Samvardhana Motherson Surpasses Estimates with Strong Q2 Revenue and Profit Growth

Samvardhana Motherson International Limited posted impressive financial results for the second quarter of fiscal 2026, showcasing resilience and growth amid dynamic market conditions. The company's consolidated revenue from operations reached ₹301.73 billion, marginally above the analyst estimate of ₹297.98 billion, reflecting strong demand across automotive and non-automotive segments.

Net profit jumped 62% year-on-year to ₹8.27 billion, outperforming the IBES estimate of ₹8.02 billion. This growth highlights effective cost management and improved operational efficiencies. EBITDA increased by 6% to ₹26.11 billion, with a margin expansion of 50 basis points to 8.65%, driven by robust contributions from wiring harnesses, integrated assemblies, and vision systems. The modules and polymers divisions saw margin pressures but remain on a transformative growth trajectory.

Chairman Vivek Chaand Sehgal emphasized the company’s strong booked business pipeline of $87.2 billion, providing visibility for the next five to six years. Strategic acquisitions in Japan, Australia, and Singapore further enhance global capabilities, reinforcing its leadership stance in auto components and diversified segments.

Key Highlights:

Consolidated revenue from operations: ₹301.73 billion (est. ₹297.98 billion)

Consolidated net profit: ₹8.27 billion, 62% YoY growth (est. ₹8.02 billion)

EBITDA: ₹26.11 billion, up 6% YoY; margin expanded by 50 bps to 8.65%

Strong performance in wiring harness, integrated assemblies, and vision systems

Margin pressure in modules and polymers, undergoing transformation

Booked business at $87.2 billion, ensuring long-term revenue visibility

Strategic acquisitions: Yutaka Giken (Japan), Rubbertec (Australia), Rider Dome (Singapore)

Stock climbed over 4% on strong earnings reaction

With these results, Samvardhana Motherson confirms its robust operational and financial health while continuing to invest in global expansion and innovation.

Sources: Upstox, Hindustan Times, Marketscreener