Uno Minda credit ratings reaffirmed; outlook remains stable

ICRA has reaffirmed the credit ratings for Uno Minda Limited, with a stable outlook, as of July 4, 2025. The long-term rating for bank facilities and non-convertible debentures is AA+ Stable, while the short-term rating for bank facilities and commercial paper is A1+. These reaffirmations consider Uno Minda's strong market position in the automotive component sector, diversified business segments, and technological collaborations. ICRA acknowledged that UML's revenue has demonstrated a 21% CAGR growth, while maintaining steady profitability. While Uno Minda is undertaking capex, its leverage is expected to remain in check. While its business is diversified, UML revenues come predominantly from India, and therefore is subject to cyclicality. ICRA factors in UML's strong market position, diversified business segments, and technological collaborations.