The agency has also affirmed the company’s short-term rating at '[ICRA]A1+’.
ICRA said that the rating action for Uno Minda (UML) continues to factor in the steady operational performance of the company, aided by its established market position in the Indian automotive component sector, well diversified business profile across product categories and vehicle segments, and strong technological collaborations that support future business prospects.
During FY2026, UML has maintained healthy growth momentum, with 9M FY2026 revenues increasing around 17% YoY and the company delivering its highest-ever quarterly revenue in Q3 FY2026.
Growth has remained broad based across switching, lighting, casting, seating, acoustics and the newer electronics/ advanced driver assistance systems (ADAS)/ electric vehicles (EV) subsystems.
This growth is supported by robust demand in both two-wheeler (2W) and passenger vehicle (PV) segments and higher content per vehicle.
The expansion of its product portfolio, healthy order inflow from original equipment manufacturers (OEMs) across categories and ramp up of supplies under recently commissioned capacities continue to help the company outpace industry growth.
These factors provide comfort regarding UML’s ability to generate healthy cash flows going forward and sustain strong return and coverage metrics.
The ratings continue to favourably factor in the company’s healthy financial risk profile, characterised by a conservative capital structure and strong debt coverage indicators.
UML continues to invest regularly in capacity expansion, both in existing product lines and emerging technology areas, thereby strengthening its longer-term business prospects.
The company has also been acquiring land parcels for setting up new plants, anticipating healthy medium-term demand across OEMs. These acquisitions have been funded through a mix of internal accruals and long-term borrowings at competitive rates.
While UML is subject to risks related to the acceleration of debt repayment in case of covenant breaches, its track record of prudent financial management and strong operational performance provides comfort.
Uno Minda, the flagship company of the Uno Minda Group, is one of the most diversified auto component manufacturers in India with a presence across multiple product segments, including automotive switches, lighting, acoustics, alloy wheels and die-casting, and seating systems, among others.
The company's consolidated net profit rose 18.95% to Rs 276.63 crore on a 19.93% increase in revenue to Rs 5,018.06 crore in Q3 FY26 as compared with Q3 FY25.
The scrip was up 0.06% to currently trade at Rs 1082.10 on the BSE.