Uno Minda — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Uno Minda delivered a strong Q3 FY26, with consolidated revenue growing 20% YoY to INR 5,018 crores and normalized PAT up 28% YoY. Growth was broad-based across segments, supported by new capacity commissioning and strategic investments. The company announced a significant capex for a new alloy wheel plant and increased its interim dividend, while navigating higher finance costs and the impact of new labor codes.

Highlights

  • Consolidated revenue from operations for Q3 FY26 stood at INR 5,018 crores, registering a robust year-on-year growth of 20% compared to INR 4,184 crores in Q3 FY25.

  • EBITDA for Q3 FY26 grew 21% year-on-year to INR 554 crores, maintaining EBITDA margins at 11%.

  • Normalized PAT attributable to shareholders for Q3 FY26 was INR 298 crores, reflecting a 28% year-on-year growth over INR 233 crores in Q3 FY25.

  • The company announced a fresh capital expenditure of INR 764 crores for a new 4-wheel alloy wheel manufacturing facility, expanding capacity by 1.8 million wheels per annum.

  • The interim dividend for FY26 was declared at INR 0.9 per share, which is 20% higher than the previous year's interim dividend.

Concerns

  • Finance costs during Q3 FY26 increased to INR 53 crores, largely reflecting higher borrowings to support ongoing capital expenditure and incremental working capital needs.

  • The implementation of new labor codes resulted in an increase in liability provisions by INR 28 crores, impacting reported PAT.

  • EV 2-wheeler penetration declined to 5.1% in Q3 FY26 from 5.6% in Q3 FY25 and 7.76% in Q2 FY26, and EV 4-wheeler penetration reduced to 3.6% from 5.07% in Q2 FY26.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹5,018 Cr
    YoY +20%
  • Consolidated EBITDA
    ₹554 Cr
    YoY +21%
  • EBITDA Margin
    11%
  • Normalized PAT
    ₹298 Cr
    YoY +28%
  • Finance Costs
    ₹53 Cr
  • Depreciation
    ₹179 Cr
  • Share of Profit from JVs
    ₹74 Cr

9M

  • FY26 Revenue
    ₹14,252 Cr
    YoY +16%
  • FY26 Normalized EBITDA
    ₹1,580 Cr
    YoY +17%
  • FY26 Normalized PAT
    ₹841 Cr
    YoY +25%

What they filed

Q1 FY27: revenue up 23.8%, net profit up 2.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,245 4,184 4,528 4,489 4,814 +13%5,018 +20%5,336 +18%5,557 +24%
EBITDA482 457 527 543 552 +15%554 +21%603 +14%572 +5%
Net profit266 254 289 309 323 +21%300 +18%352 +22%316 +2%
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

SegmentRevenueYoY Growth
Switching System₹1,241 Cr19%
Lighting Business₹1,129 Cr15%
Casting Business₹971 Cr26%
Seating Systems₹361 Cr32%
Acoustic Business₹210 Cr—
Other Products₹806 Cr19%
Aftermarket & SPD——

Capital allocation

high confidence
  • Capex Capex disclosed
    • New 4-wheel alloy wheel manufacturing facility (1.8 million wheels/annum capacity) ₹764 Cr
    • Additional investment in SPV for open access renewable power (wind and solar in Gujarat) ₹6.5 Cr
    The project entails fresh capital expenditure of INR 764 crores to be deployed in a phased manner over the next 3 years to 4 years. The new plant will meaningfully expand our LPDC-based alloy wheel manufacturing capex capability, strengthening our position with the OEMs who prefer LPDC technology and hence, enabling us to further grow our market share in the segment.
  • Debt Net ₹2,298 Cr · 0.3× EBITDA
    Our net debt as of December end was at INR 2,298 crores compared to INR 2,091 crores as on March 31, 2025. Our net debt to equity as at 31st December '25 stood healthy at 0.33.
  • Dividend ₹0.9/share (interim)
    The Board has approved and declared an interim dividend of INR 0.9 per share, reflecting commitment from the company to return value to shareholders on a consistent basis. The interim dividend for FY '26 is 20% higher as compared to last year's interim dividend.

Guidance & targets

Policy

  • Auto PLI Scheme Allocation Policy · FY '27 · High confidence INR 5,940 crores
    A significant boost has been provided to advance manufacturing through the auto PLI scheme, where allocations have risen nearly INR 5,940 crores for FY '27, reflecting the scheme entering its peak implementation phase and encouraging OEMs and suppliers to scale investments in EVs, localization and export-oriented manufacturing.

