Uno Minda: Axis Securities raises target price, retains 'Buy' stance post Q2 earnings

Axis Securities has raised its target price on Uno Minda Ltd to Rs 1,525 per share from Rs 1,360 earlier, while maintaining its 'Buy' rating on the stock after the auto component maker delivered a strong performance in the September quarter of FY27. The brokerage sees an upside potential of 14% from its reference market price of Rs 1,335 as of November 5, 2026.

The brokerage said the company's Q2 FY27 revenue, Ebitda and adjusted profit after tax (PAT) exceeded its estimates by 12.4%, 14.7% and 12.9%, respectively. It raised its FY27 and FY28 revenue estimates by 9.7% and 10.9%, while Ebitda estimates were increased by 8.7% and 10%. Its PAT estimates were also revised upwards by 11.1% for FY27 and 15% for FY28.

Uno Minda shares fell as much as 2% on Friday, touching a low of Rs 1,309.25 against the previous close of Rs 1,334.

Why Axis Securities retained 'Buy' on Uno Minda

Axis Securities said Uno Minda continued to outperform underlying automotive industry growth, supported by healthy domestic demand, market share gains, premiumisation and increasing content per vehicle. The brokerage highlighted strong growth across its switches, lighting, casting, seating and Green Mobility businesses.

The company's consolidated revenue increased 38.3% year-on-year (YoY) to Rs 6,655 crore in Q2 FY27, compared with Rs 4,814 crore in the corresponding quarter last year. Ebitda rose 32.9% to Rs 733 crore, while Ebitda margin stood at 11%, down 44 basis points YoY but up 73 basis points sequentially. Adjusted PAT increased 33.5% to Rs 431 crore.

Green Mobility was among the fastest-growing businesses, with revenue rising 102% YoY to Rs 649 crore. The segment contributed around 10% of consolidated revenue. Casting revenue grew 57% to Rs 1,441 crore, while switching systems revenue increased 37% to Rs 1,609 crore. Lighting and seating revenue rose 25% and 34%, respectively.

The brokerage highlighted the company's ongoing capital expenditure pipeline of Rs 5,200-5,300 crore, including four strategic projects involving investments of Rs 1,415 crore across aluminium die casting, two-wheeler alloy wheels, moulding and the TG Sin joint venture.