More Stories

Informist, Wednesday, May 20, 2026

--Samvardhana Motherson: Large part of European ops restructuring is now done
--CONTEXT: Comments by Samvardhana Motherson mgmt in post-earnings call
--Samvardhana Motherson: More meaningful growth will come from M&As hereon

--Samvardhana Motherson: Aerospace operations in India showing robust growth
 

By Anand JC and Gunjan Rajput

NEW DELHI – Samvardhana Motherson International Ltd. Wednesday said growth in Europe has been driven by acquisitions in recent years, even as the region has been "plagued" by macroeconomic issues. "We have significant headroom for acquisitions. All the acquisitions that we have done have integrated really well," the company told analysts in a post-earnings conference call.

The current restructuring drive undertaken by Samvardhana Motherson in its European operations is largely done. The company booked a one-time expense of INR 1.96 billion in the March quarter and INR 3.82 billion in 2025-26 (Apr-Mar) towards the phased operational restructuring of certain units owned by the company in Europe.

The company sees more possibilities of restructuring operations in Europe as it keeps acquiring more businesses and resizes them to make them perfect. "(Acquisitions) is what is leading to record top line for us and also the holding of the margins because we brought this diversification and all the businesses in (to the fold)," a senior company official told analysts. 

The company expects to see more meaningful volume growth in its business from acquisitions. "As scale improves, synergies from acquisitions are realised, backward integration increases, and operational efficiencies continue to strengthen, we expect growth to progressively improve. We remain committed to our Vision 2030 aspiration of achieving 40% growth across businesses over time," the official said.

Orders related to electric vehicles currently form around 22% of Samvardhana Motherson's orderbook. The company said it remains engine-agnostic in terms of how it expects growth to unfold in the coming years. "We are able to support those variants that are both EV and non-EV. That is the majority of the business, even though we have done some strategic acquisitions to start looking at that -- but the majority of the business is still hugely agnostic to what the powertrain is," another senior official said.

Automotive customers who had previously said that they will move to 'EV-only' business strategies have now said they will offer products across all powertrains. "I am not generalising, but they will offer all solutions... we are fully capable of supplying the variants of our interiors, exteriors, wiring harness, plastic parts, mirrors," the company said. Even though the proportion of electric vehicles is slowly growing, the company does not expect a huge shift towards electric vehicles in the near term.

Aerospace operations form a part of Samvardhana Motherson's emerging businesses. The company operates as a tier-1 supplier for major global aviation original equipment manufacturers like Airbus and Boeing, providing integrated manufacturing, design, and assembly solutions.

Revenue of this business grew 40% in the March quarter. Orderbook of Samvardhana Motherson's aerospace business grew over 20% on year to $1.60 billion. The domestic orderbook for this business remains bigger than Europe.

"It's extremely exciting what's happening on the aerospace side. Not only are we looking at that, but we're also looking meaningfully to penetrate the semiconductor business through the capabilities in aerospace because they're complementary," the company said. Samvardhana Motherson's executives hope that the business scales up in a meaningful way going forward, even though it remains quite small now. 

The company disclosed its March quarter earnings during market hours. It reported consolidated net profit of INR 14.97 billion on consolidated revenues of INR 343.09 billion. Wednesday, its shares closed 0.5% higher at INR 132.17 on the National Stock Exchange.   End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.