage of revenue. So, any color how should we see this particular segment playing out over the next couple of quarters?
Tanushree Bagrodia: Viraj, your line is a little unclear, right? I think if you move a little bit away from the mic, it will help. I think your question that I have understood are you want to understand what the warehouse are...
Viraj: Am I audible now?
Tanushree Bagrodia: Yes, audible.
Viraj: Can I -- you want me to repeat, I can repeat.
Tanushree Bagrodia: So, you wanted to know what is the sales by delivery channel, right?
Viraj: Sales by delivery channel, FX gain- we would have in the fourth quarter and for the full year '26. And also, the order wins, I think earlier you used to give by segment and region, the major components. You used to give a snippet in terms of large or construction and region-wise.
So that and the aftermarket, I think sequentially, while it has grown, but not to the extent where the business was earlier in percent of revenue. So just trying to understand how should one look at next couple of quarters?
Page 8 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Tanushree Bagrodia:
Okay. So, I think if you look at the full year sales for FY26, the warehousing channel has given us about 51% of sales. Direct exports is about 26%. India local deliveries is about 14% and U.S.A. local deliveries is about 8%.
The growth of 18% sequentially that has come quarter-on-quarter is largely driven by volumes. And this volume growth was because of the tailwinds of the small ag recoveries beginning to happen and the new business wins that we were executing.
Currency is a small part of it. The other question that you asked was on where have we won new business. The new business wins have been broad-based. We have been indicating and we've been saying this for the last few quarters that our largest runway for growth remains in large ag and in PMP. And majority of our new business wins comes from these 2 segments.
We continue to win new business in small ag, but our efforts towards PMP and large ag would be about 70%, and that is also the proportion in which the new business win would come through. The aftermarket -- so the aftermarket on the tariff is only the U.S.
We also have an aftermarket in Europe. And overall, the aftermarket remains to be a stable contributor to the revenues for FY26. And in the quarter 4, yes, aftermarket has had a better performance than quarter 3 of FY26.
Moderator:
The next question is from the line of Nirmam Mehta from Unique PMS.
Nirmam Mehta:
Congrats for a great set of numbers. So, my question is, ma'am, given that the end industries are recovering now and we have gained wallet share, so what is the kind of peak revenue potential that we can see in this cycle?
And also on the capacity part, so do we have enough capacity to cater because I guess we mentioned some time back that we would need to do some capex to cross up previous peak revenues. So if you could talk about that?
Tanushree Bagrodia:
Right. So, let me just understand your question again, Nirmam, you want to understand what is the peak revenue and do we have capacity, right? That's the question that you have. Okay.
Nirmam Mehta:
Yes.
Tanushree Bagrodia:
So, if you look at it from a capacity standpoint, we've always maintained that our capacity, including the maintenance capex that we do is in the range of 2.5% to 3.5% of our revenue. When we do our capex, we always ask ourselves the question of saying that for this investment, if I was to make an incremental investment, can we get better capability or a higher capacity.
What this means is that when we get a new business, then at that point in time, we only need to do balancing capex and hence, that capex remains in the range of 2.5% to 3.5% of revenue. The second point to note on capex is that our business model is run in such a way that the steady-state EBITDA of 20% over a cycle allows us to invest in the business for our customers.
And this invest continues even in the downturn. So even, for example, in the last 2 years, we've continued to invest in capabilities across the group. We've done in-sourcing in the U.S. factory.
Page 9 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
And we've also continued to build out our warehousing or nearshoring model with the investment in Mexico that we've done, right?
So, I think that's our capex strategy. And that is to ensure that we can continue to outperform the industry segment as we've also demonstrated, and which means that we are not constrained to any peak revenue. We can continue to accept growth as it comes our way. And that's where we continue to execute the INR200 crores to INR225 crores of new business awards that we've won.
Nirmam Mehta:
Understood, ma'am. And secondly, on the -- so PMP business, like you've mentioned that we've been focusing on this business for the past few years. So -- and we've seen that because we've crossed the previous peak revenues, I think what we did in FY24 also. So, if you could kind of talk more about what kind of products are you working on in here? And what is the kind of potential growth potential that this segment has?
Tanushree Bagrodia:
So specifically coming to PMP, let me give you a structural view of what is the growth potential, right? I think the important aspect of it here is to see that we provide pins, bushings, which go into articulated joints and are critical for the operations and the functions of equipment that our Agri and construction equipment customers manufacture.
If you now look at who are our customers, right, let's just look at the top 3 construction equipment manufacturers globally. We are a 100% supplier to them, or we have a large share of business for the products that we supply, right? But we are still a fraction of their total relevant spend that they do on these categories.
