Samvardhana Motherson expects stronger second half as non-auto expansion gains traction

Kunal Malani, Chief Financial Officer of Samvardhana Motherson International, expects a stronger performance in the second half of the financial year 2025-26 (FY26) despite muted global automotive demand.A key part of the strategy is expanding beyond auto components into areas such as consumer electronics and aerospace. Malani said these segments are on a high double-digit trajectory, supported by strong order books.

“Europe was a little bit of a miss for the last few quarters. I think that seems to have bottomed out,” he noted, adding that global volume expectations have been revised to 90 million units from 88–89 million.

The industry has adjusted to tariff-related pressures, though the company is still carrying about ₹10 million in additional costs that it plans to pass through during the year. “Much of the not-so-good parts of the industry seem to be behind us,” he said.

The company is building its largest greenfield project for consumer electronics, set to start in the second half of 2026-27 (FY27), along with new facilities for aerospace and medical equipment.Also Read | Samvardhana Motherson shares rise despite biggest client flagging production concerns

While Malani did not give a specific growth number, he said the aim is to do better than last year on both revenue and profit. He emphasised the focus on improving Return on Capital (RoC), currently around 14.5%, with a goal of pushing it a couple of percentage points or more higher this year.

Samvardhana Motherson reported a net profit of ₹827 crore for the July–September 2025 quarter, down 6% from ₹880 crore a year earlier. The company has a market capitalisation of ₹1.15 lakh crore, with its shares slipping about 1% over the past year.

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