Buy Minda Corporation Ltd for Target Rs. 700 by Choice Institutional Equities
Key Conference Call Highlights
Q4FY26 & FY26 Performance:
* MDA delivered a strong Q4FY26 performance with consolidated revenue rising 29% YoY to ~INR 17,038 Mn, driven by premiumisation, higher electronics content and EV-related growth. EBITDA margin improved to 11.9%, supported by better product mix and operational efficiency
* For FY26, consolidated revenue grew 22% YoY to ~INR 61,853 Mn, while EBITDA increased 26% YoY, with margins improving to 11.7%. APAT witnessed a healthy double-digit growth of 42% YoY, led by rising content per vehicle, strong order inflows, contribution from Flash Electronics and increasing share of premium electronic products across PV, 2W and EV platforms
Growth outlook remains strong:
* The management reiterated its strategy of consistently outperforming industry growth by nearly 1.5x
* Assuming average industry growth of ~10%, the company expects to deliver revenue growth of 15%+, going forward. The long-term FY30E vision remains intact, targeting consolidated revenue of INR 175,000 Mn with 12.5% EBITDA margin through a mix of organic expansion, strategic JVs and acquisitions
* The consolidated group revenue, including Flash Electronics and associates, currently stands at ~INR 90,000 Mn in FY26
* The management highlighted that PV business is expected to grow in doubledigit growth, while CV demand outlook remains healthy owing to infrastructure expansion, rising logistics demand and increasing safety regulations
Premiumisation continues to drive growth:
* The management identified premiumisation as one of the company’s core structural growth pillars
* In the wiring harness segment, kit value is increasing by nearly 20% annually across segments, owing to premiumisation and adjacent product addition
* Instrument clusters remain a key growth driver, with multiple order wins for TFT clusters, ranging from 3-inch to 15-inch displays across PV, CV and 2W
* The management highlighted that nearly 12–13% of FY26 growth was driven by premiumisation and new product additions alone, supported by increasing contribution from high-voltage wiring harnesses and advanced electronic connectors
EV ecosystem strategy strengthening further:
* The company continues to aggressively strengthen its EV ecosystem capabilities across: Power electronics, EV motors, Controllers, charging systems and high-voltage connectors * Flash Electronics remains a key strategic driver for EV powertrain expansion, especially across 2W and 3W EV platforms
* The Turntide JV brings advanced axial flux motor technology, particularly suitable for space-constrained EV architectures.
* The management also confirmed that Flash Electronics already possesses passenger vehicle EV motor capability through its Poland technical centre and is currently engaged with multiple OEMs in India at present
New vertical launches are progressing well:
* The management shared that the sunroof JV has entered the order execution phase, with SOP expected within the next 4–5 months
* The automotive switches JV is expected to commence production by Q4FY27, with FY28E likely to be the first ramp-up year and peak revenues expected from FY29E
* The Turntide JV has already secured initial orders for motor controllers and electronics products, with SOP expected in the next 5–6 months
Capacity expansion & capex plans:
* The company guided for FY27E capex of INR 40,000–45,000 Mn, primarily towards: Electronics expansion, Instrument cluster capacity, Die-casting facilities, EV product lines
* Minda Instruments cluster’s second plant is expected to become operational by Q1FY27E and will focus on advanced electronics and cockpit technologies
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SEBI Registration no.: INZ 000160131
