💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 grew 13.4% YoY to INR 4,814 Cr. The 'Other' category (Sensors, ADAS, Controllers, EV systems) grew 18% YoY to INR 1,070 Cr. Switching systems, lighting, wheels, and seating (core segments) contribute 79% of total revenue. H1 FY26 normalized revenue grew 15% to INR 9,234 Cr.

Geographic Revenue Split

The company derives 89% of its revenue from the domestic Indian market and 11% from international operations as of FY25. European acoustics business saw a 13% decline due to softening demand, while domestic acoustics grew 15%.

Profitability Margins

Net UML profit margin stood at 5.6% in FY25, down from 6.2% in FY24. Normalized PAT for Q2 FY26 grew 27% YoY to INR 304 Cr. Dividend payout ratio increased from 11.2% in FY21 to 13.7% in FY25.

EBITDA Margin

EBITDA margin for Q2 FY26 was 11.5%, a slight improvement from 11.4% in FY25. EBITDA grew 14% YoY to INR 552 Cr. Management guides for a sustainable margin of 11% (+/- 0.5%) until large ongoing projects are commissioned.

Capital Expenditure

Planned capex for FY26 is INR 1,500-1,600 Cr, including land parcels. This follows a capex of ~INR 700 Cr in FY24. Investments are focused on greenfield EV facilities and expanding airbag capacities to meet rising OEM demand.

Credit Rating & Borrowing

Credit rating is reaffirmed at [ICRA]AA+ (Stable). Total debt to OPBITDA was 1.3x in FY25. The company maintains a conservative gearing of 0.3-0.5x, supported by historical equity infusions of ~INR 940 Cr via QIP and rights issues.

⚙️ Operational Drivers

Raw Materials

Key materials include rare earth magnets (critical for EV motors), aluminum (for alloy wheels), and components for switches and sensors. Rare earth magnets are currently facing supply constraints due to export curbs.

Import Sources

China is a primary source for rare earth magnets. The company is exploring alternate sourcing arrangements due to China's curbs on these materials to prevent production halts.

Key Suppliers

Not specifically named in the documents, but the company maintains a vast supplier ecosystem essential for disruption-free operations across 76 manufacturing plants.

Capacity Expansion

Neemrana airbag facility expansion is currently ramping up. A new greenfield facility for high-voltage EV powertrain components (Inovance JV) is scheduled for Phase 1 commissioning by Q2 FY27. Kharkhoda plant is also in the commissioning phase.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; however, specific % of revenue is not disclosed. Supply chain issues in rare earth magnets are driving the industry to seek higher-cost alternate arrangements.

Manufacturing Efficiency

Fixed Asset Turnover Ratio was 4.2x in FY25. ROCE stood at 18.9% and ROE at 17.7% for FY25, reflecting healthy utilization of the capital base.

Logistics & Distribution

The company operates 76 manufacturing plants globally to optimize distribution and stay close to OEM customers like Maruti Suzuki.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Growth is driven by increasing 'content per vehicle' through ADAS, sensors, and EV components. The company is expanding its airbag portfolio (side and curtain bags) and entering the bus passenger seat segment. Strategic JVs, like the one with Inovance for EV powertrains, are key to capturing the transition to electric mobility.

Products & Services

Automotive switches, lighting systems, PV alloy wheels, seating systems, acoustics (horns), sensors, ADAS, EV powertrain components, and airbags.

Brand Portfolio

Uno Minda (formerly Minda Industries).

New Products/Services

Side and curtain airbags (ramping up from Q3 FY25), high-voltage EV powertrain components (expected Q2 FY27), and suspended seats for the domestic market.

Market Expansion

Expansion into the mid-premium 2W segment and increasing contribution from the bus passenger seat segment. Target regions include domestic expansion in Kharkhoda and Neemrana.

Market Share & Ranking

Largest automotive switch and PV alloy wheel manufacturer in India. Second-largest player in automotive seating and lighting in the domestic market.

Strategic Alliances

Joint ventures include Uno Minda EV Systems, UMBM (with Buehler Motor - recently terminated/restructured), and a JV with Inovance Automotive for EV components.

🌍 External Factors

Industry Trends

The industry is shifting toward enhanced safety (regulatory push for more airbags) and premiumization (alloy wheels and ADAS). EV adoption is a major trend, with Uno Minda positioning itself via high-voltage powertrain JVs.

Competitive Landscape

Operates in a competitive auto-component space but maintains a top 2 ranking in five major product categories which account for 79% of revenue.

Competitive Moat

Moat is built on 'Technology Leadership' and being a 'one-stop-shop' for OEMs. High switching costs for OEMs and leadership in core segments (Switches/Wheels) provide sustainable competitive advantages.

Macro Economic Sensitivity

Highly sensitive to Indian auto industry cycles; PV segment grew 4% and 2W grew 11% in Q2 FY26, which directly correlated to the company's 13.4% revenue growth.

Consumer Behavior

Shift toward mid-premium 2W and PV segments is driving demand for the company's higher-value products like alloy wheels and advanced lighting.

Geopolitical Risks

China's curbs on rare earth magnets pose a significant risk to the production of EV components and sensors.

⚖️ Regulatory & Governance

Industry Regulations

Enhanced regulatory requirements for vehicle safety are driving the 28% YoY growth in the Airbag JV business. The company must comply with evolving AIS (Automotive Industry Standards) for EV components.

Environmental Compliance

Environmental risks are noted as a credit challenge, particularly regarding manufacturing emissions and waste management across 76 plants.

Legal Contingencies

A minor instance of loss of 200 equity share certificates was reported. A JV termination agreement was executed with Buehler Motor GmbH on December 6, 2025, involving a share purchase agreement.

⚠️ Risk Analysis

Key Uncertainties

Cyclicality of the automotive industry (83% domestic exposure) and the successful ramp-up of new greenfield projects which currently carry start-up costs.

Geographic Concentration Risk

High geographic concentration in India (89% of revenue), making the company vulnerable to local economic downturns.

Third Party Dependencies

Significant dependency on JV partners (like Inovance and Buehler) for technical expertise and China for rare earth magnet supply.

Technology Obsolescence Risk

Risk of being left behind in the EV transition is mitigated by aggressive JVs in EV powertrains and sensors.

Credit & Counterparty Risk

Receivables quality is generally high as customers are major OEMs (e.g., MSIL), but the company maintains a current ratio of 1.3x to manage liquidity.