UNO Minda shares fell nearly 6% to ₹1,007.9 per share on the BSE on Tuesday, moving closer to the 52-week low level of ₹970 touched on May 21, 2025. The sharp decline came after the company withheld FY27 growth guidance amid geopolitical uncertainty. As per Business Standard, the stock's performance reflects investor concerns over the management's cautious outlook for the current financial year.
Auto components maker UNO Minda delivered robust financial results for Q4FY26, with adjusted net profit increasing 22.4% year-on-year to ₹325.9 crore compared to the previous year. According to Business Standard, the company achieved consolidated revenue growth of 17.8% year-on-year to ₹5,336.4 crore for the January-March quarter. For the full financial year ended March 31, 2026, PAT stood at ₹1,166 crore against ₹943 crore in FY25, representing a 24% year-on-year growth. The company also achieved EBITDA of ₹602 crore for Q4FY26, up 14.5% from the previous year, with EBITDA margin largely stable quarter-on-quarter at 11.3%.
Major brokerages have shared mixed ratings on UNO Minda following the results announcement and management's cautious FY27 outlook. Emkay Global downgraded the stock to 'Reduce' from 'Add', cutting the target price by 19.2% to ₹1,050 from ₹1,300 and reducing the valuation multiple from 38x to 35x. As per Business Standard, the brokerage cited the management's caution on revenue growth guidance for FY27 comes against the backdrop of 1.5x outperformance guidance in the past. Nomura maintained its 'Buy' rating but cut the target price to ₹1,494 from ₹1,513, while CLSA reportedly maintained its 'Outperform' rating with a target of ₹1,469. The brokerages have cut FY27/FY28 EPS estimates by up to 15-16% due to near-term margin pressures from commodity and labour costs.
The company secured significant new orders across multiple segments, with the In-house Android-based IVI platform securing an order with approximately ₹600-crore peak annual value via Denso JV. According to Business Standard, UNO Minda also secured two-wheeler lighting orders worth ₹450 crore where supplies would commence from H2FY28, while the 2W display unit secured orders worth ₹200 crore. The 'Sunroof' order book stood at ₹350 crore at the end of the quarter, and the company won export seating orders worth ₹390 crore, majorly from 3 customers in EU/North Africa. Management remains focused on growing core business revenue via value-addition-led wallet share gains and new-product-led market share gains, with investments toward emerging technology.
Despite strong performance, the company faces near-term margin pressures from rising commodity prices and labour costs due to minimum wage revisions. As reported by Business Standard, the management expects the impact of these costs to be sizeable in Q1FY27. The company is actively discussing with clients to shorten price adjustment cycles from quarterly/half-yearly to monthly cycles. Management maintains its 11% (+/-50bps) EBITDA margin guidance for FY27 (adjusted for initial start-up costs of new plants), with 7 new plants coming onstream in FY27 versus 2 in FY26. Nomura noted that the recent numbers were in-line but sees rising EV adoption, premiumisation, and export push as key medium-term growth catalysts.
