Minda Q1 FY27 earnings call

Minda Corporation achieved its highest ever quarterly revenue of INR 1,846 crores in Q1 FY27, representing a robust 33.2% year-on-year growth and an 8% sequential increase. This strong performance was underpinned by positive demand conditions across major vehicle segments, including a 23% growth in the two-wheeler segment and 17% in passenger vehicles. The company also reported its highest ever quarterly EBITDA of INR 212 crores, growing 35.4% YoY, with the EBITDA margin expanding by 19 basis points to 11.5%.

The wiring harness division demonstrated significant growth, exceeding 30% on a YoY basis, while the instrument cluster division grew over 35% YoY in Q1. Product-wise, wiring harness contributed 32% of revenue, followed by vehicle access at 25%, die casting at 15%, and cluster business at 16%. In terms of mobility, two-wheelers and three-wheelers accounted for 46% of the top line, commercial vehicles 27%, and passenger vehicles 19%, reflecting a diversified revenue base.

Flash Electronics, a key associate, delivered strong results with revenues of INR 533 crores in Q1, marking a 42% YoY growth, and an EBITDA margin of 15.4%. However, management noted a marginal dip in Flash's EBITDA margin compared to the previous quarter, primarily due to higher commodity prices and increased labor costs. Despite these challenges, the company is confident in Flash's ability to recover its margins to a target range of 16-17% within the next one to two quarters, aiming for 20-24% double-digit growth for the full year.

Minda Corporation made strategic investments totaling INR 63 crores in its group companies, including Spark Minda Green Mobility Solutions, to bolster future growth. The company's EV percentage as a share of revenue reached 10% (up 40% YoY), while Flash Electronics saw its EV revenue grow 90% YoY to constitute 30% of its total, resulting in a group-level EV revenue share of approximately 14%. The Turntide motor controller and sunroof businesses are on track, with SOPs expected in October-November and Q2 FY27, respectively.

The consolidation of Minda VAST into Minda Corporation commenced this year, contributing an incremental revenue of INR 125 crores in Q1 FY27 and an exceptional gain^📎 of INR 106 crores to PAT. Minda VAST's EBITDA margin improved to 8.4% from 6.5% in Q1 last year, and the company aims to bring it to par with Minda Corporation's overall margin levels. This integration is strengthening the company's presence in the passenger vehicle segment, which now accounts for 19% of total revenue, and is expected to further increase its penetration in this high-growth area.

For FY27, Minda Corporation plans a capital expenditure of approximately INR 400 crores, which will be spread across various business verticals and divisions without specific allocation to EV or ICE. The company reiterated its commitment to Vision 2030, targeting a 12.5% EBITDA margin by that year. This vision is supported by disciplined capital allocation, expansion into high-growth segments, and continuous investment in R&D capabilities and technology.