Universal Autofoundry slips to a ₹3.34 cr loss despite revenue growth
Revenue climbed 37% to ₹210 cr, but rising costs pushed the company into the red. The board is now seeking to hike borrowing limits to ₹150 cr.
— 1 earlier story on Universal Auto Foundry Ltd. →What's new
- Net profit of ₹2.35 cr in FY25 turned into a ₹3.34 cr loss in FY26.
- Revenue grew to ₹210 cr from ₹153.35 cr in the prior year.
- Board approved a borrowing limit increase from ₹100 cr to ₹150 cr.
Why this matters
The company is growing its top line but failing to protect its bottom line. For a nano-cap with a market value of ₹71 cr, a loss of this size relative to revenue suggests that cost pressures are currently outpacing the company's ability to scale.
What we're watching
- Shareholder approval for the proposed ₹150 cr borrowing limit.
- Evidence of margin recovery in the upcoming quarterly results.
- Management's plan to address the surge in depreciation and other expenses.
The full read
Universal Autofoundry grew its top line by 37% to ₹210 crore in FY26, yet the company ended the year in the red. A net profit of ₹2.35 crore in the prior year flipped to a net loss of ₹3.34 crore.
It is a sharp reversal.
The culprit is a surge in depreciation and other expenses that outpaced the company's revenue gains, and with a market capitalization of just ₹71 crore, this swing into losses is a material development for the foundry that forces shareholders to reconsider the company's ability to manage its cost base while simultaneously seeking to raise the company's borrowing limit from ₹100 crore to ₹150 crore.
Questions answered
- How did the company's financial performance change year-over-year?
- Universal Autofoundry swung from a net profit of ₹2.35 crore in the previous year to a net loss of ₹3.34 crore for the year ended March 31, 2026.
- Did revenue growth offset the rising costs?
- No. While revenue increased by 37% to ₹210 crore, the company's profitability deteriorated due to higher depreciation and other expenses.
- What is the status of the company's borrowing capacity?
- The board has approved an increase in borrowing limits from ₹100 crore to ₹150 crore, which now awaits shareholder approval.
- Was there any qualification in the audit report?
- No. The annual financial results were audited with an unmodified opinion.
Story so far
All notes on UNIAUTO →- 27 May 2026 · 5:59 PM IST Universal Autofoundry slips to a ₹3.34 cr loss despite revenue growth
- today Universal Auto Foundry confirms FY26 results and hikes debt limit