Mayur Uniquoters - Export Momentum Accelerates | Q1FY27 Company Update

Mayur Uniquoters reported a strong Q1FY27 performance, with revenue and earnings came ahead of our estimates. Growth was led by a sharp scale-up in the export OEM business and a richer value-added product mix, while gross-margin expansion and operating leverage supported a healthy improvement in profitability despite elevated raw-material and freight costs. Export OEM continues to remain the key growth and margin driver, with management expecting sustained traction from existing customers, particularly in the US market, while domestic growth is likely to remain relatively moderate. The company has reiterated its guidance of 10–15% revenue growth over the next three years, along with sustainable margins of around 25%, while incremental PVC capacity is expected to come on stream by February–March 2027. We remain constructive on the company’s medium-term earnings outlook . We marginally revise our earnings estimates upward, introduce FY29E and roll forward our valuation to Q1FY29E. We value the stock at 18x Q1FY29E EPS of Rs 53, arriving at a revised target price of Rs 960 (Rs 925 earlier). We maintain our BUY rating

Mayur Uniquoters Ltd. Stock Price Chart

Exports drive revenue:

Mayur Uniquoters reported a revenue growth of 24.7% YoY to Rs 2,692mn driven by the export segment. Total exports (42.0% of revenue) grew by 29.7% YoY, led by export OEMs (29.8% of revenue), which increased by 33.5% YoY, while export general (12.3% of revenue) grew by 21.2% YoY. Domestic business (58.0% of revenue) increased by 13.3% YoY, supported by domestic auto OEM (22.7% of revenue), which grew by 30.2% YoY, and auto replacement (14.8% of revenue), which increased by 16.6% YoY. Footwear (16.7% of revenue) declined by 7.3% YoY, while furnishing and others (3.8% of revenue) grew by 24.4% YoY. Overall volumes grew by ~3% YoY, with export volumes increasing by ~9% and domestic volumes growing by ~1%, while the balance growth was driven by better realizations and a improved product mix, particularly the increasing contribution of higher-value export OEM products.

Better product mix drives margins:

Gross margin expanded by 70bps YoY to 42.8%, supported by an improved export-led product mix. OPM improved by 200bps YoY to 21.9%, driven by gross-margin expansion and operating leverage, with employee costs and other expenses declining by 27bps and 97bps YoY. The margin improvement was delivered despite raw-material prices remaining elevated versus February–March 2026 levels and export freight costs increasing sharply amid geopolitical and shipping disruptions. Consequently, EBITDA grew by 37% YoY to Rs 589mn, while PAT increased by 38% YoY to Rs 561mn.

Outlook

We remain constructive on Mayur Uniquoters’ medium-term outlook, supported by sustained momentum in export OEMs, a richer value-added product mix and healthy margin resilience. Management continues to guide for 10–15% revenue growth over the next three years, led primarily by exports, while domestic growth is expected to remain relatively moderate with a gradual improvement in automotive OEM volumes. Operating margins are expected to remain sustainable at around 25%, although quarterly performance may vary with raw-material prices, freight costs and currency movements. The additional PVC line, expected to be commissioned by February–March 2027, will add 0.5mn metres of monthly capacity and provide adequate headroom for the next phase of growth. Beyond this, the company is evaluating a new manufacturing facility outside India, potentially in the US, Mexico or another North American location, which could improve proximity to global OEM customers, support localisation requirements and strengthen Mayur’s positioning as a global supplier. While the location, timeline and investment size are yet to be finalised, the proposed plant remains an important long-term growth trigger. Stronger wallet share from existing global OEM customers, particularly in the US, along with potential new platform wins, should remain the key earnings drivers.

Valuation, view and Risk:

We expect Mayur Uniquoters to deliver a Revenue/EBITDA/PAT CAGR of 13%/11%/10% over FY26–FY29E, driven largely by a favourable shift in the revenue mix towards export OEMs, while domestic OEMs are expected to provide steady support to overall growth. Although management continues to guide for margins of around 25%, we remain slightly conservative in our estimates given the volatility in raw-material prices, freight costs and currency movements. We marginally increase our earnings estimates by 2% and 0.8% FY27E and FY28E respectively and introduce FY29E. At the current market price, the stock trades at an attractive valuation of 15x FY28E and 13x FY29E earnings. We believe sustained revenue growth, continued export OEM scale-up and resilient margins could act as key triggers for a re-rating. We value the stock at 18x Q1FY29E EPS of Rs 53, arriving at a revised target price of Rs 960 (Rs 925 earlier). We maintain our BUY rating. Key risks: Slower-than-expected ramp-up in export OEM volumes and adverse movements in raw-material prices, freight costs or currency could impact revenue growth and margins. Delays in capacity expansion or prolonged weakness in the domestic footwear and PU businesses remain additional downside risks.

Company website: https://www.mayuruniquoters.com/

*CMP is as per report published date

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Analyst:

• Rahul Dani - Research Analyst, Institutional Equities (NISM-201500034725)
• Vaidik Bafna - Research Associate, Institutional Equities (NISM-202100035711)

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FAQs on Mayur Uniquoters Ltd Q1FY27 Company Update

These FAQs summarize key insights from MNCL’s institutional equity research on Mayur Uniquoters, highlighting growth drivers, outlook and key risks for investors.

How did Mayur Uniquoters perform in Q1FY27?

Revenue increased 24.7% YoY to approximately ₹269 crore, driven by export growth. Total exports rose 29.7%, while export OEM revenue increased 33.5% YoY.

What is the target price for Mayur Uniquoters?

The research report maintains a Buy rating with a revised target price of ₹960 per share. This is an analyst estimate and should not be considered a guarantee of future returns.

What is driving Mayur Uniquoters’ growth?

Export OEM momentum, higher-value products and improving realizations are key growth drivers. Existing global OEM relationships, particularly in the US, could support further wallet-share gains.

Did Mayur Uniquoters’ margins improve?

Yes. Gross margin expanded to 42.8%, while operating margin improved to 21.9%. Better product mix and operating leverage helped offset elevated raw-material and freight costs.

What is the outlook for Mayur Uniquoters?

Management targets 10–15% revenue growth over the next three years, with exports expected to lead growth. A new PVC line expected in February–March 2027 should add approximately 0.5 million metres of monthly capacity.

What are the key risks for Mayur Uniquoters?

Key risks include slower export OEM ramp-up, raw-material and freight-cost volatility, adverse currency movements, capacity-expansion delays and continued weakness in domestic footwear and PU businesses.

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