Uno Minda Ltd held its Q2 FY27 earnings call on November 05, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.
Record Revenue and Profit, Margin Held Despite Commodity Inflation
Rs.6,655 crore consolidated revenue — Q2 FY 2026-2027, up 38% YoY vs Rs.4,814 crore; highest-ever quarterly revenue and profit for the company.
EBITDA of Rs.733 crore (+33% YoY) — at an 11% margin, with inflation partially offset by operating leverage.
PAT of Rs.420 crore (+38% YoY) — vs Rs.304 crore in Q2 FY 2025-2026.
Depreciation up Rs.5 crore YoY to Rs.178 crore — finance cost up Rs.4 crore to Rs.14 crore, primarily on capitalization of Kharkhoda 4W alloy wheel phase 1.
Associate/JV profit stable at Rs.60 crore — the TG JV commissioned its Harohalli (Bengaluru) facility in Q2 FY 2026-2027; capitalization-driven depreciation and interest are weighing on its profitability.
Net debt of Rs.2,415 crore at September 2026 — vs Rs.2,179 crore at March 31, 2026; net debt/equity at 0.31; ROCE 20.7% on H1 FY 2026-2027 profits (24.6% excluding non-deployed land bank and CWIP).
H1 FY 2026-2027 cash flows — operating cash flow Rs.711 crore; free cash flow Rs.404 crore after sustaining capex of Rs.307 crore; project capex Rs.500 crore in H1 FY 2026-2027.
Casting and Green Mobility Lead; Broad-Based Vertical Growth
Casting Rs.1,441 crore (+57%) — fastest-growing vertical, though growth partly reflects higher raw material prices; 4W alloy Rs.763 crore, 2W alloy Rs.396 crore, aluminium die casting Rs.282 crore (+65%).
Green mobility Rs.649 crore (+102%) — 10% of revenue; EV systems Rs.247 crore, alternate fuels Rs.187 crore, Uno Minda auto innovation Rs.156 crore, EV controllers Rs.44 crore; three new EV charger programs expected to commission in Q3 FY 2026-2027.
Switches Rs.1,609 crore (+37%) — ~24% of revenue; 4W switches (Uno Minda Rika) at Rs.617 crore (>30% YoY); Manesar-to-Faruknagar switch plant transition on track to complete in FY 2026-2027.
Lighting Rs.1,381 crore (+25%) — ~21% of revenue, led by 2W lighting and EV share gains; additional orders secured for advanced pixel-based headlamps/taillamps from the new global OEM won in the previous quarter (PV segment).
Seating Rs.476 crore (+34%) — ~7% of revenue; strategic entry into an incumbent Japanese 2W OEM and a new bus passenger seat customer.
Aftermarket Rs.387 crore (~6% of revenue) — aftermarket + OEM SPD combined Rs.709 crore (10% of revenue); international business ~9% of total revenue; exports from India Rs.218 crore in Q2 FY 2026-2027 vs Rs.123 crore in Q2 FY 2025-2026, led by 2W switching and seating.
Strong Auto Production Cycle; IMF and RBI Revisions Frame the Backdrop
IMF's October 2026 World Economic Outlook — projects global GDP slowing to 3.1% for 2026 and revised global inflation up 70bps to 4.7%; the IMF raised India's FY 2026-2027 growth forecast to 7.0%.
RBI's October policy — revised India's FY 2026-2027 growth projection to 7.1% (from 6.7%), raised its inflation projection to 5.2%, and hiked the repo rate 25bps to 5.5%; India GDP grew 7.8% in Q1 FY 2026-2027.
Q2 FY 2026-2027 auto production crossed 109 lakh units (~18% YoY) — PV and 2W at highest-ever quarterly production; domestic sales +18.2% to 83.9 lakh units on GST 2.0 affordability, rural/urban demand and infrastructure activity.
Exports +23.9% to ~20.8 lakh units — though PV exports fell 5.2% to 2.29 lakh units on a high base and West Asia crisis logistics constraints; 2W exports at highest-ever Q2 of 16.5 lakh units (+27.7%).
EV penetration rising — PV EV penetration at 8% (~1 lakh registrations); e-2W registrations +91% to ~5.9 lakh units (>11% penetration).
Management expects industry momentum to continue in H2 FY 2026-2027 — despite a higher year-ago base, supported by festive/wedding season and new launches.
FY 2026-2027 margin guidance of 11% (±50bps) reaffirmed — CFO Sunil Bohra reaffirmed the full-year guidance, originally given at the beginning of the year, on H2 FY27 margin trajectory questions.
