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Informist, Tuesday, Aug. 4, 2026

 

--Uno Minda: Expect to gain market share in lighting ops going forward 

--CONTEXT: Comments by Uno Minda management in post-earnings analyst concall 

--Uno Minda: See potential for seating ops to grow multi-fold going forward 

 

By Anand JC and Gunjan Rajput

 

MUMBAI/NEW DELHI – Uno Minda Ltd. has set its eyes on tripling its exports of automobile components in the medium-term on an absolute basis, its management told analysts in a post-earnings conference call Tuesday. "The good thing is that our domestic market is growing like 20-30%, we do expect the export market to grow at least that much to maintain its share in the (overall sales) pie," the company said, adding that growth in export markets has to exceed that of the domestic market. 

The company reported its June quarter earnings earlier in the day. It disclosed a consolidated net profit on revenues of INR 55.57 billion. "This growth (in revenue) was broad-based and high-quality, driven by value-added features and volume expansion across our core product offerings, including switches, lighting, seating, and our rapidly scaling EV systems and option fuel divisions," a senior company official said.

 

Its consolidated earnings before interest, tax, depreciation, and amortisation margin for the quarter moderated 40 basis points on year to 10.3%. This was because of inflation in commodity prices, which the company recovered only partially through price hikes. "Even as commodity price increases are systematically recovered over time, pass-throughs occur on an absolute cost basis without any markup, resulting in mathematical margin dilution," the official said.

 

Revisions in minimum wages across multiple states where it has manufacturing plants weighed on its staff costs. Despite the margin moderation in the first quarter of 2026-27 (Apr-Mar), the company remains confident of achieving its previously disclosed earnings before interest, tax, depreciation, and amortisation margin guidance of around 11% for FY27. 

                    

Uno Minda's presence in the automotive component sector spans multiple divisions, including switches, lighting, casting, seating, green mobility, and others. It earns most of its revenue through switches and lighting divisions.

 

While growth in the switches division in the reporting quarter was broad-based, sustained domestic volume growth was complemented by export growth. Revenue growth in the lighting business was supported by the two-wheeler portfolio and sustained market share. "Looking ahead, we expect meaningful market share gains over the next few years (in the lighting business), supported by the significant new order of approximately INR 4.50 billion of annual book value announced last quarter, equivalent to nearly 25% of the current two-wheeler lighting revenues," the company said.

 

The casting division reported the fastest growth among all its segments in the reporting quarter. Revenue from this segment grew 32% on year to INR 10.90 billion. "Near-term headwinds for this vertical seem to be receding and are expected to return for another upturn," the company said. Uno Minda expects the casting business to grow faster than the industry because of changing applications for the products. Additionally, they also offer a higher margin compared to the company's average margin. 

 

The officials also expressed confidence in the seating business. "We do expect that once we are able to settle down in this business, we should be able to get into more and more customers," the company said. It expects the four-wheeler seating business to grow multifold in the coming years. "We need to provide not only better prices, but better features at better prices and which we believe we are very well-placed in terms of providing those competencies," an official said.

 

Tuesday, shares of Uno Minda closed 1.4% higher at INR 1,227 apiece on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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