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Informist, Thursday, Aug. 6, 2026

 

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--Samvardhana Motherson Q1 consol EBITDA margin 8.8% vs 8.2% yr ago
--Samvardhana Motherson Q1 consol EBITDA INR 31.04 bln vs INR 24.66 bln
--Samvardhana Motherson Apr-Jun spent INR 16.14 bln on capex
--Samvardhana Motherson Q1 consol operating margin 4.8% vs 3.9% yr ago
--Samvardhana Motherson shrs fall to INR 152.66, dn 1.1% vs up 1?rlier
--Samvardhana Q1 vision system sales INR 56.54 bln vs INR 51.37 bln yr ago
--Samvardhana Q1 modules, polymer pdt sales INR 166.95 bln vs INR 150.08 bln yr ago
--Samvardhana Q1 wiring harness sales INR 112.80 bln vs INR 86.40 bln yr ago
--Samvardhana Motherson Q1 consol sales INR 352.4 bln vs INR 302.12 bln yr ago
--Samvardhana Motherson Q1 consol PAT INR 10.32 bln vs INR 5.12 bln on yr
--Analysts saw Samvardhana Motherson Q1 consol revenue at INR 345.45 bln
--Samvardhana Motherson Apr-Jun consol revenue INR 352.44 bln
--Analysts saw Samvardhana Motherson Q1 consol net profit at INR 9.77 bln
--Samvardhana Motherson Apr-Jun consol net profit INR 10.32 bln

 

By Anand JC

 

MUMBAI – Samvardhana Motherson International Ltd.'s consolidated revenue and net profit for the June quarter managed to exceed expectations on the back of order execution and cost optimisation initiatives. The company's revenue grew at among the fastest rates on a year-on-year basis since the September quarter of 2024, to a record high.

 

The automobile component maker's consolidated net profit for the June quarter doubled year-on-year to INR 10.32 billion. Samvardhana Motherson's net profit benefited from a low base, as its profit had contracted almost 45% in the year-ago quarter. Consensus estimates had pegged its net profit at INR 9.77 billion.

 

The company's consolidated top line grew nearly 17% on year to INR 352.44 billion, higher than estimates of INR 345.45 billion. "Our integrated D.E.M.A.L. capabilities helped us begin FY27 on a strong note, delivering our highest-ever quarterly revenue, a reflection of our diversified business model and the continued trust of our customers," its chairman Vivek Chaand Sehgal said in a press release. D.E.M.A.L. refers to design, engineering, manufacturing, assembly and logistics operations.

 

The company's total expenses for the quarter grew 15% on year. However, cost of materials consumed, which accounts for over half of its overall expenses, grew 19%. "Despite input cost inflation and an evolving geopolitical environment, disciplined execution and cost optimisation drove resilient profitability," Sehgal said.

 

Despite this sharp rise in costs, the company's earnings before interest, tax, depreciation, and amortisation for the quarter ended June grew 26% on year to INR 31.04 billion. "EBITDA outpaced revenue growth as operational efficiencies and cost optimization offset input cost inflation arising from geopolitical disruptions," the company said.  Its EBITDA margin improved 60 basis points on year to 8.8%.

 

Samvardhana Motherson earns most of its revenues from its modules and polymer products business, closely followed by the wiring harness division. While revenue from the former division improved 11% on year to INR 166.95 billion, revenue of the latter grew 31% to INR 112.80 billion. EBITDA of both the divisions registered a healthy year-on-year growth. 

 

Margins of the company's modules and polymer products business felt the impact of higher crude-linked polymer prices, which was offset by cost-saving initiatives in Europe, from where the division earns over half of its revenue. Demand for this business remained soft across key markets in the June quarter, but the company is focusing on expanding its presence in high-growth geographies.  

 

Its wiring harness division reported strong momentum in India alongside recovery in North America's commercial vehicle business. This business too felt the impact of inflation. Its margins contracted, dragged down by continued increases in copper prices. Samvardhana Motherson hopes its margin would recover in the coming quarters as it passes on pressure from rising copper prices.  

 

The company's vision systems reported revenue of INR 56.54 billion, up 10%, while the top line of the integrated assemblies division grew 5% to INR 29.50 billion. The emerging businesses division reported among the strongest growth across segments, as its revenue grew 30% to INR 47.95 billion.

 

 

Samvardhana Motherson reported an effective net debt of INR 97.57 billion, down from INR 98.11 billion as of Mar. 31. Its leverage ratio stood at 0.8 times, which the company says gives it ample capacity to pursue organic and inorganic growth opportunities. 

In the June quarter, the company operationalised three plants while 13 others remain at different stages of completion. It announced the acquisition of Shenzhen Autocruis during the reporting period. It completed the acquisition of the wiring hiring business of Nexans Autoelectric and Yutaka Giken in July. 

 

The company incurred a capital expenditure of INR 16.14 billion in the quarter-ended June. It has a yearly guidance of spending INR 60 billion towards capex, with a margin of 10% either ways. 

 

At 1310 IST, its shares traded 0.2% lower at INR 153.99 on the National Stock Exchange.   End

 

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

 

Edited by Akul Nishant Akhoury

 

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