    — Sunil Bohra

  • PM E-DRIVE Scheme Allocation Policy · FY '27 · High confidence INR 1,500 crores

    Previously INR 1,300 crores → INR 1,500 crores

    The PM E-DRIVE scheme has been allocated INR 1,500 crores in FY '27, which while lower than the earlier FY '26 budget outlay marks an increase over the revised estimate of INR 1,300 crores, signalling a calibrated continuation of EV incentives as the ecosystem move towards scale and maturity.

    — Sunil Bohra

Sustainability

  • Renewable Energy Usage Sustainability · by 2030 · High confidence 60%
    On sustainability front, in line with our ESG road map of achieving 60% renewable energy usage by 2030 and carbon neutrality by 2040, the company continues to expand its renewable energy footprint for capital consumption.

    — Sunil Bohra

  • Carbon Neutrality Sustainability · by 2040 · High confidence by 2040

    — Sunil Bohra

Capacity

  • EV Powertrain Components JV Phase 1 Commissioning Capacity · FY '27 · High confidence Phase 1 commissioning targeted
    The construction of a new greenfield facility for high-voltage EV powertrain components under our potential JV with Inovance is progressing as per schedule with Phase 1 commissioning targeted in FY '27.

    — Sunil Bohra

Market Share

  • Share of Business in Segments Market Share · Medium confidence at least 30%
    So our first goal always is in the business we are in, we need to have at least 30% share of business. That's where the target is.

    — Sunil Bohra

Financial Ratios

  • Asset Turn for Casting Business Financial Ratios · High confidence 1.2 to 1.3
    Yes. So asset turn definitely in casting is low. The asset turn in this DPR, what we have prepared is obviously going to be around 1.2 to 1.3.

    — Sunil Bohra

Market context

  • Global Growth Macroeconomic · 2026 · High confidence 3.3%
    The IMF estimates global growth at 3.3% in '25, remaining stable at 3.3% in 2026 before easing slightly to 3.2% in 2027.

    — Sunil Bohra

  • India GDP Growth Macroeconomic · 2026 and 2027 · High confidence 6.4%
    India continues to outperform with GDP growth projected at 6.4% in both years, supported by strong domestic demand, sustained investment and stable inflation dynamics.

    — Sunil Bohra

What to watch in Q4 FY26

FY27 Capex Plan

next quarter (annual results call)
Current Budgeting exercise ongoing
Target Better visibility on next year's capex

Why it matters

To understand the company's investment strategy and growth drivers for the upcoming fiscal year.

In terms of how do you look at capex plan for this year and next year, maybe we'll be able to give you better color as we always do in our May con-call because we just started our budgeting exercise, and hopefully, we should be over by next 5 weeks to 6 weeks. So maybe in the annual results call, that's what we normally do, we'll be able to share a better visibility on the next year's capex.

Risks & concerns

  • Uneven global growth and structural challenges

    medium

    The global economy shows steady momentum but growth remains uneven across regions, with structural challenges in the Euro area.

    The global economy continues to show steady momentum amid an increasingly complex policy environment, though growth remains uneven across regions.

    Management acknowledged

  • Impact of new labor codes

    medium

    New labor codes led to INR 28 crores increase in liability provisions and potential marginal recurring cost impacts.

    On November 21, '25, as you all know, the government of India notified 4 new labour codes, which consolidated 29 existing labour laws. The company has assessed the financial implications of these changes, which has resulted in an increase in liability provisions by INR 28 crores.

    Management acknowledged

  • Commodity price volatility (Aluminum)

    medium

    Aluminum commodity prices increased by 6-7%, impacting casting domain revenues by 5-6%, though pass-through mechanisms exist with a time lag.

    In terms of the commodity prices, the roughly impact is around 6% to 7% for aluminum commodity price, which has obviously increased, so which will have some impact, maybe around 5%, 6% in terms of overall revenues for casting domain.

    Management acknowledged

  • Supply chain disruptions (rare earth magnets)

    low

    Previous quarter saw disruptions, but company has localized alternatives and secured additional export orders.

    Exports in the 2-wheeler segment also witnessed a recovery during the quarter, following a subdued performance in the previous quarter due to supply chain disruptions related to rare earth magnets. During Q3 FY '26, we successfully overcame these challenges and secured additional export orders...

