Summary
Uno Minda Limited - Q3 FY 2026 Earnings Call Summary Thursday, February 05, 2026 16:00 IST
Event Participants
Executives 2 Ankur Modi (Head, Treasury, IR and Communication), Sunil Bohra (Group CFO)
Analysts 5 Aditya Jhawar (Investec), Chandramouli Muthiah (Goldman Sachs), Mukesh Saraf (Avendus Spark), Mumuksh Mandlesha (Anand Rathi), Siddhartha Bera (Nomura Wealth)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹5,018 crores | +20% YoY; Driven by strong volumes in core segments (Switches, Lighting, Alloy Wheels). |
| EBITDA | ₹554 crores | +21% YoY; Margins remained stable at 11.0%. |
| Reported PAT | ₹277 crores | Impacted by one-time provision for new labor codes. |
| Normalized PAT | ₹298 crores | +28% YoY; Adjusted for ₹28 crore exceptional labor code provision. |
| Net Debt | ₹2,298 crores | Increased from ₹2,091 crores in March '25; Reflects ongoing capex for new facilities. |
| Net Debt-to-Equity | 0.33x | Maintained at healthy levels despite intensive investment cycle. |
| ROCE | 18% | Annualized basis; Includes non-generating assets like land bank and CWIP. |
| Interim Dividend | ₹0.9 per share | +20% increase compared to previous year’s interim dividend. |
Geographic & Segment Commentary
- Switches: Revenue grew 19% YoY to ₹1,241 crores (25% of total). Performance was led by the 2-wheeler segment (+30% YoY) and recovery in exports following supply chain stabilization of rare earth magnets.
- Lighting: Reported ₹1,129 crores in revenue, up 15% YoY. Growth is underpinned by the transition to LED systems and the commencement of commercial production at the new Indonesian 4-wheel lighting facility.
- Casting (Alloy Wheels): Revenue reached ₹971 crores, up 26% YoY. Growth was driven by capacity ramp-ups at Bawal, Kharkhoda, and Supa, alongside the pass-through of higher aluminum prices.
- Seating: Segment revenue rose 32% YoY to ₹361 crores. This was supported by a favorable customer mix in 2-wheelers and the scaling of the bus passenger seating business.
- International/Exports: Contribution stood at 10% of total revenue. Recovery in 2-wheeler exports and new order wins for heated grips and switches from global OEMs supported performance.
Company-Specific & Strategic Commentary
- Alloy Wheel Expansion: The Board approved a new greenfield 4-wheel alloy wheel plant with 1.8 million annual capacity (0.7m GDC, 1.1m LPDC) involving ₹764 crores capex over 3-4 years.
- EV Systems & ADAS: EV systems revenue hit ₹158 crores, driven by 3-wheeler charger scale-up; ADAS expanded with camera module SOP and new orders from Japanese PV OEMs.
- Regulatory Readiness (AVAS): Secured orders for Acoustic Vehicle Alerting Systems (AVAS) following government mandates for EVs effective October 2026.
- Localization (Rare Earth): Successfully developed alternatives to rare earth magnets for sensors, de-risking the supply chain from global price and supply volatility.
- Clean Energy: Approved ₹6.5 crores additional investment in Gujarat renewable SPV; Green power is expected to account for 40% of total energy consumption.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 1.4x to 1.5x of Industry | Long-term target maintained; management expects to consistently outperform industry production volumes. |
| Capex Plan | To be shared in May 2026 | Budgeting for FY27 is underway; focus remains on debottlenecking before greenfield commits. |
| EV Powertrain | Phase 1 Commissioning FY 2027 | High-voltage components JV with Inovance; initial supplies may start via imports to meet demand. |
| Sustainability | 60% Renewable Energy by 2030 | Strategy on track with increased investments in solar and wind SPVs. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Inflation | Aluminum price volatility impacts Casting segment; while pass-through clauses exist, time lags (quarterly/half-yearly) can impact short-term margins. |
| EV Penetration Volatility | 2W EV penetration declined from 7.76% in Q2 to 5.1% in Q3; slower adoption could impact the ramp-up of dedicated EV component lines. |
| Labor Regulatory Change | New labor codes resulted in a ₹28 crore one-time provision; recurring costs may rise slightly depending on final state rule notifications. |
Q&A Highlights
Alloy Wheel Performance
- Question: What drove the outperformance in alloy wheels despite higher entry-level car mix? (Chandramouli Muthiah)
- Answer: Growth was supported by the ramp-up of the Kharkhoda plant and new business wins. Aluminum price pass-throughs contributed approximately 6-7% to the revenue growth in the casting domain (Sunil Bohra).
Export Strategy
- Question: How do the US and EU trade deals impact export discussions? (Siddhartha Bera)
- Answer: Tariffs reverting to 0% (EU) and 18% (US) improves competitiveness. While production impact takes 1-2 years post-order, the clarity is restarting stalled discussions with global OEMs (Sunil Bohra).
New Business Order Book
- Question: How is the order book for Sunroofs and EV Powertrain shaping up? (Mumuksh Mandlesha)
- Answer: Anchor customers are secured for both. The strategy is to establish operations with anchor clients first to build the “line-of-sight” confidence needed to win secondary RFQs (Sunil Bohra).
LPDC Technology Shift
- Question: Why expand into LPDC now after holding back for three years? (Mukesh Saraf)
- Answer: Management has seen positive traction in pricing and interest from premium manufacturers and importers looking to localize. The new plant in Western India will address this specific gap (Sunil Bohra).
Key Takeaway
Uno Minda Limited delivered a record quarterly performance in Q3 FY26, with revenue growing 20% YoY to ₹5,018 crores and normalized PAT rising 28% to ₹298 crores. The company demonstrated resilience by outperforming industry production growth through its diversified kit-per-vehicle strategy, particularly in Switches and Casting. Strategic highlights included the approval of a ₹764 crore alloy wheel expansion focused on LPDC technology and successful localization of sensor magnets to mitigate rare earth supply risks. Despite a slight dip in broader EV penetration during the quarter, Uno Minda continues to scale its EV Systems and ADAS portfolios, securing new orders for camera modules and AVAS. Management remains optimistic about sustaining a 1.4x-1.5x growth outperformance relative to the industry, supported by recent international trade deals and a robust domestic infrastructure push.
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