Sunita Tools Ltd (544001)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Sunita Tools' revenue was ₹31.6 Cr (+114.2% year on year, +101.3% on the previous half-year), and net profit ₹3.3 Cr (+90.6% year on year); the operating margin was 15.2%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹31.6 | +114.2% | +101.3% |
| Operating profit | ₹4.8 | +30.7% | +11.1% |
| Net profit | ₹3.3 | +90.6% | +13.2% |
| EPS (₹) | 5.41 | +94.6% | +12.0% |
| Operating margin | 15.2% | — | — |
📢 Recent Corporate Announcements
Sunita Tools announced that its Board of Directors approved the appointment of promoter Mr. Satish Kumar Pandey as Managing Director for a 5-year term, effective September 30, 2026. This follows the expiry of his earlier term on May 25, 2026, and is subject to shareholder approval. The Board also approved remuneration for Whole Time Directors Mr. Sanjay Kumar Pandey and Ms. Ragini Pandey. The company recorded TTM revenue of ₹77 Cr and TTM PAT of ₹11 Cr, maintaining continuity in leadership as it pursues defence expansion.
- Appointment of Mr. Satish Kumar Pandey as Managing Director effective September 30, 2026
- Term of appointment set for 5 years, subject to approval by company members
- Earlier term of office had expired on May 25, 2026
- Approval of remuneration for Whole Time Directors Sanjay Kumar Pandey and Ragini Pandey
Sunita Tools announced that its Board of Directors approved the appointment of promoter Mr. Satish Kumar Pandey as Managing Director for a 5-year term, effective September 30, 2026. This follows the expiry of his earlier term on May 25, 2026, and is subject to shareholder approval. The Board also approved remuneration for Whole Time Directors Mr. Sanjay Kumar Pandey and Ms. Ragini Pandey. The company recorded TTM revenue of ₹77 Cr and TTM PAT of ₹11 Cr, maintaining continuity in leadership as it pursues defence expansion.
- Appointment of Mr. Satish Kumar Pandey as Managing Director effective September 30, 2026
- Term of appointment set for 5 years, subject to approval by company members
- Earlier term of office had expired on May 25, 2026
- Approval of remuneration for Whole Time Directors Sanjay Kumar Pandey and Ragini Pandey
Sunita Tools announced a 4-month (ended July 31, 2026) consolidated net sales value of Rs 31.95 crore, driven by legacy expansions and improved product mix. The consolidated order book reached Rs 576 crore (~7.5x TTM revenue of Rs 77 crore), with defence orders making up the bulk at Rs 552 crore. Additionally, the company added two high-precision CNC turning machines to its subsidiary, Sunita Leoquip Aerospace, and acquired a 90% stake in a complementary capital goods manufacturing firm.
- Consolidated net sales reached Rs 31.95 crore for the 4-month period ended July 31, 2026
- Consolidated order book stands at Rs 576 crore, dominated by Defence at Rs 552 crore (Legacy: Rs 14 crore, Others: Rs 10 crore)
- Added 2 new precision CNC turning machines at subsidiary Sunita Leoquip Aerospace Private Limited
- Acquired a 90% stake in a capital goods manufacturing company to enable forward integration
Sunita Tools Limited has executed a five-year framework Memorandum of Understanding (MoU) with an unnamed 135-year-old legacy Indian engineering and defence OEM. The collaboration targets Ministry of Defence (MOD), Government PSU, and DPSU tenders for 155 mm artillery shell assemblies and components. Under the arrangement, the partner will act as the prime bidding entity while Sunita Tools will serve as the designated manufacturing partner. At this stage, no fixed monetary value, order award, or guaranteed business has been established.
- Entered into a 5-year framework MoU (signed July 30, 2026) for defence manufacturing collaboration
- Focuses on tenders for design, manufacture, and supply of 155 mm artillery shell assemblies and components
- Partner is a privately held Indian industrial group entity with a 135-year legacy (name withheld for confidentiality)
- Nil consideration paid/received at MoU stage; no confirmed order value or assured revenue committed yet
Sunita Tools Limited has announced the closure of its Register of Members and Share Transfer Books from September 1, 2026, to September 7, 2026 (both days inclusive). The book closure is scheduled pursuant to Regulation 42 of SEBI (LODR) Regulations for conducting its 39th Annual General Meeting (AGM) for the financial year ended March 31, 2026. This is a standard annual compliance process and has no direct financial or operational impact on the company.
