Motherson Sumi Wiring: Q2 revenue rises 47%, margin falls

Motherson Sumi Wiring India Limited, referred to here as Motherson Sumi Wiring, reported Q2 FY27 revenue of Rs 4,054 crore, up 47% year on year and 19% quarter on quarter. Sales grew faster than the disclosed passenger-vehicle volume growth, but EBITDA margin fell to 9.2% from 10.1% as copper prices and other costs increased.

Why did Motherson Sumi Wiring revenue grow faster than vehicle volumes?

Motherson Sumi Wiring's Q2 FY27 revenue rose to Rs 4,054 crore from Rs 2,762 crore in Q2 FY26, a 47% increase. This was 22 percentage points above the 25% year-on-year growth in passenger-vehicle industry volumes disclosed in the presentation. Management identified premiumisation-led higher content per vehicle and new electric vehicle, or EV, and internal-combustion-engine, or ICE, model wins as the key growth drivers.

Sequentially, Motherson Sumi Wiring's revenue increased 19% from Rs 3,407 crore in Q1 FY27 to Rs 4,054 crore in Q2 FY27. Passenger-vehicle industry volumes rose 14% quarter on quarter, leaving the company's reported sales growth five percentage points higher than the industry-volume measure. Management said timely expansion and ramp-up of greenfield projects supported the higher customer volumes.

The absolute revenue increase was Rs 1,292 crore from Q2 FY26 and Rs 647 crore from Q1 FY27. Management linked the year-on-year gain to premium-vehicle content and model wins, while linking the quarterly increase partly to higher customer volumes and greenfield ramp-ups. The presentation does not provide a revenue split between premium, EV, ICE or greenfield programmes.

How did Motherson Sumi Wiring's Q2 profit and margin change?

Motherson Sumi Wiring's Q2 FY27 EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 34% to Rs 374 crore from Rs 280 crore, while EBITDA margin declined to 9.2% from 10.1%. Revenue grew 47%, faster than EBITDA growth of 34%, resulting in a 0.9-percentage-point year-on-year margin decline. Management cited higher copper prices and other inflationary pressures as headwinds.

Profit before tax, or PBT, increased 35% to Rs 299 crore in Q2 FY27 from Rs 221 crore in Q2 FY26. Profit after tax, or PAT, also rose 35% to Rs 223 crore from Rs 165 crore. The company therefore reported higher profit in rupee terms despite the lower year-on-year EBITDA margin.

Quarter on quarter, EBITDA rose 45% from Rs 258 crore in Q1 FY27 to Rs 374 crore in Q2 FY27, and EBITDA margin increased to 9.2% from 7.6%. PBT rose 53% from Rs 195 crore to Rs 299 crore, while PAT increased 54% from Rs 145 crore to Rs 223 crore. Those profit growth rates exceeded the 19% sequential revenue increase.

What did copper inflation mean for Motherson Sumi Wiring?

Motherson Sumi Wiring reported that copper prices rose about 6% quarter on quarter and about 54% year on year in Q2 FY27. The average copper price was Rs 1,430 per kg in Q2 FY27, compared with Rs 1,348 per kg in Q1 FY27 and Rs 929 per kg in Q2 FY26. The year-on-year increase coincided with EBITDA margin falling from 10.1% to 9.2%.

Management said it was continuing constructive discussions with customers to recover cost increases and maintain business momentum. This was a stated recovery mechanism rather than a disclosed result: the presentation gives no value for price recovery, no timing for customer agreements and no indication that all cost inflation had been passed through by September 30, 2026.

The Q2 FY27 margin recovered sequentially to 9.2% from 7.6% in Q1 FY27 despite the approximately 6% quarterly copper-price increase. However, the margin remained below the 10.1% recorded in Q2 FY26, when average copper was Rs 929 per kg rather than Rs 1,430 per kg. The disclosed figures distinguish sequential margin improvement from year-on-year margin compression.

How did Motherson Sumi Wiring perform in the first half?

Motherson Sumi Wiring's H1 FY27 revenue rose 42% to Rs 7,461 crore from Rs 5,256 crore in H1 FY26. EBITDA increased 21% to Rs 632 crore from Rs 524 crore, slower than revenue growth, and the half-year EBITDA margin declined to 8.5% from 10.0%. The six-month comparison mirrors the Q2 pattern of rising sales and earnings alongside lower margins.

H1 FY27 PBT increased 20% to Rs 495 crore from Rs 411 crore, and PAT rose 20% to Rs 369 crore from Rs 308 crore. The Rs 2,205 crore increase in half-year revenue was accompanied by a Rs 108 crore increase in EBITDA and a Rs 61 crore increase in PAT. The presentation does not identify the contribution of individual customers, vehicle models or greenfield sites.

EVs accounted for 10% of Motherson Sumi Wiring's revenue in Q2 FY27 and 9.3% in H1 FY27. Management also named new EV and ICE model wins as growth drivers, indicating that both vehicle types contributed to the reported sales expansion. Because the 10% quarterly share and 9.3% half-year share cover different periods, they describe revenue mix rather than a like-for-like growth rate.

Conclusion

Motherson Sumi Wiring combined Q2 FY27 revenue growth of 47% with PAT growth of 35%, supported by higher content per vehicle, model wins and greenfield ramp-ups. Revenue reached Rs 4,054 crore and PAT reached Rs 223 crore, while the EBITDA margin declined by 0.9 percentage points year on year as copper and other input costs increased.

The unresolved item to watch is management's customer discussion on recovering higher costs, with copper rising about 6% quarter on quarter and 54% year on year in Q2 FY27. Subsequent results will also show how greenfield ramp-ups and the 10% EV revenue share reported for Q2 FY27 affect sales growth and margins.