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We met Tanushree Bagrodia (Group CEO) and Sandeep Taneja (Group CFO) of Uniparts, a leading manufacturer of tractor and off-highway components – mainly 3-point linkage systems (3PL; 47% of FY26 revenue) and precision machined parts (PMP; 51% of revenue) for agri and construction equipment segments. Uniparts has a strong export-oriented franchise (86% of FY26 revenue), with a stronghold in Americas/Europe (53%/25% revenue share). After 2Y of end-market weakness (FY24-25), Uniparts reported strong recovery in FY26, delivering 21% revenue growth (vs mid-teens guidance); it targets >20% FY27 revenue growth, with 2H likely to be stronger than 1H. The worst appears firmly behind across all end-markets; NA Large AG decline is narrowing (mid-to-high teens in CY26 vs 30% in CY25); EU Large AG is approaching flat-to-modest growth; construction equipment (CE) is ahead in recovery across NA/EU. Its dual-shoring capabilities (manufacturing in India/NA; warehousing in NA/Mexico) remain a key competitive advantage, driving order wins even through one of the deepest downcycles (Rs2.25bnpa new order wins in TTM; 19% of FY26 revenues). Uniparts is actively evaluating global value-accretive M&A opportunities in hydraulics, power take-offs, and large fabrication segments to expand its portfolio. Over the long term, it aims to achieve a more balanced geographic mix (40/30/25% for US/Europe/Asia). Having delivered 21% FY26 EBITDAM, it is confident about >20% FY27 EBITDAM, led by strong operating leverage, RM pass-through mechanisms, and a stringent hedging policy. The company maintains a net cash balance sheet, with a net cash position of Rs0.9bn and distributed dividends of Rs1.7bn during FY26, implying a payout ratio of ~82% on declared basis.

Worst of the cycle behind; improvement visible across geographies/segments

The worst of the cycle is now firmly behind, with all 3 end-markets at different stages of recovery. Leading OEMs have confirmed 4QFY26 as the Large AG trough; NA volumes are declining mid-to-high teens (vs 30% in CY25), while EU Large AG is approaching flat-to-modest growth. Small AG is poised for ~5% growth in FY27. CE is ahead in recovery; NA is supported by data-center, AI, and energy-transition capex. India remains strong on GST cuts and steady farmer sentiment. The company delivered 21% revenue growth in FY26, ahead of guidance, and expects similar growth trajectory (>20% growth) in FY27, with 2H likely to be stronger than 1H.

Dual-shoring capabilities driving order wins across existing/new clients

Despite the deepest AG/CE downcycle in 30-40Y, it secured Rs2.25bn of annualized new business wins on a 12M trailing basis across new platforms, customer resourcing, and new customer additions, highlighting the resilience of its business model. Tariff disruptions have accelerated China+1 sourcing discussions, especially in aftermarket and PMP, where new business discussions that had stalled have resumed. The dual-shore manufacturing model, with production capabilities in both India and the US, combined with warehousing in the US and Mexico, enables flexible sourcing – a moat which no competitor can easily replicate. It holds a double-digit Small AG global market share; Large AG remains underpenetrated at single digits and is the primary growth focus.

Confident about sustaining >20% EBITDAM; looking for M&A in PTO/large fab

FY26 revenue grew ~21%, while EBITDA margin expanded to 21% (vs 15% in FY25), demonstrating strong operating leverage. The management remains confident about sustaining >20% EBITDAM across the cycle, aided by RM pass-through mechanisms, stringent hedging policy, and an increasing contribution from the warehousing channel (~51% of FY26 revenue). Uniparts is actively evaluating global M&A opportunities in hydraulics, PTOs, and large fab, to expand horizontally with existing customers, but will only pursue assets that are value-accretive from day one. Capex is expected to remain at 2.5-3.5% of revenue. The company maintains a net cash balance sheet, with a net cash position of Rs0.9bn.

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