Source: Mint
New Delhi, August 13, 2025 – Shares in Samvardhana Motherson International Ltd (SAMIL) rose by more than 4% on Wednesday after the company reported Q1 financial results for FY26. The stock closed up 3.51% at ₹93.44 on the BSE.
Earnings Decline, Revenue Increases
The auto parts manufacturer reported a net profit of ₹511.84 crore for Q1 FY26, a decline of 48.5% from ₹994.17 crore for the same quarter last year. The company attributed this decline to temporary challenges and said that considerations and actions are being taken with customers to address them.
Revenue from operations increased 4.7% year-on-year to ₹30,212 crore compared to ₹28,867.96 crore a year prior.
From an operational perspective, EBITDA fell 11.4% to ₹ 2,458 Crores, and EBITDA margin fell to 8.1% from 9.6% last year. This was primarily due to new project startup costs beyond our expectations, expenses for integrating new businesses, and delays in passing on higher costs to customers.
No Major Impact from US Tariffs
Chairman Vivek Chaand Sehgal said the recent US tariffs on India will not have a significant effect on the company.
“We are well-positioned to navigate evolving tariffs with the majority of our sales in the US being USMCA-compliant. For non-USMCA-compliant parts, agreements with customers to pass on related costs are in progress, albeit with a lag. Further, recently levied tariffs on India do not have any material impact on our operations,” said Vivek Chaand Sehgal, Chairman, Motherson.
The company also communicated that exports from India to the US in Q1 were less than 10 million dollars. Many contracts have definitions that limit tariff risks, and many other supply chain solutions are established.
Sehgal said that although the global business climate is uncertain, it also presents opportunities to grow the company through acquisitions.
Q1 FY26 Summary
During Q1 FY26, Samvardhana Motherson recorded a net profit of ₹511.84 crore, a decrease of 48.5% compared to ₹994.17 crore in the same period the previous year. Revenue increased by 4.7% to ₹30,212 crore, relative to ₹28,867.96 crore in the corresponding period last year. EBITDA decreased by 11.4% to ₹2,458 crore, while EBITDA margin decreased by 150 basis points to 8.1% as compared to 9.6% in Q1 FY25.
To sum up, although Samvardhana Motherson’s profits and margins were down in the first quarter of FY26, the increase in revenue, low tariff impact, and stated strategies led investors to remain confident, which drove the stock higher.
