Add UNO Minda Ltd For Target Rs. 1,240 By Choice Institutional Equities
Key Conference Call Highlights
Financial Performance & Segment Performance:
* Q4FY26 consolidated performance remained strong with revenue increasing ~18.0% YoY to ~INR 53.4 Bn, supported by healthy growth across switches, lighting, seating and green mobility businesses
* Consolidated EBITDA grew ~14.4% YoY to ~INR 6.0 Bn, while EBITDA margin moderated to ~11.3% from ~11.6% in Q4FY25 due to commodity inflation, higher employee costs and pass-through lag
* Consolidated PAT increased ~22.6% YoY to ~INR 3.3 Bn, aided by strong operational performance and higher contribution from JVs.
* FY26 consolidated revenue grew ~16.8% YoY to ~INR 195.9 Bn, while PAT increased ~23.6% YoY to ~INR 11.7 Bn, supported by scale benefits and healthy profitability across key segments
* Switches business revenue increased ~17.4% YoY to ~INR 13.4 Bn in Q4FY26, driven by robust domestic demand, higher exports and increased share of business with underpenetrated OEMs
* Lighting business revenue grew ~13.4% YoY to ~INR 11.5 Bn, supported by healthy traction in 2W EVs and strong OEM demand
* Seating business revenue increased ~17.2% YoY to ~INR 3.8 Bn, aided by export growth, higher SOB with key customers and rising demand for suspended seats in domestic CVs
* The company secured export seating orders with annual peak revenue potential of ~INR 3.9 Bn from three global customers
* Segment-wise revenue mix remained diversified with switches contributing ~25%, lighting ~22%, green mobility ~8%, castings ~18%, seating ~7% and others ~20% to Q4FY26 revenue.
Update on EVs and technology
* Green mobility revenue increased ~25.1% YoY to ~INR 4.2 Bn in Q4FY26, contributing ~8% to consolidated revenue
* The management highlighted healthy traction in EV systems along with increasing localisation opportunities in EV powertrain products
* UNOMINDA announced its second PV EV powertrain plant at Chhatrapati Sambhajinagar with an investment of ~INR 5.5 Bn
* The facility will manufacture Electric Drive Units (EDU) and Dedicated Hybrid Transmission (DHT) systems, with commercial production expected from Q2FY28E
* The company secured a sizeable Android-based infotainment platform order with annual peak revenue potential of ~INR 6 Bn; SOP is expected in Q3FY29E
* UNOMINDA also secured a major 2W lighting order with annual peak revenue potential of ~INR 4.5 Bn and SOP expected in H2FY28E
Capacity expansion and investments:
* Total ongoing and announced capex pipeline stood at ~INR 36.7 Bn, of which ~INR 14.1 Bn has already been incurred till March 2026
* Key expansion projects include alloy wheels, EV powertrain, lighting, airbags, EV castings and sunroof businesses
* The management indicated multiple projects are expected to commence operations during FY27E–FY28E
* International business contributed ~10% of consolidated revenue in Q4FY26, with exports remaining strong in switches and seating businesses supported by customer additions and deeper overseas penetration
Other highlights and outlook:
* Management highlighted elevated aluminium, resin and imported component costs during Q4FY26, along with sharp labour cost inflation in select states
* The company is actively working with OEMs to shift price pass-through cycles towards monthly revisions from quarterly or half-yearly mechanisms to reduce margin volatility
* The management remains optimistic on medium-term growth outlook supported by premiumisation, rising EV penetration, localisation opportunities and increasing content per vehicle
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SEBI Registration no.: INZ 000160131
