Whalesbook
📉 The Financial Performance
Samvardhana Motherson International Limited (Motherson) has reported a robust financial performance for the third quarter and nine months ended December 31, 2025 (Q3 FY26). The company posted its highest-ever quarterly revenue of ₹31,409 crores, marking a significant 14% year-on-year (YoY) increase. This top-line surge was propelled by a combination of organic expansion, successful integration of recent acquisitions like Atsumitec, favorable commodity price movements, and positive foreign exchange impacts.
Operating profit, measured by EBITDA, climbed 10% YoY to ₹3,042 crores. This growth reflects operational efficiencies, particularly within the Modules and Polymer Products (MPP) division, and ongoing transformative initiatives in Central & Western Europe. On a consolidated basis, normalized Profit After Tax (PAT) registered a strong 21% YoY growth, reaching ₹1,061 crores. This PAT expansion was further aided by reduced finance costs and enhanced contributions from joint ventures and associates.
For the nine-month period ending December 31, 2025 (9MFY26), consolidated revenue stood at ₹91,794 crores, with EBITDA at ₹3,497 crores and normalized PAT at ₹2,584 crores.
🚩 Risks & Outlook
Capital Expenditure & Expansion:
Operationally, Motherson deployed ₹1,594 crores in capital expenditure (Capex) during Q3 FY26, representing 52% of EBITDA. This investment is primarily directed towards upcoming greenfield projects and essential maintenance. The company has announced two new greenfield projects: one in Morocco for Wiring Harness and another in Pune for Vision Systems. In total, Motherson is actively managing 12 greenfield projects across various stages of completion, with a strategic emphasis on growth in Emerging Markets.
Market Environment & Strategic Initiatives:
The company anticipates continued growth in emerging markets for both Passenger Vehicles (PVs) and Commercial Vehicles (CVs). Developed markets are experiencing a more mixed environment, with some softness in PVs. However, signs of recovery are emerging in North American CVs, evidenced by approximately 5% quarter-on-quarter growth.
Strategic moves include the acquisition of the Wiring Harness business from Nexans AutoElectric, aimed at establishing a scalable global platform. Motherson expects recently announced mergers and acquisitions (M&As) to be completed in the first half of FY27. Furthermore, organic growth is poised to accelerate with the ramp-up of its consumer electronics and aerospace businesses, bolstered by several strategic partnerships.