UNOMINDANSEMay 22, 2026

UNO Minda Limited

8,871words
40turns
8analyst exchanges
2executives
Management on call
Sunil Bohra
GROUP CHIEF FINANCIAL
Ankur Modi
HEAD, CORPORATE FINANCE AND
Key numbers — 40 extracted
3.1%
to the latest IMF World Economic Outlook in April '26, global growth is projected to moderate to 3.1% in '26 with a slight recovery to 3.2% in '27. This deceleration reflects the shadow of conflict,
3.2%
ook in April '26, global growth is projected to moderate to 3.1% in '26 with a slight recovery to 3.2% in '27. This deceleration reflects the shadow of conflict, which has prompted a modest uptick in
1.8%
distinct divergence in growth dynamics. Advanced economic growth remains subdued at approximately 1.8% as these regions navigate high public debt levels and tighter financial conditions. Emerging mark
16%
Emerging markets remain the primary growth engines though they are increasingly sensitive to the 16% surge in commodity prices forecasted by the World Bank for this year, particularly in energy and
7%
remains one of the exceptional performance. For FY26, India is estimated to have grown at over 7%, cementing its position as the world's fastest-growing major economy. This performance has been u
6.6%
g ahead to FY27, while the World Bank and ADB project a moderation in GDP growth to approximately 6.6% to 6.9%, largely due to higher energy import costs and global trade headwinds, India's structural
6.9%
to FY27, while the World Bank and ADB project a moderation in GDP growth to approximately 6.6% to 6.9%, largely due to higher energy import costs and global trade headwinds, India's structural fundame
19%
nchronized recovery across most of the segments. Production volumes in the quarter 4 FY26 grew by 19% year-on-year, reaching approximately 9.3 million units. The Indian automobile industry has exited
9.3 million
gments. Production volumes in the quarter 4 FY26 grew by 19% year-on-year, reaching approximately 9.3 million units. The Indian automobile industry has exited FY26 on strong footing with Q4 reflecting a clea
34.7 million
r acceleration. For the full year, the total production reached an all-time high of approximately 34.7 million units, representing a robust 12% year-on-year growth. It is important to note that this growth is
12%
al production reached an all-time high of approximately 34.7 million units, representing a robust 12% year-on-year growth. It is important to note that this growth is not just quantitative; we are se
rs,
rdability and disposable income. Furthermore, the RBI's strategic repo cuts lower financing barriers, while the government's aggressive infrastructure push catalyzed demand across segments. The PV s
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Guidance — 20 items
Sunil Bohra
opening
“We have uploaded our financial results and investor presentation for Q4 FY26 and FY26 on the stock exchanges and our company's website.”
Sunil Bohra
opening
“For FY26, India is estimated to have grown at over 7%, cementing its position as the world's fastest-growing major economy.”
Sunil Bohra
opening
“Looking ahead to FY27, while the World Bank and ADB project a moderation in GDP growth to approximately 6.6% to 6.9%, largely due to higher energy import costs and global trade headwinds, India's structural fundamentals remain intact.”
Sunil Bohra
opening
“The Indian industry has exited FY26 on an exceptionally strong footing.”
Sunil Bohra
opening
“Production volumes in the quarter 4 FY26 grew by 19% year-on-year, reaching approximately 9.3 million units.”
Sunil Bohra
opening
“The Indian automobile industry has exited FY26 on strong footing with Q4 reflecting a clear acceleration.”
Sunil Bohra
opening
“The PV segment delivered a formidable performance in Q4 FY26, with production volumes reaching approximately 1.6 million units, a robust 11% year-on-year increase.”
Sunil Bohra
opening
“This quarterly momentum translated into a historic year as the segment recorded its highest ever annual production of 5.5 million units, growing 9% over FY25.”
Sunil Bohra
opening
“Passenger vehicle exports reached a historic high of 0.91 million units in FY26, a 17.5% year-on-year expansion.”
Sunil Bohra
opening
“Consequently, EV penetration in the PV segment has climbed to 4.2% in FY26, up significantly from 2.6% in the previous year.”
Risks & concerns — 15 flagged
Following a relatively cautious first half, we witnessed a decisive and pronounced rebound in the second half, characterized by a synchronized recovery across most of the segments.
— Sunil Bohra
We have managed to maintain these margins despite a volatile input cost environment, reflecting our disciplined focus on operational efficiencies.
— Sunil Bohra
Additionally, the reported revenue growth also reflects the impact of higher base aluminum prices during the period.
— Sunil Bohra
At this point, difficult for me to give a number for revenues.
