Minda Corporation Navigates Growth with Record Q2 and Strategic Vision

Minda Corporation Limited has reported a stellar performance for Q2 and H1 FY26, demonstrating robust growth and strategic advancements in the dynamic automotive industry. The company achieved its highest ever quarterly revenue of Rs. 1,535 crore, marking a significant 19% year-on-year increase. This impressive top-line growth was complemented by a record EBITDA of Rs. 178 crore, reflecting a 21.4% year-on-year surge, with an EBITDA margin of 11.6%. Profit after Tax (PAT) also saw a healthy rise to Rs. 85 crore, up 14% year-on-year, driven by improved operational efficiencies and a favorable product mix. The company's performance underscores its ability to outperform industry trends, particularly in the wiring harness and instrument cluster divisions.

The strong financial results are a testament to Minda Corporation's strategic focus on expanding its presence in high-growth domains. The company's emphasis on localization, increased content per vehicle, and strong traction in EV and premium product categories has been a key driver. For the half-year period (H1 FY26), the company reported an 18% revenue growth, a 20% EBITDA growth, and an 8% PAT growth, further solidifying its growth trajectory despite broader macroeconomic challenges. The total lifetime order book for H1 FY26 exceeded Rs. 3,600 crore, providing strong revenue visibility for the coming years.

Strategic Initiatives and Product Diversification

Minda Corporation has been proactive in securing new business and expanding its product portfolio. A significant achievement in Q2 FY26 was securing the first lifetime order for sunroof systems from a leading OEM, a new business vertical for the company. A new plant in Pune is planned for this, with SOP (Start of Production) slated for Q1 FY27. This is a sizable order, expected to ramp up through FY27 and reach peak value in FY28, in a 50%-50% joint venture with HCMF.

In the EV segment, the company won a strategic order for high-voltage EV wiring harnesses from a leading Indian passenger vehicle OEM, marking its entry into this critical high-growth domain. This move aligns with the government's 'Make in India' initiative, focusing on localizing components currently imported. Furthermore, Minda Corporation secured an order for TFT clusters from a leading Indian passenger vehicle OEM and forged a new strategic partnership with Toyodenso to offer advanced switches across all vehicle segments, with operations commencing in Q4 FY27.

These initiatives are part of the company's broader strategic pillars for growth: investment in existing businesses, new market export focus, premiumization of existing products, new product launches, and investment into R&D. The company has invested Rs. 220 crore in capital expenditure in H1 FY26 and plans a total expenditure of Rs. 2,000 crore over the next five years. This capital will fund two new greenfield facilities in Die Casting and one for Instrument Clusters, alongside land acquisition for future expansion.

Segmental Performance and Future Outlook

The Mechatronics and Aftermarket segment registered strong growth in the domestic 2-wheeler market, despite some setbacks in exports and a slowdown in the ASEAN market, growing by around 12%. The Information and Connected System segment, which includes Minda instrument and wiring harness businesses, saw a robust growth of 26%. From a product portfolio perspective, wiring harnesses contributed 30% to overall revenue, followed by vehicle access at 22%, die casting at 16%, and clusters at 17%.

Flash Electronics, an associate company, also reported a strong Q2 FY26 performance with a revenue of Rs. 446 crore and an EBITDA of Rs. 72 crore, with a margin of 16.1%. The collaboration with Flash is strengthening Minda Corporation's presence in high-growth domains like EV power electronics and traction motors. The company's R&D expenditure, currently around 3.5-4% of revenue, is expected to stabilize at 3-3.5% as major capex has been completed.

Looking ahead, Minda Corporation is optimistic about the automotive industry's positive trajectory, supported by favorable macros, improved consumer sentiment, and recent GST rate reductions. The company aims to increase its passenger vehicle revenue share from 15% to 25% by 2030 and targets a 25-30% penetration of smart keys in 2-wheelers by the same year. With a healthy net debt-to-equity ratio of 0.5x and a positive outlook from CRISIL (AA-/Positive), Minda Corporation is well-positioned for sustained growth and value creation for its stakeholders. The company's strategic clarity and disciplined execution are set to drive its journey towards becoming a preferred supplier in the global automotive industry.