Auto ancillary major Minda Corporation has demonstrated a strong Q2FY26 performance, surpassing revenue, EBITDA margin, and PAT expectations. The company's Vision 2030 roadmap outlines ambitious growth strategies targeting a 20-25% medium-term revenue CAGR, largely driven by premiumization, technology integration in both EV and ICE segments, and robust R&D investments. Key order wins in sunroofs, high-voltage EV harnesses, and digital clusters underpin its premium product push. With a robust order book and margin improvement prospects, Minda continues to offer a compelling investment case with a BUY recommendation and a target price of Rs 690, implying approximately 20% upside.

BUY Call and Target Price of Rs 690

The company is recommended as a BUY with a target price of Rs 690, signaling a 20% potential appreciation from the current market price of Rs 573. The valuation multiple stands at 33 times FY28 estimated EPS, reflecting confidence in Minda’s growth trajectory and earnings potential.

Robust Q2FY26 Financial Performance

Minda reported Q2FY26 revenue of Rs 1,535 crore, increasing 19% YoY and 11% QoQ, exceeding expectations by 4%. EBITDA grew by 21% YoY and 14% QoQ to Rs 178 crore with an expanded margin of 11.6%, driven by product premiumization and improved efficiencies. PAT rose 14% YoY and 30% QoQ to Rs 85 crore, outperforming estimates by 16% despite elevated financing and depreciation costs, supported by higher associates’ profits. Earnings per share reached Rs 3.54, a 16% beat.

Vision 2030: Strategic Pillar for Sustainable Growth

Minda’s Vision 2030 strategy focuses on five key pillars to fuel growth: consolidating core businesses such as wiring harnesses and die casting; expanding into new geographies prioritizing cost and technology leadership; premiumizing the product mix by increasing high-value content; launching new products including sunroofs, high-voltage EV harnesses, and digital clusters; and investing heavily in R&D to enhance design and localization capabilities. This framework aims at sustaining 20-25% revenue CAGR and expanding EBITDA margins beyond 12.5% across vehicle segments.

Strong Order Book Validates Growth Momentum

The company’s order book surpassed Rs 3,600 crore in H1FY26, reflecting confident revenue visibility. Key order wins in sunroofs, high-voltage wiring harnesses, TFT digital clusters, and smart key systems highlight Minda’s successful transition to premium, technology-forward products, especially in the passenger vehicle segment.

Product Diversification and Key Wins

- Minda secured its first sunroof order via a 50:50 joint venture, aiming for commercial production by Q1FY27 and peak contribution in FY28. - The first high-voltage harness order from a major Indian EV OEM, to be localized through Senko partnership. - Multiple platform orders for TFT clusters spanning 3-inch to 12.3-inch screens across vehicle segments. - New switch orders in collaboration with Toyota Denso targeted for Q4FY27 SOP. - Smart key system penetration in two-wheelers is currently 3-5%, with a medium-term target of 25-30%, leveraging connected mobility trends.
These wins increase per-vehicle content and deepen integration with OEMs globally.

Positive Sector Outlook and Management Guidance

The automotive ancillary sector outlook remains favorable, driven by rising EV penetration and premiumization trends. Management projects 15-17% revenue growth in FY26 with sustained low double-digit CAGR over the medium term. EBITDA margins are expected to remain above 11%, helped by operating leverage and a richer product mix, supplemented by new EV program contributions.

Key Consolidated Financial Metrics

Recognized Risks

Potential macroeconomic headwinds could affect global automotive demand, while rising depreciation and interest expenses may pressure near-term profitability. Investors should monitor these factors alongside the company’s operational progress.

Stock Levels and Investment Considerations

- Current Market Price: Rs 573 - Target Price: Rs 690 (20% upside) - Valuation multiple: 33x FY28 EPS - Recommendation: BUY
Minda Corporation is strategically positioned for growth through a diversified premium product portfolio, strong order book, and sustainable earnings momentum. Investors with a medium to long-term horizon should consider this an attractive accumulation opportunity aligned with India’s evolving automotive technology landscape.