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Samvardhana Motherson International Limited (MOTHERSON)

Automobile and Auto Components · Auto Components · NSE · Updated 16 June 2026

₹148.12 ↓ 3.3% (1Y)

🎯 Key Takeaways

Samvardhana Motherson International is in a strategic growth and transformation phase, transitioning from a traditional auto components supplier to a diversified industrial conglomerate with ambitions to become a global player. Management is actively investing in emerging sectors like aerospace, consumer electronics, and digital technologies, supported by acquisitions and backward integration initiatives.
Revenue declined 0.5% QoQ to ₹27,666 in Q3FY25.
⚠️ Integration risks from recent acquisitions like Atsumitec and Honda San assets could pressure margins if synergies are not realized on schedule.

Market Cap

₹1.37 L Cr

P/E Ratio

30.6

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Samvardhana Motherson International is in a strategic growth and transformation phase, transitioning from a traditional auto components supplier to a diversified industrial conglomerate with ambitions to become a global player. Management is actively investing in emerging sectors like aerospace, consumer electronics, and digital technologies, supported by acquisitions and backward integration initiatives. The company is targeting USD 108 billion revenue and 40% ROCE by 2030 under its Vision 2030 roadmap, signaling a long-term growth agenda rather than a mature cash cow or distressed profile.

📰 What's Happening

In Q4 FY26, the company reported record revenue of INR 125,000 crores, up 17% YoY, driven by 200 bps margin expansion to 9.5% and 66% normalized PAT growth. Full-year revenue grew 11% YoY, with PAT up 17% annually. Management highlighted the completion of key acquisitions, including Atsumitec and Honda San assets, and emphasized strategic investments in emerging businesses. Capex for FY27 is guided at INR 6,000 crores, with 50% allocated to growth initiatives. The Nexon deal is expected to close by end-June or early July 2026, further accelerating expansion into new segments.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	22,477	22,462	23,474	25,698	27,058	28,868	27,812	27,666
Operating Profit	2,095	1,978	1,805	2,423	3,019	2,846	2,707	2,797
OPM %	9.0%	8.6%	8.1%	9.2%	10.8%	9.6%	8.8%	9.7%
Net Profit	699	648	294	633	1,444	1,097	949	984
EPS	₹0.97	₹0.89	₹0.30	₹0.80	₹2.02	₹1.47	₹1.29	₹1.25

The company has demonstrated consistent revenue growth and improving profitability over the past eight quarters, with operating margins expanding from 8.1% in Q2FY24 to 10.8% in Q4FY24, and further stabilization observed in Q4 FY26. Despite minor quarterly fluctuations in revenue, the underlying trend shows resilience, particularly with EBITDA growth outpacing revenue expansion. The 200 bps margin improvement in Q4 FY26 aligns with management's focus on operational efficiency and scale benefits from acquisitions, indicating that profitability gains are not accidental but tied to deliberate strategic execution.

🔮 Management Outlook & What's Next

Management has provided an ambitious long-term outlook under Vision 2030, targeting USD 108 billion in revenue and 40% ROCE by 2030. They have signaled increased capital allocation to growth initiatives, with FY27 capex set at INR 6,000 crores, half of which is dedicated to expansion in emerging businesses. Management also emphasized the strategic value of recent acquisitions and backward integration to enhance margins and reduce dependency on traditional automotive cycles. No specific near-term revenue or margin targets were reiterated beyond the 2030 vision, but the focus on diversification and high-return investments was clearly articulated.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Auto Components

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Samvardhana Motherson International Limited	1.37 L Cr	30.6	—	—	—
Bosch Limited	1.11 L Cr	55.0	—	—	—
Bharat Forge Limited	91,463	99.6	—	—	—
UNO Minda Limited	64,785	66.7	—	—	—
Schaeffler India Limited	62,984	67.0	—	—	—
Tube Investments of India Limited	55,168	47.4	—	—	—
MRF Limited	54,558	31.1	—	—	—
Balkrishna Industries Limited	41,530	23.4	—	—	—
Endurance Technologies Limited	35,848	44.7	—	—	—
Sona BLW Precision Forgings Limited	35,667	58.5	—	—	—

🔗 Peer Stock Analyses

BOSCHLTD BHARATFORG UNOMINDA SCHAEFFLER TIINDIA

⚠️ Risk Factors

1. Integration risks from recent acquisitions like Atsumitec and Honda San assets could pressure margins if synergies are not realized on schedule. 2. Heavy capital expenditure in FY27 may strain cash flows if growth in emerging segments fails to materialize as expected. 3. The company's long-term Vision 2030 targets are aspirational and may face execution challenges in capital-intensive sectors like aerospace and electronics. 4. Exposure to cyclical automotive markets remains a concern, especially if global auto demand weakens despite diversification efforts.

📋 Recent Filings

🧠 Analyst's Read

The company is executing a clear transformation strategy with strong financial discipline and strategic investments positioning it for multi-year growth. Investors should monitor the pace of integration of recent acquisitions, the ramp-up of emerging businesses, and progress toward Vision 2030 milestones as key catalysts. Execution risk and capital allocation efficiency will be critical determinants of long-term success.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.