Motherson Sumi Wiring India reported a strong Q2 FY27 with a 47% YoY revenue surge and 35% growth in PAT. Profitability improved as EBITDA margins rose to 9.2%. While the company benefits from vehicle premiumization and EV adoption, investors should monitor the 3-6 month lag in passing through rising copper costs and a predicted cooling in growth rates during the second half of the year due to base effects.
Motherson Sumi Wiring Q2 FY27 Results: Profit and Revenue Surge
Revenue grew 47% YoY and 19% QoQ, while PAT rose 35% YoY and 54% QoQ.
Reader Takeaway: Strong operational momentum and EV contribution drive gains, though copper cost pass-through lag warrants caution.
What just happened
Motherson Sumi Wiring India (MSWIL) delivered a robust second quarter for FY27, marked by double-digit growth across its primary financial metrics. The revenue climb to 47% YoY was fueled by volume growth in the passenger vehicle industry, new program launches, and the successful stabilization of its three Greenfield manufacturing plants. EBITDA margins expanded to 9.2%, up from 7.6% in the previous quarter, indicating better operating leverage.
Why this matters
The results highlight the company's ability to capitalize on vehicle premiumization in India. Higher content per vehicle, coupled with a 10% revenue contribution from Electric Vehicles (EVs), signals that MSWIL is effectively positioning itself to benefit from the changing automotive landscape. The stabilization of new plants means that these facilities are now contributing effectively to the bottom line.
Risks to watch
Raw material volatility remains a primary concern. The company reported a 54% YoY increase in copper prices. Because copper is a pass-through item, the firm faces a 3-6 month time lag before these costs can be fully recovered from customers. Similar negotiations are underway regarding wage inflation. Investors must also be aware of a management-flagged "base effect" issue, where YoY growth percentages in the second half of the year may appear lower than in the prior year.
Context metrics
- Capex Guidance: Approximately Rs. 200 crore for FY27.
- EV Revenue Share: 10% in Q2 FY27.
- EBITDA Margin: 9.2% for the quarter.
What to track next
Watch for the successful realization of cost-recovery negotiations with OEMs. Additionally, monitor the quarterly growth trajectories in H2 to see if they align with the expected moderation due to the high base effect established in the previous fiscal year.