Minda Accelerates Future EV and Tech Growth

Ashwin Thakker

— 2 min read
  • Sales Outlook: Overall revenue expected to achieve low double-digit growth, with accelerated growth driven by strategic investments and EV segment traction.
  • Margin Outlook: Continued emphasis on operational excellence to maintain strong EBITDA margins, building on Q1 FY26’s 11.3%.
  • EV Focus: Over 30% of new orders from New Energy Vehicles (NEV); EV-related products seeing sustainable growth with new launches.
  • Strategic Investments: Planned Capex of Rs. 350-375 crores in FY26 for new facilities, technology upgrades, and capacity expansion.
  • Key Partnerships: New joint venture with Toyodenso (switches, FY27 operations) and collaboration with Qualcomm (smart cockpit solutions).

Minda Corporation delivered a robust Q1 FY26 performance, surpassing revenue and EBITDA expectations. This strong start sets the tone for an optimistic outlook, with the company strategically positioning itself for sustained growth by focusing on the burgeoning Electric Vehicle (EV) market, forging key partnerships, and enhancing operational efficiencies. Management anticipates a gradual recovery in the automotive sector, supported by favorable market conditions and a strong product pipeline.

Future-Proofing Growth: EV and Strategic Partnerships

Minda Corporation is strategically investing in future-ready technologies, particularly within the Electric Vehicle (EV) segment. The company's strong order book, exceeding Rs. 1,300 crores, highlights this shift, with over 30% of new orders originating from new energy vehicles. A significant move includes the 60%-owned joint venture with Toyodenso Corporation of Japan, aiming to develop advanced automotive switches and control systems. This venture, starting operations in Q4 FY27 with an initial investment of around Rs. 150 crores, is expected to be profitable from its first year and achieve full ramp-up by FY29. Additionally, a partnership with Qualcomm for smart cockpit solutions is enhancing Minda's offerings across two-wheeler, four-wheeler, and commercial vehicle segments. The company also continues to strengthen its intellectual property with six new patent filings this quarter, bringing its total to over 110, underscoring its commitment to innovation.

“Our strategic initiatives continue to drive growth and enhance our competitiveness in Q1 FY26, and I would like to share some of the highlights.”

Operational Excellence and Segmental Expansion

Minda Corporation projects low double-digit revenue growth in the upcoming quarters, with a notable positive contribution from the EV segment towards the year-end. This growth is underpinned by strong operational execution across its divisions. The wiring harness division has significantly increased its market share, driven by new contracts and expansion within the commercial vehicle and EV two- and three-wheeler segments, alongside improved localization efforts. The instrument cluster business is benefiting from premiumization trends, with new TFT cluster launches leading to a significant increase in kit values. The 'others' product category, which includes EV power electronics and sensors, is also expected to maintain its high run rate due to new product launches and increased integration. These concerted efforts aim to ensure sustainable growth and profitability in a dynamic automotive landscape.

Minda Corporation is clearly focused on strategic growth, driven by its aggressive push into the EV market, bolstered by significant partnerships and continuous innovation. The planned investments in new facilities and technology, coupled with a commitment to operational excellence, position the company for sustained performance. As the automotive industry evolves, Minda's forward-looking approach and diversified portfolio are expected to deliver long-term value to its stakeholders.

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