Uno Minda reported a robust 20% YoY growth in consolidated revenue from operations, reaching INR 5,018 crores for Q3 FY’26, supported by a strong rebound in the Indian auto industry. Key drivers included positive momentum from GST rationalization and major policy developments like the India-U.S. trade deal and the India-EU FTA. Excluding an exceptional impact from new labor codes, shareholder PAT grew by 28% YoY, underscoring operational strength across core segments like switching and lighting.
Q3 FY’26 Macroeconomic and Policy Environment
The global economy is showing steady momentum, with India projected to maintain strong GDP growth at 6.4% in FY’26 and FY’27. The automotive sector benefited significantly from three major policy developments: the proposed reduction in India-U.S. tariffs, the Union Budget focusing on infrastructure, and the conclusion of the India-EU FTA, which is expected to revert tariffs to 0%.
The government’s enhanced focus on advanced manufacturing was seen in the auto PLI scheme allocation rising to nearly INR 5,940 crores for FY ’27. Furthermore, the PM E-DRIVE scheme continues, allocated INR 1,500 crores for FY ’27.
Automotive Industry Performance
The overall Indian auto industry production saw a strong 17% YoY volume growth in Q3 FY’26. Passenger Vehicles (PVs) grew 19% YoY in production, while 2-wheelers saw production growth of about 15%. The EV 2-wheeler segment grew by 7%, though penetration slightly moderated to 5.1%.
Financial Performance Summary (Q3 FY’26)
Consolidated revenue from operations stood at INR 5,018 crores, a 20% YoY increase. EBITDA grew 21% YoY to INR 554 crores, with margins holding steady at 11%.
PAT attributable to shareholders was INR 277 crores. Excluding an exceptional impact of INR 28 crores related to new labor codes, the adjusted PAT was INR 298 crores, reflecting a 28% YoY growth over Q3 FY’25.
For the 9-month period, revenue grew 16% YoY to INR 14,252 crores. Normalized EBITDA margins remained stable at 11.1%.
Segment-wise Highlights
Switching Systems
This segment maintained strong growth, reporting revenues of INR 1,241 crores (19% YoY growth), contributing 25% of consolidated revenues. The 2-wheeler switching business achieved over 30% YoY growth, recovering well from prior supply chain issues.
Lighting Systems
The Lighting segment delivered 15% YoY growth, with revenues of INR 1,129 crores (23% of consolidated revenues). Growth was fueled by the industry shift towards LED lighting, with 2-wheeler LED penetration at 60% and 4-wheeler penetration around 30%.
Alloy Wheels
The segment delivered strong performance, with revenues of INR 971 crores, marking 26% YoY growth. This was driven by recent capacity commissioning, including the Kharkhoda plant. Management confirmed the Board approved a new greenfield 4-wheeler alloy wheel manufacturing facility with a capacity targeting 1 lakh units per month.
Seating Systems
Seating segment revenues reached INR 361 crores, recording an impressive 32% YoY growth, primarily driven by the 2-wheeler segment and sustained demand.
Other Products (Sensors, EV Systems, etc.)
The diversified portfolio generated revenues of INR 806 crores (19% YoY growth), contributing 22% to the top line. Uno Minda EV Systems revenue grew to INR 158 crores, driven by the scale-up of 3-wheeler EV chargers. The Sensors and ADAS business is focusing on localization, successfully developing alternatives to rare earth magnets.
Capital Structure and Capital Expenditure
Net debt as of December end stood at INR 2,298 crores, with a healthy Net Debt to Equity ratio of 0.33. The company achieved a ROCE of 18% based on annualized 9-month profits. The Board declared an interim dividend of INR 0.9 per share.
Innovation and ESG Commitment
Uno Minda received recognition for innovation, including the Best Patent Portfolio Award at the CII Industrial IP Awards 2025. The company reaffirmed its ESG roadmap, aiming for 60% renewable energy usage by 2030. An additional investment of INR 6.5 crores was approved in January ’26 to expand renewable power access, aiming for green power to constitute over 40% of total energy consumption.
Source: BSE
