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 item📎s 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.