Motherson Sumi Wiring India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Motherson Sumi Wiring India Ltd filed with BSE on 07 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Motherson Sumi Wiring India reported Q1 FY27 revenue growth of 37%, of which management said 7% was attributable to copper price inflation and the rest to volume growth, content increase and premiumization. Management said elevated copper prices and minimum wage increases, particularly a 30-40% wage hike in the NCR region, impacted profitability during the quarter. EV-related revenue was 8.5% of total revenue, and management said greenfield plants maintained the prior quarter's revenue run-rate of around INR450 crores while some plants remained in a ramp-up stage.
Numbers mentioned
EV share of revenue: 8.5% (Q1 FY27)
p. 3
“Contribution from EVs continues to be strong, with 8.5% of our revenues coming from EVs in Q1.”
Laksh Vaaman Sehgal, page 3 of the filed PDF · View the filing
Greenfield revenue run rate: INR450 crores (Q1 FY27)
p. 4
“Have a run rate of around INR450 crores in the previous quarter.”
Gulshan Pahuja, page 4 of the filed PDF · View the filing
Revenue growth: 37% (Q1 FY27)
p. 6
“So out of the total 37% growth, 7% is on account of the copper inflation, and the remaining is on account of, volume growth, content increase, premiumization, our presence on the new model launches by the OEMs.”
Gulshan Pahuja, page 6 of the filed PDF · View the filing
Copper inflation contribution to revenue growth: 7% (Q1 FY27)
p. 6
“So out of the total 37% growth, 7% is on account of the copper inflation, and the remaining is on account of, volume growth, content increase, premiumization, our presence on the new model launches by the OEMs.”
Gulshan Pahuja, page 6 of the filed PDF · View the filing
Minimum wage increase in NCR region: 30% to 40% (Q1 FY27)
p. 8
“because in the NCR region only we have seen an increase of 30% to 40% in the in the wages”
Gulshan Pahuja, page 8 of the filed PDF · View the filing
Gross margin lag delta (current quarter): 7% (Q1 FY27)
p. 8
“So, right now, if you see just look at the quarter-on-quarter, there is increase of 7%.”
Gulshan Pahuja, page 8 of the filed PDF · View the filing
Gross margin lag delta (preceding quarter): 17% (Q4 FY26)
p. 8
“So we still have a lag of the delta of 7% which is sitting in the current results, unlike 17% in the preceding quarter.”
Gulshan Pahuja, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capacity expansion trigger — 80% utilization
stated firmly by Anurag Gahlot
p. 7
“as soon as we are going to reach to 80%, we started expanding ourselves”
Anurag Gahlot, page 7 of the filed PDF · View the filing
New plant expansion announcements — next few quarters
stated as an aspiration by Anurag Gahlot
p. 7
“maybe in the next few quarters, you will hear us for that as well.”
Anurag Gahlot, page 7 of the filed PDF · View the filing
Copper cost pass-through lag reduction
stated as an aspiration by Pankaj Mital
p. 7
“If possible, we would like to reduce this lag.”
Pankaj Mital, page 7 of the filed PDF · View the filing
ROCE — more than 40%
stated firmly by Anurag Gahlot
p. 11
“idea is to have it more than 40%, and we all committed to that, and we have shown that in the past also -- in the past years also.”
Anurag Gahlot, page 11 of the filed PDF · View the filing
Capex funding — current year
stated firmly by Gulshan Pahuja
p. 11
“The current what we have budgeted for this current year, the capex, we will do from the internal accruals.”
Gulshan Pahuja, page 11 of the filed PDF · View the filing
Pending price hikes from prior quarters flowing into September quarter — September quarter
stated conditionally by Gulshan Pahuja
p. 9
“Yes, that's right. Some of the customers are there.”
Gulshan Pahuja, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Greenfields maintained the same revenue run rate as the prior quarter after reaching break-even, with some plants still ramping up.
Answered by Gulshan Pahuja
Asked by Raghunandhan NL: What was greenfield performance in Q1 in terms of revenue and EBITDA?
p. 4
“We maintain the same level of revenue and the break-even point at this quarter as well.”
