Motherson Q1 FY27: Record Revenue, Margin Resilience, and a Busy Quarter for Capex and M&A

Samvardhana Motherson International started FY27 with its highest ever quarterly revenue. Consolidated reported revenue for Q1 FY27 was Rs 35,244 crore, up 17% year on year. EBITDA rose faster than revenue, up 26% YoY to Rs 3,104 crore, taking EBITDA margin to 8.8% versus 8.2% in Q1 FY26. Normalized PAT to the concern share was Rs 1,032 crore, up 55%.

The quarter was delivered in a difficult operating environment. Management highlighted a global light vehicle production decline of 1.8% YoY, led by a China decline of 3.1%. At the same time, input inflation remained a near-term headwind, with copper up 40% YoY and higher crude-linked polymer and freight costs, which typically pass through to customers with a lag.

What drove growth across divisions

The investor presentation provides division-wise economic revenue and EBITDA. Wiring Harness led growth with Q1 FY27 revenue of Rs 11,280 crore, up 31% YoY. The company attributed this to strong momentum in India and a recovery in North American commercial vehicles. However, wiring harness margins were slightly impacted by copper inflation, with EBITDA margin at 11.1% versus 11.4% a year ago.

Modules and Polymer Products remained the largest division by revenue in the disclosed split, with Q1 FY27 revenue of Rs 16,695 crore, up 11% YoY. The company described demand as soft across key markets, but margins improved by about 50 bps YoY, supported by transformation and cost-saving initiatives in Europe, partially offsetting higher crude-linked polymer prices.

Vision Systems delivered a resilient quarter, with Q1 FY27 revenue of Rs 5,654 crore, up 10% YoY, and EBITDA margin stable at 9.2%. Integrated Assemblies grew 5% YoY to Rs 2,950 crore, with margin improving to 12.6% from 11.4%, driven by cost optimisation initiatives and operational efficiency.

Emerging Businesses, which includes a collection of newer verticals such as aerospace, logistics and technology solutions, grew 30% YoY to Rs 4,795 crore. Management noted that this bucket includes multiple early-stage businesses and that reporting granularity may evolve as these verticals scale.

Capex remains elevated, but leverage is at a low

Motherson continued to invest heavily. Q1 FY27 capex was Rs 1,614 crore, equal to 52% of EBITDA. Management reiterated FY27 capex guidance of Rs 6,000 crore plus or minus 10%. The company also disclosed how it expects to deploy that capex: around 50% toward growth capex and around 50% toward regular capex, with around 60% directed to non-auto businesses.

Capacity expansion remains largely focused on emerging markets. The company reported three plants operationalised during the quarter and disclosed 13 facilities at different stages of completion across divisions. The table includes projects across India, Morocco, Poland, UAE and Hungary, with SOP timelines ranging from Q2 FY27 to Q1 FY28 and beyond.

Despite this investment cycle, leverage remains a key support. The company reported a leverage ratio of 0.8x as of Jun-26, described as the lowest ever. It also disclosed liquidity of Rs 15,633 crore as of 30 June 2026, comprising unrestricted cash and cash equivalents of Rs 8,606 crore and committed undrawn facilities of Rs 7,027 crore.

M&A activity expands technology and product scope

The quarter included one new acquisition announcement and two subsequent deal completions in July. Motherson announced the acquisition of Shenzhen Autocruis in China, a player in interior and exterior digital vision and monitoring systems. The company listed key products such as camera monitoring systems, full display mirrors, 360-degree around view monitoring, driver monitoring systems, and dashcams with video recording.

In July 2026, the company completed the acquisition of Nexans Autoelectric’s wiring harness business and Yutaka Giken. Management stated on the earnings call that Nexans and Yutaka together could contribute close to USD 2 billion to annualised topline, while also noting that newly acquired businesses may not immediately match industry benchmark margins and would be improved over time through transformation.

What to track from here

Management commentary points to a familiar balancing act: growth delivery in a weak global auto production backdrop, while managing commodity inflation and pass-through lags. Copper inflation remains particularly relevant for wiring harnesses, while crude-linked polymer prices and freight volatility affect modules, polymer and vision systems.

At the same time, Motherson’s balance sheet and liquidity profile provide flexibility. The company is investing in capacity, particularly in emerging markets, and remains active in acquisitions to broaden its technology stack, especially in vision and monitoring systems.

The quarter’s theme is disciplined execution in a volatile cost environment. Q1 FY27 sets a strong opening marker on revenue and profitability, while the key debate for the rest of FY27 will center on how quickly commodity headwinds are passed through, how smoothly new capacities ramp, and how effectively recent acquisitions are integrated into the operating model.