Motherson (MOTHERSUMI) Q2 25/26 earnings summary

Executive summary

• Delivered strong operating performance in Q2 FY26 across all business divisions, with revenue growth outpacing the industry and supported by content expansion, M&A activity, and transformative measures, especially in Europe and polymers.

• Achieved significant milestones in aerospace and consumer electronics, with both segments showing strong momentum, order book growth, and empanelment as Tier-1 with Airbus.

• Outperformed industry benchmarks, maintaining a balanced approach to EV and ICE markets, and continued to invest in automation and engineering capabilities.

• Bonus shares were issued in July 2025, increasing paid-up capital to ₹1,055 crore.

Financial highlights

• Q2 FY26 revenue was ₹30,173 crore, up 8.5% year-over-year, with EBITDA at ₹2,719 crore and normalized PAT at ₹856 crore; H1 FY26 revenue reached ₹60,385 crore, EBITDA ₹5,185 crore, and normalized PAT ₹2,011 crore.

• Booked business stands at USD 87.2 billion as of September 2025, with non-auto booked business increasing to USD 3.0 billion.

• Aerospace business delivered 37% revenue growth in H1 FY26 year-on-year; consumer electronics revenue grew 36% sequentially from Q1.

• Capex for Q2 FY26 was ₹1,445 crore (53% of EBITDA), with total H1 FY26 capex at ₹2,653 crore.

• Net profit attributable to owners for Q2 FY26 was ₹827 crore, and for H1 FY26 was ₹1,338.84 crore.

Outlook and guidance

• Anticipates further acceleration in performance in H2 FY26, especially in modules and polymer divisions, with growth capex set to accelerate and full-year guidance at over ₹6,000 crore plus 10%.

• Global light vehicle production forecast revised upward to over 90 million units for the year.

• Vision 2030 targets gross revenues of USD 108 billion by FY30 and group ROCE of 40%, with no single country, customer, or component contributing more than 10% of revenues.

• Leverage ratio expected to improve to 0.9x by year-end, with ROCE set to rise as performance normalizes.

• Management continues to focus on cost optimization, especially in European operations, with restructuring expenses recognized as exceptional items.