Unimech Aerospace and Manufacturing Ltd shares climbed nearly 8% on Tuesday after the company announced a long-term supply agreement with FACC Operations GmbH, a leading Austrian aerospace Tier-1 supplier.

The pact marks a significant step for the Indian manufacturer in securing recurring revenue from established European defense and commercial aviation programs.

The market reaction reflects investor appetite for Indian industrial exporters that are successfully penetrating high-barrier Western supply chains.

By aligning with FACC, a key player in the European aerospace ecosystem, Unimech signals its capability to meet stringent quality and delivery standards required by major OEMs.

This type of contract typically provides greater earnings visibility compared to spot orders, reducing revenue volatility for the mid-cap stock.

The development arrives as Indian manufacturing firms increasingly pivot toward high-value aerospace components, moving beyond traditional automotive and engineering segments.