Samvardhana Motherson International Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Samvardhana Motherson International Ltd filed with BSE on 27 May 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
Samvardhana Motherson reported its highest ever quarterly and annual revenues in Q4 and FY26, with Q4 revenue growing 17% year-on-year and EBITDA up 42%, while full-year revenue crossed INR 1.25 lakh crore, growing 11%. Management said margin expansion was supported by improving profitability in lighting and electronics and aerospace, and that reported PAT included exceptional adjustments for business transformation measures in Central and Western Europe. The company also highlighted a record book business of USD96 billion, leverage at an all-time low of 0.8x, and progress on acquisitions including Atsumitec, Yutaka Giken and Nexans' automotive harness business.
Numbers mentioned
Revenue growth: 17% (Q4 FY26 (YoY))
p. 4
“Q4 FY 26 was our highest ever revenue quarter with revenues growing 17% year-on-year.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
EBITDA growth: 42% (Q4 FY26)
p. 4
“EBITDA for the quarter grew by 42%.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
EBITDA margin expansion: 200 basis points (Q4 FY26 (YoY))
p. 4
“EBITDA margins improved by 200 basis points year-on-year in the fourth quarter.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
Normalized PAT growth: 66% (Q4 FY26)
p. 4
“Normalized PAT for Q4 FY 26 grew by 66%, driven primarily by scale-up in operations, operating leverage and improving business mix.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
Exceptional post-tax provision (Europe transformation): INR 177 Crores (Q4 FY26)
p. 4
“the reported PAT includes exceptional adjustments pertaining to provisions made in respect of business transformative measures in Central and Western Europe, which amounted to INR 177 Crores post-tax”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
Annual revenue: INR 1.25 Lakh Crores (FY26)
p. 4
“For the full year, we crossed another major milestone with annual revenues exceeding INR 1.25 Lakh Crores, growing by 11% year-on-year.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
FY26 EBITDA growth and margin: 11% growth, 9.5% margin (FY26)
p. 4
“FY 26 EBITDA grew by 11%, while margins remained resilient at 9.5% despite significant inflationary pressures in the commodities during the year.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
Normalized PAT growth: 17% (FY26)
p. 4
“Normalized PAT for FY 26 grew by 17%, supported by improved operating performance and lower finance costs.”
Laksh Vaaman Sehgal, page 4 of the filed PDF · View the filing
Consumer electronics revenue growth: approximately 7.5x (FY26 (YoY))
p. 5
“Our consumer electronics business scaled up significantly during the year with revenues increasing approximately 7.5x year-on-year.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Aerospace revenue growth: 40% (FY26 (YoY))
p. 5
“Revenues grew 40% year-on-year, taking the top-line expansion to nearly 10x over the last 3 years.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Aerospace order book: USD1.6 Billion
p. 5
“The order book increased by over 20% to USD1.6 Billion, providing strong term -- strong long-term visibility”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Book business value: USD 96 Billion
p. 6
“Another major highlight for the year was our all-time high book business of USD 96 Billion.”
Gandharv Tongia, page 6 of the filed PDF · View the filing
FY26 capex: INR 5,911 Crores (FY26)
p. 6
“Fiscal '26 capex stood at INR 5,911 Crores, representing 49% of yearly EBITDA.”
Gandharv Tongia, page 6 of the filed PDF · View the filing
Leverage ratio: 0.8x
p. 7
“Despite continuous investment in growth, our leverage ratio improved further and reached an all-time low of 0.8x.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
ROCE: 16.1% (FY26)
p. 7
“ROCE, return on capital employed moderated slightly to 16.1% this year from 17.2% in the previous year, largely reflecting record capex investments towards capacity creation and future growth platforms.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Gross revenues: USD 22.9 Billion (FY26)
p. 7
“Overall, FY26 has been a very strong year for the Company. Gross revenues stood at USD 22.9 Billion.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Final dividend: INR 0.25 per share (FY26)
p. 7
“the Board has approved a final dividend of INR 0.25 per share, taking the total FY 26 dividend to INR 0.60 per share.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Dividend payout ratio: 16.4% (FY26)
p. 7
“This translates into a payout ratio of 16.4%, an improvement of approximately 1% over fiscal '25”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Copper price increase: 16% sequentially, 38% year-on-year (Q4 FY26)
p. 5
“Copper prices increased sharply by about 16% sequentially during the fourth quarter and were nearly up 38% year-on-year.”
Laksh Vaaman Sehgal, page 5 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.
Capex — approximately INR 6,000 Crores plus/minus 10% · FY27
stated firmly by Gandharv Tongia
p. 6
“For FY27, we expect capex of approximately INR 6,000 Crores plus/minus 10%, of this 50% will be growth capex and 50% maintenance capex.”
