Uno Minda

Uno Minda reported robust financial performance for Q2 FY26, with consolidated revenue from operations reaching INR 4,814 crores, marking a 13.4% year-on-year growth. EBITDA for the quarter grew by 14% to INR 552 crores, achieving a healthy margin of 11.5%. Profit after tax attributable to shareholders increased by 24% to INR 304 crores, with normalized PAT (excluding exceptional income) growing 27% YoY. For the first half of FY26, normalized revenues stood at INR 9,234 crores, a 15% YoY increase, and normalized EBITDA was INR 1,026 crores, also up 15% YoY.

The company demonstrated diversified growth across its product portfolio. The Switches segment recorded INR 1,176 crores in revenue, growing 11% YoY and contributing 25% to consolidated revenues. The Lighting System business delivered INR 1,106 crores, up 14% YoY, accounting for 23% of revenues. The Seating segment also showed strong momentum with a 22% YoY growth, reaching INR 354 crores, while the 'Other Product Businesses' segment, including Sensors, ADAS, and EV Systems, grew 18% YoY to INR 1,070 crores.

Uno Minda is actively investing in building future capacities, with 10 expansion projects currently under implementation and a total investment commitment of INR 2,356 crores. H1 FY26 capital expenditure amounted to INR 728 crores, including INR 354 crores for expansion projects and INR 130 crores for land acquisition. The first phase of the 4-wheeler alloy wheel facility at Kharkhoda, with a capacity of 60,000 wheels per month, is currently under commissioning, and the new greenfield facility for high-voltage EV powertrain components (JV with Inovance Automotive) is progressing, with Phase 1 expected by Q2 FY27.

The company is well-positioned for the electric vehicle transition, with Uno Minda EV Systems revenue reaching INR 115 crores in Q2, partly due to the transfer of the 3-wheeler EV charger business. Management highlighted its leadership in the EV tail lamp category and the accelerating transition to LED systems, driven by higher e-2-wheeler penetration. The joint venture with Inovance Automotive for EV powertrain components is awaiting PN3 regulatory approval, which is expected within the current fiscal year.

Despite overall strong performance, certain segments faced challenges. The casting business's growth was constrained by a 6% decline in base aluminum prices, which was passed on to customers. The European Acoustics business saw a 13% decline in revenue due to softening end-market demand. Furthermore, the 4-wheeler seating joint venture with TACHI-S has proven to be a 'tough ride' and is taking longer than expected to gain traction due to the competitive landscape, leading to internal restructuring for more focused attention.

Uno Minda reiterated its strong commitment to sustainability, setting ambitious targets to achieve 60% renewable energy by 2030 and carbon neutrality by 2040. The immediate goal is to achieve around 40% green power across operations, supported by 38 rooftop solar power plants and investments in captive open access solar projects. The company also launched initiatives in September '25 to advance inclusion for persons with disabilities, aiming to build awareness among over 20,000 employees nationwide.

The company's net debt increased to INR 2,362 crores as of September 30, 2025, from INR 2,091 crores on March 31, 2025. This increase was primarily attributed to capital expenditure on land bank and acquisitions, as sustaining and growth capex was financed from business cash flows. However, the net debt to equity ratio remains healthy at 0.36, indicating a manageable capital structure. Cash flows generated from operations for H1 FY26 were INR 678 crores.