Minda Corporation Ltd (MINDACORP) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Welcome to the Q2 FY '25 earnings conference call of Minda Corporation Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aakash Minda, Executive Director. Thank you, and over to you, sir.
Aakash Minda (Minda Corporation Ltd): Thank you. Good evening, ladies and gentlemen. A warm welcome to all the participants to our Q2 and H1 FY '25 earnings conference call. Joining me on this call today are Mr. Vinod Raheja, Group CFO, and SGA, our Investor Relations team. The results and investor presentation have already been uploaded on our stock exchanges, and I hope you've had a chance to look at them. To begin, I'll provide an overview of the industry and our operational highlights, after which Mr. Raheja will take you through our financial performance in detail. During the quarter, the Indian automotive industry showed mixed trends, with overall vehicle production volumes up by 9% year-on-year. Growth was primarily driven by the two-wheeler and three-wheeler segments, supported by strong rural demand, favourable monsoon, and inventory buildup ahead of festive season. In contrast, commercial vehicle production volumes saw a slight decline year-on-year, impacted by heavy rainfall across various states and sluggish government spending on infrastructure. Similarly, the passenger vehicle segment dipped marginally due to higher channel inventory and lower retail sales in August and September. Tractor volumes contracted slightly year-on-year, though improved weather and rising reservoir levels are expected to revive demand. Despite this mixed industry landscape, Minda Corporation delivered a resilient and steady quarterly performance. In Q2 FY '25, our operating revenue grew by 8% year-on-year to INR 1,290 crores, driven by robust performance in two-wheelers and passenger vehicle segments, along with higher content per vehicle across our product lines. Additionally, our strategic collaboration and technological advancements position us well to capture market opportunities across ICE, EV, as well as emerging mobility segments. Our commitment to sustainability remains a core focus. In line with this, we completed a transaction to secure 3.8 MWp of solar power for our Pune operations through a SPV, helping us reduce energy costs and lower carbon emissions. Moving to order wins, in Q2 FY '25, our lifetime order booking stood at around INR 1,400 crores, with electric vehicle segment representing nearly 20% of these wins. The total lifetime order intake for H1 stood at approximately INR 3,500 crores. These wins were across product lines such as smart key, die casting, wiring harness, and instrument clusters, reflecting the growing adoption of smart and high-value solutions by our customers. We continue to see traction in EV adoption across customer portfolios, with robust order wins in both traditional and emerging segments. In terms of technology, we secured a patent for smart key system during the quarter, bringing our total patents count to 276. We also filed three new applications in Q2, taking the total patent applications to over 300, strengthening our position in next-generation automotive technologies. Looking ahead, with the continuation of festive season and favourable monsoon, we anticipate strong retail demand. The company is poised to capitalize on this, leveraging its well-diversified product portfolio across segments and customer base. I would like to now invite Mr. Vinod Raheja, Group CFO, to provide detailed overview of our financial performance. Over to you, sir.
Vinod Raheja (Minda Corporation Ltd): Thank you, Aakash. Good evening, and a warm welcome to everyone.
Moderator (Emkay Global Financial Services Limited): Ladies and gentlemen, good day and welcome to the Minda Corporation Limited Q2 FY27 earnings conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Jain from Emkay Global Financial Services Limited. Thank you and over to you, sir.
Chirag Jain (Emkay Global Financial Services Limited): Thank you, Shruti. Good evening, everyone. On behalf of Emkay Global Financial Services, I would like to welcome you all to the 2Q FY27 earnings conference call of Minda Corporation. From the management team, we have with us today Mr. Aakash Minda, Executive Director, Mr. Ajay Agarwal, Group CFO and President, Finance and Strategy, and Mr. Nitesh Jain, Lead Investor Relations. I shall now hand over the call to the management for opening remarks, post which we will open the floor for Q&A. Over to you, sir.
Aakash Minda (Minda Corporation Ltd): Hi, good afternoon. Am I audible clearly?
Chirag Jain (Emkay Global Financial Services Limited): Yes, sir.