— Sunil Bohra
Quantum of that is difficult to share, Aditya, because it's different for different businesses.
— Sunil Bohra
And I'm pretty confident that we should be able to largely sort of address this impact of commodity prices, which, as you rightly mentioned, definitely is going to be exceptionally high in the quarter.
— Sunil Bohra
The impact of aluminum pass-through was roughly around 4% to 5% for the quarter.
— Sunil Bohra
But as we move forward, this will be lower because there will be a gradual localization of the components because initially, when you start, nobody would like to take 100% risk and start completely localized, right?
— Sunil Bohra
In terms of impact of labor cost, obviously, it is very, very sizable.
— Sunil Bohra
So again, as I said, we are working to see how we sort of mitigate the impact of this labor cost and the commodity price increase.
— Sunil Bohra
Sir, to start off with again on this margin part, I mean, in quarter 4 also, we did see some gross margin compression.
— Siddhartha Bera
So will it be possible to share how much was the drag because of this trading business and the lower pass-through of maybe aluminum in the LMT segment?
— Siddhartha Bera
Now with many cost challenges, do you think there can be probably if there are any start-up costs and all, do you think there can be some pressure in the near-term margins as these plants stabilize?
— Siddhartha Bera
There is a gross margin compression of almost 1%.
— Sunil Bohra
So any color on that in terms of which OEMs you are getting stronger or which OEMs we are still weak?
— Nishit Jalan
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Q&A — 8 exchanges
Q
Sir, first question is regarding this new facility in Maharashtra for the 4-wheeler EV components. Just trying to understand, it's a sizable capex that we are earmarking here and the fact that our Khed facility also, we have a decent capex, which the plant has not started. So just trying to understand, do we have visibility on the kind of order book that you can mention because the capex now for your 4-wheeler EV components will be like INR1,200 crores, including 3 facilities. So what gives us confidence to set up a second plant while the first one is still under construction? Wouldn't we want
Sunil Bohra
Anything else, Mukesh? Yes, the second question is like you had kind of alluded to, we have I mean if I include the 2 facilities that you have started in 4Q, then it's probably 9 plants that will be starting in FY '27. And the capex for that you have earmarked for these 9 plants is probably INR 1,800 crores. So it's a significant amount of capex that is coming on stream in this year. So just trying to look at how do you look at the execution for this? Obviously, it's be phase-wise, but what kind of growth can we assume across these plants in the next couple of years in terms of the ramping up
Q
Congrats on good set of numbers. A few things. Number one, that when you look at from a margin perspective, in Q4, typically, we have this debit note credit note for the entire year that get adjusted. If you can help us understand what kind of quantum was that? And commodity inflation, if at all, we saw an impact, how much of that it is and a little bit of a lag that typically we get. So is that, that Q1 would have bigger dent? First question is on margin, whatever information that you can share. The second question is on the green mobility. So if you can give a broad breakup that what could b
Sunil Bohra
So thanks, Aditya, for the compliments, and I'll go in the same sequence the questions which you asked. First is in terms of margin for Q4. And as we all know, that certain debit credit as you rightly mentioned, happened in Q4. And that's what is also reflecting in our numbers of Q4, which is 11.3% margin. Quantum of that is difficult to share, Aditya, because it's different for different businesses. Plus in Q3 to Q4, there not has been much jump because of whatever lag impact in Q4, you get Q3 prices. And Q3, you get Q2 prices. So from that perspective, there is nothing which was exceptional.
Q
Congratulations, sir, on strong numbers, and thank you for the detailed opening remarks. Sir, within electric 4-wheeler, considering the quantum of capex, which is being incurred, generally, would the gross turnover be 2x of the capex? Would that be a right number? That's my first question. Second, you indicated about the alloy wheel, how the penetration trends are recently. Can you approximately indicate for the 2-wheeler and 4-wheeler industry, how much would be the alloy wheel penetration currently? And lastly, on the labor cost increase, approximately what could be the impact in terms of t
Sunil Bohra
Yes. Thanks, Raghu, for the compliments. In terms of 4-wheeler EV, you asked capex multiple for revenue. As we are just starting, so initially, we do expect the factor to be higher. But as we move forward, this will be lower because there will be a gradual localization of the components because initially, when you start, nobody would like to take 100% risk and start completely localized, right? So you go in a piecemeal way. But in a medium to long term, we do expect the multiple of revenue to be actually more than 2x what you have just shared. In terms of penetration trends, the 2-wheeler allo
Q
Congrats on good order wins in the quarter. Sir, to start off with again on this margin part, I mean, in quarter 4 also, we did see some gross margin compression. Would it be possible to highlight what -- and I understand you had this bought out trading part also, which started. So will it be possible to share how much was the drag because of this trading business and the lower pass-through of maybe aluminum in the LMT segment? And should we expect some normalization there in the coming quarters? And second is, I mean, we do have a lot of plants and sizable plants starting in the coming year.
