Minda Corp — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Minda Corporation delivered a strong Q3 FY26, achieving its highest ever quarterly revenue of INR 1,560 crores, a 25% YoY increase. Profitability also saw significant growth, with EBITDA up 28% and PAT up 36% YoY, driven by operational efficiencies and a favorable product mix. The company's lifetime order book reached INR 7,000 crores for 9M FY26, and an interim dividend of 30% was recommended. Exports are showing signs of normalization, and strategic investments in new products and capacity expansion are underway.

Highlights

  • Revenue of INR 1,560 crores, up 25% YoY, marking highest ever quarterly revenue.

  • EBITDA grew 28% YoY to INR 184 crores, with margin at 11.8% (up 30 bps YoY).

  • PAT grew 36% YoY to INR 84 crores, with a margin of 5.4%.

  • Lifetime order book for 9M FY26 recorded at INR 7,000 crores, including new orders for switches (INR 1,000 crores) and sunroof (INR 350 crores).

  • Associate company Flash Electronics continued strong performance with revenue over INR 488 crores and EBITDA of INR 90 crores (18.4% margin).

Concerns

  • INR 4 crores of exceptional items accounted for in 9M FY26 due to new labor law changes.

  • New products like non-ferrite synchronous motors are still in OEM evaluation, with no commercial orders booked yet, requiring 6-9 months for mass production post-award.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹1,560 Cr
    YoY +25%
  • EBITDA
    ₹184 Cr
    YoY +28%
  • EBITDA Margin
    11.8%
    YoY +0.3%
  • PAT
    ₹84 Cr
    YoY +36%

9M FY26

  • Revenue
    ₹4,482 Cr
    YoY +20%
  • EBITDA
    ₹518 Cr
    YoY +23%
  • EBITDA Margin
    11.6%
    YoY +0.26%
  • PAT
    ₹238 Cr
    YoY +17%

What they filed

Q1 FY27: revenue up 23.4%, net profit up 45.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,058 1,037 1,083 1,135 1,249 +18%1,263 +22%1,370 +27%1,401 +23%
EBITDA124 123 122 124 137 +10%148 +20%170 +39%161 +30%
Net profit63 58 34 42 47 −25%79 +36%73 +115%61 +45%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹6,530 Cr Total
  • Information & Connected Business (9M FY26) ₹2,409 Cr 36.9%
  • Mechatronics and Aftermarket (9M FY26) ₹2,073 Cr 31.7%
  • Information & Connected Systems (Q3 FY26) ₹850 Cr 13.0%
  • Mechatronics and Aftermarket (Q3 FY26) ₹710 Cr 10.9%
  • Flash Electronics (Q3 FY26) ₹488 Cr 7.5%

Order book

high confidence

Total value

₹7,000 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹2,000 Cr

Execution

Typically 4-5 years for lifetime orders

Composition

Mix 2 products
  • Switches ₹1,000 Cr 74.1%
  • Sunroof ₹350 Cr 25.9%

Share of order book by product, derived from disclosed amounts

The company has a strong lifetime order book, with significant new wins in switches and sunroof segments, providing good visibility for future growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹400 Cr
    • General capex for the year ₹400 Cr
    during the year, we have committed to spend close to about INR 400-odd crores. We have already spent about INR 276 crores for the 9M ended FY26, and we plan to spend another INR 100 crores in the coming quarter as well.
  • Debt Gross ₹1,100 Cr
    • Repayment Paid about INR 70-odd crores debt during the first nine-month period. ₹70 Cr
    • Repayment Promoter infused around INR 104 crores through share warrant, largely used towards debt repayment. ₹104 Cr
    So our gross debt is about INR 1,100-odd crores and we have paid about INR 70-odd crores debt during the first nine-month period.
  • Dividend ₹0.6/share (interim)
    I am also happy to share that our Board of Directors has recommended an interim dividend of 30% that is INR 0.60 per equity share.

Guidance & targets

Commercial Vehicles

  • Growth Commercial Vehicles · next Q4 as well as in the first half of next year · Medium confidence continue growth
    We expect the commercial vehicles also to continue growth in the next Q4 as well as in the first half of next year.

    — Aakash Minda

Switches Business

  • Start of Production (SOP) Switches Business · Q2 FY28 · High confidence Q2 FY28
    So yes, the switches business is expected to start in Q2 FY28.

    — Aakash Minda

Sunroof Business

  • Start of Production (SOP) Sunroof Business · Q1 FY27 · High confidence Q1 FY27
    It is expected to start SOP in Q1 which is next year and FY27.

    — Aakash Minda

Lifetime Order Book

  • Ramp-up Duration Lifetime Order Book · two years · Medium confidence about two years
    So they will take about two years to ramp up and then subsequently, it will move forward.

    — Aakash Minda

  • Typical Duration Lifetime Order Book · High confidence four to five years
    Yes. Typically, it's four to five years, yes.

