Uno Minda's margin recovery meets an outsized 11.54% stock jump
Revenue growth outpaced costs sequentially, but the YoY margin remained below last year's level and other income contributed 11.26% of pre-tax profit.
Filed 05 Nov 2026, 12:46 IST · Uno Minda Ltd (UNOMINDA)
Key takeaways
- Consolidated revenue grew +38.25% YoY, but expenses grew faster at +38.94%, narrowing operating margin by 0.44 percentage points.
- Sequential operating margin recovered 0.73 percentage points as revenue growth of +19.77% outpaced expense growth of +18.80%.
- The stock rose 11.54% on the results-session reading, far above the 3.00% median absolute move after the past eight results.
Price around the results
38.25% YoY growth, with new capacity and orders adding support
Consolidated revenue growth was broad enough to lift operating profit +32.90% YoY, although expense growth was slightly faster and limited operating leverage. Management said it commissioned the HPDC AW2W plant in Bawal during the quarter and secured another pixel-based headlamp and tail-lamp order from a recently added global OEM. Sequentially, revenue rose +19.77%, giving the business a stronger momentum quarter than Q1FY27.
Sequential margin repair, but higher costs still show in the YoY comparison
Operating margin improved 0.73 percentage points QoQ because revenue grew faster than expenses, while the YoY comparison moved the other way as costs grew +38.94% against revenue growth of +38.25%. Interest expense rose +7.29% YoY, and the tax rate increased 1.64 percentage points, so the +36.56% net-profit growth did not fully match the +39.47% pre-tax profit growth. Other income contributed 11.26% of pre-tax profit, making it a meaningful part of reported earnings quality.
Margin remains below last year's Q2 and the peer median
The 11.02% operating margin was a recovery from Q1FY27's 10.29%, but it remained below 11.46% in Q2FY26. Among 262 Consumer Discretionary peers that reported the same quarter, Uno Minda's margin was 0.54 percentage points below the 11.56% median. The trend therefore shows a sequential rebound without a return to last year's Q2 margin.
Kharkhoda and Hosur provide the next capacity milestones
Management said an additional 30K capacity line at Kharkhoda is scheduled to commence in H2FY27, after the existing 60K line began ramping up. The company told investors that the Hosur aluminium casting project carries capex of Rs 510 crore, with Phase 1 scheduled for SOP in Q4FY28. These are company-stated expansion timelines rather than reported current-quarter revenue contributions.
The market move was unusually large for this stock
The stock gained 11.54% on the available results-session reading, with a 10.66 times volume ratio. That response was unusually strong against the stock's recent history: only three of the past eight results reactions were positive, and the median absolute move was 3.00%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,655 cr | ₹5,557 cr | +19.77% | +38.25% |
| Other income | ₹64 cr | ₹54 cr | +19.33% | -15.77% |
| Expenses | ₹5,922 cr | ₹4,985 cr | +18.80% | +38.94% |
| Operating profit | ₹733 cr | ₹572 cr | +28.27% | +32.90% |
| Operating margin (%) | 11.02% | 10.29% | — | — |
| Interest | ₹49 cr | ₹46 cr | +5.73% | +7.29% |
| Depreciation | ₹178 cr | ₹177 cr | +0.80% | +2.67% |
| Profit before tax | ₹571 cr | ₹403 cr | +41.69% | +39.47% |
| Tax | ₹130 cr | ₹87 cr | +48.82% | +50.34% |
| Net profit | ₹441 cr | ₹316 cr | +39.71% | +36.56% |
| EPS (₹) | ₹7.27 | ₹5.12 | +41.99% | +37.69% |
Operating margin of 11.02% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +11.54% | +9.13% |
Volume on the results session was 10.66× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company commissioned its HPDC AW2W plant in Bawal during the quarter.
Expansion
- The Hosur aluminium casting project has capex of Rs 510 crore and Phase 1 SOP in Q4FY28.
- An additional 30K capacity line at Kharkhoda is scheduled to commence in H2FY27.
New orders
- The company secured an additional pixel-based headlamp and tail-lamp order from a recently added global OEM.
What to watch
- Whether operating margin holds above the current 11.02% after its sequential recovery.
- Progress on the additional 30K Kharkhoda capacity line scheduled for H2FY27.
- Whether other income remains near its 11.26% share of pre-tax profit.