Minda Corporation - Solid execution | Q1FY27 Company Update

Minda Corp’s (Minda) 1QFY27 performance was a beat to our estimates due to better than expected revenue growth across clusters and wiring harness. Despite pressure from input cost, EBITDA margins were maintained at 11.5%, due to operational efficiencies. We expect the input cost pressure to be offset with price hikes in the upcoming quarters. Consolidation of Minda VAST contributed Rs 1.25bn in revenues and increased diversification into PV (19% now vs. 16% in FY26). New product additions like sunroof (trials completed, SOP in 2QFY27) and switches are all on track. Minda has added new business in all the four divisions during the quarter, leading to a new order addition of Rs 25bn. Flash showcased very solid performance with revenue growing by 42% yoy with some margin compression. We continue to remain positive on Minda Corp due to i) Premiumization and new contracts in clusters & wiring harness ii) export opportunities in die casting; iii) Minda VAST to grow rapidly due to adoption of smart locks and content per vehicle expansion from JV with Flash and Turntide. We have kept our estimates and target multiple unchanged but have upward revised TP to Rs 867 (previously Rs 825), mainly due to valuation roll forward. Re-iterate BUY on Minda Corp.

Minda Corporation ltd. Stock Price Chart

Strong topline growth:

Minda corp reported robust 33% yoy growth in consolidated revenues at Rs 18.5bn in 1QFY27 (beat to our estimates). The high growth rate was due to the consolidation of Minda VAST which contributed Rs 1.25bn. Excluding Minda VAST, revenue grew by 26% yoy. This beats the underlying industry growth, driven by premiumization, wallet share expansion and rising content per vehicle. The four main divisions, i.e. Wiring harness, Vehicle Access, Clusters and Diecasting, grew by 42%, 45% (including VAST), 33%, 42% yoy resp.

Margins maintained:

Minda reported their highest ever quarterly EBITDA of 2.1bn, which is a robust 36% yoy growth. Margins surged by 19bps yoy to 11.5%, which was a beat to our estimates of 10.9%, as gross margin pressure was very well compensated by operational efficiencies. Minda VAST delivered the margins of 8.4% in Q1FY27 vs 6.5% in Q1FY26, due to pass-through arrangements with the customers. Effectively, adj. PAT grew by 26% yoy to Rs 820mn.

Price hikes and content per vehicle expansion to aid performance:

Minda’s 1QFY27 performance is a testimony to the sustainable content per vehicle expansion story through diversification and premiumization. Although there was input cost pressure across its standalone business and at Flash Electronics, Minda was able to maintain its margins due to operational efficiencies. We expect the input cost pressure to be offset with price hikes in the upcoming quarters. New product additions like sunroof (trials completed, SOP in 2QFY27) and switches are all on track. Minda has added new business in all the four division during the quarter, leading to a new order addition of Rs 25bn. The consolidation of Minda VAST now increases PV exposure to 19% from 15% in FY26. Flash showcased very solid performance with revenue growing by 42% yoy with some margin compression. We continue to remain positive on Minda Corp due to i) Premiumization and new contracts in clusters & wiring harness ii) export opportunities in die casting; iii) Minda VAST to grow rapidly due to adoption of smart locks and content per vehicle expansion from JV with Flash and Turntide.

Valuation and rating:

We value Minda Corp at average of 34x Jun’28E PER (unchanged) to arrive at a TP of Rs 867/share (previously Rs 825). We maintain BUY rating due to attractive valuations. Upward revision in TP is mainly due to valuation roll forward. Key risks: slowdown in the auto industry, delay in ramp up of new products.

Company website: https://sparkminda.com/

*CMP is as per report published date

Click to download the full Minda Corporation Ltd Q1FY27 Company Update

Analyst:

• Sahil Sanghvi - Research Analyst, Institutional Equities (NISM-201900004744)
• Uvais Khatri - Research Associate, Institutional Equities (NISM-202300049054)

Open your MNCL Demat Account

FAQs on Minda Corporation Ltd Q1FY27 Company Update

These FAQs highlight key takeaways from MNCL’s institutional equity research on Minda Corporation, covering performance trends, growth drivers and risk factors relevant for long-term investors.

What is the target price for Minda Corporation?

The supplied research sets a target price of ₹867 per share, revised upward from ₹825. The target reflects the research valuation methodology and is not a guaranteed return.

What is the rating on Minda Corporation?

The supplied research reiterates a BUY rating on Minda Corporation, citing strong execution, premiumization, new business wins and growth opportunities across its divisions.

How did Minda Corporation perform in 1QFY27?

Consolidated revenue increased 33% year-on-year to ₹18.5 billion, while EBITDA rose 36% to ₹2.1 billion. EBITDA margin was maintained at 11.5%.

What drove Minda Corporation's revenue growth?

Growth was supported by premiumization, increased wallet share, higher content per vehicle and consolidation of Minda VAST. Excluding Minda VAST, revenue growth was 26% year-on-year.

What is the role of Minda VAST in the growth outlook?

Minda VAST contributed ₹1.25 billion to 1QFY27 revenue. Its consolidation increased the company's passenger-vehicle exposure to 19%, while smart-lock adoption and higher content per vehicle provide potential growth opportunities.

What are Minda Corporation's key growth drivers?

Key drivers identified in the supplied research include premiumization, new contracts in clusters and wiring harness, higher content per vehicle, die-casting export opportunities, new products and Minda VAST growth.

How strong was Minda Corporation's order addition?

Minda Corporation added new business across all four divisions during 1QFY27, resulting in new order additions of approximately ₹25 billion, according to the supplied company update.

What is the outlook for Minda Corporation's margins?

EBITDA margin stood at 11.5% in 1QFY27 despite input-cost pressure. The supplied research expects potential price hikes and operational efficiencies to help offset cost pressures in subsequent quarters.

What are the key risks for Minda Corporation?

The supplied research identifies a slowdown in the automotive industry and delays in ramp-up of new products as key risks to the company's growth outlook.

Should investors consider Minda Corporation shares?

The supplied research assigns a BUY rating to Minda Corporation. This represents the research provider's view and is not personalised investment advice or a guarantee of future performance. Investors should conduct independent due diligence and consult a SEBI-registered investment adviser where appropriate.

Before You Trade, Strengthen Your Foundations with These Guides

• For a stronger understanding of indicators such as RSI, VWAP, and trendlines, check our 👉 Technical Analysis Fundamentals section.
• Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.
• Checkout Minda Corp. Ltd stock price chart and research report for analysis.