Detailed Narrative
Strong Q2 FY26 Performance Driven by Key Segments
Minda Corporation reported its highest-ever quarterly revenue of ₹1,535 crores in Q2 FY26, marking a robust 19% YoY growth. This performance was fueled by sustained demand across key vehicle segments, with the 2-wheeler and 3-wheeler segments contributing 45% of total revenue, commercial vehicles 29%, and passenger vehicles 15%. The company also achieved its highest-ever EBITDA of ₹178 crores, a 21.4% YoY increase, with an 11.6% EBITDA margin, and PAT grew 14% YoY to ₹85 crores.
Strategic Focus on New Products and Order Book Expansion
The company secured its first sunroof order from a leading OEM, with production scheduled to begin in Q1 FY27, and also won significant orders for high-voltage EV wiring harnesses. These new wins contributed to a robust lifetime order book of ₹2,000 crores in Q2, bringing the H1 FY26 total to over ₹3,600 crores, with exports accounting for 15% of the Q2 order book. The Toyodenso joint venture also secured notable switch orders, with operations expected to commence in Q4 FY27.
Flash Electronics Delivers Strong Performance Amidst Challenges
Associate company Flash Electronics reported a strong Q2 FY26 with ₹446 crores in revenue and ₹72 crores in EBITDA, achieving a 16.1% margin. For H1 FY26, its revenue stood at ₹822 crores with an EBITDA of ₹131 crores and PAT of ₹52 crores (6.3% margin). While Flash faced challenges related to rare earth magnets in Q2, management indicated these issues are 'relatively solved' for Q3-Q4, with ongoing development of ferrite and magnet-less motors to mitigate future risks.
Vision 2030 and Strategic Priorities
Minda Corporation's Vision 2030 is built around five key pillars: investment in existing businesses, new market export focus, premiumization of existing products, new product launches, and R&D. The company targets a CAGR and YoY growth of 20-25% and an EBITDA margin greater than 12.5%. Strategic goals include increasing passenger vehicle revenue share from 15% to 25% by 2030 and boosting smart key penetration in 2-wheelers from 3-5% to 25-30% by 2030.
Capital Allocation and R&D Investment
The company invested ₹220 crores in H1 FY26 and plans a total capital expenditure of ₹2,000 crores over the next 4.5 to 5 years, primarily for capacity enhancement, especially for high-EV and 4-wheeler components. Net debt stood at ₹1,165 crores, with a net debt-to-equity ratio of 0.5. R&D expenditure, currently 3.5-4% of revenue, is projected to stabilize at 3-3.5% going forward⏳, reflecting continued investment in technological capabilities.