So that's the growth opportunity that we have. And that's the reason that we've been focusing on growing our PMP business. And that's why if you see over a 2-year period, where we were -- where we were over 50% for our 3-point linkages business and about 45% for our PMP business, we are now about 50-50.
Nirmam Mehta:
Yes.
Moderator:
The next question is from the line of Anubhav Mukherjee from Prescient Capital.
Anubhav Mukherjee:
Am I audible?
Moderator:
You are sounding a little muffled, Mr. Mukherjee.
Anubhav Mukherjee:
Is this better?
Moderator:
Yes. Please go ahead.
Anubhav Mukherjee:
Congrats on a very good set of numbers. My first question is that we have been declaring order wins of around INR200 crores, INR225 crores. So, can you share like what is the total order book outstanding as of now, like because we declare order wins, but like what is the total outstanding order book?
Tanushree Bagrodia:
So, Anubhav, as Chairman mentioned, we are expecting a growth in line with the growth of FY26 for the full year, right? And that growth is based on the visibility of the order book itself.
Page 10 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
So, if you say that the growth is going to be in the range of the 20% that is there for FY26, that gives you a visibility of the order book.
Anubhav Mukherjee:
Ma'am, I get that. But in the past, like we have been declaring around about INR200 crores of order wins. But like there has been a period of like when growth has not been that strong. So, is it that like the order didn't -- like order book did not translate in the past and the translation will improve? Or was there some like fall in orders, like, if you can like give some sense on that?
Tanushree Bagrodia:
So, Anubhav, in the last 2 years, there were 2 or 3 effects that happened, right? One was that the industry was on a down cycle. It's amongst the deepest trough that the ag and the construction equipment industries have seen in the last 40 years, 30 to 40 years.
And as that trough was happening, our OEM customers' own demands were going down, right? And as their demand was going down, of course, our sales was impacted. And hence, you saw that the order books were going down. I think that's factor one.
The second factor is as a consequence of that, whatever new business that we won either got delayed or was executed in a smaller amount. So that is what has happened. But when we tell you that we've won a certain order book, so as of 31st of March, we have INR225 crores of new order wins. This represents the annualized potential of new projects won in the trailing 12 months.
Now this is a rolling window. So old projects fall off as they start generating revenue and new products come in. I think the fact is that this number has held at a INR200 crores plus now for a few quarters. And this tells you 2 things that we are consistently winning roughly about INR200 crores of new business each year. And we are also converting older wins into actual revenue. And this is as the cycle is improving.
Anubhav Mukherjee:
Yes, ma'am. Thanks for the clarification. Another question is that what I understand is for the large ag and PMP segment, our margins are better. So, with the increase in business from these segments, will we see some margin tailwinds from that also?
Tanushree Bagrodia:
So, Anubhav, our margins are decided by our delivery channels. And we've always said that when we look at direct exports, direct exports is our base margin of what we say a steady state 20% EBITDA margin.
Our locally manufactured, locally delivered deliveries are lower than that. And the warehousing sales business is somewhat higher than this. So, it's not the end segment, but the delivery channel that really drives the margins.
Moderator:
The next question is from the line of Prolin Nandu from Edelweiss Public Alternatives.
Prolin Nandu:
Great set of results for the year given the fact that we started the year with all the tariff tantrums and we ended on a very positive note. So, congratulations to the entire team for that. So, Tanushree, ma'am, 2 questions from my side. One is right on the margin part.
Page 11 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Now if I look at the EBITDA margin, right, as per my record, this is the highest EBITDA margin ever, right, at least for the past 8 to 10 to 12 quarters data that I have. So -- and also, if I look at the gross margin and EBITDA margin, right, on a quarterly basis for this quarter, amongst last 4 quarters, this is the lowest, right?
So, is there anything one-off in this 23.9% EBITDA margin that we have reported in the form of currency, in the form of mix or in the form of any of these tariff refunds that some of our customers might be getting, right? Anything that you want to call one-off?
And then on the same lines, right, when we talk about at least 20% margin, so there is a huge gap between that 20% and 24% what we have reported, right? So, could you just help us understand on both these points, is there any one-off here? And in terms of about 20% and 24%, how should one try to sync between these 2 numbers?
Tanushree Bagrodia:
So Prolin, a couple of things on margins, right? I think number 1, on tariffs, we've always said that we are P&L neutral as far as tariffs are concerned. So, I'd just like to reiterate that. As far as tariffs are concerned, we are P&L neutral. Now when we look at quarter 4 and let's understand the results of quarter 4, our material cost of 35% has now come back to where we've always said our normal material cost should be in the range of 34% to 37%.
