Choice Institutional Equities has reiterated its 'Buy' rating on Minda Corp, setting a target price of ₹860 following strong Q2 FY27 results. The company reported a 42.6% jump in revenue to ₹2,189 crore, driven significantly by its growing electric vehicle (EV) order book.
Choice Institutional Equities has maintained its positive stance on Minda Corporation, issuing a 'Buy' rating with a price target of ₹860 per share. This update follows the company’s recent release of its financial results for the second quarter of the 2027 fiscal year, which highlighted substantial growth across key operational metrics.
In the quarter ending September 2026, Minda Corporation reported consolidated revenue of ₹2,189 crore, marking a 42.6% increase compared to the same period last year. Profitability also improved notably, with the company posting a net profit of ₹143 crore, a 68.2% rise year-on-year. Operating performance remained robust as well, with EBITDA growing by 44.7% to ₹257 crore, resulting in an EBITDA margin of 11.8%.
Growth Drivers and Strategic Investments
A primary factor contributing to this growth is the company's focus on the electric vehicle (EV) segment. According to recent disclosures, products related to electric vehicles accounted for 35% of all new order wins during the quarter. This shift toward EV components is a significant part of the company's strategy to capture demand in the changing automotive landscape.
Alongside operational growth, the company continues to focus on business consolidation. The firm recently approved an additional investment of up to ₹37 crore in its joint venture, Minda HCMF Technologies, to further strengthen its technical capabilities. These strategic moves, combined with the successful integration of its Minda VAST business, have helped the company broaden its reach and improve its overall market positioning.
Investor Monitorables
While the brokerage remains optimistic about the stock, investors should consider the broader environment for the auto ancillary sector. The company’s financial performance is sensitive to fluctuations in raw material costs, which can directly impact profit margins. Furthermore, as the company scales its operations, it faces the typical risks associated with capital-intensive expansions and the need for consistent execution in a competitive market.
Future performance will depend on the pace of the electric vehicle transition, as the company’s revenue growth is increasingly tied to this segment. Investors may monitor the company’s ability to maintain these margins, manage its debt levels effectively during this period of expansion, and successfully execute its order book to meet the targets set by analysts.