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UNOMINDA Q3FY25 Revenue & EBITDA in Line with Street Expectations, PAT Falls Short

* Q3FY25 consolidated revenues at INR 41,850Mn, (vs CEBPL est. INR 41,218Mn), up 18.8% YoY and down 1.4% QoQ.

* EBITDA for Q3FY25 was reported at INR 4,570Mn, (vs CEBPL est. INR 4,570Mn), up 20.4% YoY and down of 5.3% QoQ. EBITDA margin were flat on YoY basis at 10.9% but were 44bps down QoQ due to startup costs and change in product mix.

* PAT for Q3FY25 reported at INR 2,544Mn, (vs CEBPL est. INR 2,322Mn), up 31.5% YoY and down 4.4% QoQ. EPS for Q3FY25 is INR 4.4, up 31.2% YoY, and down 1.3% QoQ.

Capacity Expansions Drive UNO Minda’s Growth Momentum:

UNOMINDA continues to outperform the Indian automotive industry, posting 18.8% YoY revenue growth in Q3 FY25, compared to the industry's 7% volume growth. To sustain this momentum, the company is making strategic capacity expansions across key segments. Major investments include a greenfield plant at IMT Kharkhoda with 120,000 alloy wheel capacity, a 30,000-unit alloy wheel expansion for 4W at Folio Noval Bawal, a 2Mnunit brownfield expansion for 2W alloy wheels in Supa, Maharashtra, and an aluminum die-casting expansion in Hosur. With the alloy wheel business operating at near-full capacity, these expansions are crucial for meeting rising demand. Currently, 12 projects are underway, further strengthening its production capabilities

Strong EV Growth Driven by Rising OEM Revenues:

UNOMINDA is strategically expanding its EV portfolio, with increasing revenues from E2-wheelers, E3-wheelers, and E4-wheelers. In Q3 FY25, revenues from EV 2-wheeler OEMs stood at INR 2380Mn, up from INR 2280Mn in Q2 FY25 and INR 1640Mn YoY. Meanwhile, E3-wheeler revenues were INR 740Mn. The company is actively developing and supplying onboard chargers, battery management systems, and controllers, reinforcing its position in the growing EV ecosystem. A positive industry outlook, driven by the Union Budget 2025, offers further tailwinds, with income tax exemptions, EV manufacturing incentives, and customs reforms strengthening sector growth. Furthermore, the company is showcasing its commitment to advanced mobility solutions through its Green Mobility Zone, featuring innovations like electric skateboards, electric bucks, and electric bikes, emphasizing its cutting-edge EV product portfolio

View and Valuation:

UNOMINDA is capitalizing on high-growth auto components, focusing on EVs, alloy wheels, lighting, smart keys, and sensors. Capacity expansion and investments in EV and safety systems positions it for strong growth. We have marginally revised our FY26/27 EPS estimates by - 2.1%/-2.4%, factoring in higher interest and startup costs. Consequently, we have downgraded our rating to ‘HOLD’ while maintaining the target price at INR 1,177 (42x FY27E EPS)

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SEBI Registration no.: INZ 000160131