    — Aakash Minda

EBITDA Margin

  • Sustainable Level EBITDA Margin · High confidence 11.5%
    we have come from about 10% to a sustainable and consistent delivery of 11.5%, which is what we had committed as well as shared with all our shareholders and all your colleagues.

    — Aakash Minda

ROCE

  • Improvement Target ROCE · High confidence 25%

    From 22% today

    And I think what we have promised the market to deliver by 2030 is improvement from 22% to 25%.

    — Ajay Agarwal

Flash Electronics Margins

  • Sustainable Level Flash Electronics Margins · High confidence 16% to 17%
    So I just shared before, it's a sustainable number could be again about 16% to 17% here and there.

    — Aakash Minda

R&D Spend

  • Percentage of Top Line R&D Spend · High confidence 4%
    So R&D expenses were somewhere about 4% of our top line, which is including opex and capex.

    — Aakash Minda

Other Expenses

  • Percentage of Revenue Other Expenses · High confidence reduced level
    So fair to assume that you will be able to maintain the other expenses to revenue at this reduced level. Yes.

    — Ajay Agarwal

Sunroof Market Share

  • Target Market Share Sunroof Market Share · by FY 2030 or FY2031 · Medium confidence 10% to 15%
    So our target is how we can go to at least 10% to 15% of market share by FY 2030 or FY2031.

    — Aakash Minda

Exports

  • Export Business Revenue Exports · by 2030 · High confidence INR 1,500 crores

    From INR 500 crores today

    We expect to take our export business from current about INR 500-odd crores to INR 1,500 crores by 2030.

    — Ajay Agarwal

What to watch in Q4 FY26

Flash Electronics Non-Ferrite Motor Order

Next couple of months / Q4 FY26
Current Under evaluation by large customers, no orders booked
Target First commercial order/award

Why it matters

Key new product for the EV segment, indicating future revenue potential and validation of R&D efforts.

But our large customers are moving forward for further evaluation, and then we can hopefully be able to conclude something in the next couple of months.

Risks & concerns

  • Commodity Price Volatility

    medium

    Volatility in prices of copper, aluminum, and other metals, but management states they are properly hedged with reciprocal arrangements and a one-quarter lag for cost pass-through.

    Analyst acknowledged

  • Long OEM Testing Cycles for New Products

    medium

    New products like the non-ferrite synchronous motor require 6-9 months of OEM testing from award to mass production, implying a lead time for revenue generation from new innovations.

    Management acknowledged

  • New Labor Law Impact

    low

    INR 4 crores of exceptional items accounted for in 9M FY26 due to changes in labor regulation.

    Management acknowledged

Q&A highlights

7 direct
Commercial Vehicle Outlook Direct
We expect the commercial vehicles also to continue growth in the next Q4 as well as in the first half of next year. The primary reasons we believe is due to the regulation changes that have been there, plus the infrastructure upgradation that is happening all across India and last not the least, of course, the trade that has been booming within India as well as for exports.

Clarifies the positive outlook and key drivers for the commercial vehicle segment, which represents a significant portion of revenue.

Asked by Raghunandhan N. L.

Lifetime Order for Switches & Sunroof Direct
So yes, the switches business is expected to start in Q2 FY28. So next year, the plant is already under construction. The partners are already here. And now the localization and the other things are going on. So we expect one year from here and the production to start. And yes, the orders that you mentioned are lifetime. So they will take about two years to ramp up and then subsequently, it will move forward. Number two, when it comes to the sunroof, so that is also a lifetime business. It is expected to start SOP in Q1 which is next year and FY27. And the ramp-up is expected to happen over the next few quarters. So that is how we expect these businesses to ramp up.

Provides specific timelines for the start of production and ramp-up phases for significant new lifetime orders in switches (INR 1,000 crores) and sunroof (INR 350 crores).

Asked by Raghunandhan N. L.

Export Improvement and Trade Agreements Direct
So for us, at least now we can see the exports coming back to normalcy in this quarter. You will acknowledge that over the last many quarters, about four to five quarters, the exports have been kind of subdued. But this quarter, we have seen coming back to normalcy where our exports to the Europe as well as to U.S. port are picking up, and it is across the divisions that we have.

Indicates a positive turnaround in export performance after a period of weakness, with potential further upside from new trade agreements.

Asked by Raghunandhan N. L.

EBITDA Margin Expansion Strategy Direct
What is going to drive growth going forward is on multiple aspects. Our first continued focus on operational excellence. Number two is we are investing and going to be focused on localization and backward integration as well. There are multiple initiatives that are happening that I can't share on the call, which are strategic in nature on how we can improve that, whether it is related to the electronics or some of the subsidies that the government has offered us.

Details the multi-pronged strategy, including localization and operational excellence, to achieve the targeted EBITDA margin expansion.

Asked by Jyoti Singh

Capex Plan and ROCE Target Direct
From a return on capital employed perspective, if you do an apple-to-apple comparison, we are already doing a margin of about 22% because why the functional numbers you are able to arrive at is due to the fact that interest is levied in Minda Corporation, whereas the revenue or the profit of Flash is not consolidated. But if you do the apple-to-apple comparison, we do close to about 22% ROCE. And I think what we have promised the market to deliver by 2030 is improvement from 22% to 25%.

