Universal Autofoundry Q2 FY27 results: net loss of ₹0.56 crore vs ₹0.61 crore profit, revenue up 12.0%

How did Universal Autofoundry perform in Q2 FY27?

Universal Autofoundry’s standalone revenue for Q2 FY27, the July–September 2026 quarter, was ₹61.46 crore. This was ₹6.60 crore or 12.0% higher than Q2 FY26 and ₹7.04 crore or 12.9% higher than Q1 FY27. EBITDA fell to ₹1.66 crore from ₹3.55 crore a year earlier, and the EBITDA margin declined 3.8 percentage points to 2.7% from 6.5%.

The company reported a loss before tax of ₹2.85 crore in Q2 FY27, compared with a profit before tax of ₹1.02 crore in Q2 FY26. A net loss of ₹0.56 crore and basic EPS of ₹0.45 compared with a net profit of ₹0.61 crore and EPS of ₹0.49 a year earlier. Sequentially, the net loss narrowed from ₹1.61 crore and EPS improved from ₹1.3. The board also approved standalone and consolidated results for the quarter and half year ended 30 September 2026.

What changed in Universal Autofoundry's costs and profit?

Total expenses rose to ₹64.57 crore in Q2 FY27 from ₹54.35 crore in Q2 FY26, an increase of ₹10.22 crore or 18.8%. Material costs increased by ₹0.70 crore or 2.2% to ₹32.66 crore, while employee cost fell by ₹0.81 crore or 10.0% to ₹7.26 crore. Other expenses increased by ₹4.08 crore or 33.4% to ₹16.30 crore, the largest rise among the disclosed cost lines.

Finance costs increased by ₹0.87 crore or 147.5% to ₹1.46 crore, while depreciation rose by ₹0.86 crore or 35.2% to ₹3.30 crore. Other income fell by ₹0.24 crore or 48.0% to ₹0.26 crore. There was no exceptional item in either quarter, while tax moved from ₹0.41 crore to ₹2.29 crore. Management said higher raw material prices and depreciation from the ferrous line and newly commissioned solar plant affected profitability.

Against Q1 FY27, total expenses increased by ₹8.18 crore or 14.5% to ₹64.57 crore. Other expenses rose by ₹3.01 crore or 22.6% to ₹16.30 crore, finance costs increased by ₹0.19 crore or 15.0% to ₹1.46 crore, and depreciation rose by ₹0.30 crore or 10.0% to ₹3.30 crore. Material cost declined by ₹0.91 crore or 2.7% to ₹32.66 crore, and other income fell by ₹0.05 crore or 16.1% to ₹0.26 crore.

How did the first half of FY27 go?

In H1 FY27, Universal Autofoundry reported standalone revenue of ₹115.88 crore, up ₹14.39 crore or 14.2% from ₹101.49 crore in H1 FY26. Total income was ₹116.44 crore, up ₹13.96 crore or 13.6% from ₹102.48 crore. The company reported a loss before tax of ₹4.52 crore, compared with a profit before tax of ₹1.24 crore in the previous first half.

The net result moved to a loss of ₹2.18 crore from a net profit of ₹1.3 crore in H1 FY26. Basic EPS was ₹0.45, compared with ₹1.04 in H1 FY26. The auditor’s review report stated that nothing had come to its attention indicating that the standalone financial results did not disclose the information required under Regulation 33 of the Listing Regulations or contained a material misstatement.

What do the balance sheet and cash flow show?

Total assets rose to ₹185.18 crore on 30 September 2026 from ₹163.56 crore on 31 March 2026, while total equity fell to ₹69.77 crore from ₹71.95 crore. Borrowings increased to ₹78.49 crore from ₹62.16 crore, and cash and cash equivalents rose to ₹0.26 crore from ₹0.01 crore. Inventories declined to ₹17.48 crore from ₹19.73 crore, trade receivables rose to ₹46.84 crore from ₹45.54 crore, and trade payables rose to ₹17.28 crore from ₹15.64 crore.

H1 FY27 operating cash flow was ₹10.00 crore, compared with ₹1.44 crore in H1 FY26. Investing cash flow was an outflow of ₹22.66 crore against an outflow of ₹12.21 crore, while financing cash flow was ₹12.90 crore compared with ₹10.59 crore. Capital expenditure was ₹23.11 crore in H1 FY27, up from ₹12.31 crore in H1 FY26.

How has Universal Autofoundry done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. It reached ₹61.46 crore in Q2 FY27, the highest of the reported period, from ₹54.86 crore in Q2 FY26 and ₹54.42 crore in Q1 FY27. Universal Autofoundry’s revenue bottomed at ₹46.46 crore in Q3 FY25 before recovering through the subsequent quarters.

The profit trend has remained uneven. Q4 FY25 recorded net profit of ₹2.41 crore and an EBITDA margin of 13.3%, both the highest in the reported period. Q3 FY26 moved to a net loss of ₹3.09 crore and a 0.8% EBITDA margin, the lowest margin, before Q2 FY27 improved to a net loss of ₹0.56 crore and a 2.7% margin.

What did Universal Autofoundry's management say?

Management said revenue recovery and improving sequential capacity utilisation supported the quarter, with utilisation rising to 57% from 55% in Q1 FY27. It expects capacity utilisation of 65% from FY27, including Unit 3, and said higher utilisation should improve economies of scale and margins. The company plans approximately ₹600 lakh of FY27 investment in trimming, VTL, Sinto and VMC machinery, due for installation by end-FY27.

Management said M&HCV, construction, engineering and other businesses are expected to exceed 75% of revenue in 3–5 years, reducing reliance on the cyclical tractor segment. It projected exports at approximately 15% of revenue within three years. Management also said the 4.8 MW AC second Churu solar plant was commissioned in Q2 FY27, with cost benefits expected from H2 FY27.

Management identified raw-material prices, depreciation, finance costs, volatile export conditions, higher freight container prices and tractor concentration as risks. It said higher raw material prices reduced gross margin by approximately 250 basis points year on year to 41.0% in Q2 FY27, and that higher depreciation from the ferrous line and newly commissioned solar plant, together with increased finance costs, contributed to the quarterly and first-half losses. Tractors accounted for 55% of Q2 FY27 revenue.

How did Universal Autofoundry shares react?

After the after-market filing, the stock moved down 0.5% after five minutes, up 0.8% after 15 minutes and down 0.3% after 30 minutes from the price when the filing appeared. On the reaction day, it closed up 4.0% from the previous close. By the next day’s close, it was up 6.2% from the pre-results close, before declining to 3.7% below that level by the fifth session.

The Auto Components & Equipments industry median was up 1.6% on the reaction day and 1.9% by the next day’s close. Universal Autofoundry therefore exceeded the industry median by 2.4 percentage points on the reaction day and 4.4 percentage points by the next day’s close. Earlier results-day moves included gains of 0.9% on 4 July 2026 and 2.3% on 11 November 2025, and declines of 6.7% on 27 May 2026 and 8.1% on 6 August 2025.

How did other Auto Components & Equipments companies do?

Among 46 other Auto Components & Equipments companies that had filed for the quarter as of 4 November 2026, the median revenue growth was 33.9%. Nine peers grew more slowly than Universal Autofoundry, while 37 grew faster. The company’s own revenue growth was 12.0% from Q2 FY26, so the comparison covers the other companies and excludes Universal Autofoundry itself.

Of the 47 peers for which profit was compared, 38 reported higher profit. Universal Autofoundry’s quarterly comparison therefore placed it among the companies whose profit did not rise on the reported basis. The peer figures cover companies that had filed for the quarter by 4 November 2026 and do not include Universal Autofoundry.