This article first appeared on GuruFocus .
Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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UNO Minda Ltd ( BOM:532539 ) reported its highest ever quarterly revenues, with a robust year-on-year growth of 20%, driven by strong performance across core products like switches, lighting, and heating systems.
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The company has benefited from favorable policy developments, including the India-U.S. Trade deal and the India-EU FTA, which are expected to enhance export opportunities and competitiveness.
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The automotive industry in India showed strong growth, with a 17% year-on-year increase in production volumes, supporting UNO Minda Ltd ( BOM:532539 )'s performance.
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The company's EBITDA grew by 21% year-on-year, with margins at 11%, indicating strong operational efficiency.
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UNO Minda Ltd ( BOM:532539 ) continues to expand its manufacturing capabilities, with new facilities and capacity enhancements across various segments, positioning it well for future demand.
Negative Points
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Finance costs increased to 53 crore due to higher borrowings for capital expenditure and working capital needs, which could impact profitability.
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The company faced challenges with commodity price inflation, particularly in aluminum, which affected overall revenues and required price adjustments with a time lag.
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The penetration levels in the EV segment have declined, indicating potential challenges in maintaining growth momentum in this area.
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The impact of new labor codes resulted in an increase in liability provisions by 28 crores, affecting the company's financials.
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Despite strong growth, the company's export growth and aftermarket growth were lower than expected, pulling down the overall average growth rate.
Q & A Highlights
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Q: Can you clarify the performance of the alloy wheels business this quarter, particularly regarding the impact of entry-level products and aluminum price hikes? A: The alloy wheel application saw a slight decline due to higher sales of entry-level cars, which typically use steel wheels. However, we have secured new business and commissioned the Krakosa plant, which helped offset this. Aluminum prices increased by 6-10%, impacting revenues by about 5-6%. We have clauses to pass on commodity price changes to customers, though this happens with a time lag. Historically, our growth has been 1.5 times the industry average, and we expect this trend to continue annually. (Respondent: Unidentified_2)
Q: Could you provide an update on the upcoming segments like the EV powertrain and sunroof businesses, and their potential medium-term impact? A: We have anchor customers for both the EV powertrain and sunroof businesses. Typically, we start with an anchor customer and expand to others once operations begin. We are on track with these segments, and they are expected to contribute significantly in the medium term. We are also localizing rare earth magnets for sensors and have started camera module production, securing new orders. (Respondent: Unidentified_2)
Q: What is the current export percentage of your business, and how do you see it evolving with recent trade deals? A: Exports currently account for about 10% of our total revenues, including overseas assembly. Recent trade deals provide an opportunity to increase this percentage. We are in discussions with global OEMs to push exports, especially in the switch and seating businesses. However, new business takes 1-2 years to reflect in revenues. (Respondent: Unidentified_2)
Q: Can you elaborate on the favorable customer mix and its impact on your business? A: A favorable customer mix means that customers where we have a higher share of business performed well, positively impacting our numbers. We aim for at least a 30% share of business in our segments and are working to increase this with customers where we currently have a lower share. (Respondent: Unidentified_2)
Q: What are the plans for capacity expansion, particularly in the LPDC alloy wheel segment? A: We are expanding our LPDC alloy wheel capacity due to positive traction with customers and potential export opportunities. The new plant will be in the western part of India and is expected to be operational in the next couple of years. Capacity utilization across our businesses ranges from 75% to 95%. (Respondent: Unidentified_2)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
