Motherson Sumi Wiring India Limited: Q2 FY26 Performance Wires Up for Growth

Motherson Sumi Wiring India Limited (MSWIL) has delivered a stellar performance in the second quarter of Fiscal Year 2026, showcasing robust growth and strategic execution. The company reported its best-ever quarterly revenues, reaching INR 2,762 crore, marking a significant 19% year-on-year increase. This growth substantially outpaced the broader industry's 4% year-on-year expansion for the same period. EBITDA for the quarter stood at INR 280 crore, reflecting a 12% growth year-on-year. This strong financial showing underscores MSWIL's ability to capitalize on market opportunities and enhance its operational efficiencies.

The exceptional performance is attributed to a robust volume content mix, an increase in premiumization, and the company's strong presence in new OEM model launches. MSWIL's strategic focus on the evolving automotive landscape is evident in its growing Electric Vehicle (EV) segment, which now contributes 6.7% to the total revenue for Q2 FY26, up from 5% in the previous quarter. This indicates a successful pivot towards future-ready technologies and diversified revenue streams. The company's core business of wiring harnesses for both EV and Internal Combustion Engine (ICE) vehicles continues to be a key driver of its financial health.

Strategic Greenfield Expansion and Future Outlook

MSWIL's strategic investments in Greenfield projects are central to its long-term growth trajectory. The company has multiple Greenfield facilities across India, including Navagam (Gujarat), Kharkhauda (Haryana), and Pune (Maharashtra), catering to both EV and ICE segments. One of the three new Greenfield projects has successfully commenced production as per schedule, with volumes currently ramping up. The Kharkhauda (Haryana) ICE plant is operational and scaling up, while Pune (Maharashtra) has both EV and EV+ICE plants operational or in the ramping-up stage.

However, the Navagam (Gujarat) EV+ICE project experienced a delay in its Start of Production (SOP) from Q2 to Q4 FY26, primarily due to a customer launch delay. Despite this, management remains optimistic about the overall contribution of these projects, expecting them to reach optimal utilization levels of 70-80% in the future, which will significantly enhance profitability. The company's CAPEX guidance for the current year stands at approximately INR 210 crore, demonstrating continued investment in capacity expansion and technological upgrades.

Operational Efficiency and Financial Prudence

MSWIL's commitment to financial prudence is highlighted by its continued debt-free status, providing a strong foundation for future growth and flexibility. While Greenfield projects are currently incurring losses, management noted an improving trend quarter-on-quarter, indicating effective cost management and scaling efforts. The company also addresses raw material price fluctuations, particularly copper, through contractual commitments with customers, ensuring compensation for price increases, albeit with a quarterly or six-monthly lag.

Management's focus extends beyond just numbers, emphasizing return on capital employed and continuous improvement in efficiencies. The company's ability to consistently outperform industry growth, coupled with its disciplined capital allocation and strategic expansion into the EV segment, positions it favorably for sustained long-term value creation. MSWIL's proactive approach to market trends and commitment to operational excellence underscore its resilience and growth potential in the dynamic automotive sector.

Segment Performance Overview

Sustained Growth and Strategic Clarity

Motherson Sumi Wiring India Limited's Q2 FY26 results reflect a period of sustained growth, strategic clarity, and disciplined execution. The company's ability to leverage its strong market position, expand into high-growth segments like EVs, and manage its finances prudently, even amidst significant expansion, paints a confident picture for investors. With Greenfield projects steadily ramping up and a clear focus on operational excellence, MSWIL is well-positioned to continue its growth trajectory and deliver enhanced shareholder value in the coming quarters.