- Share transfer books and register of members closed from September 01, 2026 to September 07, 2026
- Book closure conducted for the purpose of the 39th Annual General Meeting
- Pertains to the financial year ended March 31, 2026
Sunita Tools Limited has published its 39th Annual Report for FY2025-26 and convened its Annual General Meeting (AGM) for September 08, 2026. The company is seeking shareholder approval through a special resolution to raise capital by issuing up to 5,00,000 equity shares of face value Rs 10 each via QIP, private placement, rights issue, or FPO. At current market prices (Rs 1,008.50 per share), an issuance of 5 lakh shares represents an estimated fundraise of ~Rs 50.4 crore, equivalent to ~8.1% of its current market capitalization.
- 39th Annual General Meeting convened for Tuesday, September 08, 2026, via Video Conferencing.
- Proposed enabling special resolution to issue up to 5,00,000 equity shares of face value Rs 10 each.
- Potential fundraise size equates to ~Rs 50.4 crore at current market price (~8.1% of market cap of Rs 621 crore).
- Report follows FY26 financial performance of Rs 46.44 crore in revenue and Rs 6.51 crore in PAT.
Sunita Tools Ltd has issued the notice for its 39th Annual General Meeting (AGM) scheduled on September 08, 2026. The key special business item is seeking shareholder approval to raise capital through permissible routes (QIP, FPO, rights issue, or private placement) by issuing up to 5,00,000 equity shares of face value Rs 10 each. At current market price (~Rs 1,008.5), this enabling resolution could raise around Rs 50 Cr (~8% equity dilution) to support business growth and defence capacity expansion.
- 39th AGM scheduled for Tuesday, September 08, 2026 at 03:30 PM IST via Video Conferencing.
- Proposed special resolution to issue up to 5,00,000 equity shares of face value Rs 10 each via QIP, private placement, rights issue, or FPO.
- Potential fundraise size of ~Rs 50.4 Cr at current market price against a market cap of Rs 621 Cr.
- Ordinary business includes adoption of FY26 financial statements and re-appointment of MD Satish Kumar Pandey retiring by rotation.
Sunita Tools' Board of Directors has approved raising equity capital through permissible modes (including QIP, rights issue, or private placement) of up to 5 lakh equity shares, subject to shareholder approval. At the current market price of ₹1,008.5, this issue represents a potential fundraise of approximately ₹50.4 crore, equivalent to ~8.1% of the company's ₹621 crore market capitalization. The board also approved the FY26 Directors' Report, MD&A, and the notice convening the 39th Annual General Meeting.
- Approved equity capital issuance of up to 5 lakh shares via permissible modes in one or more tranches.
- Potential fundraise size of ~₹50.4 crore based on CMP of ₹1,008.5 (~8.1% equity dilution).
- Modes permitted include QIP, Rights Issue, FPO, ADR, or private placement pursuant to SEBI ICDR Regulations.
- Approved draft Board's Report, MD&A for FY 2025-26, and notice for the 39th Annual General Meeting.
Sunita Tools has scheduled a board meeting on August 14, 2026, to consider raising equity capital. This move aligns with the company's strategic pivot from tooling to defense manufacturing, specifically targeting a production increase of artillery shells from 22,500 units in FY26 to 210,000 units by FY28. Given the current debt of ₹43 Cr and a debt-to-equity ratio of 0.60, an equity infusion is likely intended to fund this capital-intensive expansion without further straining the balance sheet. Investors should monitor the dilution impact and the specific mode of issuance.
- Board meeting scheduled for August 14, 2026, to approve raising equity capital.
- Company is targeting a 477% growth rate by transitioning into a major defense player.
- Planned expansion aims for 210,000 artillery shell pieces by FY28 from a base of 22,500 in FY26.
- Promoter holding has decreased from 67.71% in October 2025 to 62.75% as of March 2026.
- Trading window is closed from August 11 to August 16, 2026.
Sunita Tools (TTM Revenue ₹76 Cr) has entered a 5-year MoU with a Polish defense manufacturer to collaborate on ISR drones and loitering ammunition. The agreement envisages a majority-owned Joint Venture (JV) in India, with Sunita Tools acting as the manufacturing and distribution partner for India and GCC markets. While there is no immediate financial impact, this marks a significant strategic pivot into high-tech defense electronics for the small-cap company. This follows their existing strategy to scale artillery shell production from 22,500 to 210,000 units by FY28.
- MoU is valid for a period of 5 years for the development and sale of ISR drones and loitering ammunition.
- Sunita Tools is proposed to hold the majority stake in the upcoming Indian Joint Venture.
