Samvardhana Motherson International Q1 results: Cons PAT falls 40% YoY at Rs 871 crore, revenue rises 3%

Samvardhana Motherson International posted its first quarter results for FY26, reporting a 39.7% year-on-year (YoY) decline in its consolidated profit after tax (PAT) at Rs 871.84 crore, versus Rs 1,445.20 crore in Q1FY25. The revenue from operations for the quarter, however, witnessed a 3% YoY rise.

The total revenue from operations for the company stood at Rs 30,212 crore, increasing from Rs 29,316.83 crore in the same quarter last year.

Further, Samvardhana Motherson reported an EBITDA of Rs 2,466 crore in Q1 FY26, down from Rs 2,785 crore in Q1 FY25. This translated to an EBITDA margin of 8.2%, compared to 9.6% in the same quarter last year.

The decline was attributed to structural issues in Western and Central Europe, a timing lag in tariff-related pass-through of costs, and greenfield-related start-up expenses, particularly in its non-automotive businesses. Additionally, early-stage integration adjustments for certain newly acquired assets also impacted performance.

In its investor presentation, Samvardhana Motherson clarified that there is no material impact on the company from the recently imposed US tariffs on India.

The company noted that exports from India to the US accounted for less than USD 10 million in Q1 FY26, minimizing exposure. Most external contracts are structured as ex-works, and for the remainder, mitigation measures such as alternative supply chain solutions are being implemented.Motherson highlighted its strong positioning to navigate tariff headwinds through its globally local presence, operational excellence, and long-standing customer relationships. The company stated that the majority of its sales to US customers are USMCA-compliant, supported by ongoing localization initiatives. For non-USMCA-compliant parts, agreements are in place with customers to pass on related costs, alongside efforts to develop new supply chain solutions.Samvardhana Motherson reported that global automotive production continued to face pressure in developed markets during Q1 FY26, with notable regional variations in performance.On a global scale, light vehicle production rose by 2% year-on-year, while commercial vehicle production remained flat. In Europe, light vehicle output fell by 4% and commercial vehicle production declined by 1%. North America also saw a 4% drop in light vehicles, accompanied by a steep 29% contraction in commercial vehicles, which the company attributed to cyclical headwinds.

India recorded a 4% increase in light vehicle production and a modest 1% rise in commercial vehicles. In contrast, China posted stronger growth, with light vehicle production up 9% and commercial vehicles surging by 17%.

Production volumes for global light vehicles stood at 22.5 million units, while global commercial vehicle production reached 856,000 units for the quarter.

Key highlights:

• Revenue outpaced the Industry, contributed by well-executed M&As and resilient organic business.
• Transitory Impact on Profitability – measures already underway to mitigate the industry challenges in close collaboration with our customers.
• Three Greenfields operationalised during the quarter; the remaining 11 are at different stages of completion.
• 2 New Strategic Partnerships announced in line with the increase in content per car strategy.
• Comfortable Leverage ratio of 1.1x enabling both organic and inorganic growth opportunities.

The company’s results were announced during market hours, after which, the stock was trading 3% higher at Rs 93.06 on the BSE

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