Minda (MINDACORP) Q2 FY27 Corp Profit Slips 31% QoQ Despite Record Revenue
Minda Corporation posted its highest-ever quarterly revenue but saw a sharp sequential profit drop as input costs and wage hikes squeezed margins.
Minda Corporation's Q2 FY27 revenue surged 43% YoY to a record ₹2,189 crore. However, profit fell 31% from the previous quarter, highlighting margin pressures from commodity costs and wage revisions.
For an auto components maker, the race is to outgrow the industry while protecting margins from volatile inputs. Minda Corporation delivered on the first count in the September quarter, posting its highest-ever revenue. Yet a sharp sequential profit drop shows the cost pressures that came with that growth.
The numbers tell a story of two speeds. Revenue jumped 42.6% year-on-year to ₹2,189 crore, beating analyst forecasts by nearly 9%. Profit grew a robust 68.9% compared to last year. Sequentially, however, profit fell 30.7% even as sales rose 18.6%, pulling the net profit margin down by 470 basis points.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,189.3YoY +43% | 1,846.31 | 1,535.36 |
| Profit (₹ Cr) | 142.97YoY +69% | 206.25 | 84.64 |
| Net Profit Margin (%) | 6.5YoY +18% | 11.2 | 5.5 |
Why the margin squeeze hit so hard
Management, in an earnings call covered by Investing.com, cited three main headwinds. Elevated commodity prices, particularly a 4-5% copper price increase in wiring harnesses, raised input costs. Revisions to minimum wages across several states lifted employee expenses. Higher freight charges also added pressure.
These costs are largely pass-through to customers, but with a one-quarter lag. This timing mismatch explains the sharp QoQ margin compression. The prior quarter’s profit was also flattered by a one-off gain. According to CNBC-TV18, Q1 profit included a ₹106 crore exceptional gain from the consolidation of Minda Vast.
The growth engine remains strong
Beneath the margin noise, demand is robust. The company said electric vehicle-related products made up about 35% of new order wins. The wiring harness and instrument cluster division led growth, securing multiple high-value orders. A lifetime order book exceeding ₹10,000 crore provides multi-year revenue visibility.
Brokerages acknowledged this strength. Choice Institutional Equities and Monarch Networth Capital retained Buy ratings, with Monarch setting a ₹985 target citing rising content per vehicle. Emkay Global also maintained a Buy, raising its target to ₹900 after the results.
The costs that will not fall soon
While customer price recovery is expected this quarter, wage inflation is structural. The company’s guidance, noted by CNBC-TV18, includes a ₹400 crore capital expenditure plan for FY27 to support new products and capacity. This spending, alongside ongoing R&D, will keep costs elevated as it chases its EV and passenger vehicle ambitions.
Key Points
- Minda Corporation achieved record quarterly revenue of ₹2,189 crore, growing 43% year-on-year and beating estimates.
- Sequential profit fell 31% as margin dropped 470 bps, pressured by copper price hikes, wage revisions, and freight costs.
- A strong order pipeline, with 35% of new wins from EV products, supports future growth despite near-term margin headwinds.
- Brokerages like Monarch and Emkay maintained Buy ratings, highlighting the company's market share gains and long-term EV potential.
Hexa Perspective
The quarter frames the classic auto ancillary tension: stellar top-line growth against stubborn cost inflation. The margin squeeze looks temporary, hinging on the promised customer pass-through in the coming quarter. If that materializes, profitability should recover alongside still-strong revenues. The risk is that wage pressures persist and capex dilutes returns, keeping margins below the Q1 peak. Investors are weighing the certainty of a ₹10,000 crore order book against the uncertainty of how much of each rupee will stick as profit.
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