Axis Securities has significantly raised its target price for Uno Minda Ltd to ₹1,525 per share, up from ₹1,360 previously, while reaffirming its 'Buy' rating on the auto component manufacturer's stock. This upward revision follows Uno Minda's robust performance in the September quarter of fiscal year 2027 (Q2 FY27), which surpassed the brokerage's expectations.
Strong Q2 FY27 Performance Drives Optimism
Uno Minda's Q2 FY27 results demonstrated strong growth, with revenue, EBITDA, and adjusted profit after tax (PAT) all exceeding Axis Securities' estimates. Revenue grew by 12.4%, EBITDA by 14.7%, and adjusted PAT by 12.9% compared to the brokerage's projections. Consequently, Axis Securities increased its FY27 and FY28 revenue estimates by 9.7% and 10.9% respectively, with EBITDA estimates rising by 8.7% and 10%, and PAT estimates by 11.1% for FY27 and 15% for FY28.
The company's consolidated revenue for Q2 FY27 surged by 38.3% year-on-year (YoY) to ₹6,655 crore, compared to ₹4,814 crore in the corresponding period last year. EBITDA saw a 32.9% increase to ₹733 crore, with an EBITDA margin of 11%. Adjusted PAT also climbed by 33.5% to ₹431 crore.
Key Growth Drivers and Segment Performance
Axis Securities attributed Uno Minda's continued outperformance to several factors, including healthy domestic demand, ongoing market share gains, premiumisation trends, and increasing content per vehicle. The brokerage highlighted strong growth across various business segments, including switches, lighting, casting, seating, and particularly its Green Mobility division.
- Green Mobility: This segment was a standout performer, with revenue soaring 102% YoY to ₹649 crore, contributing approximately 10% to the consolidated revenue.
- Casting: Revenue from the casting business grew 57% to ₹1,441 crore.
- Switching Systems: This segment saw a 37% increase in revenue, reaching ₹1,609 crore.
- Lighting and Seating: These businesses also reported solid growth, with revenues rising 25% and 34% respectively.
Strategic Capital Expenditure Plans
Uno Minda is also pursuing a significant capital expenditure pipeline, totaling ₹5,200-₹5,300 crore. This includes four strategic projects with investments amounting to ₹1,415 crore, focusing on areas such as aluminium die casting, two-wheeler alloy wheels, moulding, and a joint venture for TG Sin.
Despite a slight dip in share price on Friday, Uno Minda shares touched a low of ₹1,309.25, against a previous close of ₹1,334. Axis Securities projects an upside potential of 14% from its reference market price of ₹1,335 as of November 5, 2026.