Uno Minda Navigates Growth Trajectory with Robust Q2 FY26 Performance

Uno Minda Limited, a leading automotive components and systems manufacturer, has reported a strong financial performance for the second quarter and first half of fiscal year 2026. The company, known for its diversified product portfolio and strategic focus on innovation, continues to demonstrate resilience and growth amidst evolving market dynamics. The latest results highlight significant increases in revenue and profitability, driven by broad-based segment performance and strategic initiatives.

For Q2 FY26, Uno Minda posted consolidated revenues of INR 4,814 crore, marking a robust 13.4% year-on-year growth. This impressive top-line expansion was complemented by a 14.4% increase in EBITDA, reaching INR 552 crore, with EBITDA margins improving to 11.5%. Profit After Tax (PAT) attributable to shareholders, excluding exceptional income, surged by 27% year-on-year to INR 304 crore. The first half of FY26 also saw strong momentum, with consolidated revenues (excluding prior period income) at INR 9,234 crore, a 15% growth over H1 FY25, and PAT (excluding prior period incentive income) at INR 543 crore, up 24% year-on-year. These figures underscore the company's ability to deliver consistent financial results and maintain a healthy growth trajectory.

Segmental Performance and Strategic Focus

The company's growth was broad-based across its key product segments. The Switches business continued its strong momentum, contributing 25% to the total revenue with INR 1,176 crore. Lighting, another cornerstone segment, recorded INR 1,106 crore, accounting for 23% of revenue, driven by rising premiumization and the transition to LED solutions. The Casting business generated INR 917 crore (19% of revenue), benefiting from new capacities in 4-wheeler and 2-wheeler alloy wheels, although growth was somewhat tempered by softening aluminum prices.

The Seating Systems business demonstrated impressive 22% year-on-year growth, reaching INR 354 crore (7% of revenue), fueled by a favorable customer mix and increased supply of suspended seats. The Acoustics segment contributed INR 190 crore (4% of revenue), with domestic growth offsetting a decline in European markets due to muted demand and OEM shifts. The 'Others' category, encompassing diverse products like sensors, ADAS, and EV systems, recorded INR 1,070 crore, an 18% year-on-year growth, and accounted for 22% of consolidated revenue. Notably, the Uno Minda EV Systems business saw a significant increase in revenue to INR 115 crore, partly due to the transfer of the 3-wheeler EV charger business from the Controller segment.

Investments, ESG, and Future Outlook

Uno Minda is actively investing in expanding its capacities and future-ready technologies. The company has 10 expansion projects under implementation with an investment commitment of INR 2,356 crore. Key projects include the commissioning of Phase 1 of the 4W Alloy Wheels plant in Kharkhoda and the ongoing construction of a new greenfield facility for high-voltage EV powertrain components under a joint venture with Inovance Automotive, expected by Q2 FY27. The enhanced airbag manufacturing capacity in Neemrana, commissioned in Q3 FY25, is also ramping up steadily, supported by rising OEM demand.

In terms of sustainability, Uno Minda is committed to ambitious ESG goals, targeting 60% renewable energy by 2030 and carbon neutrality by 2040. The company operates 38 rooftop solar power plants and has invested in captive open-access solar power projects. Furthermore, in September 2025, Uno Minda partnered with Atypical Advantage and Next Bharat Ventures to launch high-impact initiatives for persons with disabilities, reinforcing its commitment to social responsibility.

Mr. Ravi Mehra, Managing Director, highlighted that the quarter reflects the industry's renewed momentum, supported by GST 2.0 reforms, improving affordability, and a steady macroeconomic environment. Mr. Sunil Bohra, CFO, reiterated the company's commitment to scaling its business globally, strengthening its position, and delivering quality value-added products. The management's guidance for full-year EBITDA margins remains intact at 11% plus/minus 5%, with expectations of further improvement as new projects come online. The company's proactive approach to market trends, such as the upcoming AVAS mandate for EVs, and its disciplined capital allocation, including optimizing project lists to avoid idle capacity, position it well for sustained growth.

Strategic Clarity and Sustained Growth

Uno Minda's Q2 FY26 performance underscores its strategic clarity and disciplined execution. The company's ability to achieve robust growth across diverse segments, coupled with its proactive investments in future technologies like EVs and ADAS, demonstrates a strong foundation for sustained success. With a healthy net debt to equity ratio of 0.36 and an annualized ROCE of 19.6% for H1 FY26, Uno Minda is well-positioned to capitalize on the positive industry outlook and reinforce investor trust through continued innovation and operational excellence.