Motherson Q2 revenue rises 27% as EBITDA margin slips

Motherson reported record Q2FY27 revenue of Rs 38,280 crore, up 27% year on year, while reported EBITDA margin declined to 8.8% from 9.0% because of newly acquired asset integration. EBITDA rose 23% to Rs 3,353 crore, and management said margins improved both year on year and sequentially excluding the acquisition effect.

What drove Motherson's record Q2FY27 revenue?

Motherson’s Q2FY27 revenue increase was driven by Autoelectric and Yutaka Giken integration and robust wiring harness performance. Consolidated revenue rose by Rs 8,107 crore from Rs 30,173 crore in Q2FY26 to Rs 38,280 crore in Q2FY27, which Motherson identified as its highest-ever quarterly revenue.

The quarterly growth came while global light-vehicle production declined 2.3% year on year in Q2FY27, although global commercial-vehicle output rose 7.6%. India reported 15.4% light-vehicle production growth and 18.9% commercial-vehicle growth, while Greater China recorded declines of 5.5% and 1.9%, respectively.

Motherson’s H1FY27 revenue reached Rs 73,524 crore, up 22% from Rs 60,385 crore in H1FY26. The half-year increase of Rs 13,139 crore was slower than the 27% Q2 rate, but management cited the same drivers: wiring harness momentum and acquisition integration.

Why did Motherson's Q2FY27 EBITDA margin slip?

Motherson’s reported Q2FY27 EBITDA margin slipped 20 basis points to 8.8% because it was integrating newly acquired assets. EBITDA, or earnings before interest, tax, depreciation and amortisation, still rose by Rs 634 crore to Rs 3,353 crore from Rs 2,719 crore, but its 23% growth trailed the 27% rise in revenue.

Management said Q2FY27 margin improved both year on year and sequentially after excluding the acquired-asset impact, without disclosing an adjusted percentage or a separate financial effect for Autoelectric and Yutaka Giken. In contrast, H1FY27 reported EBITDA margin increased to 8.8% from 8.6% in H1FY26 as EBITDA rose 25% to Rs 6,457 crore from Rs 5,185 crore.

For the half year, management attributed margin improvement to cost optimisation and automation in Modules and Polymer Products, or MPP. It said these measures mitigated commodity and input-cost inflation and acquisition integration effects; copper averaged USD 14,104 per metric tonne in Q2FY27, 44% higher year on year, while aluminium averaged USD 3,228, up 23%.

How did Motherson's profit growth compare with sales growth?

Motherson’s normalized profit after tax, or PAT, rose 37% to Rs 1,175 crore in Q2FY27 from Rs 856 crore in Q2FY26, exceeding the 27% revenue growth rate. Management attributed PAT growth to the scale-up of businesses, while the prior-year normalized figure included a Rs 29 crore adjustment for exceptional provisions related to business-transformative measures in Central and Western Europe.

In H1FY27, normalized PAT increased 45% to Rs 2,207 crore from Rs 1,522 crore in H1FY26, compared with revenue growth of 22% and EBITDA growth of 25%. The H1FY26 normalized amount included Rs 184 crore of adjustments, comprising about Rs 45 crore for accelerated amortisation of intangible assets and Rs 139 crore for Central and Western Europe provisions.

Motherson did not disclose reported Q2FY27 PAT in its quarterly comparison. Therefore, the supplied presentation does not allow a like-for-like comparison with reported Q2FY26 PAT of Rs 827 crore, even though it provides normalized PAT for both periods.

What does Motherson's booked business show about future mix?

Motherson reported USD 106 billion of booked business as of September 30, 2026, with automotive at 79%, automotive electric-vehicle programs at 19% and non-automotive at 2%. The total excludes consumer electronics and includes unconsolidated light-vehicle programs; the presentation does not specify when this booked business will convert into revenue.

By business area, MPP accounted for 34% of booked business, followed by wiring harness at 29%, vision systems at 17%, emerging business at 13% and integrated assemblies at 7%. This places the wiring harness business cited in Q2FY27 revenue growth alongside a larger MPP share in the disclosed booked-business mix.

Europe represented 35% of booked business by manufacturing location, ahead of India at 23%, North America at 22%, rest of world at 12% and China at 8%. Within automotive booked business, light vehicles accounted for 76%, commercial vehicles 14%, off-highway and rolling stock 4%, two-wheelers 4% and other segments 2%.

How is Motherson funding capacity after Q2FY27?

Motherson spent Rs 1,971 crore on capital expenditure in Q2FY27, equal to 59% of quarterly EBITDA, compared with Rs 1,445 crore or 53% in Q2FY26. Q2FY27 capex was also above Rs 1,614 crore in Q1FY27, when the capex-to-EBITDA ratio was 52%.

Management’s FY27 capex guidance is Rs 6,000 crore, plus or minus 10%, with about 50% allocated to growth capex and about 60% to non-automotive businesses. Motherson listed 17 facilities at different stages of completion, including Q3FY27 logistics projects in India and Hungary and several Q4FY27 projects in India, Mexico, Poland and the United Arab Emirates.

Two wiring harness projects, in India and Morocco, have scheduled start of production in Q1FY28 and Q4FY28, respectively, in alignment with delayed customer programs. Other projects include rear-view mirror capacity in Morocco and India scheduled for Q3FY28, and an Indian wind-power project for captive consumption scheduled for Q3FY28.

Conclusion

Motherson combined a record Rs 38,280 crore Q2FY27 revenue figure with a Rs 3,353 crore EBITDA result and Rs 1,175 crore normalized PAT. Autoelectric and Yutaka Giken integration and wiring harness demand expanded sales, but acquired-asset integration reduced the reported EBITDA margin from 9.0% to 8.8% despite management’s statement of underlying improvement excluding that effect.

The next disclosed markers are progress against FY27 capex guidance of Rs 6,000 crore plus or minus 10%, completion of 17 facilities, and the scheduled start of production at projects running through Q4FY28. The timing of the India and Morocco wiring harness projects remains tied to delayed customer programs, while Motherson has not quantified the margin effect of acquired assets.