Samvardhana Motherson International Limited (MOTHERSON) — Financial Results Announcement
Investor Takeaways
Overall Tone: Positive
Key Financial Highlights
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹125,000 Cr | 17% (Q4), 11% (FY26) |
| Net Profit | ₹1,770 Cr | 66% (Q4), 17% (FY26) |
| EBITDA | Not available | Not available |
| EPS | Not available | Not available |
| OPM | 9.5% | +200 bps (Q4) |
What Changed
The filing highlights a significant turnaround in profitability and operational efficiency. Q4 FY26 revenue reached ₹125,000 crores, up 17% YoY, supported by a 200 basis point improvement in margin to 9.5%. This margin expansion contributed to a 66% increase in normalized PAT for the quarter and 17% annual growth in full-year PAT. Leverage was reduced to 0.8x, the lowest on record, indicating improved financial health. The company also raised its FY27 capex guidance to ₹6,000 crores, with half allocated to growth, signaling confidence in future expansion. Emerging segments, including consumer electronics and aerospace, along with strategic acquisitions like Atsumitec and Honda San assets, are accelerating diversification beyond traditional auto components. The Vision 2030 roadmap targets USD 108 billion revenue and 40% ROCE by 2030, underpinned by backward integration and strategic investments. The Nexon deal is expected to close by end-June or early July 2026, further strengthening the company’s position in the electric vehicle ecosystem.
Peer Comparison
| Company | P/E | ROE | ROCE | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Samvardhana Motherson International | 30.64 | Not available | Not available | 1,37,123.32 |
| TVS Motor Company Limited | 393.51 | N/A | N/A | 8,23,516 |
| Maruti Suzuki India Limited | 27.84 | 15.51% | 19.82% | 4,15,671.64 |
| Mahindra & Mahindra Limited | 22.17 | 20.41% | 14.57% | 3,88,366.49 |
The company trades at a P/E ratio of 30.64, which is lower than TVS Motor’s 393.51 but higher than Maruti Suzuki’s 27.84 and Mahindra & Mahindra’s 22.17. ROE and ROCE data are not available for Samvardhana Motherson or its peers in the provided peer data. The company’s market capitalization of ₹1,37,123.32 crores positions it as a mid-sized player relative to peers like Maruti Suzuki and Mahindra & Mahindra, though TVS Motor has a higher market cap.
Risks & Concerns
Quarterly Trend
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM% |
|---|---|---|---|
| Q3FY25 | 27,665.92 | 984.35 | 9.71 |
| Q2FY25 | 27,811.86 | 948.81 | 8.8 |
| Q1FY25 | 28,867.96 | 1,097.18 | 9.61 |
| Q4FY24 | 27,058.22 | 1,444 | 10.85 |
Note: The Quarterly Trend section is included as quarterly data was provided in the context. The data reflects sequential trends over the last four quarters, with Q4 FY24 showing the highest OPM at 10.85% and Q2 FY25 the lowest at 8.8%.
Forward Guidance
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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.