Samvardhana Motherson Q2 Results: Profit Dip Looms, Revenue Surge Expected! Will Stock Rebound?

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Updated on 13 Nov 2025, 07:44 am

Samvardhana Motherson International Ltd. shares are trading with modest gains of around 0.5% as investors await the company's financial results for the September quarter. According to a poll of analysts by CNBC-TV18, the company's net profit is expected to decline by approximately 15% compared to the same period last year, potentially reaching ₹750 crore. However, the outlook for operational performance remains more positive, with EBITDA projected to increase by 4% to ₹2,536 crore. Revenue is forecast to see a 7% year-on-year increase, amounting to ₹29,800 crore, buoyed by contributions from segments such as wiring harness, integrated assemblies, and vision systems.

Despite the anticipated revenue growth, analysts suggest that the EBITDA margin might narrow slightly by 30 basis points to 8.5% from 8.8% in the prior year. This margin contraction is likely attributed to pressures within the modules and polymers businesses.

Impact Investors will be keenly watching the management commentary for insights into the industry outlook, strategies to increase content per vehicle, updates on the ramp-up of non-auto segment utilization, progress on inorganic growth activities, and the effect of tariffs on the business. These factors will be crucial in determining the company's future performance and stock trajectory. The stock itself is up only a modest 3% year-to-date, indicating investor caution ahead of the results.

Impact rating: 7/10

Difficult Terms: EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for financing costs, taxes, and non-cash expenses like depreciation and amortization. EBITDA margin: Calculated as EBITDA divided by total revenue, expressed as a percentage. It indicates the profitability of a company's core operations. Basis points: A unit of measure used in finance, equivalent to one-hundredth of a percentage point (0.01%). 30 basis points equal 0.3%. Wiring harness: A bundle of electrical wires and connectors that transmit power and data between various components in a vehicle. Integrated assemblies: Components or sets of components that are pre-assembled and ready for installation in a larger system, such as a vehicle. Vision systems: Automotive systems that use cameras and sensors to assist drivers with tasks like parking or monitoring the vehicle's surroundings. Modules: Sub-assemblies or parts of a larger system, often produced independently before being integrated into the final product. Polymers: A broad category of synthetic or natural compounds, including plastics and resins, widely used in manufacturing automotive parts. Inorganic activities: Business expansion or growth achieved through external means such as mergers, acquisitions, or joint ventures, as opposed to organic growth. Tariffs: Taxes or duties imposed by a government on imported goods, which can increase the cost of raw materials or finished products.