For FY26, it has guided for a capex of over ₹6,000 crore with ₹2,653 crore deployed in the first half. During the September quarter, two new greenfield plants became operational, while 10 additional facilities are in various stages of completion, most expected to contribute from FY27. Analysts have maintained ‘BUY’ with 8-17% upside to Wednesday’s closing of ₹119.6.
Samvardhana’s order book was $87.2 billion at the end of September and executable over next five-six years, including $3 billion from non-auto businesses such as consumer electronics and aerospace. The EV (electric vehicles) platforms accounted for 22% of the automotive order book, down from 24% in March 2025 quarter, reflecting a slowdown in the EV adoption.
The company announced three acquisitions in the September quarter: Yutaka Giken (Japan) to deepen its Honda partnership and add advanced motor rotors, stator assemblies, and thermal management capabilities; Rubbertec (Australia) to enhance elastomer product portfolio; and Rider Dome (Singapore) to enter advanced rider assistance systems for two-wheelers.
VISIBILITY Capacity ramp-up and execution strength to underpin growth, margins despite near-term tariff headwinds
During the September 2025 quarter, the company’s revenue increased 8.5% year-on-year to ₹30,173 crore. After excluding, exceptional item and one-time gain, earnings before interest, tax, depreciation and amortisation (Ebitda) grew 10.4% to ₹2,719 crore and net profit grew 13.2% to ₹845.6 crore. Ebitda margin improved to 9% from 8.9% during the period. While tariffs may cause short-term headwinds in some key markets, the company is likely to remain least impacted given its proximity to customers and ability to realign supplies. Over the long term, analysts expect that industry consolidation could position Motherson as a major beneficiary.
A new engineering building is expected to be commissioned in March 2026 quarter to boost its Gen-AI capabilities, adding 5,000 engineers to meet the five-year revenue aspiration of $108 billion (approximately ₹9 lakh crore) from FY25 level of ₹1.1 lakh crore. Analysts at Emkay, ICICI Securities and Motilal Oswal reiterated BUY , pegging the stock’s target price at ₹129-140, citing strong growth levers in premiumisation, EV transition, and non-auto verticals.
