Order Book Or Contract Wins
Expected: Next 5-10 yearsHIGH confidence
What: Non-automotive order book: $3 billion
“Booked business between consumer electronics and aerospace is already now at a whopping 3 billion up from 2.7 billion in March 2025”
Samvardhana Motherson International Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +13.2%Strong5w Streak
In , Samvardhana Motherson International Ltd (Auto Ancillaries - Diversified) is outperforming Nifty 500 with +13.2% relative strength. Fundamentals: Strong. On a 5-week streak.
Samvardhana Motherson International Ltd Key Facts
- PE Ratio
- 39.5x
- Market Cap
- ₹1,39,350 Cr
- PAT Growth YoY
- +9%
- Revenue Growth YoY
- +14%
- OPM
- 10.0%
- RS vs Nifty 500
- +13.2%
PE: Mid ExpansionDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
👔Promoter stake down 9.5% this quarter
🌐FII stake decreased 1.5% this quarter
🏛️DII accumulation — stake up 1.2%
💰Trading 51% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 5-10 yearsHIGH
2. Geographical Expansion
FY27HIGH
3. Operating Leverage Inflection
H2 FY26MEDIUM
Key Risks
1. Tariff-related costs impacting the P&L by approximately $10 million
MEDIUM2. Impact of new labor code implementation in India
LOW3. Volatility in plastic and copper prices affecting the polymer and wiring harness
LOWSector-Specific Signals
Non-Automotive Order Book (Aero + Electronics)$3.0 billion+11.1%
EV Revenue Share %11%
EV Share in Order Book22%-200 bps
Total Order Book$87.2 billion
Key Numbers
PAT Growth YoY
+9%
Inflection Up
Revenue YoY
+14%
Stable
Operating Margin
10.0%
0 bps YoY
PE Ratio
39.5
Current Price
₹132
Dividend Yield
0.43%
Fundamental Score
62/100
Strong
3Y PAT CAGR
+52%
Market Cap
1.4L Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Samvardhana Motherson International Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: FY27HIGH confidence
What: Greenfield plants: 12 facilities
“We currently have 12 Greenfield plants under development, all across emerging markets to support future growth in both automotive and non-automotive segments.”
Operating Leverage Inflection
Expected: H2 FY26MEDIUM confidence
What: Polymer business margin: 7.4% from 6.4%
Impact: 100 bps sequential improvement
“The profitability of the polymer business moved from 6.4% to 7.4% on a sequential basis, demonstrating these improvements despite the quarter being a seasonally weak quarter”
Value Added Product Mix Shift
Expected: OngoingMEDIUM confidence
What: Aerospace revenue growth: 37% in H1
“Aerospace business delivered a 37% revenue growth in the first half of FY'26... We became Tier 1 to Airbus earlier this year and that is already giving us desired results.”
Management Or Ownership Change
Expected: Q3 FY26LOW confidence
What: New Group CFO: Gandharv Tongia
“I'm very pleased to introduce all of you to Mr. Gandharv Tongia, who has recently joined us as the SAMIL Group Chief Financial Officer.”
Highest ever quarterly revenue of INR 31,409 crores.
HIGH confidence
What: Highest ever quarterly revenue of INR 31,409 crores.
“SAMIL continued to build on its solid growth momentum and delivered the highest ever quarterly revenue of approximately INR 31,409 crores”
Global PV Production Outlook guidance raised
HIGH confidence
What: 91 million units → 93 million units
“FY'27 production projected to grow approximately around 93 million units, up from around 91 million units expected in FY '26.”
What Are the Key Risks for Samvardhana Motherson International Ltd?
Earnings deceleration risks from management commentary
Tariff-related costs impacting the P&L by approximately $10 million
MEDIUMTrigger: Evolving trade dynamics and customer-directed sourcing changes.
Impact: PAT impact: $10 million
Management view: Engaging in constructive discussions with OEMs to pass through these costs with a lead-lag effect.
Monitor: geopolitical
Impact of new labor code implementation in India
LOWTrigger: Regulatory changes requiring one-time provisioning.
Impact: PAT impact: INR 25 crores
Management view: Provisioned as a normalization item in the reported PAT.
Monitor: labor
Volatility in plastic and copper prices affecting the polymer and wiring harness
LOWTrigger: Fluctuations in global raw material markets.
Management view: Focusing on operational improvements and pass-through mechanisms with customers.
Monitor: commodity
Translation issues due to volatility in foreign currency, specifically Euro-INR
LOWTrigger: Global operations with significant revenue in non-INR currencies.