Commodity pass-through is back-to-back with no gross-up — management stated both up and down commodity movements are passed through, so current higher commodity prices are margin dilutive even with pass-through; Q2 FY 2026-2027 aluminum impact cited at roughly Rs.260-270 crore.
Employee cost at 11.3% of sales in Q2 FY 2026-2027 — among the lowest in recent past vs the historical 12.5-13.5% range, reflecting operating leverage on manpower against 30-38% top-line growth.
New capacities to deliver over the next 3 years — management expects some manpower cost impact in the first 2 years of ramp-up but does not expect the employee cost ratio to rise significantly once businesses stabilize (period unspecified).
Depreciation at ~7% of gross block in Q2 FY 2026-2027 — vs historical 8.5-9%, attributed to only one major plant (Karkoza) being capitalized in the quarter with ~Rs.5 crore impact; casting follows the WDV method, and management expects depreciation to remain under control in FY 2026-2027 on this basis.
16 plants currently at project stage — management expects an initial bump-up in depreciation once these capacities come online (period unspecified).
RM-to-sales ratio rose in Q2 FY 2026-2027 — management expects improvement over time as newly secured business resets at the higher price base, with operating leverage and GC improvement expected to drive EBITDA margins going forward.
Rs.5,200-5,300 Crore Pipeline; 18-20% Pre-Tax ROCE Hurdle
Capex pipeline under execution at roughly Rs.5,200-5,300 crore — as of the Q2 FY 2026-2027 call, including capex announced on the call date; partially commissioned facilities such as Karpoda will be excluded as they move forward.
August 2026 board approval of four strategic projects totaling ~Rs.1,415 crore — greenfield aluminium die casting at Hosur (Rs.510 crore), 2W alloy wheel expansion-cum-relocation at Kharkhoda, Haryana (Rs.155 crore), Bengaluru molding expansion (Rs.80 crore), and a new CSN manufacturing facility via the TG Sin JV (~Rs.670 crore).
~Rs.85 crore additional capex approved for the Bawal sunroof facility — to serve incremental orders, with commissioning expected by Q2 FY 2027-2028; sunroof phase 1 construction on plan for commissioning around end of FY 2026-2027.
4W alloy capacity now 6.3 million wheels p.a. — Bawal debottlenecking added ~20%; Kharkhoda phase-1 60K line ramping; to be enhanced by >40% to 9 million wheels p.a. via CSN, Kharkhoda and Bawal expansions (period unspecified).
2W alloy capacity raised from 8 million to 9 million wheels p.a. — HPDC Bawal has 4 of 6 lines operational (~1 million units p.a.); to rise to 9.5 million after the remaining 2 lines and ~11.8 million with Kharkhoda/Hosur expansions (~50% overall increase) (period unspecified).
Blended asset turn of 1.8-2x expected initially on new capex (period unspecified) — asset turns vary by business from 1.25-1.3x to 2.5-3x; incremental turns on subsequent sustaining capex expected to be higher since land, building and infrastructure are already in place.
Target ROCE of 18-20% pre-tax in the third full year of production — management's hurdle metric for new projects proposed to the board; blended EBITDA expected within the range of the company's current profitability (no specific margin figure given).
Constructive Outlook with 16-Project Ramp-Up; Supply Chain Headwinds Persist
Management remains constructive on the Indian auto industry — expects momentum to sustain through the remainder of FY 2026-2027, targeting outperformance via market share gains, higher content per vehicle, value-added product penetration, and localization of advanced technologies.
16 projects under ramp-up or execution — spanning EV powertrain, advanced lighting, seating, sunroof, infotainment and automotive electronics, positioned as medium-to-long-term growth avenues.
Innovis plant at Khed City in execution phase — commissioning expected by end of FY 2026-2027.
Sunroof new customer unnamed — management declined to name the customer (described as an established player in the country), saying the name will be shared only once the customer launches the product.
Significant seating export orders won in recent quarters — expected to drive export growth in coming years.
Risks flagged by management — geopolitics-driven energy/commodity inflation, disrupted shipping/logistics routes, and a stronger dollar pressuring the rupee keep the global supply chain environment challenging.
Humanoid reports declined — the CFO declined to share details, stating he does not know where the reports of such work originated.
Disclaimer: This earnings call summary is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
Powered by Cofacto — AI research platform for Indian stocks, every claim cited from primary filings