I think there are 2 things that have happened in quarter 4 to give the kind of EBITDA margins that you are seeing. number 1, there is an 18% sequential growth that has happened, which is largely driven by volumes, right? And that volume rise has obviously given the operating leverage a larger room to play, which is now -- so our fixed costs are getting absorbed better and the EBITDA is improving.
The second thing is that sequentially from quarter 3 to quarter 4, our warehousing sales actually went up. This is our highest margin segment, right? And hence, you are seeing the 24% margin. Coming to where we see our stable EBITDA margins, like I said, we are seeing in FY26, a 21% top line growth got the EBITDA to grow about 55%, right? So, we do believe operating leverage will play out.
We are cost conscious even today, we are not sanctioning any expense, which is not necessary. So I think we are very comfortable in saying that we will be above the 20% level. But again, the exact outcome of this EBITDA will depend on the ramp-up of the volumes and the delivery channel mix that plays out.
Moderator:
The next question is from the line of Abhishek Shah from Valcore Capital.
Abhishek Shah:
I think this is in line with the margins, EBITDA margins question someone asked previously. Ma'am, how -- I mean, we are at a scenario where sea freights are higher. Employee costs we are hearing in North India have gone up at least by 20%-25%, and which is a big component for us. I think it's almost 20% of our total revenue.
And lastly, of course, raw material price inflation. So maybe putting that into perspective, how do you see sort of our margins shaping up? Because I think employee cost being one of the biggest things to consider in this.
Page 12 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Tanushree Bagrodia:
Right. So again, Abhishek, if you see the employee cost that is going up is the variable cost. It is -- the fixed cost has an inflation, which also gets a little bit taken care of by the currency depreciation that happens, right? The volume expansion also takes care of the fixed costs to a large extent.
And I think as far as we are concerned, the freight and the raw material component of the cost is a direct pass-through to customers, right? So, the increase in volumes and the currency depreciation that we have does help us to mitigate some of the inflationary elements that are there. And like I said, the operating leverage ensures that the fixed costs are absorbed.
Secondly, and that's why I'm emphasizing on this point, as an organization, we continue to be cost conscious, right? Even if you see the expenses that have gone up and percentage wise, you won't see expenses going up. In absolute terms also where you've seen expenses going up, they have gone up either because they are inflation related or they are variable expenses that have gone up.
Abhishek Shah:
Right, right. Ma'am, my second question is -- I understood partially what you said. My second question is, if we look at the growth that we are talking about for this year, we could reach or maybe even cross the FY23 numbers that we had where we peaked last time and we had an EBITDA of close to INR300-odd crores.
Ma'am, that time, I mean, our understanding when we used to speak to you at the bottom of the cycle was that we've done a lot of cost improvement measures. And with that, next time when we hit the peak, our margins will be a lot better than what they were in the last cycle.
So, is it a safe assumption that we could actually surpass that in terms of EBITDA margin purely because of a lot of cost measures that we would have taken? And maybe if you could talk us through in terms of what cost cutting that we would have done over the last 2, 3 years, that would help us.
Tanushree Bagrodia:
Sure. Abhishek, happy to take you through the cost-conscious measures that we've done in detail offline as well, right? But I think it's not as much as cost cutting as much as you saying becoming cost conscious. For example, when we invest in new capacity, we are looking at how can this investment reduce our operating costs going forward, right?
So that's one thing that we do very consciously to keep ensuring that our costs come down. That's the reason we did an investment in in-sourcing in the U.S., for example, right? So, I think it's a cost-conscious environment that we live in.
Abhishek Shah:
Right, right.
Tanushree Bagrodia:
And I think if you look at the FY26 results where we are roughly at about a INR1,200 crores turnover number and you see when was it last that we reached that number, yes, our EBITDA margins are better than what they were at that time.
Having said that, yes, we are endeavouring to ensure we keep our cost consciousness alive. We continue to do good work. We continue to grow business, get new business. But the exact
Page 13 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
outcome and if this trend continues, we are on a good path, but the exact outcome of where the EBITDA will land will also depend on our delivery channels.
And I think that's something that I will definitely want to leave on the table. We are very comfortable today saying that we will be comfortably over the 20% number. But the exact number will be dependent on the delivery channel.
So, for example, now we are also getting into Mexico, right? We have 3 customers that we are talking to, 2 are in the ramp-up phase. But as these businesses start to fructify, we definitely are going to see another impetus coming to the profitability.
