Uno Minda Ltd. shares declined over 7% from the day's high on Monday, May 18, reacting to the company's conference call after reporting fourth quarter earnings over the weekend. According to reports from CNBC TV18, the stock was trading 3.6% lower at ₹1,081.4 on Monday, with the stock still down 16% on a year-to-date basis. The decline came despite the company's strong quarterly performance and positive long-term outlook.
As reported by CNBC TV18, Uno Minda reported strong fourth quarter results on Saturday, May 16. The company's net profit increased 22.4% to ₹325.8 crore from ₹266.2 crore last year. Revenue was up 17.8% at ₹5,336.4 crore, while EBITDA increased 14.5% to ₹602.8 crore. However, the company's EBITDA margin contracted marginally to 11.3% from 11.6% in the year-ago period. Despite the margin pressure, the company maintained its profitability growth trajectory.
According to CNBC TV18, in its earnings call, Uno Minda management expressed cautious optimism about future prospects. The company acknowledged that recent geopolitical tensions have created fresh concerns, particularly the West Asia war that broke out after the US and Israel attacked Iran on February 28. However, management emphasized that electronic manufacturing services (EMS) remain a primary growth engine and that the underlying demand remains intact. The company provided margin guidance of 11% with a plus-minus range of 50 basis points for the financial year 2027.
As reported by CNBC TV18, the company's board recommended a final dividend of ₹1.75 apiece, equivalent to 87.5% of the face value of ₹2 each for FY26, subject to approval at the upcoming Annual General Meeting. The company has fixed May 29, 2026 as the record date for the dividend distribution. This dividend declaration reflects the company's confidence in its financial position despite near-term challenges.
According to CNBC TV18, the company faces headwinds from rising commodity prices, which management identified as a key concern. The West Asia war has led to a sharp rise in oil prices due to the effective shutdown of the key shipping route Strait of Hormuz, causing a rise in fuel prices, global energy crisis and market volatility. Despite these challenges, Uno Minda management maintained that its long-term growth outlook remains intact and expressed confidence in managing input cost pressures while maintaining margins.
