The global economy has been facing increasing headwinds from trade tensions and geopolitical instability. The main source of disruption has been the sharp escalation in US tariffs, especially on imports from China, Canada and Mexico. According to analysts, elevated US tariffs could structurally distort the global economy and drag long-term growth expectations, with the risk of further trade escalation looming large.
India’s economic growth has been outperforming the other major economies around the world on the back of strong domestic demand, prudent fiscal management, rising urbanisation, infrastructure investment, digital transformation, demographic dividend, etc.
Uno Minda delivered a strong financial performance in the first quarter of FY26 with consolidated revenue at Rs 4420 crores, registering a robust 16% year-on-year growth against Rs 3818 crores in Q1 FY25 due to healthy traction across core product lines such as switches, alloy wheels, lighting, seating systems, and other emerging segments such as sensors, radars and controllers. The company’s EBITDA stood at Rs 474 crores in spite of an increase in annual cost escalation and manpower cost procedures. Uno Minda has maintained stable 10.7% EBITDA margins. Profit after tax stood at Rs 239 crores, reflecting a healthy year-on-year 21% growth over Rs 198 crores in the same quarter of last fiscal.
Looking at the company from a segment-wise perspective, the switching system business delivered an outstanding revenue performance of Rs 1111 crores during the first quarter of FY26, showing a 16% year-on-year growth. This growth was fuelled by multiple drivers such as strong export performance and new order wins.
On the other hand, the lighting division delivered another robust performance with the segment reporting revenue of Rs 1013 crores, reflecting a healthy 13% year-on-year growth against Rs 894 crores in Q1 FY25. The excellent performance was primarily driven by the ongoing transition to LED technology and increasing customer demand for advanced lighting solutions. The company is focusing strongly on expanding its next-generation lighting portfolio such as dynamic logo, projectors, projector headlamps and adaptive lighting systems.
The casting business also delivered a robust Q1 FY26 financial performance generating revenue of Rs 824 crores, including Rs 431 crores from the four-wheeler alloy wheel business, Rs 244 crores from the two-wheeler alloy wheel business and Rs 149 crores from the aluminium die casting business. This superlative growth has been achieved by the commissioning of new facilities of 30,000 four-wheel alloy production per month at Bawal, and an additional two million per annum alloy capacity for its two-wheeler alloy facility in SUPA.
The seating system business segment also delivered a strong year-on-year 18% growth, primarily driven by the diversification of customer base for its two-wheeler seats, recording revenue of Rs 320 crores for Q1 FY26.
The other product segments business such as the controller division contributed Rs 147 crores revenue, the sensor division Rs 215 crores, blow mold division Rs 110 crores, Uno Minda JV Rs 78 crores and the alternative fuel division business Rs 110 crores. This overall "Other" segment contributed revenue of Rs 966 crores, registering year-on-year growth of 30% and contributing 22% to the consolidated top line.
Uno Minda has maintained that the electric mobility business will be its central pillar for its growth strategy with its EV offerings for electric two-wheelers, chargers, EMS, and controller sensors to drive future business momentum.
The future outlook of the company is very bright with the construction of its new Greenfield four-wheel alloy factory at Kharkhoda with a production capacity of 60,000 wheels per month, expected to be commissioned during the second quarter of FY2026. On the other hand, the seating division is expected to deliver strong growth momentum driven by exports to new customers and supply of suspended seats in the domestic market.
In the controller business segment, the company is primarily supplying wireless chargers and EV components for two/three and four-wheelers, with OEM business set for deliveries in the next 3–4 months. This should contribute significantly to the overall business revenue for Uno Minda. The company has commissioned a new camera module production for RPAS/FPAS systems, and when commercial production begins in the current quarter, Uno Minda should benefit immensely.
Uno Minda is strongly positioned for sustained and long-term growth on the back of strong fundamentals, a well-diversified product portfolio, excellent customer relationships, continuing investment in emerging technologies, and strong OEM joint ventures and partnerships. The Uno Minda stock has been a favourite among investors, brokers, fund managers and analysts, and they expect the stock to do exceedingly well over the long term.
