Samvardhana Motherson Q4 Results Highlights: Profit jumps 40% YoY to ₹1,562 crore; stock reverses gains

Samvardhana Motherson International share price closed the session 0.08% lower, erasing all gains recorded after results announcement.

FY26 was another defining year for Motherson. We have delivered our best-ever yearly revenues and resilient profitability in a challenging macroeconomic environment. Our long-time focus on diversification helped us outperform the market. We continued to remain focused on improving capital efficiency while making strategic investments for future growth to support our customers. The improvement in the leverage ratio and a strong booked business of USD 96 billion reinforce our commitment to sustainable value creation. We are progressing confidently towards Vision 2030 while navigating unforeseen challenges and pursuing long-term opportunities.

We remain proud of our proven executional and D.E.M.A.L. capabilities and thankful to our customers for their trust and to our teams who are making this possible.

— Vivek Chaand Sehgal, Chairman, Motherson

Leverage Ratio came in at 0.8x, down from 0.9x as at the end of FY25. It was also the lowest ever in the company’s history.

The company said it booked business of $96 bn, providing robust visibility of near-to-mid-term growth. It saw a balanced contribution from Automotive (75%), Automotive EVs (22%) and Non-Automotive (3%).

The company recorded a capex of ₹5,911 crore for FY26. For FY27, its capex outlook is ₹6,000 crores +/- 10%; 50% of FY27 capex to be growth capex, 60% of which to be for Non-Automotive business.

EBITDA for the quarter under review rose 24.5% YoY to ₹3,790.79 crore. The figure stood at ₹3,043 crore in the third quarter of FY2.

Revenue from operations for the quarter under review rose by 17% YoY and 9.23% QoQ to ₹34,309.31 crore — the highest ever. In Q4FY25, revenue was ₹29,316.83 crore while in Q3FY26, it was ₹31,409.39 crore.

Samvardhana Motherson board recommended a final dividend of ₹0.25/- (Twenty-Five Paise only) per equity share (face value of Re. 1/- each) on entire equity share capital consisting of 10,55,44,42,601 nos. of equity shares, for financial year 2025-26, subject to approval of shareholders at the ensuing Annual General Meeting (AGM) scheduled to be held on July 30, 2026. The final dividend, if declared, by the Shareholders at forthcoming AGM shall be paid within 30 days from date of declaration.

Samvardhana Motherson posted a consolidated profit of ₹1,561.56 crore for the January-March quarter of the financial year 2025-26 (FY26) as against a profit of ₹1,115.38 crore for the same period last year, recording a growth of 40% YoY.

JM Financial said that it expects 4.8% QoQ growth in the topline led by strong emerging business performance. On a YoY basis, it expects the revenue to grow 12.2%.

According to Elara Capital, SMIL is likely to report a 14% jump in sales on a YoY basis while PAT could grow 8.8%. As for EBITDA, the figure could rise 13.8%. However, it has a sell call on the counter.

Motilal Oswal said that it expects Samvardhana Motherson margins to gradually improve QoQ on the back of its cost-cutting initiatives and seasonally strong demand. Given strong revenue growth and margin expansion, we expect SAMIL to post 30% growth YoY in PAT in 4Q, it added.

Execution of a healthy order book, integration benefits from recent acquisitions, currency translation gains, and pass-through of copper inflation should help offset demand weakness in end markets. MOSL expects 4Q revenue growth of 12% YoY.

– MOSL

Samvardhana Motherson said that the Board of Directors shall also, inter-alia, consider and evaluate a proposal for obtaining in-principle approval for raising of funds through issuance of bonds, debentures, non-convertible debt securities and/or any other eligible securities or instruments, by way of private placement, in one or more tranches/series or otherwise, as may be permitted under applicable laws.

Auto ancillary company Samvardhana Motherson has fixed Wednesday, 20 May, as the date to announce its January-March (Q4) results for the financial year 2025-26 (FY26).

The company's board will also consider a dividend along with fundraising plans at today's meeting.