- The company targets a share of the ₹1.46 lakh crore Indian defence production market.
- Collaboration covers manufacturing and marketing rights for India, GCC countries, and the Indian subcontinent.
- TTM Revenue of ₹76 Cr provides a small base for this high-tech defense expansion.
Sunita Tools reported a massive 350% YoY jump in Q1 FY27 consolidated net sales to ₹18.64 crore, up from ₹4.14 crore in the previous year. This growth is attributed to previous capacity expansions in its legacy business and a significantly improved product mix. To sustain this momentum, the company has commissioned two new high-precision machines from COSMOS Machines India for aerospace and precision engineering. This single quarter's revenue represents approximately 24.5% of the company's total TTM revenue of ₹76 crore.
- Consolidated Net Sales increased 350% YoY to ₹18.64 crore in Q1 FY27 from ₹4.14 crore.
- Commissioned 2 new large-size high-precision machines from COSMOS Machines India for legacy and aerospace segments.
- Q1 FY27 revenue (₹18.64 Cr) accounts for ~24.5% of the TTM revenue of ₹76 crore.
- Management targets a volume growth from 22,500 to 130,000 units by transitioning into a major defense player.
- The company is positioning to capture a share of the ₹1.46 lakh crore Indian defense production market.
Sunita Tools Limited has received the first tranche of advance payment for its order of NATO-standard 155mm M107 empty artillery shells. This marks a critical milestone in the company's transition from a tooling manufacturer to a defense player, where it targets a 477% volume growth. While the specific amount of the advance was not disclosed, the company confirmed the funds are credited to its bank account, with two more tranches expected shortly. This order supports the company's goal to scale production from 22,500 units in FY26 to a best-case scenario of 210,000 units by FY28.
- Received 1st tranche of advance payment for NATO spec 155mm M107 empty shells
- Expects 2nd and 3rd tranches of advance payments shortly to support order execution
- Targeting a 477% volume growth by transitioning to a major defense player
- Projected average price per piece for defense components is USD 250 in FY26
- Aiming for a best-case production capacity of 210,000 pieces by FY28
Sunita Tools is pivoting from precision engineering to a defence-focused powerhouse, targeting a revenue surge from ₹46 Cr in FY26 to ₹636 Cr by FY29. The company has installed its first artillery shell production line in Faridabad with a capacity of 1,20,000 units p.a., currently awaiting a DPIIT license. Additionally, the company has expanded into the US market through the acquisition of New Mould Innovations (NMI), which has a capacity for 12 million grease cartridges p.a. at an average selling price of $3.2. Management plans to double shell capacity to 2,40,000 units p.a. through a second production line currently under procurement.
- Installed Line 1 for 155mm artillery shells with a capacity of 1,20,000 units per annum.
- Projected revenue growth from ₹46 Cr in FY26 to ₹636 Cr by FY29, representing a 13.8x increase.
- Acquired NMI in Kentucky, USA, with a capacity to manufacture 12 million grease cartridges annually.
- Planned Line 2 expansion to add 2,40,000 shells per annum capacity.
- Targeting a PAT of ₹102 Cr and an EPS of ₹141 by FY29.
Financial Performance
Revenue Growth by Segment
Total income grew 14.72% YoY to INR 30.15 Cr in FY25 from INR 26.28 Cr in FY24. The growth is driven by the core Mould Base and Engineering components segment, with a significant transition underway into the Defence and Aerospace vertical which is projected to scale from 22,500 pieces in FY26 to 1,30,000 pieces by FY28.
Geographic Revenue Split
Historically domestic-focused with facilities in Ahmedabad and Palghar; however, the company has established marketing tie-ups in Saudi Arabia, Bahrain, Kuwait, UAE, USA, and NATO countries to explore international orders for artillery shells and aerospace components.
Profitability Margins
Net Profit ratio stood at 17% in FY25, a slight decrease from 19% in FY24 (-7.54% change). Future defence contracts are projected to maintain PAT margins between 16% and 20% as the product mix shifts toward high-precision artillery shells.
EBITDA Margin
EBITDA margins for the upcoming defence manufacturing expansion are projected at 28-30% for FY26, increasing to 30-34% for FY27 and FY28. This high margin is attributed to the specialized nature of filled shells and explosives contracts.
Capital Expenditure
The company is currently executing CapEx for 'Line 2' and a new upcoming defence facility in Faridabad. While specific historical INR Cr values for the new line are not totaled, the Debt/Equity ratio is projected to increase from 0.2 to 0.5 by FY28 to fund this expansion.