Gulshan Pahuja, page 4 of the filed PDF · View the filing
Management said it is not accurate to view material cost as structurally higher at greenfields and prefers to assess performance at an overall level rather than plant level.
Answered by Gulshan Pahuja
Asked by Raghunandhan NL: Would ROIC be similar or lower for greenfield plants given higher import content?
p. 4
“this notion is not 100% correct that the material consumed or the material cost is relatively higher in these plants”
Gulshan Pahuja, page 4 of the filed PDF · View the filing
Management confirmed the mandated wage increases known to date have been fully incorporated into the results.
Answered by Gulshan Pahuja
Asked by Gunjan: Is the minimum wage increase fully reflected in this quarter's results?
p. 6
“Fully into the results, yes.”
Gulshan Pahuja, page 6 of the filed PDF · View the filing
7% of the growth was attributed to copper inflation and the rest to volume, content and premiumization.
Answered by Gulshan Pahuja
Asked by Gunjan: What portion of the 37% revenue growth came from copper inflation versus other factors?
p. 6
“So out of the total 37% growth, 7% is on account of the copper inflation, and the remaining is on account of, volume growth, content increase, premiumization, our presence on the new model launches by the OEMs.”
Gulshan Pahuja, page 6 of the filed PDF · View the filing
Management said the lag remains at 3 to 6 months currently, though there is a desire to shorten it.
Answered by Anurag Gahlot
Asked by Siddhartha Bera: Is the copper cost pass-through lag shifting to monthly for some customers?
p. 7
“So 3 to 6 months is still the lag.”
Anurag Gahlot, page 7 of the filed PDF · View the filing
Management said the current quarter-on-quarter lag delta is 7%, down from 17% in the preceding quarter, though the 6-month lag customers are yet to be reset.
Answered by Gulshan Pahuja
Asked by Joseph George: What is the current gross margin shortfall from copper pass-through lag versus the 200-250 bps mentioned last quarter?
p. 8
“So we still have a lag of the delta of 7% which is sitting in the current results, unlike 17% in the preceding quarter.”
Gulshan Pahuja, page 8 of the filed PDF · View the filing
Management said the first priority is recovering costs to a normalized level with customers, and margin ratios will look different once costs are compensated, with improvement expected over the medium to long term.
Answered by Pankaj Mital
Asked by Preet: Will gross margin return to the prior 34-35% level in the next 6 months if raw material costs stay flat?
p. 11
“our first endeavor is to get all the costs back to the normalized level where there is a lag, and where they are still not being considered.”
Pankaj Mital, page 11 of the filed PDF · View the filing
Management said greenfields will eventually merge into regular business operations and achieve the same margin over time.
Answered by Anurag Gahlot
Asked by Preet: Will greenfield plants achieve the same margin as the company overall once utilization reaches 90-95%?
p. 11
“they have to merge into your regular business and they will give the same margin”
Anurag Gahlot, page 11 of the filed PDF · View the filing
Risks flagged
Elevated copper prices impacting profitability
p. 3
“Elevated copper prices and increased manpower costs, including exceptional minimum wage increases, have impacted our profitability in this quarter.”
Laksh Vaaman Sehgal, page 3 of the filed PDF · View the filing
Uncertainty over further state-level minimum wage increases
p. 5
“So it's very difficult to anticipate that how the other governments would...”
Gulshan Pahuja, page 5 of the filed PDF · View the filing
Uncertainty in copper price movement in coming quarters
p. 7
“obviously, uncertainty we don't know how it is going to happen in the next quarters also”
Anurag Gahlot, page 7 of the filed PDF · View the filing
Potential simplification of wiring harnesses from new vehicle architectures long-term
p. 10
“in a hypothetical situation, yes, it's a possibility that in the long run if someone develops certain new architectures, they can have products which can have lots more electronics, lot more other things and make simplification of the wiring harnesses”
Pankaj Mital, page 10 of the filed PDF · View the filing
6-month lag customers not yet reset for copper cost recovery
p. 9
“But with respect to the 6 months, it is yet to come.”
Gulshan Pahuja, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.