Uno Minda’s margin narrows as Q4 costs outpace 16.53% sales growth
Net profit rose 13.38% YoY, but lower taxes and other income supported the increase as operating margin slipped 0.54 percentage points.
Filed 17 May 2026, 00:23 IST · after market close · Uno Minda Ltd (UNOMINDA)
Key takeaways
- Standalone revenue grew 16.53% YoY, but expenses rose 17.23%, narrowing operating margin by 0.54 percentage points.
- Net profit increased 13.38% YoY, helped by a 1.27 percentage-point reduction in the tax rate and other income equal to 9.85% of pre-tax profit.
- The stock fell 4.81% on the first trading day after the results, more than twice the 2.19% median absolute move after its past eight results.
Price around the results
Revenue growth did not fully reach operating profit
Standalone revenue rose 16.53% YoY, while operating profit grew 10.79%. Expenses increased 17.23%, faster than revenue, so operating margin narrowed by 0.54 percentage points. Net profit still grew 13.38% to Rs 203.09 cr, partly reflecting a lower tax rate.
Aluminium costs and non-operating income shaped Q4
The company identified higher aluminium prices as an adverse factor in its castings segment. Interest expense rose 17.83% YoY, adding to the pressure below operating profit. Other income increased 83.59% and represented 9.85% of pre-tax profit, while the tax rate fell 1.27 percentage points to support reported profit growth.
A small sequential recovery followed three quarters of margin decline
Quarter-on-quarter, revenue increased 4.92% and expenses 4.88%, allowing operating margin to improve by 0.03 percentage points. Lower interest expense, down 11.74%, and the swing from negative other income of Rs 19.86 cr in Q3FY26 to positive other income of Rs 25.5 cr helped lift pre-tax profit 31.63%. Margin had fallen from 12.44% in Q1FY26 to 11.33% in Q2FY26 and 10.28% in Q3FY26 before the Q4 uptick. At 10.31%, it was 4.5 percentage points below the 14.81% median for 93 reported Consumer Discretionary peers.
Expansion projects extend the capacity pipeline
Management said domestic product volumes sustained growth and 2W exports recorded growth during the quarter. The presentation says the Harohalli airbags facility is expected to start operations in Q1FY27, the Bawal 2W alloy-wheel expansion in Q2FY27, and the Kharkhoda 2W lighting project in Q3FY27. Management also said the company is strengthening its global embedded and software technology centre, while reporting a 2W lamps order with an annual peak value of approximately Rs 450 cr and SOP planned for H2FY28.
The post-results fall was unusually large for this stock
After the results were filed after market close, the stock fell 4.81% on the first trading day and 6.23% by the next session. That was a larger decline than the stock’s typical post-results move: five of its past eight reactions were negative, with a median absolute move of 2.19%.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,931 cr | ₹3,747 cr | +4.92% | +16.53% |
| Other income | ₹26 cr | ₹-20 cr | — | +83.59% |
| Expenses | ₹3,526 cr | ₹3,361 cr | +4.88% | +17.23% |
| Operating profit | ₹405 cr | ₹385 cr | +5.25% | +10.79% |
| Operating margin (%) | 10.31% | 10.28% | — | — |
| Interest | ₹34 cr | ₹38 cr | -11.74% | +17.83% |
| Depreciation | ₹138 cr | ₹130 cr | +6.07% | +16.12% |
| Profit before tax | ₹259 cr | ₹197 cr | +31.63% | +11.54% |
| Tax | ₹56 cr | ₹40 cr | +37.83% | +5.34% |
| Net profit | ₹203 cr | ₹156 cr | +30.02% | +13.38% |
| EPS (₹) | ₹3.52 | ₹2.71 | +29.89% | +12.82% |
Operating margin of 10.31% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.81% | -4.84% |
| Next session | -6.23% | — |
| 5 sessions | -0.29% | -1.94% |
| 15 sessions | -2.48% | — |
| 30 sessions | -3.00% | — |
Volume on the results session was 2.82× 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
- Domestic volumes sustained growth in the product segment.
- The company reported robust growth in 2W exports.
Expansion
- The Harohalli airbags project is a greenfield facility expected to start operations in Q1 FY27.
- The Bawal 2W alloy wheel expansion is under implementation and is expected to start operations in Q2 FY27.
- The Kharkhoda 2W lighting shifting-cum-expansion project is under implementation with expected SOP in Q3 FY27.
New orders
- The company received a large 2W lamps order with annual peak value of approximately ₹450 crore and SOP planned for H2 FY28.
New initiatives
- The company is strengthening its global centre for embedded and software technology.
Problems & risks
- The company identified increased aluminium prices as an adverse factor in the castings segment.
- The company expects near-term moderation in alloy-wheel penetration in both 2W and 4W.
What to watch
- Whether operating margin holds above the 10.31% Q4FY26 level.
- Whether aluminium-price pressure remains visible in the castings segment.
- Progress on the Harohalli airbags project ahead of its management-stated Q1FY27 start date.