Skip to content

    Uno Minda

    UNOMINDA
    Automobile and Auto Components·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

    5

    • 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

    3

    • 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.

    What Changed3

    vs Q4 FY26

    Guidance items6 → 9 (+3)Risks discussed6 → 4 (-2)Q&A highlights6 → 8 (+2)
    Key financials

    Metrics

    10

    Periods

    2

    Headline

    7
    • Consolidated Revenue
      ₹5,018 Cr
      YoY+20%
    • Consolidated EBITDA
      ₹554 Cr
      YoY+21%
    • EBITDA Margin
      11%
    • Normalized PAT
      ₹298 Cr
      YoY+28.0%
    • Finance Costs
      ₹53 Cr

    9M

    3
    • FY26 Revenue
      ₹14,252 Cr
      YoY+16%
    • FY26 Normalized EBITDA
      ₹1,580 Cr
      YoY+17%
    • FY26 Normalized PAT
      ₹841 Cr
      YoY+25%

    Segment breakdown

    RevenueYoY 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——
    Heatmap· 2 shared metrics

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹2,298 crores · 0.3x EBITDA

    Dividend

    ₹0.9/share (interim)

    Guidance & targets

    7
    CategoryTargetPriority
    Policy
    Auto PLI Scheme Allocation
    INR 5,940 crores
    		High
    Policy
    PM E-DRIVE Scheme Allocation
    INR 1,500 crores
    		High
    Sustainability
    Renewable Energy Usage
    60%
    		High
    Sustainability
    Carbon Neutrality
    by 2040
    		High
    Capacity
    EV Powertrain Components JV Phase 1 Commissioning
    Phase 1 commissioning targeted
    		High
    Market Share
    Share of Business in Segments
    at least 30%
    		Medium
    Financial Ratios
    Asset Turn for Casting Business
    1.2 to 1.3
    		High

    What to watch in Q4 FY26

    5

    FY27 Capex Plan

    next quarter (annual results call)
    CurrentBudgeting exercise ongoing
    TargetBetter 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

    4
    RiskSeverity

    Uneven global growth and structural challenges

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

    medium

    Impact of new labor codes

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

    medium

    Commodity price volatility (Aluminum)

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

    medium

    Supply chain disruptions (rare earth magnets)

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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.