Summary
Minda Corporation Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026 4:00 PM
Event Participants
Executives 3 Aakash Minda (Executive Director), Ajay Agarwal (Group CFO and President, Finance & Strategy), Nitesh Jain (Lead Investor Relations)
Analysts 6 Dhananjay Mishra (Sunidhi Securities), Devesh Kayal (Monarch AIF), Jyoti Singh (Arihant Capital Markets), Munindra Upadhyay (Elara Securities), Raghunandan N. L. (Nuvama Research), Shubham Batra (AMBIT AMC), Sridhar Kalani (Antique Stock Broking)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,560 crores | +25% YoY; Highest ever quarterly revenue driven by demand across segments and EV traction. |
| EBITDA | ₹184 crores | +28% YoY; Reflects improved operational efficiencies and a favorable product mix. |
| EBITDA Margin | 11.8% | +30 bps YoY; Continued steady expansion toward long-term targets. |
| Profit After Tax (PAT) | ₹84 crores | +36% YoY; Supported by strong top-line growth and operational leverage. |
| 9M FY26 Revenue | ₹4,482 crores | +20% YoY; Outperformed the general automotive industry growth. |
| 9M FY26 EBITDA | ₹518 crores | +23% YoY; Margin stood at 11.6% for the nine-month period. |
| Lifetime Order Book | ₹7,000 crores | Cumulative 9M figure; ₹2,000 crores in new orders secured during Q3 alone. |
| Capital Expenditure | ₹276 crores | Spent in 9M FY26; Total FY26 target remains ~₹400 crores including new plant construction. |
| Gross Debt | ₹1,100 crores | Net of ₹70 crores repayment in 9M; Promoter infused ₹104 crores via warrants for debt reduction. |
| Associate: Flash Electronics Revenue | ₹488 crores | Strong performance in EV power electronics and traction motors; 18.4% EBITDA margin. |
Geographic & Segment Commentary
- Mechatronics and Aftermarket: Revenue grew 17% YoY to ₹710 crores for the quarter. Growth was supported by strong festive buying and new product launches in the domestic market.
- Information & Connected Systems: Revenue increased 32% YoY to ₹850 crores. This remains the fastest-growing segment, driven by premiumization in instrument clusters and wiring harness demand.
- Exports: Currently contributes 11% of revenue (Southeast Asia 5%, Europe/US 6%). Management noted exports returned to “normalcy” this quarter after four to five subdued quarters.
Company-Specific & Strategic Commentary
- Premiumization & New Products: Secured major orders for sunroofs (₹350 crores lifetime) and switches (₹1,000 crores lifetime). Sunroof SOP is expected in Q1 FY27, while the Toyodenso switch partnership plant will be ready by Q4 FY27 with SOP in Q2 FY28.
- Flash Electronics Partnership: Strategic focus on EV components including non-ferrite synchronous motors and motor controllers. Management indicated a sustainable margin profile of 16-17% for this associate company.
- R&D and IP: Spent ~4% of revenue on R&D (opex and capex combined). Filed 16 new patents in 9M FY26, bringing the total portfolio to over 320 patents.
- In-House Innovation: Developed “magnetless” and rare-earth-free motors to mitigate supply chain risks and China dependency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (2030 Vision) | 3x current levels by FY30 | Driven by EV system solutions, sunroofs, and high-tech electronics. |
| Export Revenue | ₹1,500 crores by 2030 | Increase from current ~₹500 crores base via global trade agreements and new platform wins. |
| ROCE | 25% by FY30 | Target improvement from current 22% (pro-forma) through disciplined capital allocation. |
| EBITDA Margin | 12.5% (Medium-term) | Expansion to be driven by localization of electronics and operating leverage. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Volatility | Aluminum and copper prices remain volatile. Management uses a quarterly pass-through mechanism to mitigate impact, though a one-quarter lag exists. |
| Regulatory Changes | Recent changes in labor laws led to a ₹4 crore exceptional charge. Further localized policy shifts could impact manufacturing costs. |
| Technology Lead Times | New high-tech products like EV motors require 6-9 months of rigorous OEM testing. Revenue realization from the current order book is back-ended toward FY28. |
Q&A Highlights
Commercial Vehicles Outlook
- Question: What is the outlook for the CV segment, which accounts for 30% of revenue? (Raghunandan N. L.)
- Answer: Continued growth is expected in Q4 and H1 next year due to regulation changes, infrastructure spend, and booming trade (Aakash Minda).
Sunroof and Switch Orders
- Question: What is the timeline and ramp-up for the ₹1,350 crore new orders? (Raghunandan N. L.)
- Answer: Sunroof SOP starts Q1 FY27. Switches SOP starts Q2 FY28 from a new facility currently under construction. Peak volumes typically take 2 years from SOP (Aakash Minda).
Flash Electronics Margins
- Question: What is driving the 18%+ margins at Flash Electronics? (Vijay)
- Answer: Favorable product mix toward EV power electronics and high-margin export gear businesses. Sustainable levels are 16-17% (Aakash Minda).
Commodity Pass-Through
- Question: How are you managing the recent spike in copper and aluminum? (Raghunandan N. L.)
- Answer: All indexed costs are passed through on a quarterly “true-up” basis with OEMs. The company does not speculate or hedge to profit from commodity moves (Ajay Agarwal).
EV Motor Technology
- Question: Status of the non-ferrite synchronous motor? (Sridhar Kalani)
- Answer: Currently under rigorous field testing by multiple large OEMs. Validation takes 6-9 months; proprietary to Flash Electronics (Aakash Minda).
Key Takeaway
Minda Corporation delivered a record performance in Q3 FY26, with revenue growing 25% YoY to ₹1,560 crores, significantly outperforming the industry’s 17% growth. The company’s strategic shift toward premiumization is evidenced by high-value order wins in sunroofs and smart switches totaling ₹1,350 crores, alongside 32% growth in Information & Connected Systems. Management successfully navigated commodity pressures through quarterly pass-throughs while maintaining an 11.8% EBITDA margin. Associate company Flash Electronics continues to be a margin accretive partner (18.4% EBITDA) for EV power electronics. Looking ahead, the company is focused on its Vision 2030 to triple revenues, supported by a ₹7,000 crore 9M order book and a recovery in export markets. However, the timeline for significant revenue contribution from new high-tech plants is back-ended to FY27 and FY28, making execution of upcoming SOPs a critical watch point.
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