    Management mitigated

Q&A highlights

6 direct
Alloy wheels outperformance and aluminum price hike impact Direct
In terms of the alloy wheel application, right, alloy wheel versus steel wheel, the last quarter has been a little soft. It was lower by maybe a couple of percentage points because, as you rightly mentioned, the entry-level cars, obviously, the sales were higher. And that also is one can see from all the model-wise volume data, which has been already launched -- announced by SIAM. So that definitely had some impact. But as we have been able to get a little more businesses -- I'm sorry, I will not be able to share model-wise, but we have been able to get some business and for which we have commissioned this Kharkhoda plant as well. So some volumes have started from there as well. So that definitely has helped.

Analyst questioned the outperformance of alloy wheels despite entry-level car mix, and management attributed it to new business wins and Kharkhoda plant commissioning, partially offsetting the softer entry-level segment.

Asked by Chandramouli Muthiah

Commodity inflation and pass-through mechanism Direct
In terms of the commodity prices, the roughly impact is around 6% to 7% for aluminum commodity price, which has obviously increased, so which will have some impact, maybe around 5%, 6% in terms of overall revenues for casting domain. In terms of the current level of inflation, I think I just shared you and you said how much we are able to pass on. So Chandru, as you know, that all the commodities, we have this clause of passing on to our customers. The price escalation or de-escalation, but that all happens with some time lag. So somewhere it is quarterly, somewhere it is half yearly, somewhere it is annual. But over a full year period, everything is passed through.

Analyst inquired about the impact of aluminum price hikes and the company's ability to pass on costs, with management confirming a 5-7% impact on casting revenue and a pass-through mechanism with a time lag.

Asked by Chandramouli Muthiah

Production vs. revenue growth (historical 2x trend) Partial
In terms of production versus growth, historically 2x, yes, you are right, historical 2x, and we have always been guiding about long term at around over 1.4-1.5x. And we have also been saying that which should be seen on an annual basis. While quarter-to-quarter is important, we have to see on annual basis, plus to your point, while the mid to high teen is the volume growth. If we see pure OE revenues, what we have is almost around 22% growth of the overall 20 because as you have seen, the export growth and the aftermarket growth is not that high. They are actually around 7% to 10%, which is pulling the average down. Otherwise, if you see the OE revenues, they are almost around 22%.

Analyst questioned why revenue growth was closer to 20% compared to historical 2x industry production growth, and management clarified that pure OE revenue growth was higher at 22%, with exports and aftermarket pulling down the overall average.

Asked by Chandramouli Muthiah

Increase in other expenses Direct
No, you are right, Mumuksh. So in terms of other expenses, there have been certain expenses which have been higher quarter-on-quarter because of some power and fuel expenses, which have been higher than you normally have your maintenance, early maintenance happens during the quarter. So that has impacted around INR 10-odd crores. Power and fuel was around higher by around INR 13-odd crores. Then because of volumes, your freights and other overheads were higher by around INR 11 crores, INR 12 crores. And there have been small, small pockets where there has been higher costs.

Analyst asked about the 10% QoQ and 29% YoY increase in other expenses, and management detailed the drivers including higher power, fuel, freight, and maintenance costs, indicating some of these might reverse in Q4.

Asked by Mumuksh Mandlesha

Exports opportunity and impact of trade deals Direct
Yes. So, Siddharth, I'll go your questions one by one. So first was on exports. Yes, we have been talking to a lot of our customers, but this development has happened only in last 1 week. So our teams obviously will be now more aggressive in terms of pushing with all these global customers. Definitely, there's an opportunity to gain more. And if you see question was how much of exports is part of our revenues. If you see our group revenues overall, the 9-month physical exports have been in the range of INR 500 crores, INR 600 crores physically from India plus the overseas sales. Like last quarter, we said our total revenue, which is export from India plus the assembly what we do in overseas operations is almost like 10% of our total revenues. So this has improved marginally from previous quarter, which was around 9%.

Analyst inquired about export opportunities given recent trade deals, and management confirmed increased aggression in pursuing global customers, noting that exports (physical + overseas assembly) now constitute about 10% of total revenues, up from 9%.

Asked by Siddhartha Bera

Rationale for new 4-wheeler alloy wheel plant despite previous reluctance Direct
Mukesh, so I'll go one by one. So, you are right that 4-wheeler alloy wheel, as I also said that for the last 3 years, we have not been investing in that LPDC and we have been trying to prove ourselves and try to get some traction with the customers. Yes, there is some positive traction with our customers in terms of pricing. And also, we have got better discussions going on in terms of a little bit of exports as well because that is also gradually on to LPDC side. And we are also targeting some of the players who might be currently importing the wheels into the country and the discussions have so far been encouraging and motivating. So it was like whether you wait for all the customers to get business and then start construction or you take a call and try and get more and more business. So I think at the end of the day, the Board decided and Board took a call to go ahead with this project and see how best we can capture the market in the next 2 years by the time this plant come into production.