Sunil Bohra
Yes. So thanks, Siddhartha. And definitely, order wins, I would give credit to our teams for relentlessly working on new technologies, getting more business. So it's a great job done by the entire team, and definitely gives good visibility for all these capex growth engines, what currently we are working on. In terms of margin, yes, you are right. There is a gross margin compression of almost 1%. But because of trading business, I won't say much because it's very, very small. The trading business for this new what we spoke of, the EV business, is just like INR 40-odd crores, INR 40 crores, INR
Q
Congrats on a large new order wins this quarter. Sir, just first on the 4-wheeler Inovance new order. Of this 1.85 lakh capacity, how much would be already booked, sir? And I just want to understand with this INR400 Crore Khed plant and this INR550 crores, what kind of revenue potential this plant can make sir, both the plant together?
Sunil Bohra
Anything else, Mumuksh. And secondly, sir, on the infotainment side, there's also a major order there, one, sir. I just wanted to check whether this was a part of stand-alone business. And also, there was some 2-wheeler orders. So if you can help us understand over next 3 to 5 years, how this infotainment business can change, sir? Thanks, Mumuksh. Thanks for the compliments. In terms of the 4-wheeler Inovance, this capacity, what we have shared is the eventual capacity after the complete plant constructions. So obviously, initially, we don't expect to have full capacity in place. It will be a
Q
Most of my questions have been answered, just a couple of small points. One, you are doing well versus industry in most of the segments. So just wanted to understand where are we in terms of market share across our main segments, which is switches, lighting and alloy wheels, in particular, right? And what will be our capacity in 4-wheeler and 2-wheeler alloy wheels after expansion? Will it be 10 million in 2-wheeler? What will be this on the 4-wheeler side? These are the 2 questions that I had.
Sunil Bohra
Thanks, Nishit. So market share across segments, as you would have seen, we have gained our market share across all the business, be it switch, 2-wheeler, 4-wheeler, lighting, alloy wheels. I think across the board, we have seen market share gains. We can share with you offline in terms of exact numbers. In terms of capacity for 4-wheeler alloy wheel and 2-wheeler alloy wheel. For 2-wheeler alloy wheel, it is going to be roughly around 9.5 million alloy wheel for the year. And for 4-wheelers, it's something around 7 million-odd wheels based on all the projects which have been announced. Just o
Q
I would just like you to shed some light on the INR2,500 crores fundraising that you have announced?
Sunil Bohra
So Neel, if that's the only question, I'm assuming, this is only an enabling resolution we take every year. Even last year, we have done it. And this is a mix of all the instruments. It is not necessarily equity. It also covers NCDs and some other borrowings. This is primarily to get in principle approval from our shareholders. But if there is any specific fundraise plan, we will definitely have a separate communication to you. But as of now, there is no plan, and this is more of an enabling resolution. And if you see every year for the past few years, we have been taking this resolution.
Q
Yes. Thank you. I would like to thank everyone for joining the call. I hope we have been able to respond to most of your queries adequately. For any further information, we request you to please do get in touch with us directly. Thank you.
Management
Speaking time
Sunil Bohra
16
Moderator
10
Mumuksh Mandlesha
5
Mukesh Saraf
2
Siddhartha Bera
2
Nishit Jalan
2
Aditya Jhawar
1
Raghunandhan N. L.
1
Neel Shah
1
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Opening remarks
Sunil Bohra
Thanks, Michelle. Good morning, everyone, and a warm welcome to all the participants. On the earnings call today, I'm joined by my colleague, Ankur Modi. We have uploaded our financial results and investor presentation for Q4 FY26 and FY26 on the stock exchanges and our company's website. We hope everybody had an opportunity to go through the same. I will begin with a brief overview of the macroeconomic environment, followed by the current trends in the automotive industry and then our financial and operational performance for the quarter and full year. Post that, we will open the floor for Q&A. Talking about the global economy and its landscape, the global economy has shown remarkable resilience until now. The outlook for 2026 has become increasingly complex. Recent geopolitical escalations in the Middle East have introduced fresh uncertainty, primarily manifesting through commodity price volatility and renewed inflationary pressures. According to the latest IMF World Economic Outlook
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