Gandharv Tongia, page 6 of the filed PDF · View the filing
Consumer electronics facilities under development — 13 of 16 facilities to come on stream · FY27
stated firmly by Gandharv Tongia
p. 7
“Currently, 16 facilities are at various stages of development globally, with 13 scheduled to come on stream during fiscal '27.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
ROCE — 40% ROCE · Vision 2030
stated as an aspiration by Gandharv Tongia
p. 7
“We remain committed to our Vision 2030 aspiration of achieving 40% ROCE across businesses over time.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Gross revenue — USD 108 billion · Vision 2030
stated as an aspiration by Gandharv Tongia
p. 7
“We continue to move steadily towards our Vision 2030 aspiration of reaching USD 108 billion in gross revenues, while simultaneously improving diversification, strengthening returns and maintaining financial discipline.”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Dividend payout ratio — up to 40% · Vision 2030
stated as an aspiration by Gandharv Tongia
p. 7
“reflects our commitment towards progressively moving closer to our Vision 2030 dividend payout aspiration of up to 40%”
Gandharv Tongia, page 7 of the filed PDF · View the filing
Third consumer electronics facility (GF3) commissioning — commissioning with upstream integration capabilities · Q3 FY27
stated firmly by Laksh Vaaman Sehgal
p. 5
“The third facility remains on track for commissioning in the Q3FY27 and will include additional upstream integration capabilities, which should support both growth and the margin enhancement.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Yutaka Giken acquisition completion — completion · end of first half FY27
stated firmly by Laksh Vaaman Sehgal
p. 6
“The acquisition of Yutaka Giken will mark our third Honda San related acquisition and remains on track for completion by the end of first half FY 27.”
Laksh Vaaman Sehgal, page 6 of the filed PDF · View the filing
Nexans automotive harness deal closure — closure and consolidation · end of June, beginning of July
stated conditionally by Pankaj Mital
p. 9
“We expect the closure sometime in the end of June, beginning of July.”
Pankaj Mital, page 9 of the filed PDF · View the filing
MSAS (integrated assemblies) growth — FY27
stated as an aspiration by Laksh Vaaman Sehgal
p. 8
“So definitely, we see growth to happen this year as well.”
Laksh Vaaman Sehgal, page 8 of the filed PDF · View the filing
Commercial vehicle outlook — FY27
stated as an aspiration by Laksh Vaaman Sehgal
p. 5
“We continue to remain constructive and bullish on the CV outlook for FY 27.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Consumer electronics capex — broadly in range of prior INR 2,600 Crores guidance · FY27
stated conditionally by Gandharv Tongia
p. 14
“It should be broadly in the range of what we guided in the last year, but allow us a quarter to come back to you with the firmed up numbers.”
Gandharv Tongia, page 14 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.
Management said growth is expected but could not be precisely guided since it depends on customer vehicle sales, though they are hopeful and positive.
Answered by Laksh Vaaman Sehgal
Asked by Raghunandhan NL: Outlook for integrated assemblies (MSAS) in FY27 given 2x new program launches versus FY26.
p. 8
“Of course, I can't guide you exactly on the numbers because, like I said, a lot depends on the customer sales that happens since they are completely correlated to that.”
Laksh Vaaman Sehgal, page 8 of the filed PDF · View the filing
Management said it varies by customer, with some contractual and some negotiated, and that there is typically a lag.
Answered by Laksh Vaaman Sehgal
Asked by Joseph George: Whether cost pass-throughs for overheads and polymer prices are contractual or negotiated with customers.
p. 9
“So yes, in some customers, there definitely is a lag. Some customers follow the contracted approach.”
Laksh Vaaman Sehgal, page 9 of the filed PDF · View the filing
Management expects closure and consolidation around end of June/beginning of July, pending regulatory approvals.
Answered by Pankaj Mital
Asked by Joseph George: When will the Nexans deal complete and revenue booking begin?
p. 9
“We expect the closure sometime in the end of June, beginning of July.”
Pankaj Mital, page 9 of the filed PDF · View the filing
Management said the third plant utilization is currently zero as it is in start-up phase, while GF1 and GF2 are almost fully utilized, and ramp-up will be fast once GF3 starts.
Answered by Laksh Vaaman Sehgal
Asked by Kapil Singh: Utilization level of consumer electronics plants and pace of ramp-up given the new plant opening in Q3FY27.
p. 10
“Right now, it's the smaller units, GF1 and GF2 which we are using, which are almost practically fully used up in what we are doing.”
Laksh Vaaman Sehgal, page 10 of the filed PDF · View the filing
Management said a big chunk of restructuring is done but more resizing possibilities remain as acquisitions continue.
Answered by Laksh Vaaman Sehgal
Asked by Kapil Singh: Update on European restructuring completion and remaining benefits.
p. 11
“Yes. Look, I think a big chunk of it is done.”
Laksh Vaaman Sehgal, page 11 of the filed PDF · View the filing
Management said EV revenue is around 11% currently and that the company is largely engine agnostic, supplying across powertrain types.
Answered by Laksh Vaaman Sehgal
Asked by Kapil Singh: What percentage of revenue currently comes from EVs given 22% of order book is EV.
p. 12
“I think the revenue component is 11% around that.”
