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Informist, Wednesday, May 20, 2026

By Anand JC

NEW DELHI – Samvardhana Motherson International Ltd.'s consolidated net profit grew much faster than its revenue and expenses for the March quarter, despite a one-time cost primarily stemming from phased operational restructuring at certain units in Europe. Its top line and bottom line were comfortably above expectations.

The company's consolidated net profit for the March quarter was INR 14.97 billion, up 43% on year. Analysts had projected the company's bottom line at INR 12.59 billion. Excluding the one-time cost of INR 1.94 billion, its net profit was INR 16.92 billion.

Its consolidated revenue from operations for the quarter under review grew 17% on year to a record-high of INR 343.09 billion. This was higher than the forecast of INR 329.03 billion. This is the fastest year-on-year growth in the company's revenue since the September quarter of 2024.

"Our long-time focus on diversification helped us outperform the market. We continued to remain focused on improving capital efficiency while making strategic investments for future growth to support our customers," Chairman Vivek Chaand Sehgal said in a press release. 

The company has attributed the growth in revenue to robust performance across business, supported by the integration of Atsumitec Co. Ltd. 

For 2025-26 (Apr-Mar), the company reported a consolidated net profit of INR 38.60 billion, up 1.5% on year. Its revenues in this period grew almost 11% on year to INR 1.26 trillion.

Samvardhana Motherson's earnings before interest, tax, depreciation, and amortisation for the March quarter grew 42% on year to INR 38.05 billion. Its EBITDA margin for the period improved to 11.1% from 9.1% in the year-ago quarter. "EBITDA improvement driven by margin improvement in MPP (modules and polymer products) and emerging businesses, particularly Lighting & Electronics and Aerospace," the company said in its investor presentation.

SEGMENTAL VIEW

The company earns most of its revenues from the wiring harness and modules and polymer products segments. Revenues from its modules and polymer products segment was INR 16.74 billion, up 9% on year. Most of the revenue from this segment continues to come from Europe.

The EBITDA of this sgement improved 54% on year to INR 15.45 billion. "Business remained on a soft footing amid weak demand across key markets. OEM (original equipment manufacturers) restructuring actions and upcoming FY27 launch pipeline expected to support demand recovery in the coming quarters," the company said. 

The company said its wiring harness segment saw robust growth because of its performance in India and margin recovery in the March quarter. Revenue from this segment improved 19% on year to INR 102.36 billion while its EBITDA grew 10% on year to INR 11.70 billion. "Anticipated recovery in the CV (commercial vehicle) cycle across advanced economies expected to drive growth momentum in the coming quarters," the company said.

Revenue from its vision systems business grew 11% on year to INR 55.33 billion while the segment's EBITDA grew 4% on year to INR 6.18 billion. The company is banking on a robust order book and new order wins to support the business momentum in the coming years. 

The integrated assemblies segment reported a revenue growth of 20% on year to INR 28.77 billion on the back of strong execution of its orderbook. The segment's EBITDA surged 76% on year to INR 4.48 billion. "Robust order book from new program launches in FY27, 2x of FY26, expected to drive sustained business momentum," the company said. 

DEBT, CAPEX

Samvardhana Motherson's effective net debt stood at INR 98.11 billion as of Mar. 31, much lower than INR 119.93 billion as of Dec. 31 but only slightly over INR 97.91 billion a year ago. However, its leverage ratio moderated to 0.8 times its EBITDA. The company calculates its leverage ratio by taking the sum of its effective net debt and lease liability, divided by the EBITDA over the last 12 months. 

"The improvement in the leverage ratio and a strong booked business of USD 96 billion reinforce our commitment to sustainable value creation," Sehgal said. The company has booked business totalling $96 billion. Around 75% of this business comes from the automotive business, 22% from electric automotive business, and the rest from non-automotive. 

Around 16 greenfield projects by the company are at different stages of completion. The company expects 13 projects to come onstream in FY27. In FY26, the company incurred capital expenditure of INR 59.11 billion. Going forward, the company plans to spend around INR 60 billion towards capex in FY27. 

The company noted that emerging markets drove growth in FY26. It expects product launches in Europe to drive growth in FY27. The commercial vehicles industry ended FY26 on a good note in the developed markets while the outlook remains favourable for the ongoing financial year.

Samvardhana Motherson continues to face pressures on the raw material costs front. In the March quarter, prices of copper surged around 16% on quarter. In addition, the company also flagged inflation in crude oil prices because of the war in West Asia. 

Its board has approved a dividend of INR 0.25 per share. If approved by the shareholders at their annual general meeting on Jul. 30, the dividend will be paid out within 30 days. Record date to ascertain shareholders eligible to receive the dividend will be Jul. 14.

The company announced its results during market hours. While its shares rose after the results were declared, it closed much lower than the session's peak. Wednesday, shares of the company closed 0.5% higher at INR 132.17 on the National Stock Exchange.   End

US$1 = INR 96.82

Edited by Akul Nishant Akhoury

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