Aakash Minda (Minda Corporation Ltd): Okay, great. Thank you. Thank you, Chirag, and Emkay for hosting this call. Good afternoon everyone and welcome to the quarter two and H1 FY27 earnings conference call of Minda Corporation Limited. I am Aakash Minda, Executive Director, Minda Corporation. I hope all of you are doing well. It is a pleasure to connect with you today to discuss the company's performance for the quarter and half year ended September 30th, 2026, and share key developments across our businesses. I will begin with a brief overview of the macroeconomic environment and the automotive industry. Mr. Ajay Agarwal will then take you through our financials and operational performance for the quarter, after which we will be happy to take on your questions. The global the global environment continues to present uncertainty around trade and geopolitical developments. Against this backdrop, the Indian automotive industry recorded its highest ever second quarter sales across vehicle segments. Improved affordability following GST changes, festive purchase, and infrastructure activity supported the demand. These conditions provide opportunities for automotive components manufacturers while increasing customer expectations on technology, quality, and delivery continue to shape business priorities. Turning to individual segments, the two-wheeler segment grew by approximately 16.5%, driven by strong scooter demand and export momentum. Demand for two-wheelers benefited from increased scooter sales and record second quarter exports. Passenger vehicles grew by approximately 25%, led by strong demand for utility vehicles, premiumization, and exports. Passenger vehicles benefited from improved affordability and sustained rural demand. Three-wheelers recorded growth of approximately 24% due to increasing requirements for last-mile mobility and cargo transportation. Commercial vehicles grew by approximately 34% during the quarter, gained from infrastructure spending, freight movement, and exports, while tractors benefited from favorable agriculture activity and purchases ahead of the festive season. Overall demand conditions remain positive across major vehicle segments. Now, coming to Minda Corporation. During the quarter two FY27, the company surpassed consensus estimates, delivering its highest-ever quarterly revenue of Rs. 2,189 crores with a growth of 43% on year-on-year basis. The company reported EBITDA of Rs. 257 crores, with a growth of approximately 45% on year-on-year basis, along with an EBITDA margin of 11.7%.
Aakash Minda (Minda Corporation Ltd): 8%. PAT reached Rs. 143 crores with a growth of 69% on year-on-year basis. Minda Corporation delivered a landmark quarter achieving strong performance across revenue, EBITDA and profit. The company surpassed the 2,000 crore quarterly revenue milestone for the first time, reflecting the strengths of its expanding product portfolio and increasing participation across vehicle segments. For H1 FY '27, revenue from operations was Rs. 4,036 crores with a growth of 38% on year-on-year basis. EBITDA reached Rs. 469 crores with a margin of 11.6% and a profit after tax was 243 crores. The first half also marked progress in bringing new products into production and securing customer programs that will support the growth over the coming years. On the company's associate company Flash Electronics, Flash has continued to deliver strong performance during the quarter with revenues of Rs. 650 crores in Q2 with an EBITDA of 106 crores and a margin, EBITDA margin of 16.4%. During the quarter, margins were affected by three key factors: elevated commodity pricing direct in- increased input costs, although these increases are largely pass through in nature with recovery from customers expected over the coming quarter. Revision in minimum wages across several states added to our labor cost. Prevailing market conditions resulted in higher freight expenses. On the new business front, the company secured multiple orders on TFT instrument cluster businesses ranging from 5 to 12-inch with a cumulative lifetime value exceeding 1,000 crores. across segments of two-wheeler, three-wheeler, commercial vehicle and most importantly passenger vehicle as platform products. Production is planned to commence in FY '28 and onwards. This win expands our presence in dit- driver digital driver information systems and demonstrates customer acceptance of our capabilities in advanced electronics. The company also won multiple orders in in electric vehicle mobility and an notable order from a three-wheeler OEM for the 3.5 kW charger. with production planned for the first quarter in next financial year. EV products accounted for approximately 35% of new order wins during the quarter. On the technology front, the company continues to strengthen its capability to- through strategic partnerships and new program program products. During the year, the company al- the quarter also received approval from the Government of India on ECMS initiative for localization of display module assembly for automotive sector. In parallel, the SOPs for advanced switches business and other new programs progressing as planned, further expanding the company's product offerings across new-age automobile technologies. The company's performance continues to be guided by following key pillars of growth, which are 1. investment in existing businesses, 2. exports-led growth, 3. premiumization of existing products, fourth, new product launches, fifth, new customers and increased penetration in in existing customers, 6th, investment into our R&D capability. Looking ahead, the company remains committed to executing its strategic priorities with continued focus on enhancing its system solution offering, strengthening customer relationships and investing in new technologies. The company remains focused on disciplined capital allocation, expanding its presence in high growth segments and advancing its R&D capabilities that will drive long-term value creation for all stakeholders. With that, I would like to invite Mr. Ajay Agarwal, our Group CFO, to take you through the detailed financial performance and key highlights for the quarter. Over to you, Ajay. Thank you.
