MOTHERSON Q4 FY26 earnings call.
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Revenue
₹34,309 Cr
verified against source
Revenue YoY
33%
reported change
EBITDA
Pending
latest reported figure
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Actual signal trajectory
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What the record says.
Motherson Wiring (MSUMI) reported 33% YoY revenue growth in Q4 FY26, crossing ₹10,000 crore annual revenue milestone for the first time, driven by 20-29% volume growth plus ~5% contribution from copper price pass-through. However, gross margin compressed ~290bps due to a ~18% sequential copper price spike creating a 3-6 month pass-through lag, impacting profitability temporarily — management quantified copper's bottom-line impact at 2-2.5% this quarter. Greenfield plants generated ₹443 crore revenue (~₹1,760 crore annualized run rate vs. ₹2,000 crore target), with ₹127 crore net startup cost for full year. Pune plant remains ~40-50% utilized due to delayed OEM model ramp, while Kharadhol is at ~80% and Nagam at ~60%. Management guides ₹200 crore capex for FY27, similar to FY26, with automation and customer-backed greenfield expansion. Debt-free status maintained. Key risks: copper price stabilization needed for margin recovery, Pune volume ramp uncertainty, and emerging polymer/PVC cost pressures without clear pass-through timelines.
Colored figures show movement against the previous available record.
Guidance to track
- Capex for FY27 will be broadly in line with FY26's ~₹190 crore spend, allocated toward customer-backed greenfield expansion, automation/digitization, and replacement capex.
- Three greenfield plants expected to reach ₹2,000 crore annualized revenue once customer volumes achieve projected levels, with profitability normalizing at company-average margins upon reaching ~80% capacity utilization.
- If copper prices remain stable at Q4 levels, gross margins are expected to revert to normalized levels as the 3-6 month pass-through lag fully flows through in Q1 FY27.
- Management expects revenue growth momentum to continue into Q1 FY27, supported by new order wins across ICE, EV, and hybrid powertrains, outpacing single-digit market growth.
Risks flagged
- Pune plant operating at 40-50% utilization due to OEM model launch delays. Management declined to provide firm timeline for volume recovery, deflecting with generic commentary about new model variants and replacement models.
- Copper constitutes 24-28% of costs; 18% sequential price spike compressed margins ~290bps. Polymer/PVC prices are also rising globally — management acknowledged impact but stated pass-through arrangements for these are less clear than for copper.
- Even after copper pass-through completes, management admitted there will be a 'marginal dip' in EBITDA margin due to numerator-denominator effect — revenue and cost increases offset each other but percentage margins may not fully recover to prior levels.
- Manpower costs grew ~25% this year due to greenfield ramp-ups. Management indicated newer expansions will repeat this cost-loading pattern, suggesting near-term margin pressure from labor costs even as top-line grows.
Key quotes
- The cost will be recovered fully with the lag and there will be a denominator factor which will be there, right, because there is no percentage increase — whatever increase will be built in the sales, same amount will be built in the cost. So due to denominator effect some marginal dip we'll see in the EBITDA always.
- We are not a margin-driven company. We are ROS-focused company and we look at the ROS for a year. It is already pretty close to 40% for this year as well. So obviously for some customers it will be a three-month or some customers will be six-month. So you have to look at us from a good amount of period to get the profitability which you want.
- Wherever the growth is happening, Motherson will definitely be a beneficiary of that growth as long as the customer continues to source us, and that is the case right now.
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