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Informist, Monday, Feb. 9, 2026

 

By Anand JC

 

NEW DELHI – Samvardhana Motherson International Ltd. is expected to report a growth in its December quarter consolidated profit, a first in four quarters, and the highest revenue growth in five quarters as automobile production picked up in India and China, according to brokerages. The company's top line is expected to get a boost from the consolidation of operations of Japanese metals and machining company Atsumitec, which it bought in the financial year 2024-25 (Apr-Mar).

 

The automotive ancillary company's consolidated net profit for the December quarter is expected to rise almost 12% on year to INR 9.80 billion, according to the average of estimates from 10 brokerages. Projections for Samvardhana Motherson's net profit range from INR 6.16 billion by YES Securities (India) Ltd. to INR 13.07 billion by Elara Securities (India) Pvt. Ltd.

 

The company's consolidated revenue from operations for the quarter is projected to be INR 310.63 billion, which would translate to a year-on-year increase of 12%, according to the average of estimates. The lowest forecast for Samvardhana Motherson's top line is INR 301.91 billion by Emkay Global Financial Services Ltd. and the highest is INR 316.73 billion by Nomura Equity Research. Its top line for the year-ago quarter had grown 8% on year to INR 276.66 billion.

 

Samvardhana Motherson manufactures automotive components and has a growing presence in select non-automotive sectors. While it earns most of its revenue from making modules and polymer products, it has a sizeable presence in wiring harnesses, camera-based vision systems, and integrated assemblies such as cockpit and door modules, among other products.

 

The company has relied heavily on inorganic growth in recent years, positioning it as a key pillar of its expansion strategy. As part of its Vision 2025 cycle, it completed 23 acquisitions between FY21 and FY25 to drive scale, diversify capabilities, and expand its footprint. In recent years, it has expanded into aerospace, health and medical devices, logistics solutions, and consumer electronics. Its top clients include Volkswagen, Mercedes-Benz, Audi, BMW, and Maruti Suzuki India Ltd. The company continues to expand overseas at a time when soft global demand has hampered the earnings growth of Indian auto ancillary companies that have overseas clients.

 

"We expect revenue to grow by (about) 14% YoY led by consolidation of Atsumitec, favourable currency translation, and gradual ramp-up of new programmes, non-automotive business, and healthy production growth in India and China, partially offset by muted volume trend in US/EU," ICICI Securities Ltd. said. Samvardhana Motherson earns about 20% of its revenue from domestic operations, with the remainder generated from overseas markets, including the US, Germany, and China. Given its strong overseas exposure, analysts expect the company's top line for the December quarter to benefit from a sharp depreciation of the rupee against the dollar. In the September quarter, the company's consolidated revenue had got a 2.5% boost from the impact of foreign exchange movements.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the December quarter are estimated at INR 27.49 billion, according to the average of estimates. Estimates for Samvardhana Motherson's EBITDA range from INR 25.06 billion by Emkay Global to INR 28.92 billion by ICICI Securities.

 

Analysts expect the company's December quarter EBITDA margin to contract on a year-on-year basis because of higher copper prices but grow from the trailing quarter on a healthy order book and cost reduction efforts. Samvardhana Motherson's EBITDA margin is likely to improve 50 basis points on quarter to 9.2% due to higher efficiencies and better operating leverage, ICICI Securities said. On the other hand, Nuvama expects the EBITDA margin to fall 86 bps on year to 8.8?cause of higher copper prices. Copper prices on average increased 15% on quarter and 26% on year in the December quarter, Motilal Oswal said.

 

Samvardhana Motherson will detail its December quarter earnings Tuesday. The Street is expected to track the company's view on the outlook for the industry, ramping up of revenue from the non-automotive segment, and updates on its inorganic initiatives as part of Vision 2030.

 

The company's shares have risen a shade over 17% since the company announced its September quarter earnings. Monday, the shares closed at INR 124.41 on the National Stock Exchange.

 

All eight brokerage reports on the company available with Informist have a "buy" call at an average target price of INR 130, which is 5% higher than the current market price.

 

Following are the December quarter earnings estimates, in INR billion, for Samvardhana Motherson from 10 broking firms in descending order of the net profit estimate:

 

Brokerage	Net sales	Net profit	EBITDA
Elara Securities (India) Pvt. Ltd.	304.33	13.07	28.61
Nomura Equity Research	316.73	11.55	28.89
Kotak Securities Ltd.	307.09	10.25	28.17
Motilal Oswal Financial Services Ltd.	315.49	10.16	28.31
ICICI Securities Ltd.	315.70	10.14	28.92
HDFC Securities Ltd.	315.72	10.08	N.A.
Nuvama Wealth Management Ltd.	314.84	9.68	27.85
JM Financial Institutional Securities Pvt. Ltd.	308.26	8.68	25.89
Emkay Global Financial Services Ltd.	301.91	8.28	25.06
YES Securities (India) Ltd.	306.21	6.16	25.72
Average	310.63	9.80	27.49

 

End

 

Edited by Rajeev Pai

 

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