Event Participants
Executives
2 Ajay Agarwal (Group CFO & President - Finance & Strategy), Aakash Minda (Executive Director)
Analysts
6 Devesh Kayal (Boring AMC), Jyoti Singh (Haitong Securities), Neel A. Mehta (DRChoksey Finserv), Raghunandhan NL (Nuvama Research), Sanjay (Amazon Capital), Shubham Batra (Ambit Asset Management), Vipul Kumar (Narnolia Financial Services)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,846 crores | Highest ever quarterly revenue; +33.2% YoY, +8% QoQ. Growth driven by strong industry demand, new customer acquisitions, premiumization, and exports. Includes ~₹125 crores incremental contribution from Minda Vast consolidation. |
| EBITDA | ₹212 crores | Highest ever quarterly EBITDA; +35.4% YoY. Margin of 11.5%, +19-20 bps YoY. Headwinds from higher commodity prices, labor costs, and freight partially offset by operational efficiency and operating leverage. |
| PAT | ₹206 crores | +206% YoY (up from ₹65 crores). Includes exceptional gain of ₹106 crores from consolidation of Minda Vast with Minda Corporation. |
| Lifetime Order Book | ₹2,500 crores | Added during Q1 FY27, spread across divisions (vehicle access, castings, wiring harnesses, instrument clusters, new energy) and segments (ICE/EV, 2W/3W/PV/CV), domestic and export. |
| EBITDA Margin Guidance | 11.5%-12.0% | Management expects to maintain margins in this range for the rest of FY27, trending toward Vision 2030 target of 12.5%. |
| Capex Guidance | ~₹400 crores for FY27 | Investments spread across business verticals and divisions; not specifically allocated between EV and ICE but supporting growth initiatives. |
Geographic & Segment Commentary
Mechatronics & Aftermarket: Delivered strongest YoY growth of 33%, supported by robust domestic demand in two-wheelers and passenger vehicles. Growth aided by premiumization of existing product portfolio, strengthening both revenue and value contribution. Segment benefits from increased share of business with existing customers and new customer wins.
Information & Connected Systems: Delivered impressive 34% YoY growth, led by strong performance in wiring harness and instrument cluster businesses. Wiring harness division grew >30% YoY and instrument cluster division grew >35% YoY in Q1. Growth driven by increased share of existing customers, new customer acquisition, premiumization, and exports.
Mobility Mix: Two-wheeler and three-wheeler contributed 46% of top line, commercial vehicles 27%, passenger vehicles 19% (up from 15% due to Minda Vast consolidation), and aftermarket 8%. Product mix led by wiring harness (32%), vehicle access (25%), instrument cluster (16%), die casting (15%), and others (12%).
Minda Vast: Grew 22% during Q1 with margin of 6.4% (improved from 6.5% in Q1 FY26). Management working to bring margins at par with overall Minda Corporation levels. Kit value currently ₹8,000-13,000 per vehicle, expected to double with new products from JV partner and internal R&D.
Flash Electronics (Associate, 49% stake): Revenue of ₹533 crores, +42% YoY. EBITDA margin of 15.4% and PAT margin of 6.6%. Margin dipped marginally due to higher commodity and labor costs, with back-to-back pass-through arrangements expected to mitigate impact over time. EV revenue constitutes ~30% of Flash revenue with +90% YoY growth.
Company-Specific & Strategic Commentary
Vision 2030: Company remains committed to achieving targeted revenue of ₹17,500 crores by FY30, built on five-six growth pillars: existing business volume growth, premiumization, exports, new product launches, and inorganic opportunities. Organic growth trajectory estimated at ~30%; inorganic opportunities pursued as they arise.
EV Strategy: EV revenue at ~10% of Minda Corporation revenue, growing 40% YoY. Group-level (including Flash) EV revenue at ~14%. EV two-wheeler penetration reached 10.6% and PV penetration 7.5%. Company expects PV EV penetration to continue growing until FY30 given India's lag vs. global benchmarks.
Minda Vast Consolidation: Integration from FY27 onwards strengthens presence in passenger vehicle segment with vehicle access solutions portfolio (door handles, lock sets, steering column locks, latches, immobilizers, passive entry solutions). Combines Minda's India presence with JV partner's global technology. Contributed ₹125 crores revenue in Q1.
Strategic Investments: Invested ₹63 crores in group companies including Sparkvinda Green Mobility Solutions, Sparkvinda HCMF (sunroofs), and Sparkvinda Toyota Enso JV (switches) to support future growth and expansion.
