Uno Minda sees long-term growth beyond FY27, Nomura raises price target despite profit squeeze

Uno Minda quarterly earnings update continues to push share prices into gains

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of automotive OEM supplier Uno Minda were over a percent higher in early trade on May 22 after the auto components manufacturer recorded 19 percent YoY revenue growth while the net profit declined 7.5 percent during the March quarter.

Nomura believes Uno Minda is a key beneficiary of industry tailwinds of premiumization and EV adoption, along with strong execution across newer segments. This includes sensors (including ADAS)/controllers/CNG and should sustain the growth momentum for the company.

The management sees long-term growth visibility beyond FY27, however, brokerages have suggested that significant investments will impact free cashflow generation in the near term. Nomura's estimates for FY26/27F are largely unchanged with a 'Buy' rating, but it has raised the target price to Rs 1,242.

For the quarter ended March 2025, Uno Minda reported a 19.4 percent year-on-year increase in revenue, which rose to Rs 4,528 crore from Rs 3,794 crore in the same period last year. However, despite the strong revenue growth, net profit declined by 7.5 percent year-on-year to Rs 266 crore, compared to Rs 287.9 crore in the year-ago quarter.

The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) also saw an 11 percent increase, reaching Rs 526.8 crore versus Rs 474 crore last year. However, the EBITDA margin narrowed by 90 basis points to 11.6 percent, down from 12.5 percent in the corresponding period of the previous year, indicating some pressure on profitability despite higher sales.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.