Revenue grows 23.79%, but Uno Minda margin falls to 10.29%
Costs grew faster than sales, leaving net profit up only 2.10% YoY despite a 23.79% revenue increase.
Filed 04 Aug 2026, 11:14 IST · Uno Minda Ltd (UNOMINDA)
Key takeaways
- Consolidated revenue grew +23.79% YoY to Rs 5,556.85 cr, but expenses grew +26.34%, pulling operating margin down 1.81 percentage points.
- Net profit rose only +2.10% YoY to Rs 315.51 cr as the lower operating margin offset most of the revenue gain.
- EV Systems revenue grew +130% YoY to Rs 186 cr, while management said the Rs 320 crore seating facility is expected to start production in Q4 FY28.
Price around the results
Sales momentum did not translate into profit growth
Uno Minda’s consolidated revenue grew +23.79% YoY and +4.13% QoQ, but operating profit increased only +5.26% YoY and fell -5.17% QoQ. Net profit rose just +2.10% YoY to Rs 315.51 cr and declined -10.31% QoQ. The gap reflects weaker operating conversion rather than a lack of revenue growth.
Costs widened the margin gap
Expenses grew +26.34% YoY and +5.32% QoQ, faster than revenue in both comparisons, narrowing operating margin by 1.81 percentage points YoY and 1.01 percentage points QoQ. Interest rose +4.71% YoY, while depreciation increased +10.87%, adding pressure below operating profit. Other income accounted for 13.37% of pre-tax profit, so reported earnings included a meaningful non-operating contribution; the YoY tax-rate decline of 0.89 percentage points also supported net profit.
Margin remains below peers after a brief Q4 recovery
Operating margin has declined from 12.10% in Q1FY26 to 11.46% in Q2FY26 and 11.03% in Q3FY26, before recovering to 11.30% in Q4FY26 and falling to 10.29% now. The current margin is 2.64 percentage points below the 12.93% median for 73 Consumer Discretionary peers that have reported the quarter. Sequentially, other income fell -23.04% and the tax rate rose 2.33 percentage points, contributing to the decline in net profit.
EV growth and new capacity remain the expansion markers
Management said EV Systems revenue grew +130% YoY to Rs 186 cr in Q1FY27. The company said it is implementing a Khed facility for 4W EV powertrain products, with Phase 1 expected in H2 FY27, and a Farrukhnagar 4W switches expansion with SOP expected in Q3 FY27. Management also said UMTS will invest Rs 320 crore in a greenfield passenger-vehicle seating facility at Chhatrapati Sambhajinagar, with SOP expected in Q4 FY28 and an anchor-customer order secured.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,557 cr | ₹5,336 cr | +4.13% | +23.79% |
| Other income | ₹54 cr | ₹70 cr | -23.04% | -9.16% |
| Expenses | ₹4,985 cr | ₹4,734 cr | +5.32% | +26.34% |
| Operating profit | ₹572 cr | ₹603 cr | -5.17% | +5.26% |
| Operating margin (%) | 10.29% | 11.30% | — | — |
| Interest | ₹46 cr | ₹45 cr | +2.67% | +4.71% |
| Depreciation | ₹177 cr | ₹192 cr | -7.91% | +10.87% |
| Profit before tax | ₹403 cr | ₹436 cr | -7.63% | +0.94% |
| Tax | ₹87 cr | ₹84 cr | +3.51% | -3.04% |
| Net profit | ₹316 cr | ₹352 cr | -10.31% | +2.10% |
| EPS (₹) | ₹5.12 | ₹5.65 | -9.38% | +1.19% |
Operating margin of 10.29% compares with a Consumer Discretionary sector median of 12.93% across 73 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- EV Systems revenues grew 130% year on year to ₹186 crore in Q1 FY27.
Expansion
- UMTS will invest ₹320 crore in a greenfield passenger-vehicle seating facility in Chhatrapati Sambhajinagar, with SOP expected by Q4 FY28.
- The Farrukhnagar 4W switches project is a shifting-cum-expansion project under implementation, with SOP expected in Q3 FY27.
- The Khed 4W EV powertrain products facility is under implementation, with Phase 1 expected in H2 FY27.
New orders
- The seating business secured an anchor-customer order for its new passenger-vehicle seating facility.
New products
- The company developed a Hands-On Detection Switch for 2W switches.
New initiatives
- The company developed a Hands-On Detection Switch for its 2W switches business.
Competition
- Uno Minda states that its aftermarket business enjoys a leadership position in major product categories.
Problems & risks
- The West Asia conflict has elevated crude-oil prices and resulted in global inflation.
What to watch
- Whether operating margin recovers from the 10.29% reported in Q1FY27.
- EV Systems revenue after the Rs 186 cr reported in Q1FY27.
- Progress on the Khed EV powertrain facility against management’s stated H2 FY27 Phase 1 timeline.