Analyst questioned the decision to invest in a new LPDC alloy wheel plant after previous reluctance, and management explained it's due to positive traction with customers, better pricing, export discussions, and targeting import substitution, with the Board deciding to capture market share proactively.

Asked by Mukesh Saraf

Capacity utilization across segments Direct
And in terms of capacity utilization, it varies range business to business. Some businesses, capacity utilization is at around maybe 80%, some businesses are already at 90%. So it's a broad range of 75% to 95%, I would say, in terms of capacity utilization as of now.

Analyst sought clarity on capacity utilization across various growing segments, and management provided a broad range of 75% to 95%, indicating varying levels of headroom across different product lines.

Asked by Mukesh Saraf

LED penetration in 2-wheeler and 4-wheeler lighting Partial
Sorry, so Rahul, in terms of LED penetration for overall 2-wheeler and 4-wheeler, obviously, 2-wheeler is higher, almost at around 60%-odd and 4-wheeler is lower at around 30%-odd. There is no formal obviously, data. So you can maybe assume a range plus/minus a little bit. But directionally, the opportunity for LED penetration in PV is more, and that's where you see that it is gaining speed with a lot of LED lamps, etcetera.

Analyst asked about LED penetration, and management estimated 2-wheeler penetration at ~60% and 4-wheeler at ~30%, highlighting greater opportunity and increasing adoption in PVs, especially for tail lamps and DRLs.

Asked by Rahul Kumar

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Detailed narrative

Global Economic Landscape and India's Outperformance

The global economy is projected to maintain steady momentum, with IMF estimates of 3.3% growth in 2026. India is expected to outperform with a GDP growth of 6.4% in both 2026 and 2027, driven by strong domestic demand and sustained investment. This positive macroeconomic backdrop provides a favorable environment for Uno Minda's operations.

Automotive Industry Rebound and Policy Support

The Indian automobile industry recorded a strong rebound in Q3 FY26, with aggregate production growing by 17% YoY to 9.1 million units. This growth was supported by GST 2.0 implementation, easing interest rates, and strong export performance (up 24% YoY). Key policy developments like the India-U.S. trade deal, Union Budget allocations for Auto PLI (INR 5,940 crores for FY27), and PM E-DRIVE scheme (INR 1,500 crores for FY27) are expected to further bolster the sector.

Strong Q3 FY26 Financial Performance

Uno Minda reported consolidated revenue from operations of INR 5,018 crores in Q3 FY26, a 20% YoY increase. EBITDA grew 21% YoY to INR 554 crores, maintaining an 11% margin. Normalized PAT attributable to shareholders increased 28% YoY to INR 298 crores, excluding a one-time INR 28 crores liability provision due to new labor codes. For the nine months ended December 31, 2025, normalized revenue grew 16% to INR 14,252 crores and normalized EBITDA grew 17% to INR 1,580 crores.

Segmental Growth and Market Leadership

The company witnessed broad-based growth across its core segments. Switching Systems revenue grew 19% YoY to INR 1,241 crores, driven by 2-wheeler switching business (over 30% YoY growth). Lighting Business revenue increased 15% YoY to INR 1,129 crores, benefiting from LED transition. Casting Business saw 26% YoY growth to INR 971 crores, while Seating Systems recorded an impressive 32% YoY growth to INR 361 crores. The EV Systems business also grew, reaching INR 158 crores in revenue.

Strategic Investments and Capacity Expansion

Uno Minda is investing significantly in future growth. The board approved INR 764 crores for a new 4-wheel alloy wheel manufacturing facility with a capacity of 1.8 million wheels per annum, to be deployed over 3-4 years. Commercial production commenced at the new 4-wheeler lighting facility in Indonesia. The construction of a new greenfield facility for high-voltage EV powertrain components under a JV with Inovance is on track for Phase 1 commissioning in FY27. Additionally, INR 6.5 crores was approved for renewable power access in Gujarat, aiming for over 40% green power in total energy consumption.

Innovation, ESG, and Capital Allocation

The company's focus on innovation was recognized with awards like the CII Industrial Innovation Awards 2025 and the Best Patent Portfolio Award. In ESG, Uno Minda targets 60% renewable energy usage by 2030 and carbon neutrality by 2040. In terms of capital allocation, net debt to equity stood at a healthy 0.33 as of December 31, 2025. The company declared an interim dividend of INR 0.9 per share for FY26, a 20% increase from the previous year, demonstrating commitment to shareholder returns.

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