Abhishek Shah:
Right, right. Because I mean that's what, right? I mean in the last 2 years, I think our business mix also has sort of improved. And that would also sort of be another parameter to add to their margins basically in terms of warehousing that we're doing?
Tanushree Bagrodia:
Yes. So, Abhishek, 2 years ago, I think we had said that we were at about 46% to 47% of our warehousing sale, right? At that point in time, we had said that in 2 years' time, we should be at the 50% level, and that is where we are. So yes, the effort is to grow the business in the best cost manner for the customer and to ensure that structurally, our margin profile remains the same, right?
We have nearshoring, dual shoring and a large manufacturing footprint, which allows us to thoughtfully deliver on the best cost model for the customer and maintain our structural profitability because that is what then allows us to go back and reinvest.
Abhishek Shah:
Fair enough. This is helpful. Just one last question. In terms of inventory levels at our customers, right? I mean we used to talk about unique tariff times; customers were at a very just-in-time inventory. How is the scenario currently? Maybe if you can give us some light on that?
Tanushree Bagrodia:
So, Abhishek, tariff or no tariff, right? I think all our customers take a view of saying that they have an end customer to serve at the end of the day. And they want to ensure that they have sufficient inventory to be able to deliver the product to their customer in time. And I think that philosophy continues.
So, in the aftermarket, if they need to have inventory because this is a high season sales, they will buy that inventory. In the case of the OEMs, as the industry cycle is picking up and they are sitting on backlog orders, thus are ordering more on us. And hence, our inventories in our warehouses in absolute terms is going up, bearing in mind that the days of inventory are under control.
Moderator:
The next question is from the line of Vipul Kumar Shah from Sumangal Investments.
Vipul Kumar Shah:
So can you tell me about the capacity utilization at your both ag division and this PMP division, please?
Tanushree Bagrodia:
So, hi, Vipul. Vipul, we are a batch and a discrete manufacturing company. And for us, our capacities are as good as our bottleneck processes, right? And that's what I was mentioning.
Page 14 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
When we are actually investing in our capacities when we are improving our capabilities, we are investing in such a way that when new businesses come in, we are not doing additional capex, but only balancing capex. And that is what allows us to ensure that our capex remains within the 2.5% to 3.5% range of our revenue. And that's the way we run the business.
Vipul Kumar Shah:
So, what I want to understand is your capacity fungible between the 2 main business lines?
Tanushree Bagrodia:
So, a lot of processes, yes, we can do for both 3PL and PMP. And in certain cases, there will be certain processes which may not be fungible. But I think the capacity allocation and the capacity planning is done to ensure that we have adequate growth room available.
Vipul Kumar Shah:
And lastly, during the IPO meet, I think there were some products which were shown being catering -- being catered to oilfield and oil and gas industry. And Mr. Soni had put a lot of emphasis on that. So, what -- I don't think any meaningful progress has been achieved on that front. So, can you tell the progress on that front?
Tanushree Bagrodia:
So, Vipul, those are products that we continue to manufacture and supply to the current customers that we have, and we continue to work to expand that product line as possible.
Moderator:
The next question is from the line of Sunil Jain from Nirmal Bang Securities.
Sunil Jain:
First of all, the outlook on South America is showing some weakness. So how much is our supply to that particular market? And will we be impacted because of that? And one more question, if I can take it. Share of large ag equipment in overall sales?
Tanushree Bagrodia:
So, Sunil, if you look at our investor presentation also, it gives the geographic split that we have. So FY26 -- at the end of FY26, roughly about 53% of our sales has come from North America, about 25% from Europe, about 14% from U.S., about 5% from Japan, about 1.5% from Asia. Rest of the world is less than 1%. And what is the share of large ag in our business at the end of FY26, it's close to 20%.
Moderator:
The next question is from the line of Sujal Jain from Wallfort PMS.
Sujal Jain:
I have a question related to the 3PL story. So, with John Deere and CNH would guiding to small ag recovery and inventory replenishment, do you see 3PL growing faster than the company level basically growing faster than the PMP in FY27?
Tanushree Bagrodia:
Sorry, Sujal, I couldn't understand you. Could you slowly repeat the question?
Sujal Jain:
Yes. So, I was talking about our global OEM customers. John Deere and CNH both guided like for the recovery in small ag segment and also inventory replenishment in the con calls. So, do you see 3PL category growing faster than the PMP in next year?
Tanushree Bagrodia:
So Sujal, as Chairman had explained in his opening address, if you look at the small ag segment, it's looking at about a 5% growth in North America. And in Europe, the growth in small ag is expected to be stronger in the second half, not in the first half.