Credit Rating & Borrowing
The company is currently Long-Term Debt Free as of the FY25 annual report. The Debt Service Coverage Ratio improved by 176.32% to 19.87, indicating a very high capacity to service new loans for expansion.
Operational Drivers
Raw Materials
High-grade steel and specialized alloys for mould bases and artillery shells represent the primary cost components; specific percentage of total cost not disclosed.
Import Sources
Sourced primarily from domestic markets in India (Maharashtra and Gujarat) for existing tool operations, with international supply chains being established for defence-grade materials.
Key Suppliers
Not specifically named in the documents; however, the company relies on industrial metal suppliers for precision engineering.
Capacity Expansion
Current focus is on the Faridabad defence facility. Planned expansion aims to increase production from 22,500 pieces in FY26 to a best-case scenario of 210,000 pieces by FY28 for the M107 artillery shell line.
Raw Material Costs
Raw material costs are managed through a 30% advance payment structure for defence contracts, which mitigates working capital pressure and locks in procurement pricing.
Manufacturing Efficiency
Successful machine running trials were completed in September 2025 for the artillery shell line, marking the transition from tooling to mass defence production.
Logistics & Distribution
The company entered a strategic MOU with a Middle East partner to handle logistics, on-ground operational requirements, and local regulatory formalities for international orders.
Strategic Growth
Expected Growth Rate
477%
Growth Strategy
The company plans to achieve this volume growth (from 22,500 to 130,000 units) by transitioning from a tooling manufacturer to a major defence player. Strategy includes manufacturing empty artillery shells (M107), R&D for CCF and PGK fuses, and leveraging a strategic MOU with a Middle East partner for government liaison and order execution.
Products & Services
Mould bases, ground plates, precision CNC machining, empty artillery shells (M107), aerospace parts, and upcoming CCF/PGK fuses.
Brand Portfolio
Sunita Tools.
New Products/Services
Empty artillery shells (M107) and aerospace components are the primary new drivers, with forward integration into filled shells and fuses expected to contribute significantly to revenue by FY28.
Market Expansion
Targeting Middle East and North African (MENA) markets and NATO countries through local partnerships and marketing agents.
Market Share & Ranking
The company is part of the US$ 2.50 billion Indian tooling industry and is positioning itself to capture a share of the ₹1.46 lakh crore Indian defence production market.
Strategic Alliances
Strategic MOU with a (Friendly) Middle East-based company for facilitation, paperwork, and execution of M107 defence orders.
External Factors
Industry Trends
The Indian defence sector is growing at an 8% CAGR, with private sector contribution reaching ₹32,000 crore (22%) in FY25. Private firms are projected to grow at 25-40% CAGR, outpacing DPSUs.
Competitive Landscape
Competes with both Domestic Public Sector Undertakings (DPSUs) and emerging private players in the defence manufacturing space.
Competitive Moat
Moat is built on 36+ years of precision engineering experience, compatibility with both NATO and Indian systems, and a strategic location for defence manufacturing.
Macro Economic Sensitivity
Highly sensitive to Indian defence modernization budgets and the 'Aatmanirbhar Bharat' mission, which saw 80% of FY25 defence contract value awarded to Indian firms.
Consumer Behavior
Shift in government procurement toward private Indian firms (92% of FY25 contracts by number) favors the company's expansion.
Geopolitical Risks
Global geopolitical tensions are a primary driver for the increased demand for artillery shells, but also present risks of supply chain disruptions.
Regulatory & Governance
Industry Regulations
Subject to heavy defence regulations, export restrictions, and stringent quality standards for aerospace and artillery components.
Legal Contingencies
The company paid SOP fines to BSE for delayed filings of Form AOC-4 XBRL, SH-7, and MGT-14/15. No major pending court cases affecting the existence of the company were reported by the board.
Risk Analysis
Key Uncertainties
Technology and design bottlenecks in the transition to high-precision defence manufacturing could impact the ability to meet the FY28 volume projections.
Geographic Concentration Risk
Currently concentrated in India (Maharashtra/Gujarat), but rapidly expanding geographic risk to the Middle East through new MOUs.
Third Party Dependencies
Significant dependency on a Middle East partner for the execution and facilitation of upcoming M107 defence orders.
Technology Obsolescence Risk
Rapid technological advancements in fuse technology (CCF/PGK) could render existing artillery shell designs less competitive if R&D goals are not met.
Credit & Counterparty Risk
Trade Receivable Turnover Ratio was 2.14 in FY25; the company uses 30% advance payments for defence orders to mitigate counterparty credit risk.