New Business Milestones: Sunroof business SOP on track for Q2 FY27 with customer trials completed and approved in first attempt. Turntide motor controller SOPs expected from October-November 2026, with production facilities already set up and lines being tested.
R&D & Innovation: Filed 7 patents in Q1, taking total filings to 335+ with 150 patents granted. Spark Minda Technical Center remains key investment priority. Manufacturing footprint includes 42 plants with over 23,000 employees globally.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Revenue Growth | Strong double-digit growth expected | Momentum from Q1 (33% YoY) expected to continue with order book ramp-up; Flash targeting 20-24% growth |
| FY27 EBITDA Margin | 11.5%-12.0% range | Management guidance for rest of FY27; commodity pass-through and operational efficiency as key levers |
| Flash Long-term EBITDA Margin | 16-17% | Longer-term target as commodity pressures normalize and pass-through mechanisms align |
| FY27 Capex | ~₹400 crores | Spread across business verticals and divisions, supporting growth initiatives |
| Switch Business SOP | Q4 FY26/Q1 FY28 | FY28 revenue expected at ~₹150 crores from current anchor customer orders; peak in FY29 |
| Vision 2030 Target | ₹17,500 crores revenue | Based on 8% industry growth, premiumization, new product launches, and export initiatives |
Risks & Constraints
| Risk | Context |
|---|---|
| Input Cost Inflation | Higher commodity prices, labor costs, freight expenses, and supply chain disruptions impacted Q1 margins. Most indexed commodities have back-to-back pass-through arrangements with customers, but with potential 1-2 quarter lag. Management noted exceptional times require mutual support between company and customers. |
| Associate Contribution Volatility | Share of profit from associates/JVs declined from ₹31.5 crores to ₹18 crores QoQ. Flash Electronics contribution fell significantly due to excess depreciation and cost pressures; Furukawa contribution declined from ₹5 crores to ₹80 lakhs. Management views as temporary blip with recovery expected in 1-2 quarters. |
| Flash Margin Pressure | EBITDA margin dipped to 15.4% from higher commodity and labor costs. Company has pass-through arrangements with customers and plans to recover higher costs, but timing of recovery remains uncertain. Management targeting 16-17% margins on longer-term basis. |
| Geopolitical/Macro Uncertainty | Global economy navigating geopolitical developments, changing trade dynamics, and persistent uncertainty. India remains one of the fastest-growing major economies, mitigating some concerns for domestic-focused operations. |
Q&A Highlights
Order Book & Growth Trajectory
- Question: How will major order ramp-ups in wiring harness and clusters support sales performance in FY27-28? (Raghunandhan NL, Nuvama Research)
- Answer: Wiring harness division grew >30% YoY and instrument cluster division >35% YoY in Q1. Momentum expected to continue into FY28 as products from past order wins come into new launches. Order wins split across products (vehicle access, castings, wiring harnesses, clusters, electronics), segments (ICE/EV, 2W, PV, CV), and geographies (domestic/export). (Aakash Minda)
Minda Vast Revenue & Margin Profile
- Question: How much incremental revenue from Minda Vast consolidation, and how do margins compare? (Sanjay, Amazon Capital)
- Answer: Incremental revenue of ~₹125 crores in Q1. Margin at 6.4% for the quarter, improved from 6.5% in Q1 FY26 but below Q4 FY26's 6.5-7%. Management prioritizing bringing Minda Vast margins at par with overall Minda Corporation levels. (Ajay Agarwal)
Flash Electronics Growth Outlook
- Question: Given sharp EV adoption, can Flash growth exceed earlier 20% expectation to 30% for full year? (Raghunandhan NL, Nuvama Research)
- Answer: Flash targeting strong double-digit growth in 20-24% range, with capacity building as key constraint. More focused on maintaining profitable growth. Q1 margin dip due to labor costs and commodity inflation; longer-term margin target of 16-17% remains intact. (Ajay Agarwal)
Capex Allocation & Capacity Utilization
- Question: What is FY27 capex guidance and allocation to EV vs. core business? What is Turntide motor controller status? (Jyoti Singh, Haitong Securities)
- Answer: FY27 capex guidance of ~₹400 crores, spread across business verticals without specific EV/ICE allocation. Turntide SOPs expected October-November with production facilities in place and lines being tested. Group capacity utilization typically 77-80% depending on plant and product line. (Ajay Agarwal, Aakash Minda)
