Defence Stock Jumps 5% After Acquiring Hobel Bellows Co. for Capacity Expansion

Synopsis:- Shares surged up to 5% after a ₹450 crore acquisition aimed at moving up the value chain and accessing advanced technologies. Despite margin pressures, a rising order book to ₹2,098 million and ₹3,010 million inflows signal improving demand and long-term growth potential.

The shares of a prominent aerospace & defence company gained up to 5 percent in today’s trading session after the company, along with its wholly owned subsidiary, has approved an investment of up to Rs 450 crore.

With a market capitalisation of Rs 5,225.54 crore, the shares of Unimech Aerospace and Manufacturing Ltd were trading at Rs 1,027.50 per share, increasing around 3 percent, as compared to the previous closing price of Rs 998.20 apiece.

Acquisition 

The shares of Unimech Aerospace witnessed bullish movement after the company, along with its wholly owned subsidiary Innomech Aerospace Toolings, approved an investment of up to ₹450 crore to acquire Hobel Bellows Co through Hobel Bellows.

Furthermore, Unimech Aerospace and Innomech Aerospace Toolings will acquire 24% and 76% stakes, respectively, in Hobel Bellows, which will subsequently secure a 99.99% partnership interest in Hobel Bellows Co.

Consequently, this acquisition will help the company move up the value chain from machined components to engineered assemblies, while also providing access to advanced manufacturing technologies such as hydroforming, thin-wall metal forming, high-temperature alloy processing, precision TIG welding, multi-layer metal forming, and fatigue/leak testing.

Financial & other highlights

The company reported a sharp decline in performance, with revenue falling 37% from ₹53.90 crore to ₹33.72 crore in Q3FY26. Meanwhile, net profit dropped significantly by 85% to ₹2.39 crore, indicating pressure on margins and operations, possibly due to lower demand, rising costs, or weaker execution during the quarter.

Over the past year, Unimech Aerospace’s operating performance weakened significantly. Operating profit declined sharply from ₹15.69 crore in Dec 2024 to ₹1.55 crore in Dec 2025. Consequently, operating margins (OPM) contracted steeply from 29.11% to just 4.60%, indicating rising cost pressures and reduced efficiency, which have materially impacted overall profitability during the period.

Unimech Aerospace’s order book shows a strong recovery, rising from ₹810 million in June 2025 to ₹2,098 million by February 2026. This sharp increase reflects robust order inflows, including ₹3,010 million worth of orders between April 2025 and January 2026, supported by nuclear segment wins and improving customer traction, indicating strengthening business momentum.

Unimech Aerospace operates in precision engineering, supplying critical components to aerospace, defence, nuclear, and semiconductor sectors. The company offers aero tooling and precision assemblies, supported by capabilities like build-to-print and specification manufacturing. With presence in 7 countries, 86% export revenue, 2.75 lakh sq ft capacity, and 806 employees, it serves global OEMs and Tier-1 clients effectively.

Unimech Aerospace is a precision engineering and manufacturing company focused on supplying critical components and assemblies to aerospace, defence, nuclear, and semiconductor industries. With strong capabilities in aero tooling and high-precision parts, the company serves global OEMs and Tier-1 clients, leveraging advanced technologies and a growing international presence to drive consistent growth.

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