Motherson sets Rs 6,000 crore FY27 capex, 60% for non-auto

Motherson has guided for Rs 6,000 crore of capital expenditure in FY27, with a 10% variation range and about 60% directed to non-auto businesses, following record FY26 capex of Rs 5,911 crore. The programme covers 17 facilities, including consumer electronics, aerospace, logistics and captive wind-power projects.

How much will Motherson spend on FY27 capex?

Motherson has guided for FY27 capex of Rs 6,000 crore, plus or minus 10%, with roughly 50% allocated to growth capex and roughly 50% to regular capex. The presentation does not provide a division-by-division rupee allocation for this planned spending.

The FY27 guidance is Rs 89 crore above the Rs 5,911 crore spent in FY26, which Motherson describes as its record yearly capex. FY26 capex was Rs 1,478 crore higher than FY25 capex of Rs 4,433 crore, and the capex-to-EBITDA ratio increased to 49% from 41% in FY25. EBITDA means earnings before interest, tax, depreciation and amortisation.

Motherson’s investment level has risen over the longer period despite an interruption in FY23. Capex moved from Rs 1,932 crore in FY21 to Rs 2,391 crore in FY22, fell to Rs 2,183 crore in FY23, and then increased for three consecutive years through FY26. The FY26 outlay was Rs 3,728 crore higher than FY23 capex.

Where will Motherson direct its FY27 capex?

Motherson expects about 60% of FY27 capex to be directed to non-auto businesses, implying about 40% for auto-related activities based on the disclosed mix. The allocation shifts the spending emphasis toward areas beyond vehicle components, although automotive and automotive electric-vehicle programmes represented 79% and 19%, respectively, of booked business as of September 30, 2026.

The remaining 2% of booked business was non-automotive, but the Rs 106 billion booked-business total excludes consumer electronics. This distinction matters because the FY27 project list includes Indian consumer-electronics capacity and backward integration, which are not included in that booked-business total.

Motherson’s emerging businesses reported FY26 revenue of Rs 17,072 crore, up 50% from Rs 11,418 crore in FY25, while EBITDA rose 26% to Rs 1,825 crore. Lighting and Electronics revenue increased to Rs 5,663 crore from Rs 4,078 crore, Precision Metal and Modules revenue reached Rs 5,269 crore from Rs 1,942 crore, and Aerospace revenue rose to Rs 2,447 crore from Rs 1,749 crore.

Which Motherson facilities are under development?

Motherson lists 17 facilities at different stages of completion, with scheduled start of production, or SOP, from Q3FY27 to Q4FY28. The source states that all organic expansion is being undertaken in emerging markets, which it identifies as the focal point for organic growth.

The three Wiring Harness projects include wire backward integration in India with a Q1FY28 SOP, wiring-harness capacity in Morocco with a Q4FY28 SOP, and wire backward integration in Poland scheduled for Q4FY27. The India and Morocco dates carry a source qualification that their SOPs are aligned with delayed customer programmes.

Vision System has two projects, covering rear-view mirrors in Morocco and outside rear-view mirrors, or ORVMs, plus surface mount technology, or SMT, in India; both are scheduled for Q3FY28. Modules and Polymer Products has five projects, the largest count among divisions, comprising polymer-products capacity in the UAE and India and paint-line brownfield expansions in India and Mexico, with SOPs between Q3FY27 and Q4FY28.

Lighting and Electronics is adding consumer-electronics capacity and backward integration in India for Q4FY27, while Aerospace is adding surface-treatment capacity in India for Q4FY27. The programme also includes an Elastomer rubber-components facility in the UAE for Q4FY27, two Logistics projects in India and Hungary for Q3FY27, and an Indian wind-power project for captive consumption targeted for Q3FY28.

How does the capex plan compare with Motherson’s financial position?

Motherson reported effective net debt of Rs 9,811 crore at March 2026, compared with Rs 9,791 crore at March 2025, while FY26 capex totalled Rs 5,911 crore. Its leverage ratio declined to 0.8 times from 0.9 times a year earlier and 1.4 times at March 2024; management describes 0.8 times as its lowest leverage ratio and states a financial policy of 2.5 times.

FY26 revenue rose to Rs 126,104 crore from Rs 113,663 crore in FY25, while EBITDA increased to Rs 12,033 crore from Rs 10,877 crore. Profit after tax attributable to the concern share was Rs 3,860 crore in FY26, up Rs 57 crore from Rs 3,803 crore in FY25.

Reported return on capital employed, or ROCE, was 16% in FY26, compared with 17% in FY25 and 17% in FY24. The presentation notes that multiple greenfield facilities were established across geographies for auto and non-auto businesses, while its ROCE measure adjusts capital employed for reorganisation-related fair valuation and intangible assets, as well as capital work in progress and intangible assets under development.

When are Motherson’s projects scheduled to begin production?

Motherson’s earliest listed SOPs are in Q3FY27 for paint-line brownfield expansions in India and Mexico and for Logistics projects in India and Hungary. These projects cover paint-line capacity and package-handling or new logistics capability, placing the first scheduled starts within the FY27 spending period.

Q4FY27 contains the largest group of listed near-term SOPs: Poland wire backward integration, Indian consumer-electronics capacity, Indian aerospace surface treatment, UAE rubber components and an Indian office campus for Technology and Industrial Solutions. The source does not disclose the capex assigned to each of these facilities.

The later timetable extends into FY28, with the India wire project scheduled for Q1FY28 and Morocco and India Vision System projects scheduled for Q3FY28. The Morocco wiring-harness facility and two Indian polymer-products projects are targeted for Q4FY28, while the Indian wind-power facility for captive consumption is scheduled for Q3FY28.

Conclusion

Motherson’s Rs 6,000 crore FY27 capex plan maintains spending near the FY26 record while directing about 60% of the outlay to non-auto businesses. The plan combines auto-component capacity and backward integration with consumer electronics, aerospace, logistics, elastomer products and wind power, as emerging-business revenue increased 50% to Rs 17,072 crore in FY26.

The disclosed milestones to watch are Q3FY27 SOPs for the India and Mexico paint-line projects and the India and Hungary Logistics projects, followed by Q4FY27 starts for consumer electronics, aerospace and Poland wire capacity. Management’s Rs 6,000 crore guidance carries a 10% range, while the India and Morocco Wiring Harness SOPs remain subject to alignment with delayed customer programmes.