Announced Wed, 20 Aug · 19:14 IST

Samvardhana Motherson International Limited has submitted with the exchange transcript of earning call for the quarter ended June 30, 2025.

Mgmt Guided Margin ImprovementPromoter Disclosed Acquisition PlansOrder Pipeline DisclosedAnalyst Day Multiyear TargetsCfo Debt Reduction RoadmapMgmt Evaded Key QuestionInvestor Communications View source PDF

MOTHERSON · price

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Price reaction · full curve

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AI summary

Samvardhana Motherson International reported its highest-ever quarterly revenue of INR 30,200 crores in Q1 FY26, up 5% year-on-year, with EBITDA of INR 2,466 crores and normalized PAT of INR 667 crores. Management called Q1 a 'work in progress' quarter, with margins under transitory pressure from European structural issues, tariff costs, greenfield start-up costs, and forex volatility. The company booked INR 136 crores in exceptional provisions for a European restructuring programme aimed at delivering EUR 50 million in cost savings. Capex for the quarter stood at INR 1,200 crores, with full-year guidance of INR 6,000 crores plus/minus 10%. Net debt-to-EBITDA rose slightly to 1.1x due to working capital build-up and a INR 600 crore forex translation impact. Management is targeting a sharp $108 billion revenue milestone (4x the previous target) and signalled strong acquisition intent, with an investor conference scheduled for September 5 in Mumbai.

Likely market impact

Near-term margins may remain soft, but management has explicitly guided that Q1 should mark the trough and H2 FY26 should deliver meaningful improvement driven by European restructuring benefits, greenfield ramp-ups, and M&A integration. The new $108 billion revenue aspiration and active acquisition pipeline signal a long-term growth push, supported by a relatively healthy balance sheet (1.1x net debt/EBITDA).