Motherson (MOTHERSUMI) Q4 25/26 earnings summary

Executive summary

• Achieved record annual revenue exceeding INR 10,000 crore for the first time, with Q4 revenue growth of 33% year-over-year, significantly outpacing single-digit market growth.

• Greenfield facilities have commenced commercial contribution, with further ramp-up expected as customer volumes increase.

• Maintains a diversified powertrain portfolio across ICE, EV, and hybrid, supporting future preparedness.

Financial highlights

• Q4 revenue reached INR 443 crore from greenfield plants, with annualized greenfield revenue expected to approach INR 2,000 crore.

• Gross margin compressed by 2.9% in Q4, mainly due to higher copper prices and adverse currency impacts, both of which are subject to pass-through arrangements with a lag.

• Copper price increases contributed about 5% to the 33% year-over-year sales growth, with the remainder driven by volume.

• Copper constitutes 24%-28% of raw material costs; pass-through mechanisms typically operate on a three- to six-month lag.

Outlook and guidance

• Management expects continued strong growth in Q1 FY27, with capacity utilization at existing plants around 80%.

• CapEx for FY27 is projected at approximately INR 200 crore, similar to the previous year, focused on greenfield expansion, automation, and digitization.

• Margins are expected to normalize as copper prices stabilize and greenfield plants reach higher utilization.