Laksh Vaaman Sehgal, page 12 of the filed PDF · View the filing
Management said the segment had a strong year but the real impact will show once GF3, the largest facility, comes online.
Answered by Laksh Vaaman Sehgal
Asked by Amyn Pirani: Why lighting and electronics segment growth (30%) looks tepid despite the sharp consumer electronics uptick.
p. 13
“I think lighting and electronics definitely had a very strong year.”
Laksh Vaaman Sehgal, page 13 of the filed PDF · View the filing
Management confirmed the Indian order book is now larger than the European one and growth is coming strongly from India.
Answered by Laksh Vaaman Sehgal
Asked by Amyn Pirani: Whether aerospace margins could expand as Indian expansion scales versus European operations.
p. 14
“Actually, we were looking at the order books and the Indian order book is perhaps even larger than what we have in the European side.”
Laksh Vaaman Sehgal, page 14 of the filed PDF · View the filing
Management said the number should be broadly similar to last year's guidance, with firmed-up numbers to follow in a quarter.
Answered by Gandharv Tongia
Asked by Binay Singh: Status of the previously guided INR 2,600 Crores consumer electronics capex for next year.
p. 14
“It should be broadly in the range of what we guided in the last year, but allow us a quarter to come back to you with the firmed up numbers.”
Gandharv Tongia, page 14 of the filed PDF · View the filing
Management pointed to the record order book of USD1.6 billion supporting growth from the new facilities.
Answered by Laksh Vaaman Sehgal
Asked by Binay Singh: Growth expectation for aerospace given two new India facilities coming up in Q1 FY27.
p. 15
“Look, the order book for the aerospace is at record number for us.”
Laksh Vaaman Sehgal, page 15 of the filed PDF · View the filing
Management attributed it mainly to operational improvements at previously underperforming global entities, with copper cost recovery still lagging.
Answered by Pankaj Mital
Asked by Raghunandhan NL: Driver of the 170 bps QoQ margin expansion in wiring harness despite copper price increases.
p. 16
“Yes, it's mainly because of the operational improvements.”
Pankaj Mital, page 16 of the filed PDF · View the filing
Management said these costs are generally recovered through negotiation with OEM customers, with a lag.
Answered by Gandharv Tongia
Asked by Raghunandhan NL: Whether higher energy, gas and freight costs will be passed through automatically or via negotiation in Q1.
p. 17
“In our businesses, generally these are matter of negotiations.”
Gandharv Tongia, page 17 of the filed PDF · View the filing
Management said they were not exposed to EV-specific compensation since they remained engine-agnostic, and any compensation received was contractual, unrelated to EV write-downs.
Answered by V. C. Sehgal
Asked by Jay Kale: Whether Motherson received supplier compensation related to OEM EV investment write-downs.
p. 22
“We don't know what you're talking about. I don't know which guy has given compensation to this in the past for the investments and all that.”
V. C. Sehgal, page 22 of the filed PDF · View the filing
Management attributed the growth largely to the Atsumitec acquisition and said machining is a core growth focus across automotive, aerospace and potentially consumer electronics.
Answered by Laksh Vaaman Sehgal
Asked by Jay Kale: Drivers behind the 2.7x growth in precision metal and modules segment and outlook.
p. 22
“I think machining is a core focus for us.”
Laksh Vaaman Sehgal, page 22 of the filed PDF · View the filing
Risks flagged
Elevated commodity prices, especially copper, and inflationary pressures
p. 3
“These results were achieved despite elevated commodity prices, especially copper, inflationary pressures and ongoing geopolitical uncertainties.”
V.C. Sehgal, page 3 of the filed PDF · View the filing
Sharp copper price increases and crude/polymer inflation from Middle East geopolitical tensions
p. 5
“Copper prices increased sharply by about 16% sequentially during the fourth quarter and were nearly up 38% year-on-year.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
Lag in cost pass-throughs from customers for raw material variations
p. 5
“While there may be a timing lag of one or two quarters before settlements are realized, these mechanisms provide structural protection over the medium term.”
Laksh Vaaman Sehgal, page 5 of the filed PDF · View the filing
European macroeconomic weakness and volume growth challenges
p. 11
“a lot of macroeconomic issues continue to plague the region where volumes growth are not as meaningful as we have expected in the past”
Laksh Vaaman Sehgal, page 11 of the filed PDF · View the filing
Weak summer auto production environment in Europe
p. 15
“We know that Europe is it seems like Europe is having a weak summer for auto production.”
Binay Singh, page 15 of the filed PDF · View the filing
Volatility and lag in recovering energy, gas and freight cost increases
p. 17
“In our businesses, generally these are matter of negotiations. We have very strong relationship with our OEM customers and over the period, albeit with the lag, we should be able to recover most of these increase in the cost from the customers.”
Gandharv Tongia, page 17 of the filed PDF · View the filing
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