Minda Q4 FY26 earnings call

Minda Corporation achieved its highest-ever quarterly revenue of INR 1,704 crores in Q4 FY26, marking a 29% year-on-year growth. EBITDA for the quarter rose 33% to INR 203 crores, with a margin of 11.9%. For the full fiscal year 2026, the company reported a record annual revenue of INR 6,185 crores, a 22.3% increase, and an EBITDA of INR 721 crores, growing 25.5% with a margin of 11.7%. PAT for FY26 also saw significant growth of 40.3% to INR 358 crores, driven by operational efficiencies and a favorable product mix.

The company is actively strengthening its position in the electric mobility sector through strategic collaborations. The joint venture with Turntide Technologies (U.K.), established in March 2026, focuses on EV power electronics, traction motors, and axial flux technology, with SOP expected within 3-4 months. Additionally, a new JV with Toyodenso of Japan has secured significant orders for switches from Japanese OEMs, with operations slated to begin in Q4 FY27. Flash Electronics, an associate, also contributed strongly with FY26 revenues of INR 1,803 crores and a 17.2% EBITDA margin, driven by EV penetration and export orders.

From FY27, Minda Corporation will consolidate its associate company, Minda VAST, which contributed approximately INR 500 crores in revenue and INR 5 crores to PAT in FY26, with over 90% of its revenue from the Passenger Vehicle segment. This consolidation is expected to boost the company's Passenger Vehicle segment revenue share from 14% to a target of 25%. The company's revenue mix is diversified, with wiring harness accounting for 31%, vehicle access 22%, die casting 15%, and cluster business 17% of total revenue.

Minda Corporation recorded a lifetime order book of INR 10,000 crores for FY26, with 20% originating from exports, providing strong revenue visibility for the next 48-60 months. The company aims to grow its business at least 50% faster than the industry average, targeting a 15%+ growth if the industry grows at 10%. The long-term vision for 2030 is to achieve a top line of INR 17,500 crores with a 12.5% EBITDA margin, implying a CAGR of 19-20% from the current group revenue of approximately INR 9,000 crores.

The company's capital expenditure for FY25-26 was INR 413 crores, its highest ever. For FY26-27, capex is projected to be in the range of INR 400-450 crores, allocated for industrial clusters, new plants, and advanced electronics technologies. In recognition of its shareholders, the Board recommended a final dividend of INR 0.80 per equity share, bringing the total dividend for FY26 to INR 1.40 per share.

India's automotive sector demonstrated notable resilience in FY26, with strong growth across 2-wheeler (21% YoY), Passenger Vehicle (11.3% YoY), Commercial Vehicle (20% YoY), and tractor (37% YoY) segments. However, the industry faced significant inflationary pressures over the last 5 months, with commodity prices like copper, zinc, and aluminum rising 30-40%. While most contracts include pass-through clauses, the absence of a profit element on cost escalation can still impact EBITDA margins. Labor costs also increased due to minimum wage hikes in certain states, managed through productivity improvements.