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Informist, Tuesday, Feb. 10, 2026

 

--Samvardhana Motherson: Incurred labour code cost of INR 250 mln in Q3 

--CONTEXT: Samvardhana Motherson mgmt comments in post-earnings analyst call 

--Samvardhana Motherson: See module, polymer ops improving in coming months 

--Samvardhana Motherson: See FY26 capex in line with guidance of INR 60 bln 

 

By Ashutosh Pati and Shweta

 

MUMBAI – Samvardhana Motherson International Ltd. is confident of achieving its guidance for capital expenditure of INR 60 billion in 2025-26 (Apr-Mar), its management told analysts at a post-earnings conference call Tuesday. The automotive ancillary company reported a capital expenditure of INR 15.94 billion for the December quarter, up sharply from INR 8.91 billion a year ago. The company's capital expenditure for the nine months ended December was INR 42.47 billion.

 

The company will likely provide capex guidance for FY27 during its next analyst call this quarter. "... so earlier this year, we gave guidance of around 6,000 Crores (INR 60 billion) plus 10%. We believe our exit number (for the full year) would be well within this guidance," the management said.

 

The company reported a consolidated net profit of INR 10.24 billion for the December quarter, up around 17% year on year and above expectations of INR 9.80 billion. Its consolidated revenue for the reporting quarter rose nearly 14% on year to INR 314.09 billion. It incurred a cost of INR 250 million during the quarter due to the implementation of the Labour Codes.

 

The company currently has 12 greenfield expansion plants under development, all across emerging markets. Of these 12, two were added in the December quarter, the management said. "The majority of these greenfields are expected to come on stream by the second half of FY27, and will contribute towards growth in FY27," they said.

 

The company's modules and polymer segment, which accounts for a major chunk of total revenue, is expected to keep improving in the coming months. The company's December quarter revenue from modules and polymer products sales rose to INR 157.75 billion from INR 146.14 billion a year ago. The company has done several acquisitions in this segment in the last few years. Despite global uncertainties, "... we're getting more and more clarity as well and a restructuring thing is happening, I think we're able to deliver better performance," a top official said.

 

Asked whether rising commodity prices, such as copper, will affect the segment's margins, management said the key raw material for modules and polymers is plastic, so the impact of rising copper prices will not be "as meaningful". The company attributes the improvement in margins for this segment to operational improvements overseas, particularly in Europe.

 

"... most of the expansion in the margin that you're seeing over there is definitely due to operational improvements. There could be some small ones due to, you know, currency movements and stuff like that. But in the majority, we are seeing that the restructuring measures and everything that we put in, definitely into Europe, that's playing a part," they said.

 

Samvardhana Motherson's integrated assemblies segment has also shown improved margins, which are expected to continue. "Integrated assemblies have now been with us for a couple of years. So, of course, now they are fully integrated," the management said. The company has enhanced its capabilities in this segment by bringing in new products and in-house manufacturing. "... We paid a fair value for it, and we saw the synergy strength that it would bring to the next step for the assemblies and logistics side of Motherson, and that's playing out. So hopefully this continues, not hopefully, I'm sure it will continue with the focused efforts, and the team will continue to grow from here."

 

Tuesday, the company's shares closed 4.0% higher at INR 129.43 on the National Stock Exchange. The company announced the December quarter results during market hours. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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