Ajay Agarwal (Minda Corporation Ltd): Thank you, Aakash. Once again, a very good afternoon to all of you. The presentation and the slides have already been uploaded. I am assuming all of you would have had the opportunity to go through that. So, I'll briefly touch upon some of the key highlights about the company and about the performance during Q2 and not necessarily go through each and every slide. So, as we all know, Minda has been in the automotive industry, has been serving the industry for the last six decades and we have presence across India and some of the Asian countries, as well. Our operating base today includes 42 manufacturing plants with a workforce of more than 23,000 and we are, as we speak, in the process of building around six to seven more
Ajay Agarwal (Minda Corporation Ltd): which will commence operations in the next 12 to 24 months time. From a expansion and growth perspective, we have close to about 8.2 lakh square meter land bank and upon that the built up space is about 2.6 lakh square meter, so it gives us a huge headroom to develop our strategy for growth. Our engineering capabilities includes 1,000 engineers with more than 340 patents. Out of that, 155 have been granted with two advanced technology centers and seven engineering centers. Moving to slide number four. As Akash briefly touched upon, it has been a landmark quarter for Minda Corporation across all parameters. We achieved our highest quarterly revenue and EBITDA. Revenue grew by about 43% year-on-year, significantly ahead of approximately 18% industry growth with EBITDA margin of 11.8%. Particularly, as we all know, the company has been focusing extremely on its EV portfolio and product. The EV product revenue grew by 113% year-on-year, contributing 10% of Minda Corporation's revenue and 15% at a group level. EV product now represents close to about 35% of our order book value. We secured TFT display order with a lifetime value exceeding 1,000 crore, with production planned to commence in FY '28. Sunroof also started production during this quarter. And we have secured our first power footstep order also from one of the anchor passenger vehicle customer. Alongside of these financial performances, our credit rating has also improved from AA- to AA. Moving to slide number five. Our 100% subsidiary Minda Instruments received government approval to manufacture display modules sub-assembly under the ECMS scheme. And it will take anywhere between 12 to 18 months time for the plant to come up. This is a proposed greenfield TFT display module assembly facility and it parts of, it forms part of our backward integration strategy. This facility is intended to bring display component in-house and replace significant part of imports, which currently the company is doing. Moving to slide number six. Our quarter two revenue reached 2,189 crores, up 43% year-on-year and 19% sequentially. EBITDA reached 257 crores, up 45% year-on-year and 22% sequentially with the margin standing at 11.8%. Quarter two PAT stood at 143 crores, up 69% year-on-year and 43% sequentially. PAT margin also reached 6.5% and is one of the best PAT delivery which has happened in the recent past. Our half year revenue stood at 4,036 crores, with EBITDA at 469 crore and EBITDA margin at 11.6% for six months. Half year normalized PAT stood at 243 crores, with a margin of 6%, this excludes 106 crores exceptional gain net of tax arising from Minda Vast consolidation, which happened in quarter one of this fiscal year. From a revenue mix mix perspective, Wiring Harness contributed about 31% of quarterly revenue, followed by Vehicle Access 24%, Die Casting and Cluster and other products contributed about 15% of our revenue base. From a export perspective, Europe and North America contributed about 6%, South Asia contributed 5% and 89% revenue came from India business. And before I hand over the proceedings to the operator for Q&A, I'll briefly touch on Flash Electronics performance. Flash delivered quarter two revenue of 650 crore,
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