Unimech Aerospace and Manufacturing shares surged 7% to hit a new high of ₹1,698 during Monday's intra-day trading, marking the third consecutive trading day of gains. The stock has zoomed 144% from its 52-week low of ₹695.05 touched on March 30, 2026, demonstrating strong investor confidence in the aerospace and defence company's operational performance and growth prospects.
According to Care Ratings, despite facing challenges including tariff-related concessions, customer inventory rationalisation, softer shipment schedules and fixed-cost under absorption, Unimech's EBITDA margin remained healthy at 31% in FY26 and recovered to 36.5% in Q1FY27. The ratings agency attributes this profitability to the high-mix, low-volume nature of operations, significant engineering content, product complexity, stringent quality requirements and relatively low subcontracting costs, which were 3% of revenue in Q1FY27.
Choice Institutional Equities has issued a buy rating on Unimech Aerospace and Manufacturing with a target price of ₹1,950 in its research report dated September 21, 2026. According to the brokerage's analysis, the company is well positioned to capitalize on a multi-year aerotooling cycle driven by rising aircraft production, new-generation engine programmes and recurring MRO demand. The ~17,000-aircraft backlog, expanding global fleet and potentially USD 193 billion MRO TAM by 2036 provide strong structural demand visibility.
Unimech is gradually transforming from an aerospace-tooling-focused company into an integrated precision-engineering platform. The share of aero tooling has declined from 90% in FY26 to 76% in Q1FY27, with the balance contributed by Hobel and precision-component businesses. Care Ratings expects the company to sustain PBDIT margins in the range of 33-35%, supported by the acquisition of Hobel and steady growth in higher-margin aerospace tooling business.
The brokerage expects precision components to become Unimech's second growth engine, with the business already contributing 10% of FY26 revenue. Key growth drivers include ₹87 crore of nuclear orders and a ₹400 crore plus En-Masse Coolant Channel Replacement (EMCCR) pipeline providing early scale-up visibility. Unimech's 86% tooling revenue and 6,300 qualified SKUs versus 932 in FY22, combined with exposure to global OEMs and Tier-1s, further strengthen its market positioning in the expanding aerospace and defence sector.
