Mayur Uniquoters Limited Q3 FY26 Earnings Call Summary

Summary

Mayur Uniquoters Limited - Q3 FY26 Earnings Call Summary Monday, February 02, 2026 4:00 PM IST

Event Participants

Executives 2 Suresh Kumar Poddar (Chairman and Managing Director), Vinod Kumar Sharma (Chief Financial Officer)

Analysts 6 Awanish Chandra, Gunit Singh, Harsh M, Jaymin, Rishab Bothra, Viraj

Financials & KPIs

Geographic & Segment Commentary

• Exports (US & Europe): Management is focused on becoming a preferred supplier for leading global OEMs, with strong momentum expected to continue for 2-3 years. A new subsidiary in Estonia (Europe) is targeting the Marine, Furnishing, and Contract segments to replicate the successful US model.
• Domestic Market: Growth is targeted at 8-10%, though management is intentionally avoiding low-margin business in the footwear and replacement segments. Auto OEM remains the primary domestic growth engine, while footwear faces stiff local competition from unorganized players and cheap imports.
• PU Division: Currently facing challenges from cheap Chinese imports and market manipulation. Management is in talks with industries in South India but remains cautious about providing utilization guidance until firm agreements are signed.

Company-Specific & Strategic Commentary

• Manufacturing Expansion: Evaluating two major capex options: a ₹200 crore plant in South India (capacity 1 million meters/month) or a ₹300 crore global scale plant outside India. The external plant is being considered as a countermeasure to global “deglobalization” trends.
• Sustainability & CSR: Significant focus on environmental initiatives with 45,000+ trees planted. Community programs include “Happy Schools” for underprivileged children and health initiatives focused on family welfare in nearby villages.
• Export Strategy: The company is leveraging its relationships with Mercedes-Benz and BMW, currently supplying them in South Africa, while preparing for the potential impact of the India-EU Free Trade Agreement.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Expansion & Capex

• Question: What is the status of the South India and US capex plans? (Viraj)
• Answer: Evaluation is ongoing between a ₹200cr domestic plant and a ₹300cr global plant. A final decision is pending, but construction will take approximately 2 years with an initial capacity of 0.5 million meters/month, scaleable to 1 million. (Vinod Kumar Sharma)

Tariffs & Trade Barriers

• Question: Are we impacted by Mexico or South Africa import tariffs? (Viraj/Awanish Chandra)
• Answer: There is no immediate impact from Mexico tariffs. For the long term, an overseas plant is being considered to hedge against deglobalization. Regarding the EU FTA, it will take 10-12 months to formalize and will primarily benefit the non-automotive export business. (Vinod Kumar Sharma)

Margins & Product Mix

• Question: Is the 24-25% margin level sustainable? (Awanish Chandra)
• Answer: Yes, as export growth is outpacing domestic growth and exports carry higher margins. Management prioritizes the bottom line over volume and is targeting premium domestic segments to support these levels. (Vinod Kumar Sharma)

Other Income & Treasury

• Question: What drove the high other income this quarter? (Vedic)
• Answer: 50% of other income was realized foreign exchange gains (booked, not notional) due to the dollar moving toward ₹92, with the remainder coming from treasury investment income. (Vinod Kumar Sharma)

PU Segment Outlook

• Question: When will the PU division reach optimal utilization? (Gunit Singh)
• Answer: It is difficult to comment due to cheap Chinese imports and market conditions. Management will not provide a timeline until firm supply agreements are in hand. (Arun Kumar Bagaria)

Key Takeaway

Mayur Uniquoters delivered a robust Q3 FY26, characterized by a 77% YoY increase in standalone PAT (₹52.93 crores) and a significant expansion in margins to the 24-25% range. Performance was primarily driven by the export OEM segment, which reached nearly ₹100 crores in quarterly revenue, offsetting sluggishness in domestic footwear and replacement markets. Strategically, the company is pivoting toward global expansion, evaluating a ₹300 crore overseas plant to mitigate geopolitical risks and deglobalization. Management guided for a 15% value growth over the next two years while maintaining current margin profiles. Key watch points include the rising costs of plasticizers/yarn and the recovery of the PU segment currently suppressed by Chinese competition. The company remains committed to a “bottom-line first” approach, emphasizing high-margin export orders and premium OEM partnerships.