MAYURUNIQ - Mayur Uniquoters ltd. Share Price

In the earnings call for Q1 FY '26 held on August 7, 2025, Mayur Uniquoters Limited provided a positive outlook. The management reported that the consolidated revenue from operations was Rs. 215.88 crores, showing a 1% increase compared to the previous quarter. Moreover, profit before tax (PBT) and profit after tax (PAT) rose by 7% and 2%, respectively. Standalone figures reflected similar growth, with revenue at Rs. 206.41 crores, PBT at Rs. 55.32 crores (up 21%), and PAT at Rs. 41.23 crores (up 19%).

Management emphasized an ongoing strategy to enhance their position as preferred suppliers to leading OEMs in the US and European markets, anticipating sustained growth in the coming 2-3 years due to fresh export orders, particularly in the automotive sector. Notably, exports contributed to 40% of total revenue, amounting to Rs. 80.05 crores, with significant contributions from OEMs and other segments.

Looking ahead, the management reaffirmed its guidance for FY '26, targeting 12%-15% revenue growth and 15%-20% profit growth. The executives indicated that they are not deterred by tariff challenges impacting exports and expect to adapt to regulatory changes while maintaining competitiveness.

Additionally, there are plans to expand the company's retail side, enhancing the number of distributors, which currently ranges around 1,000, alongside broader initiatives in Corporate Social Responsibility, focusing on education and health in local communities.

Overall, the company projects continued demand for synthetic leather products and is optimistic about leveraging evolving market dynamics to achieve its financial targets in the upcoming quarters.

1. Question: What is the status of the CAPEX that we were considering in Mexico?
Answer: The status regarding Mexico is clear; we've found the land and completed planning. However, due to recent issues that arose just a month ago, we've postponed proceeding for now. We plan to move ahead as soon as these confusions are resolved, as the need for expansion is evident.

2. Question: Are we sticking to the FY '26 guidance of 12%-15% year-on-year revenue growth and 15%-20% profit growth for the full year?
Answer: Yes, we are fully committed to achieving the discussed revenue and profit growth targets for FY '26. We are focusing all our efforts to meet these objectives.

3. Question: How has the competitive landscape for synthetic leather changed in the US market over the years?
Answer: The competitive landscape remains stable; we still hold a strong position. While there are more suppliers now, especially from Asia, our quality and competitiveness have not diminished. Our standing as a key supplier remains intact.

4. Question: Have you seen any loss of market share in the domestic automotive space?
Answer: No, we have not lost market share despite increased competition. Automotive companies typically rely on multiple suppliers, and we continue to supply to key partners, ensuring our presence in the market remains strong.

5. Question: Can you explain the impact of tariffs on your exports?
Answer: Our export operations remain largely unaffected. We export materials to Mexico, which supply the US market. As of now, the current tariffs do not significantly impact our sales, and any potential increase in tariffs will be monitored closely.

6. Question: What is the current volume of sales for Q1 FY '26 compared to Q4 FY '25?
Answer: In Q1 FY '26, the total volume of sales was 72.44 lakh meters, compared to 77 lakh meters in Q4 FY '25. We have witnessed a slight decrease, but we maintain a focus on sales recovery.

7. Question: Can you provide details about export volumes from Mexico to the US and India?
Answer: We primarily trade through Mexico for our OEM business. Exports to the US originate from Mexico where our materials are used in manufacturing automotive interiors. The specifics of the trade breakdown can be shared through follow-up communications.

8. Question: What is your outlook for FY '26 in terms of revenues and margins?
Answer: Our expectation is to achieve a revenue increase of 10%-15% and an improvement in bottom-line margins of 15%-20% during FY '26. We are confident in reaching these targets.

9. Question: How are you planning to leverage your positioning in the market amidst changes in tariffs?
Answer: Our strategy includes strengthening supply relationships and diversifying markets. We are continuously seeking new customers and expanding our offerings, establishing our resilience in the face of changing tariffs.

10. Question: Can you share the volume details, sales volume for Q1 FY '26?
Answer: The total sales volume for Q1 FY '26 was 72.44 lakh meters. We're focused on optimizing our operations to better meet market demands and expectations.