Minda Corp Credit Rating Upgrade: Check Latest Ind-Ra, MCL Ratings for Long Term

India Ratings and Research (Ind-Ra) has announced a major upgrade for Minda Corporation Limited’s (MCL) Long-Term Issuer Rating, elevating it to 'IND AA/Stable' from the previous 'IND AA-/Positive.'

The short-term ratings have also been affirmed at 'IND A1+.' This significant rating improvement reflects MCL’s continued growth in revenue, profitability, and operational efficiency.

‘India Ratings and Research (Ind-Ra) upgraded Minda Corporation Limited’s (MCL) Long-Term Issuer Rating to 'IND AA' from 'IND AA-'. The Outlook is Stable,’ as mentioned in the exchange filing. 

Key upgrades include the term loan rating (IND AA/Stable) and fund-based working capital limits, indicating strong creditworthiness. 

Revenue Growth and Operational Efficiency Drive Ratings
MCL’s consolidated revenue rose by 9.3% year-on-year in the first half of FY25, reaching INR 24,824 million compared to INR 22,704 million during the same period in FY24.

The company expects revenue to exceed 49,000 million in FY25, driven by strong order inflows and technological advancements. Notably, MCL secured orders worth 47,500 million during FY24-1HFY25, with over 30% catering to electric vehicles.

The company has focused on cost efficiencies, product premiumization, and operational improvements to maintain its EBITDA margins above 11% over the past five quarters. For 1HFY25, the EBITDA stood at INR 2,784 million, a 13.1% year-on-year increase.

Diversified Portfolio and Market Leadership
MCL’s diversified portfolio spans various auto components, including wiring harnesses, locksets, and die-casting components. The company commands a strong market share of around 40% in locksets and wiring harnesses for two- and three-wheelers. With technological tie-ups and JVs, such as those with HSIN Chong Machinery Works and Sanco Connecting Technology, MCL continues to expand its presence in emerging markets and advanced technologies.

The company’s geographic revenue split further strengthens its position, with 88% derived from India and the remainder from exports to regions like Europe and North America.