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Informist, Thursday, Aug. 6, 2026

--Samvardhana Motherson: Copper prices hit India ops more due to rupee fall 

--CONTEXT: Comments by Samvardhana Motherson mgmt in post-earnings analyst call 

--Samvardhana Motherson: Clubbing different new ops in emerging businesses 

By Anand JC and Adhithya Aji

MUMBAI – Samvardhana Motherson International Ltd. aspires to hive off some of its emerging businesses, list them separately in the coming five years as it wants them to "stand on their own feet", fund their own capital expenditure, and build their own future, the company told investors in a post-earnings conference call Thursday. How the company goes about doing this will be a matter of semantics as its main focus will be on finding the best way to create value for these businesses that it is incubating.

"Everything is on the cards. I can't tell you exactly what happens because they're still focused on execution and making sure that these companies become extremely valuable and standalone on their own," a top official said. One way to unlock value, the company said, will be to give these businesses independence to grow on their own after they hit a certain size, and have their own growth trajectory different from that of Samvardhana Motherson.

"That is something that we are more mature in (automotive business). These are more new, high-growth areas, and that will require complete independence from SAMIL (Samvardhana Motherson) once they are able to stand up on their own feet," the official said. 

Samvardhana Motherson operates five business segments currently, including wiring harness, vision systems, modules and polymer products, integrated assemblies, and emerging businesses. In the emerging businesses division, the company has clubbed different businesses such as elastomers, lighting and electronics, precision metals and modules, technology and industrial solutions, aerospace, logistics solutions, health and medical, and services.

These businesses have been clubbed together because they are at an "infancy" stage, the company said. "There are facilities that are ramping up, there are new programmes that are launching over there," the company said. "Once these become of meaningful size, we will bifurcate them so that you will get a more detailed picture on, for example, consumer electronics," the official said.

Samvardhana Motherson reported a consolidated net profit of INR 10.32 billion on revenues of INR 352.44 billion. All of its segments reported a year-on-year increase in revenues for the reporting period.

Its wiring harness business reaped the benefits of a turnaround in the commercial vehicle industry in North America. "A recovery in the North American market helped sustain the CV industry's growth momentum, which is estimated to have grown 5.4% year-on-year. The outlook for the CV industry remains favourable through FY27," the company said.

In July, the company completed the acquisitions of Nexans Autoelectric and Yutaka Giken – both in the wiring harness business. Samvardhana Motherson expects the two firms to contribute around $2 billion to its top line on an annualised basis, combined. "Over the midterm, the margin profile should broadly reflect the comparable margins in this particular industry," the company said. 

The margin of the wiring harness business contracted 30 basis points on year to 11.1%, which analysts felt was not a steep fall considering the sharply inflationary environment. Upon being asked to elaborate on the strategy which helped the company manage the margin fall, the management said the impact of the sharp rise in copper prices impacted its India operations more because it's priced in dollar terms. The rupee fell sharply against the dollar in the June quarter.

"Globally, if we look at it, the impact is not so much because if we are in Europe, the impact has been in dollar terms, in euro terms has been much less," the company said. In some geographies, the company also benefited from a low base.   

Thursday, its shares closed 0.4% higher at INR 155 apiece on the National Stock Exchange.  End

US$1 = INR 95.22

Edited by Deepshikha Bhardwaj

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