Clarifies the long-term capex plan of INR 1,500-2,000 crores by FY2030 and the strategy to improve ROCE from 22% to 25%.

Asked by Jyoti Singh

Flash Electronics Non-Ferrite Synchronous Motor Status Partial
Yes. So that motor is early design, developed by our technical center or Flash technical center in Poland. Yes, it takes a lot of time on the field trials as well. But yes, we have showcased this product to our couple of customers as well, and we are working with them closely. But yes, no order has been booked so far. But our large customers are moving forward for further evaluation, and then we can hopefully be able to conclude something in the next couple of months.

Provides an update on a key new product, indicating it is still in the OEM evaluation phase with no commercial orders yet, highlighting the lead time for new product adoption.

Asked by Sridhar Kalani

Flash Electronics Margins and Capacity Utilization Direct
So the margins are again going to be in the same level that we have shown in the last two or three quarters, which is somewhere about 16% to 17%. And we expect this to be, of course, sustainable and consistently going forward... And plus for the electric vehicle motors and the motor controllers and integrated drive unit, there the plant that they had inaugurated about a year ago is already full, and we have now started investing in the new plant, which will be ready in about three to four months' time.

Confirms the sustainability of high margins for Flash Electronics and highlights the need for and timeline of capacity expansion for EV products due to full utilization.

Asked by Shubham Batra

Raw Material Headwinds and Hedging Direct
But thankfully, whether it is Flash, whether it is Minda Corporation, all our group companies are following a very strategic approach, which is passing on the cost. We don't enjoy the upside, neither we lose our thing because of the price going down. So therefore, we are properly hedged, and we are not in the business of making money out of commodity uptrend or downgrade. We are here to really excellent manufacturing capability and deliver quality services to our clients.

Assures investors that the company is hedged against commodity price volatility (copper, aluminum) and has mechanisms to pass on costs, mitigating margin risk.

Asked by Vijay

3 min read 7 chapters

Detailed narrative

Strong Q3 FY26 Financial Performance

Minda Corporation achieved its highest ever quarterly revenue of INR 1,560 crores in Q3 FY26, representing a robust growth of 25% on a year-on-year basis. The company's EBITDA stood at INR 184 crores, reflecting a margin of 11.8%, a 30 bps increase YoY. Profit after tax reached INR 84 crores with a PAT margin of 5.4%, supported by improved operational efficiencies and a favorable product mix.

9M FY26 Overview and Operational Highlights

For the first nine months of FY26, revenue grew 20% to INR 4,482 crores, with EBITDA at INR 518 crores (11.6% margin) and PAT at INR 238 crores. The company incurred INR 4 crores of exceptional items due to a new labor law. Segment-wise, Mechatronics and Aftermarket grew 17% to INR 710 crores in Q3, while Information & Connected Systems grew 32% to INR 850 crores.

Flash Electronics' Continued Growth and EV Capacity Expansion

Associate company, Flash Electronics, delivered strong performance in Q3 FY26 with revenue over INR 488 crores and an EBITDA of INR 90 crores, representing an 18.4% margin. The plant for electric vehicle motors, controllers, and integrated drive units is currently at full capacity. To meet growing demand, Minda Corp has started investing in a new plant for these EV products, which is expected to be ready in about three to four months.

Strategic Order Wins and Product Timelines

Minda Corp's lifetime order book for the 9M period reached INR 7,000 crores. Key new wins include INR 1,000 crores for switches, with production expected to start in Q2 FY28, and INR 350 crores for sunroofs, with SOP anticipated in Q1 FY27. These lifetime orders typically span four to five years, with ramp-up phases expected over two years for switches and several quarters for sunroofs.

Capital Allocation and ROCE Improvement

The company committed to a capex of approximately INR 400 crores for FY26, having spent INR 276 crores in 9M and planning another INR 100 crores in Q4. Gross debt stands at about INR 1,100 crores, with INR 70 crores repaid in 9M, supplemented by a INR 104 crores promoter infusion for debt reduction. Minda Corp aims to increase its Return on Capital Employed (ROCE) from the current 22% to 25% by 2030, driven by disciplined capital allocation and focus on high-margin businesses.

Export Market Normalization and Long-Term Targets

After being subdued for several quarters, exports are showing signs of returning to normalcy in Q3 FY26, with pickups observed in Europe and the US. The company maintains a strong long-term vision to grow its export business from the current INR 500 crores to INR 1,500 crores by 2030, supported by new SOPs and existing business ramp-ups.

R&D and New Product Development Focus

Minda Corp's R&D expenditure is approximately 4% of its top line, encompassing both opex and capex. The company filed 16 new patents in 9M FY26, bringing the total to over 320. Efforts are underway in developing advanced products like non-ferrite synchronous motors, currently under OEM evaluation, and ADAS components, with a strategic focus on entering the passenger vehicle segment from the component side.

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