Samvardhana Motherson eyes $108 billion revenue in 5 years as electronics, aerospace scale up
Mital said expansion into newer sectors has been supported by customer demand and the company’s integrated manufacturing model.
He said, “Consumer electronics were not there at all. And these are all being driven with the interest from the customers… design, engineering, manufacturing, assembly and also logistic capabilities (DEMAL)… And that will lead to our five-year goal, a vision of about $108 billion.”SAMIL reported consolidated revenue of ₹31,409 crore for the October–December 2025 quarter, up 14% year-on-year (YoY). The company said this was its highest quarterly revenue so far.
The company continues to invest in capacity and new business areas as it scales its global manufacturing and supply chain network.
The company currently has a market capitalisation of about ₹1.42 lakh crore. Its shares have gained more than 56% over the past year, reflecting investor interest in its diversification strategy and growth outlook.
These are the edited excerpts of the interview.
Q: Margins for the modules and polymer business came in at 9.7%, integrated assemblies 15.2%. I guess the margin beat came through from these two segments, right? Is this structural? Is this one-off? And will you be able to sustain margins in these segments, and then, consequently, overall numbers?
A: The company has a diversified portfolio, and definitely we had the highest-ever quarterly revenues and good profitability. Our emerging businesses have also done very well. They led to a growth of about 57%, and the emerging businesses, especially the consumer electronics and aerospace businesses, also continue to grow.
The modules and polymer business have done well. We had announced in quarter one that of the transformative actions, which we were taking, and these transformations have yielded results, and we will continue to see good results as we move forward.
Similarly, in the integrated assembly, this is a new business, which we had acquired. It was a profitable business, which was doing well, and then it had synergies coming from the group. It was only doing assemblies. As we move forward in the group, we have had more integrations. We could do more products which could be built into these integrated assemblies. And hence, we have seen a good, robust performance.
We do believe that the markets are doing well and there is stability. As we move forward, the overall car volumes in the next year are also projected to be quite robust. The commercial vehicle industry had taken a beating.
Q: This is structural, this is improvement, this is here to stay, and will margins be at least what you report in the quarter or higher?
A: Yes, basically, these are structural. And as we move forward, these businesses are also global. They are in different regions, different sets of customers, and different profiles, but these are structural in nature.
Q: And this 20% increase in copper prices, did that negatively impact margins in Q3, and how will it affect margins going forward? Is there a pass-through clause?
A: Yes, we do have pass-through clauses with all our customers. There is a lag in the recovery of copper prices, normally about a quarter or six months in some cases. So, as we move forward, these will get averaged out, but they have an impact of about 1% on the wiring harness business.
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Q: So there was a 1% impact on margins on account of higher copper prices in the wiring business, but in the next one or two quarters, there will be a complete 100% pass-through?
A: Yes.
Q: What percentage of your revenues comes in from the non-auto segment? Because you are seeing some very strong growth in aerospace. So, can you give the current performance in Q3 and the outlook on that, on the overall non-auto business overall?
A: If you see, the emerging business has grown by about 57%. Out of our total growth, this emerging business also includes the integration of Atsumitec, which we had acquired, and the non-auto business we had mentioned last quarter was contributing around 5% of our total revenues. But these are businesses which are growing at a very fast pace.
As you would see, our consumer electronics business is also poised on its ramp-up trajectory. So, by the end of FY26, we will be on a good way to produce about 16 million, and then with our plant three, which is the largest plant in our whole group across all our divisions, it is going to more than double the capacity again. So, this is how we are poised on the consumer electronics side.
On the aerospace side, we are a tier 1 supplier to the major aerospace companies, and with the FTAs coming in, both from the European Union (EU) and from the North American side, it will also give a very good tailwind to these businesses to grow further.
Q: Is aerospace manufacturing is in India?
A: It’s also global. We do manufacture in India as well as in Europe at the moment, and as we move forward, it will again become more and more global. But yes, the aerospace companies have a very strong interest in India.
Q: So, the share between automotive, aerospace and consumer electronics, what is it now? And where do you see it?
A: As I mentioned, the non-auto business in the last quarter, when we announced, was about 5%. We do see that our auto business also tends to keep growing. But these new businesses, which we had set up about six or seven years ago, from nearly zero, have done very well.
Consumer electronics were not there at all. And these are all being driven with the interest of the customers. And they see a good execution capability in Motherson. They see that over a period of time, design, engineering, manufacturing, assembly and also logistic capabilities (DEMAL), which we have built, so we have become a specialist which helps us to support many different industries. And that will lead to our five-year goal, a vision of about $108 billion.
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Q: But because you’re expanding capacity, consumer electronics is also seeing strong traction. What will the number increase to? And how are the margins? Because on the whole, when we look at your emerging markets business, the profitability is weaker.
A: That’s because you see that there is a huge investment, which has been there, and the new acquisition which came in. So when you see the new emerging markets, you will see that, but over a period of time, as these capacities bring in the new volumes, it will even out. And we do see, as I was mentioning earlier, that the automotive business is also growing.
The two new acquisitions, which are at different stages of completion, relating to Nexans as well as Yutaka Giken, will also come into place, which will give us more than $2 billion in revenues in the coming years.
Q: What could FY27 then look like because of the acquisitions? And 10 of the 12 greenfields are also likely to be completed in FY27. What would the number look like that you’re targeting next year?
A: We are targeting a five-year vision, and we do see all engines firing at the moment. Good growth markets should become better with FTAs also seamless, and supply chains will come into place. So, we do see a very positive environment as we move forward.
For the full interview, watch the accompanying video
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