Mayur Uniquoters Share Price Target at Rs 860: ICICI Securities
ICICI Securities has reiterated a BUY recommendation on Mayur Uniquoters with a 12-month target price of Rs 860, implying an upside potential of nearly 21% from the current market price of Rs 710. The brokerage believes the company is entering a structurally stronger growth cycle driven by rising export-oriented automotive OEM demand, improving operating leverage, and sustained margin expansion. The company’s increasing penetration into premium global automobile brands such as Mercedes-Benz and BMW, coupled with its aggressive expansion plans, has strengthened confidence in its long-term earnings trajectory. Robust Q4FY26 numbers, export momentum, and improving profitability metrics continue to reinforce the bullish outlook for the stock.
Export-Led Auto OEM Momentum Reshapes Growth Narrative
Mayur Uniquoters is steadily transforming from a domestic synthetic leather manufacturer into a globally integrated automotive materials supplier. The company has built a formidable presence within the technical textile and synthetic leather segment, catering to automotive, footwear, furnishing, and lifestyle applications.
What has significantly altered the company’s earnings trajectory is the rapid acceleration in export automotive OEM business. During FY26, export OEM revenues surged from nearly Rs 194 crore to Rs 290 crore, representing close to 50% annual growth. This expansion was largely fueled by stronger order inflows from global automobile manufacturers and increasing acceptance of Mayur’s premium-grade products across luxury vehicle platforms.
Management indicated that export revenues now account for approximately 42.5% of standalone sales, with expectations that exports will stabilize within the 40–45% range over the medium term. Analysts view this transition positively because export-focused business typically commands superior realizations and significantly healthier margins compared to domestic operations.
The company’s growing integration into premium automotive supply chains has also increased investor confidence regarding revenue visibility and scalability.
Q4FY26 Earnings Showcase Strong Margin Expansion
Mayur delivered an impressive quarterly performance during Q4FY26, supported by stronger realizations and operating efficiencies.
Consolidated revenue for the quarter stood at Rs 273 crore, reflecting a 9% year-on-year increase. However, the standout performance metric was profitability. EBITDA jumped sharply to Rs 86 crore compared to Rs 53 crore in the corresponding quarter last year. EBITDA margins expanded dramatically to 31.4%, versus 21.2% during Q4FY25.
Net profit climbed 43% year-on-year to Rs 59 crore, underscoring the operational leverage emerging within the business model.
The company attributed the sharp margin improvement to:
- Higher export contribution
- Improved product mix
- Operational efficiency gains
- Selective price increases
- Favorable forex movements
Management acknowledged that margins above 30% may represent peak levels, though it expressed confidence that sustainable EBITDA margins within the 25–26% range remain achievable going forward.
Capacity Expansion Signals Confidence in Demand Visibility
One of the most important developments highlighted by ICICI Securities is Mayur’s aggressive capacity expansion roadmap.
The company is pursuing a dual expansion strategy involving both domestic and international manufacturing capabilities.
| Expansion Plan | Investment | Expected Impact |
|---|---|---|
| Domestic Coating Line | Rs 50 crore | Additional revenue capacity of Rs 120–150 crore annually |
| Global Manufacturing Facility | Rs 300 crore | Expansion of export OEM servicing capabilities |
The domestic coating line is expected to become operational by the end of calendar year 2026. Analysts believe the facility is strategically designed to cater to higher-margin export-oriented demand, thereby supporting sustained profitability improvements.
The proposed international facility, which may potentially be located in Mexico, reflects management’s confidence in the durability of global automotive demand and the company’s increasing relevance in international supply chains.
Business Mix Continues to Strengthen
The automotive segment remains the dominant contributor to Mayur’s overall revenue profile.
During FY26:
- Automotive segment contributed nearly 65% of total revenue
- Footwear business accounted for around 20%
- Remaining revenue came from furnishing and other applications
Within the automotive segment itself:
- 21% revenue came from domestic auto OEMs
- 30% originated from export auto OEMs
- 15% was generated from replacement markets
The company continues to supply products to leading domestic automobile manufacturers including Tata Motors, Mahindra & Mahindra, and Maruti Suzuki. In footwear, clients include Bata and Relaxo.
The growing export mix is particularly important because it structurally enhances the company’s margin profile and earnings quality.
Management Outlook Remains Optimistic for FY27
Management commentary during the earnings call remained decisively optimistic about the next phase of growth.
The company expects:
- Domestic business growth of 8–10%
- Export business growth of 15–20%
Analysts believe this guidance appears achievable given the robust order pipeline and increasing platform approvals from global automotive clients.
Meanwhile, raw material volatility linked to PVC prices appears to be stabilizing. Management confirmed that supply disruptions witnessed during March 2026 have largely normalized, while selective pricing actions are expected to support profitability during FY27.
Financial Metrics Continue to Strengthen
ICICI Securities expects Mayur to maintain healthy earnings growth over the next two financial years.
| Financial Metric | FY26E | FY28E |
|---|---|---|
| Revenue | Rs 967 crore | Rs 1,213 crore |
| EBITDA | Rs 235 crore | Rs 303 crore |
| Net Profit | Rs 192 crore | Rs 234 crore |
| EPS | Rs 44.1 | Rs 53.7 |
| EBITDA Margin | 24.3% | 25.0% |
The brokerage also highlighted Mayur’s strong balance sheet position, with cash and investments of nearly Rs 446 crore against minimal debt of just Rs 6 crore. This financial strength provides substantial flexibility for future expansion initiatives.
Return ratios remain healthy, with projected RoIC expected to exceed 29% over the next two years.
Valuation Leaves Room for Further Upside
ICICI Securities believes the stock’s current valuation still does not fully capture the structural transformation underway within the business.
The brokerage has valued the company at 16x FY28 estimated earnings, arriving at a target price of Rs 860 per share.
At current levels, Mayur trades at:
- 16.3x FY26 estimated earnings
- 13.4x FY28 estimated earnings
Analysts believe the improving export mix, premium OEM relationships, robust return ratios, and debt-free balance sheet justify continued valuation re-rating.
Key Risks Investors Should Monitor
Despite the optimistic outlook, ICICI Securities highlighted several risks that could affect execution:
- Lower-than-expected returns from overseas expansion projects
- Global geopolitical volatility impacting export demand
- Raw material price fluctuations linked to petroleum derivatives
- Slower-than-expected demand recovery in automotive markets
Nonetheless, analysts remain constructive given the company’s strong execution track record and expanding global customer relationships.
