Motherson Reports Record Q1 FY27 Revenue of ₹35,244 Crore, Profit Surges 55% on Strong Operational Performance

Samvardhana Motherson International Limited (Motherson) has kicked off FY27 with its strongest-ever quarterly performance, reporting record consolidated revenue of ₹35,244 crore, a 26% rise in EBITDA, and a remarkable 55% jump in normalized profit after tax (PAT). The company also achieved its lowest-ever leverage ratio, continued investing in capacity expansion, and announced strategic acquisitions to strengthen its technology portfolio.

Record-Breaking Start to FY27

Motherson delivered its highest-ever quarterly revenue, driven by robust growth across its automotive businesses despite a challenging global operating environment marked by geopolitical tensions, rising raw material prices, and slowing vehicle production in several markets.

Q1 FY27 Financial Highlights

The strong profitability was driven by operational efficiencies, disciplined cost optimization, and improved business scale, which helped offset higher commodity costs.

Key Operational Highlights

Beyond strong financial performance, Motherson continued executing its long-term growth strategy through investments, acquisitions, and capacity expansion.

Major Highlights

• Lowest-ever leverage ratio of 0.8x
• Capex of ₹1,614 crore during the quarter
• Three manufacturing plants operationalized
• One new acquisition announced
• Two acquisitions successfully completed

Strategic Acquisitions Expand Technology Portfolio

Motherson strengthened its position in next-generation mobility through strategic acquisitions.

1. Shenzhen Autocruis (China)

The company announced the acquisition of Shenzhen Autocruis, expanding its capabilities in advanced digital vision technologies.

The acquisition adds products including:

• Camera Monitoring Systems (CMS)
• Full Display Mirrors (FDM)
• Around View Monitoring (AVM)
• Driver Monitoring Systems (DMS)
• Dashcams

This strengthens Motherson’s offerings in digital vision systems for modern vehicles.

2. Nexans Autoelectric

Completed on 3 July 2026, this acquisition enhances Motherson’s global wiring harness business through products such as:

• Passenger vehicle wiring harnesses
• Commercial vehicle wiring harnesses
• Specialty harnesses
• Safety components

3. Yutaka Giken

Completed on 21 July 2026, the acquisition expands the company’s vehicle systems portfolio with:

• Exhaust systems
• Brake discs
• Drive systems
• EV motor components

Global Challenges Continue

Management highlighted several macroeconomic challenges affecting the automotive industry:

• Slowing vehicle production in China
• Soft demand across Europe
• Geopolitical tensions in the Middle East
• Rising copper and crude oil prices
• Inflationary pressure across major economies

Copper prices increased around 40% year-on-year, while higher crude prices pushed up the cost of polymers, paints, rubber, and other raw materials. Despite these pressures, Motherson improved its margins through operational efficiencies.

Continued Investments for Future Growth

Motherson invested ₹1,614 crore in capital expenditure during Q1 FY27, in line with its annual guidance of ₹6,000 crore (±10%).

Most of the investments are focused on:

• Emerging markets
• Non-automotive businesses
• Capacity expansion
• Backward integration
• New manufacturing capabilities

The company currently has 13 facilities under various stages of expansion across India, Morocco, Poland, UAE, and Hungary.

Strong Balance Sheet

Motherson maintained financial discipline while continuing aggressive investments.

Balance Sheet Highlights

The company noted that its strong liquidity and comfortable debt repayment profile provide ample flexibility for future expansion and acquisitions.

Business Segment Performance

Wiring Harness

• Revenue: ₹11,280 crore
• EBITDA: ₹1,253 crore
• Continued strong growth in India and North America
• Integration of Nexans Autoelectric expected to boost future growth.

Modules & Polymer Products

• Revenue: ₹16,695 crore
• EBITDA: ₹1,144 crore
• Margin improvement despite soft global demand.

Vision Systems

• Revenue: ₹5,654 crore
• EBITDA: ₹520 crore
• Stable margins and expanded digital mirror capabilities through the Shenzhen Autocruis acquisition.

Integrated Assemblies

• Revenue: ₹2,950 crore
• EBITDA: ₹372 crore
• Improved profitability through automation and cost optimization.

Emerging Businesses

• Revenue: ₹4,795 crore
• EBITDA: ₹405 crore

Growth Beyond Automotive

Motherson continues diversifying beyond automotive through its D.E.M.A.L. (Design, Engineering, Manufacturing, Assembly & Logistics) capabilities.

The company highlighted growth opportunities in:

• Aerospace
• Consumer Electronics
• Health & Medical
• Logistics
• Technology & Software
• Semiconductor-related businesses

Its aerospace business recorded more than 20% revenue growth, while the order book expanded by over 17% since FY26-end.