Samvardhana Motherson Q2 FY27 Results Analysis: PAT Jumps 42%, Record Revenue on Acquisitions
Samvardhana Motherson International Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 38,279.85 Cr (+26.90% YoY) and PAT growth of +42.10% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 38,279.85 Cr (+26.90% YoY) |
| PAT (Q2) | Rs. 1,175.32 Cr (+42.10% YoY) |
| EBITDA margin | 8.76% (-26 bps YoY) |
| EPS (Q2) | Rs. 1.11 (+42.30% YoY) |
Quarter Snapshot
Motherson delivered record revenue of Rs.38,279.85 crore (+26.9% YoY) with owners' PAT up 42.1% to Rs.1,175.32 crore, aided by first-time consolidation of the Nexans Autoelectric and Yutaka Giken acquisitions and margin gains in modules & polymer. EBITDA margin dipped 26 bps YoY on commodity inflation while leverage stayed at ~0.72x ex-lease and the October CCD conversion removes Rs.52.27 crore of quarterly finance cost going forward. No prior management revenue/earnings guidance numbers are shown in the source, so no guidance beat is claimed; capex is running ahead of the ~Rs.6,000 crore FY27 guidance pace.
Key Investment Insights
Key Positives
- Revenue from operations grew 26.9% YoY and 8.6% QoQ to Rs.38,279.85 crore, a record quarter
- PAT attributable to owners grew 42.1% YoY to Rs.1,175.32 crore; EPS rose to Rs.1.11 from Rs.0.78
- Company-defined EBITDA grew 23.3% YoY to Rs.3,353.03 crore; H1 EBITDA margin expanded to 8.78% from 8.59%
- Modules & polymer segment margin improved to 8.30% from 7.40% YoY and 6.85% QoQ, with results up 16.4% on 3.8% revenue growth
- Net leverage at ~0.72x ex-lease, inside the 1.5x internal aspiration; D/E improved to 0.43 from 0.45
- CCD conversion of Rs.1,450.10 crore into equity (October 8, 2026) removes Rs.52.27 crore per quarter of finance cost from future quarters
- Effective tax rate fell to 28.59% from 31.64% YoY; no exceptional items booked this quarter
- JCR upgraded outlook to Positive (September 2026); MECL Pune EMS facility commissioned (Rs.940 Mn)
Risk Factors
- EBITDA margin softened 26 bps YoY to 8.76% (9.01% in Q2FY26) as cost of materials rose to 55.9% of revenue from 54.1% on copper/polymer inflation
- Wiring harness margin eased to 9.96% from 10.45% YoY and emerging businesses margin dipped to 8.41% from 9.49% YoY
- Finance costs rose 35.8% YoY to Rs.524.75 crore on the acquisition-funded balance sheet
- H1 free cash flow was negative Rs.949.92 crore; CFO fell to Rs.2,810.92 crore from Rs.3,449.48 crore
- Standalone PAT fell 38.3% YoY to Rs.451.38 crore as other income halved and tax normalized
- Other unallocable income swung adversely by Rs.98.80 crore (Rs.131.11 crore to Rs.32.31 crore)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.