Page 15 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
India, as Chairman also pointed out, which is a small ag market, is seeing a robust tractor market at the moment, but we'll also have to see how the monsoons play out, right? So, I think it's an evolving situation. It's safe to say that the industry cycle has turned, and we are looking at roughly about a 5% growth in the small ag segment overall.
Large ag is working through the lowest of the cycle and coming back. Of course, Europe is ahead of North America in that. And construction remains more stable, more visible and less volatile. So, I think that's how the 3 segments are performing.
Moderator: The next question is from the line of Viraj from SiMPL.
Viraj: Yes. What will be the forex gain in the fourth quarter and for full year FY26?
Tanushree Bagrodia: So, Viraj, the 18% sequential growth and the 31% year-on-year growth, a majority of that comes from the volume-led growth, which is there.
Viraj: No, no, I understand. But in terms of there will be some gains. So, I think in the second quarter also, we had somewhere around INR7 crores to INR8 crores of inventory valuation gains because of euro INR depreciation. And I think in Q2, Q3 also, we had some gains. So, I'm just trying to understand if I have to look on an annualized basis, what will be that figure be like?
Tanushree Bagrodia: So, Viraj, that is on the inventory side, which is on the -- which impacts our material cost, which was about 2% in quarter 2, and that would be a similar number in quarter 4 as well.
Viraj: Okay. So, on a full year basis, what will be -- it will be around 2% of sales. Would that be right to say? Inventory valuation gain?
Tanushree Bagrodia: So, 2% is a good number to saying that that's the impact on the material cost because of the currency.
Viraj: Right. So that will not be recurring, right?
Tanushree Bagrodia: If the currency depreciates, it will recover. If the currency appreciates, then it will go on the other side. And I think we are very cognizant of this movement that the currency can create.
Moderator: The next question is from the line of Arvind Arora from A Square Capital.
Arvind Arora: So, ma'am the extent that this growth in the quarter 4 is coming through volume -- its volume driven, not -- there is no price escalation that is done during this quarter 4. So, are we expecting any price escalation in the coming quarter or year, anything?
And the second part is also like do we also spend anything on R&D for future growth on the product part or any -- are we involved in any discussions with any other like partner, strategic partner or anything like that?
Tanushree Bagrodia: So, I mean most of the growth that we are anticipating going forward is also volume led, and that is again driven by the fact that the industry cycles are turning. We have strong execution on
Page 16 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
the new businesses that we are winning, right? So, both of these are leading to the growth in the order books and hence, the growth in the top line.
We do invest in R&D. So of course, given that we work with the world's largest customers on the agriculture and the construction equipment side, we have to have engineering teams that can work with their engineering teams to understand feasibility of products to collaborate on specific solutions.
And I think that's the reason we are also able to win new business and especially in segments like large ag, right? That's one segment where we've invested in. We've got significant new business wins in the last year. We've grown strongly. And today, at the end of FY26, that's 20% of our revenue. So, all of this comes because we work very closely with our customers through our engineering teams on designing solutions together.
Arvind Arora:
So, any new product that is under development or anything like that?
Tanushree Bagrodia:
So, we continue to work on new products along with our customers, and that happens across our segments.
Moderator:
The next question is from the line of Sakshi Shah from Quest Investment.
Sakshi Shah:
I just wanted to ask; would it be possible to give the geographical split within the 2 segments?
Tanushree Bagrodia:
The geographical split within -- it's there in our investor presentation, Sakshi.
Sakshi Shah:
Ma'am, I mean within the 2 segments as in how much...
Tanushree Bagrodia:
You can contact our IR team, and they can help you through that.
Moderator:
Thank you. Ladies and gentlemen, that was the last question for today. With that, I now hand the conference over to management for closing comments.
Gurdeep Soni:
Thanks a lot. So, I just want to say that the financial year '26 tested our team in many ways that go beyond the usual business cycle, things like navigating the tariff headwinds, the uncertainty stemming from the West Asia crisis and managing through the disruption that was caused by the fire. Through all of this, I think our people responded with resilience and agility that we are genuinely proud of.
We do remain focused on executing our strategy with discipline, which is also including deepening customer partnerships, broadening our presence across segments and geographies and building a business that is stronger and more adaptable than before. The new business momentum we are seeing is a direct reflection of all that effort.
And lastly, to our employees, our shareholders, our partners and the communities we operate in, thank you for your continued trust and support, and we look forward to delivering on the promise of that trust in the quarters ahead. Thank you, everyone.
Page 17 of 18
UNIPARTS GROUP
Uniparts India Limited
May 26, 2026
Moderator:
Thank you. Ladies and gentlemen, on behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Page 18 of 18