motherson guides Rs 6,000 crore FY27 capex, 60% non-auto

In the second quarter of financial year 2027 (Q2FY27), motherson guided capital expenditure of Rs 6,000 crore for FY27, plus or minus 10%, and earmarked about 60% for non-auto businesses. The plan follows Rs 1,971 crore of Q2FY27 spending and supports 17 facilities at different stages of completion.

What is motherson’s FY27 capex plan?

motherson’s FY27 capital-expenditure guidance is Rs 6,000 crore, plus or minus 10%. Applying that tolerance gives an implied range of Rs 5,400 crore to Rs 6,600 crore. The company describes the programme as continued investment across businesses to support customers.

The FY27 midpoint is above the Rs 5,911 crore implied by the four quarterly capex figures reported for FY26. Quarterly spending in FY26 ranged from Rs 1,208 crore in Q1FY26 to Rs 1,664 crore in Q4FY26, indicating that the company expects investment to remain at an elevated level in FY27.

Q2FY27 capex was Rs 1,971 crore, compared with Rs 1,445 crore in Q2FY26, an increase of Rs 526 crore. Capex represented 59% of earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2FY27, versus 53% a year earlier. Among the 10 quarters displayed from Q1FY25 to Q2FY27, both the capex amount and the capex-to-EBITDA ratio were highest in Q2FY27.

How will motherson allocate FY27 capital expenditure?

motherson says about 50% of FY27 capex will be growth capex, about 50% regular capex, and about 60% will be directed to non-auto businesses. At the Rs 6,000 crore guidance midpoint, the growth and regular categories each equate to about Rs 3,000 crore, while non-auto businesses account for about Rs 3,600 crore.

These are different allocation measures rather than a disclosed list of mutually exclusive projects. The presentation does not state how much of growth capex will be spent on non-auto businesses, how the remaining approximately 40% will be allocated, or the monetary budget for each division.

The investment plan follows revenue growth in the first half of FY27 (H1FY27). Revenue rose to Rs 73,524 crore in H1FY27 from Rs 60,385 crore in H1FY26, while EBITDA increased to Rs 6,457 crore from Rs 5,185 crore. motherson attributed revenue momentum to the wiring harness business and acquisition integration, and cited cost optimisation and automation initiatives as contributors to the EBITDA-margin improvement from 8.6% to 8.8%.

Which motherson facilities are being expanded?

motherson lists 17 facilities at different stages of completion, with start-of-production (SOP) dates from Q3FY27 to Q4FY28. The projects span wiring harness, vision systems, modules and polymer products, lighting and electronics, aerospace, elastomer, logistics, energy, and technology and industrial solutions.

Four projects have Q3FY27 SOPs: brownfield paint-line expansions in India and Mexico, plus new package-handling capabilities in India and Hungary. Six projects are scheduled for Q4FY27, including wires backward integration in Poland, polymer-products capacity in the United Arab Emirates, consumer-electronics capacity and backward integration in India, aerospace surface treatment in India, rubber components in the United Arab Emirates, and an office campus in India.

The seven projects scheduled for FY28 include wiring-harness capacity, rear-view mirrors, outside rear-view mirrors (ORVMs), surface-mount technology (SMT), polymer products and captive wind-power generation. Three dates marked with an asterisk are aligned with delayed customer programmes. motherson also says emerging markets are the focal point of organic growth and that all listed expansion is being undertaken in those markets.

How does motherson’s current spending compare with recent capex?

motherson spent Rs 3,585 crore in H1FY27, calculated from Rs 1,614 crore in Q1FY27 and Rs 1,971 crore in Q2FY27. That was Rs 932 crore above the Rs 2,653 crore reported across Q1FY26 and Q2FY26. Over the same comparison, H1FY27 EBITDA rose by Rs 1,272 crore to Rs 6,457 crore.

Capex had already increased during FY26. It was Rs 891 crore in Q3FY25, rose to Rs 1,518 crore in Q4FY25, then reached Rs 1,594 crore in Q3FY26 and Rs 1,664 crore in Q4FY26. The capex-to-EBITDA ratio moved from 32% in Q3FY25 to 44% in Q4FY26, before reaching 59% in Q2FY27.

Q2FY27 revenue was Rs 38,280 crore, up from Rs 30,173 crore in Q2FY26, while EBITDA rose to Rs 3,353 crore from Rs 2,719 crore. However, the EBITDA margin was 8.8% in Q2FY27 versus 9.0% a year earlier. motherson attributed the decline to the integration of newly acquired assets.

What does motherson’s leverage data show alongside capex?

motherson reported effective net debt of Rs 11,292 crore and a leverage ratio of 0.8 times at September 2026. Effective net debt was Rs 9,757 crore at June 2026, an increase of Rs 1,535 crore, while the reported leverage ratio remained 0.8 times in both periods.

The company’s stated financial-policy leverage level is 2.5 times. At March 2026, effective net debt was Rs 9,811 crore and leverage was 0.8 times, compared with Rs 9,791 crore and 0.9 times at March 2025. motherson says the leverage ratio has remained stable despite acquisitions and capex.

motherson excludes debt related to compulsorily convertible debentures (CCDs) from effective net debt because the instruments are mandatorily convertible and have no actual debt payout other than the contracted coupon rate. For acquired assets less than one year old, it says last-twelve-month EBITDA is used for like-for-like comparison in FY24 and FY25.

Conclusion

motherson’s FY27 capex plan combines a Rs 6,000 crore midpoint with an indicated Rs 3,600 crore for non-auto businesses, extending investment beyond automotive-linked operations. The 17-facility programme includes capacity additions, backward integration, brownfield paint lines, logistics capabilities and captive wind generation, while H1FY27 capex exceeded the prior-year first half by Rs 932 crore.

The next disclosed milestones are four SOPs in Q3FY27 and six in Q4FY27. The presentation also provides an FY27 capex range of Rs 5,400 crore to Rs 6,600 crore, while projects with asterisked SOP dates remain dependent on delayed customer programmes.