Uno Minda drops 6% as management avoids FY27 guidance; analysts cut target

Uno Minda shares fell nearly 6 per cent after the company withheld FY27 growth guidance amid geopolitical uncertainty. Emkay downgraded the stock, citing slower growth and margin pressure

Uno Minda share price

 

Uno Minda shares cracked nearly 6 per cent on the BSE on Tuesday, inching closer to their 52-week low levels, after the management refrained from providing any growth guidance for the current financial year 2026-27 (FY27) amid geopolitical uncertainty. 

 

Uno Minda share price dropped 5.8 per cent to ₹1,007.9 per share on the BSE today, moving closer to the 52-week low level of ₹970, which it touched on May 21, 2025. 

 

Analysts at Emkay Global downgraded the stock, citing that the management’s caution on revenue growth guidance for FY27 comes against the backdrop of 1.5x outperformance guidance in the past.

 

 

They downgraded the stock to 'Reduce' from 'Add', cutting the valuation multiple and earnings per share (EPS) estimates for FY27 and FY28.

 

"We downgrade Uno Minda to ‘Reduce’ from ‘Add’, while cutting the multiple from 38x to 35x and revise down our share price target by 19.2 per cent to ₹1,050 from ₹1,300 to factor in the growth moderation (20 per cent FY26-28 revenue CAGR vs 24 per cent over FY22-26) and flattish margins vs expansion earlier," the brokerage said in a report.

 

Uno Minda Q4 results

 

For the January to March quarter (Q4) of financial year 2025-26 (FY26), Uno Minda reported a consolidated revenue growth of 17.8 per cent year-on-year (Y-o-Y) to ₹5,336.4 crore. 

 

Its consolidated Ebitda rose 14.5 per cent Y-o-Y to ₹602 crore with Ebitda margin largely stable Q-o-Q at 11.3 per cent.

 

The company's adjusted net profit increased 22.4 per cent Y-o-Y to ₹325.9 crore. 

 

Going ahead, the management said it remains focused on growing core business revenue via value-addition-led wallet share gains and new-product-led market share gains, with investments toward emerging technology. 

 

Notably, the auto ancillary company's In-house Android-based IVI (In-Vehicle Infotainment) platform secured an order with approximately ₹600-crore peak annual value via Denso JV. 

 

It also secured two-wheeler lighting orders worth ₹450 crore where supplies would commence from H2FY28. 

 

Separately, the 2W display unit secured orders worth ₹200 crore, while the ‘Sunroof’ order book stood at ₹350 crore at the end of the quarter. 

 

Uno Minda also won export seating orders worth ₹390 crore, majorly from 3 customers in EU/North Africa.  CHECK Q4 Results Today 

Uno Minda shares outlook: Buy, sell, hold?

Emkay Global pointed out that the management expects the impact of the rising commodity prices and labour costs (due to revision of minimum wages) would be sizeable in Q1FY27. 

 

"Given the extraordinary circumstances, Uno Minda is already in active discussions with clients to shorten price adjustment cycles from quarterly/half-yearly to monthly," the management said, maintaining its 11 per cent (+/-50bps) Ebitda margin guidance for FY27.

 

The brokerage cut FY27 and FY28 EPS estimates by 15-16 per cent on near-term margin stress and higher depreciation (seven new plants to come onstream in FY27 vs 2 in FY26).

 

Those at Nomura also lowered Ebitda estimates by 4 per cent and 0.3 per cent for FY27 and FY28 to factor in near-term cost pressure. The brokerage cut EPS estimates by 6 per cent and 3 per cent, respectively, on higher investments.

 

That said, the brokerage said that though the recent numbers were in-line, it sees rising EV adoption, premiumisation, and export push as key medium-term growth catalysts.

 

"Uno Minda has gained market share across segments from both new and existing customers and it plans to focus on higher value addition and execution in new segments going ahead. Besides, most new orders have over 2x asset turnover, providing growth visibility," Nomura said, maintaining 'Buy' rating.

 

It has cut the target price to ₹1,494 from ₹1,513, but believes the current valuation of 33x FY28 EPS makes the stock "attractive".

 

Echoing similar views, CLSA, reportedly, maintained its 'Outperform' rating on Uno Minda stock with a target of ₹1,469.

 

"With the management commentary pointing to a high single-digit volume growth for OEM in FY27, we expect Uno Minda to continue outperforming the industry, growing 25 per cent Y-o-Y, driven by new product additions, capacity expansion, premiumisation (higher content per vehicle) and increasing EV penetration," the brokerage said.

 

Inorganic growth opportunities provide further upside potential amid the company’s lean balance sheet, it added.

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