Associate Contribution Decline
- Question: Why did share of profit from associates decline sharply from ₹31.5 crores to ₹18 crores, excluding Flash's lower PBT contribution? (Shubham Batra, Ambit Asset Management)
- Answer: Decline driven largely by excess depreciation at Flash and lower contribution from Furukawa (₹5 crores in Q4 FY26 vs ₹80 lakhs in Q1 FY27). Furukawa decline viewed as temporary due to commodity and labor escalation. Flash expected to recover in 1-2 quarters. (Ajay Agarwal)
EV Portfolio & Flash Motors
- Question: Any updates on Flash's EV motor development for passenger vehicles? (Neel A. Mehta, DRChoksey Finserv)
- Answer: Flash has developed magnet-less motors across segments, some under customer testing. Working with one customer to explore PV motor collaboration, plus two other key partnerships expected to complete EV mobility portfolio for PV segment. EV penetration expected to grow until FY30 given India's lag vs. global benchmarks. (Aakash Minda)
Switch Business Ramp-Up
- Question: How will the ~₹1,000 crore switch order book ramp up in FY28, and when can we see ₹500-200 crores annual revenue? (Raghunandhan NL, Nuvama Research)
- Answer: Lifetime order book is >₹1,000 crores with SOPs expected Q4 FY26/Q1 FY28. First year (FY28) expected to reach ~₹150 crores, reaching peak of current orders in FY29. Orders currently with anchor customer; expansion into other customers planned thereafter. (Aakash Minda)
Cross-Selling Synergies with Flash
- Question: Can there be ₹50-70 crores revenue from Minda cross-selling to Flash this year? (Raghunandhan NL, Nuvama Research)
- Answer: Ramp-up happening across three major product lines. Castings cross-selling already started from this month. Wiring harnesses undergoing testing. Other synergies from system solutions offerings to customers, with confidential projects ongoing and joint customer engagements underway. (Aakash Minda)
Employee Cost Structure
- Question: Consolidated employee costs are higher - can we use contract labor to improve margins? (Jyoti Singh, Haitong Securities)
- Answer: Company falls in quartile one of industry for margin delivery when consolidating all cost parameters. Longer-term target of 12.5% margin by 2030 remains; FY26 delivered 11.7%, Q1 FY27 trending at 11.5%. Company taking measures across divisions for variability, cost competitiveness, and operational efficiency improvements. (Ajay Agarwal)
Vision 2030 Revenue Shortfall
- Question: Calculation suggests ~₹3,000-3,500 crore revenue shortfall by FY30; what additional levers will bridge the gap? (Vipul Kumar, Narnolia Financial Services)
- Answer: Target of ₹17,500 crores built on existing business growth, premiumization, exports, new product launches (~₹4,600 crores), and inorganic opportunities. Company well aligned through order book, new partnerships coming into production, and continued work on inorganic opportunities. (Aakash Minda)
Flash Revenue Geographic Split
- Question: What is the split of Flash revenue between domestic and international? (Devesh Kayal, Boring AMC)
- Answer: ~10% of Flash revenue from international business (Europe footprint in Germany and Hungary), 90% from manufacturing in India. Exports from India growing QoQ and YoY, particularly in forging and mechanics businesses, at approximately 12-15% of revenue. Company-level exports order book at 8-10%. (Aakash Minda, Ajay Agarwal)
Key Takeaway
Minda Corporation delivered its highest-ever quarterly revenue of ₹1,846 crores (+33.2% YoY) and EBITDA of ₹212 crores (+35.4% YoY) with margin at 11.5%, despite input cost headwinds from commodity prices, labor, and freight that were partially offset by operational efficiency and operating leverage. The company added ₹2,500 crores lifetime order book, continued EV momentum with EV revenue at ~10% of total (+40% YoY), and completed Minda Vast consolidation contributing ₹125 crores revenue with 6.4% margin. Strategic initiatives progressed across sunroof SOP (Q2 on track), Turntide motor controllers (SOP October-November), and switch business ramp-up. Management maintained FY27 EBITDA margin guidance of 11.5-12.0% and capex of ~₹400 crores, while Flash Electronics targets 20-24% growth with longer-term margins of 16-17%. Key watch points include margin recovery from commodity pass-through arrangements, associate contribution stability, and execution of Vision 2030's ₹17,500 crores revenue target through continued order wins, premiumization, and inorganic opportunities across passenger vehicle and EV segments.