MOTHERSON Q1 FY26 earnings call.
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Revenue
₹30,212 Cr
verified against source
Revenue YoY
5%
reported change
EBITDA
₹2,466 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Samvardhana Motherson reported Q1 FY26 revenue of ₹30,200 crores (highest ever quarterly), up 5% YoY, despite persistent industry headwinds and tariff-induced volatility. EBITDA stood at ₹2,466 crores (8.17% margin) with normalized PAT of ₹667 crores. The 5% revenue growth includes ~₹700 crores from Atsumi acquisition; organic growth was 2% YoY. Management has undertaken transformative measures in Central/West Europe targeting €50 million cost savings, booking ₹136 crores provisions as exceptional items with payback under one year. The net debt-to-EBITDA ratio increased to 1.1x due to elevated working capital from tariff uncertainty, geopolitical tensions, and forex volatility. Non-auto businesses delivered 40% YoY growth. Guidance for full-year capex remains ~₹6,000 crores (±10%) with H2 expected to show improved performance as greenfields ramp up, recent acquisitions integrate, and new customer program launches materialize. Risks include structural issues in developed markets, commercial vehicle softness (North America down 29% YoY), and working capital normalization challenges.
Colored figures show movement against the previous available record.
Guidance to track
- Q3 and Q4 should show improved performance driven by completion of Europe restructuring (€50M savings), tariff cost pass-through to customers, greenfield ramp-up, and M&A integration benefits.
- Capex guidance maintained at ~₹6,000 crores with 50/50 split between growth and maintenance capex. Two greenfields (aerospace and elastomer) postponed by a few quarters; will recalibrate based on production environment.
- Provisions of ₹136 crores booked for Europe restructuring; cash out over next 3 quarters with payback of less than one year from realized cost savings.
- New facility commissioning in Q2 FY26; targeting 15-17 million unit capacity by FY26 end with meaningful revenue contribution from larger facility in FY27.
Risks flagged
- North America commercial vehicle segment degrew 29% YoY with visible softening. This was raised by analysts and acknowledged by management as a persistent structural issue in developed markets.
- Working capital increased due to tariff uncertainty requiring buffer inventory, geopolitical tensions (Iran-Israel, Gaza, UK-Russia) affecting freight and goods movement, and regulatory payment term changes in certain regions. Translation impact on debt was ~₹600 crores.
- M&P division EBITDA margin fell from ~9% to ~6-6.5% due to European automotive production decline surprising Q4 FY25, customer model transition timing, and acquisition integration costs. Management expects this to be the peak impact quarter.
- Two greenfield facilities (aerospace and elastomer) postponed by several quarters. Aerospace delay is aligned with customer production plan changes, not order loss. Revenue ramp expectations need adjustment.
Key quotes
- This is a work in progress quarter and all the steps that we are taking to mitigate the prevailing headwinds and breed with the market.
- Most of these things... will pay back within the year... and in Q3 and Q4 you should see the impact of this play out and lead to a much better result in the region.
- We have a globally local strategy and hence a significant level of our production is in the local country of consumption. As a result, majority of our sales to customers in the US are USMCA compliant.
- Mother was never an export company. We never... would have taken a lot of the awards of highest exports from India. We were not even mentioned. So that's the plan of Motherson is not to export.
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