Uno Minda Ltd Q1 FY27 Earnings Analysis

- Uno Minda expects sustainable growth backed by strong fundamentals and a diversified product portfolio. - Expansion includes capacity enhancement in existing plants (e.g., 4-wheeler switches, lighting, alloy wheels) allowing growth in line with market demand. - New business wins include sizable orders in 2-wheeler, 4-wheeler, EV powertrain, and sunroof segments offering incremental growth potential. - Export revenues from India are expected to rise from INR 600 crores to over INR 1,500 crores in the coming years. - Expansion projects will increase 2-wheeler alloy wheel capacity to ~9.5 million and 4-wheeler alloy wheel capacity to ~7 million units annually. - Market share gains witnessed across segments; growth driven both by deeper penetration with existing customers and onboarding new customers, including new-age EV OEMs. - The automotive industry and segments like e-2-wheelers and 3-wheelers show strong volume growth, indicating favorable demand environment supporting Uno Minda's growth.

- Uno Minda expects sustained growth driven by volume expansion, market share gains, and new-age technology platforms. - FY27 capex planned at approx. INR 1,750 crores, focusing on capacity expansion, capability enhancement, and land acquisition. - Launch of commercial operations in new product segments like EV powertrain and sunroof in FY27 marks diversification. - Despite challenges and initial costs of new plants, EBITDA margin guidance is around 11% ± 50 bps. - Order book includes sizable wins like INR 450 crores in 2-wheeler business with SOP next fiscal and INR 600 crores 4-wheeler EV order by FY29. - Expected revenue multiple to capex for 4-wheeler EV is >2x over medium to long term. - Strong operational performance, strategic expansions, and localization efforts support earnings growth. - ROCE was 19.2% in FY26; expected improvement as new assets commission. - Management confident of delivering sustainable long-term value and profit growth amid evolving industry dynamics.

- FY27 planned total capital expenditure (capex) ~ INR 1,750 crores: - INR 650 crores towards sustaining capex (incremental capacities, technology upgrades) - INR 1,100 crores towards growth capex - Balance towards land acquisition (CSN, Hosur, Gujarat) - Key ongoing/new projects: - 7 out of 11 ongoing projects expected to start production or ramp up in FY27 - Commercial operations to begin in 2 new key product segments: EV powertrain and sunroof - Specific capex highlights: - ~INR 1,200 crores for 4-wheeler EV components plants (Khed, Maharashtra, and CSN casting plant) - Additional investments in renewable energy projects towards sustainability goals - Strategic aspect: - Capex supports vertical growth, market share gains, and diversification into emerging technologies - Capex largely funded through internal accruals; incremental debt mainly from acquisitions

- Uno Minda Limited has announced an enabling resolution for fundraising of INR 2,500 crores. - This resolution is a routine approval taken annually to cover a mix of instruments including equity, Non-Convertible Debentures (NCDs), and other borrowings. - As of now, there is no specific plan to raise funds under this resolution. - Any actual fundraising plans will be communicated separately. - In previous years, similar enabling resolutions were taken without immediate fundraising. - The current approach allows the company flexibility for future fundraising if needed.

- Uno Minda secured a sizable new order worth approximately INR 600 crores peak annual value, compared to FY26 JV revenues of INR 846 crores; the order represents 70% of current revenues, with start of production (SOP) expected in Q3 FY29. - Additionally, secured an order for a silver box display unit for 2-wheelers, estimated annual peak value ~INR 200 crores, with production commencing in Q4 FY27. - New-age EV business orders of roughly INR 450 crores expected to start production next fiscal year. - Overall, the ramp-up of orders could increase revenue from the current INR 800+ crores to over INR 1,500 crores by FY30. - Several ongoing projects are expected to commence production or ramp up in FY27, including 7 out of 11 projects. - The company continues to pursue both onboarding new customers and deepening engagements with existing customers, notably in EV segments.