Samvardhana Motherson Q3 Revenue Hits Record ₹31,409 Cr

Introduction

Samvardhana Motherson International Ltd (SAMIL) announced a robust performance for the third quarter of fiscal year 2025-26, ending December 31, 2025. The company achieved its highest-ever quarterly consolidated revenue, which climbed 14% year-on-year to ₹31,409 crore. This growth was underpinned by strong execution across its diversified business portfolio, successful integration of acquisitions, and sustained customer demand globally. The results reflect the company's strategic focus on expansion and operational efficiency, positioning it for continued growth in both automotive and emerging non-automotive sectors.

Record-Breaking Financial Performance

The third quarter financials underscore a period of significant top-line growth and stable profitability. The consolidated revenue of ₹31,409 crore was a new benchmark for the company. Alongside this, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 10% year-on-year to reach ₹3,042 crore. The company's operating margin remained steady at 9.7%, demonstrating its ability to manage costs effectively amidst a dynamic global environment. Furthermore, normalized Profit After Tax (PAT) attributable to the company saw a substantial 21% year-on-year surge to ₹1,061 crore, benefiting from reduced finance costs and improved contributions from its joint ventures and associates.

Management Commentary on Strategic Execution

Vivek Chaand Sehgal, Chairman of Samvardhana Motherson, commented on the strong quarterly results, stating that the performance reaffirms the company's position as a global specialist in design, engineering, manufacturing, and logistics. He attributed the record revenue to the deep trust of customers, the company's diverse capabilities, and excellent global execution. Sehgal emphasized that these results were achieved while the company continued to make strategic investments aimed at securing future growth, highlighting a balanced approach between current performance and long-term value creation.

Investment in Future Growth

A key aspect of the quarter was the company's continued investment in expanding its manufacturing footprint. Samvardhana Motherson incurred a capital expenditure (capex) of ₹1,594 crore, which is equivalent to 52% of its EBITDA for the period. This capital was primarily directed towards upcoming greenfield projects and essential maintenance. The company announced two new greenfield facilities during the quarter: a wiring harness plant in Morocco and a vision systems unit in Pune. These expansions are strategically located in emerging markets to cater to growing regional demand.

Maintaining Financial Discipline

Despite significant investments and elevated working capital requirements, the company successfully maintained its financial discipline. The net leverage ratio remained stable at a comfortable 1.1x. This indicates a strong balance sheet and prudent capital management, providing the company with the flexibility to pursue further growth opportunities. Management has also indicated that efforts are underway to gradually deleverage the business over time, reinforcing its commitment to a healthy financial profile.

Divisional Performance Breakdown

Performance was strong across the company's key business divisions on an Economic Value basis, which includes joint ventures.

• Modules & Polymer Products: This division saw its revenue increase to ₹15,775 crore, with its EBITDA margin improving slightly to 9.4%. This was partly driven by operational improvements from transformative measures in Central and Western Europe.
• Vision Systems: Revenue grew to ₹5,247 crore, while the division maintained a consistent EBITDA margin of 9.2%.
• Integrated Assemblies: This segment demonstrated robust margin expansion, with its EBITDA margin rising to 15.2% from 13.3% in the prior year. Revenue for the division grew to ₹2,759 crore.
• Wiring Harness: Revenue increased to ₹9,083 crore. However, the EBITDA margin contracted slightly to 9.7%, impacted by downturns in the North American commercial vehicle market and elevated commodity prices, particularly copper.

Key Financial Highlights for Q3 FY26

Emerging Business Segments and Outlook

Samvardhana Motherson is also accelerating its diversification into non-automotive sectors. The consumer electronics facility ramp-up is on track, with a target to achieve an annual run rate of over 16 million units by the end of FY26. The aerospace business also showed significant momentum, recording approximately 41% year-on-year growth in the third quarter, supported by an expanded product range for business jets and rotary wing aircraft. Looking ahead, the company expects recently announced mergers and acquisitions to be finalized in the first half of FY27, which will further boost its growth trajectory.

Market Reaction

The stock market responded positively to the strong quarterly performance. Following the announcement, shares of Samvardhana Motherson International Ltd rose, touching an intraday high of ₹131.89 on the National Stock Exchange. The stock was trading at ₹128.55 in the afternoon, marking a gain of 3.33% for the day, reflecting investor confidence in the company's strategy and financial health.

Conclusion

Samvardhana Motherson's Q3 FY26 results demonstrate a company firing on all cylinders. The record-breaking revenue, stable margins, and strong profit growth highlight its operational excellence and the success of its diversification strategy. With continued investments in greenfield projects, a disciplined financial approach, and accelerating growth in emerging business areas, the company is well-positioned to build on its market leadership and deliver sustained value to its stakeholders.