Motherson (MOTHERSUMI) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 FY26 revenue of ₹30,212 crore, outpacing industry growth despite headwinds and volatility.

• EBITDA declined to ₹2,465.85 crore due to cost pressures, transitory impacts, and operational restructuring.

• Net profit attributable to owners fell to ₹606.09 crore, impacted by transformative measures and amortization.

• Business model diversification, M&A, and new partnerships contributed to resilience and growth.

• Board approved a 1:2 bonus share issue, increasing paid-up capital to ₹1,055 crore.

Financial highlights

• Q1 FY26 revenue reached ₹30,212 crore, up from ₹28,867.96 crore year-over-year.

• EBITDA at ₹2,465.85 crore, down from ₹2,785.40 crore year-over-year.

• PAT at ₹606.09 crore, down from ₹1,097.18 crore year-over-year.

• Net leverage ratio at 1.1x, with net debt increase due to FX volatility and working capital expansion.

• Capex at ₹1,208 crore, with three new greenfields operationalized.

Outlook and guidance

• CapEx guidance for FY26 remains at ₹6,000 crore ±10%, with recalibration possible as the year progresses.

• Cost optimization and operational restructuring, especially in Europe, to improve profitability in H2.

• Growth capex in emerging markets and non-auto businesses to continue.

• Greenfield projects and recent acquisitions expected to contribute meaningfully in the latter part of the year.

• Localization and supply chain initiatives to mitigate tariff and regulatory risks.