Impact: PAT impact: 2.5% of revenue growth
Management view: Strategy of 'local for local' production to minimize cross-border currency exposure.
Monitor: fx
What Is Samvardhana Motherson International Ltd's Management Saying?
Key quotes from recent conference calls
“for the full year would still be within our annual guidance... although we would be on the upper end of the scale, Rs. 6,000 crores plus 10%. [Previous Annual Capex guidance]”
“signed an agreement to acquire 100% of the wiring harness business of Nexans Autoelectric, which will provide SAMIL a scalable platform for PV and CV growth globally. [Initiative: Acquisition of Nexans Autoelectric]”
“consumer electronics business is ramping up as planned with 2 operational plants on track to achieve an annual capacity of approximately 16 million units by end of the current fiscal year. [Initiative: Consumer Electronics Capacity Expansion]”
“as of this quarter, there is about $10 million of tariff-related costs on our P&L, which will flow, albeit with a lead-lag effect. [Risk (geopolitical): MEDIUM]”
What Did Samvardhana Motherson International Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 31,409 crores
YoY +14%QoQ +4.1%
Why: Growth was driven by healthy organic performance, consolidation of the Atsumitec business, and favorable foreign exchange movements.
The company reported its highest ever quarterly revenues during Q3 FY26.
EBITDA
INR 3,042 crores
Margin 9.7%
Why: Profitability was supported by savings from transformative measures in Europe and higher contributions from joint ventures.
EBITDA margins showed improvement following restructuring efforts in the European polymer business.
PAT
INR 1,061 crores
YoY +21%QoQ +23.9%
Why: Normalized PAT growth was aided by operational efficiencies and a reduction in finance costs.
Reported PAT was normalized for a INR 37 crore post-tax impact from labor code implementation and European restructuring.
Other Highlights
• Net leverage maintained at 1.1x net debt to LTM EBITDA.
• Consumer electronics and aerospace businesses grew 41% year-on-year.
• Two new Greenfield projects announced, bringing the total under development to 12.
What Sector Metrics Matter for Samvardhana Motherson International Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Non-Automotive Order Book (Aero + Electronics)
$3.0 billion
YoY +11.1%
Why: Strong momentum and new contract wins in aerospace and consumer electronics.
EV Revenue Share %
11%
Why: Reflects the current mix of electric vehicle components in the total revenue stream.
EV Share in Order Book
22%
YoY -200 bps
Why: The share shifted as the pace of growth anticipated in EVs ebbed and non-EV powertrain launches increased.
Total Order Book
$87.2 billion
Why: Continued trust from customers and new platform wins across global OEMs.
Greenfield Projects Under Development
12
YoY +2
Why: Added two new facilities in Q3 (Vision Systems in India and Wiring Harness in Morocco).
Net Debt to EBITDA Leverage
1.1x
YoY 0.0QoQ 0.0
Why: Maintained stable leverage despite high growth capital expenditure.
Return on Capital Employed (ROCE)
14.2%
Why: Impacted by transitionary profitability impacts in Q1 and early-stage ramp-ups of new greenfields.
Consumer Electronics Annual Capacity
16 million units
Why: Ramping up two operational plants to reach full capacity by year-end.
What Is Samvardhana Motherson International Ltd's Management Guidance?
Forward-looking targets from management for FY26-FY27
OPM Guidance
40%
Capex Plan
₹6000 Cr
Revenue Outlook
Double-digit growth
Margin Outlook
REAFFIRMED
Capex Plan
INR 6,000 crores plus 10%
Greenfield expansions and capacity upgrades for non-automotive sectors.
Volume
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
RAISED
Global PV Production Outlook: 91 million units → 93 million units
How Fast Is Samvardhana Motherson International Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +14% | +21% | Stable |
| PAT (Net Profit) | +9% | +52% | Inflection Up |
| OPM | 10.0% | 0 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Samvardhana Motherson International Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Samvardhana Motherson International Ltd's latest quarterly results?
Samvardhana Motherson International Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +8.9% (turning around (inflection up))
- Revenue Growth YoY: +13.5%
- Operating Margin: 10.0% (stable)
Is Samvardhana Motherson International Ltd's profit growing or declining?
Samvardhana Motherson International Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +8.9% (latest quarter)
- PAT Growth QoQ: +26.7% (sequential)
- 3-Year PAT CAGR: +51.9%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Samvardhana Motherson International Ltd's revenue growth trend?
Samvardhana Motherson International Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +13.5%
- Revenue Growth QoQ: +4.1% (sequential)
- 3-Year Revenue CAGR: +21.4%
How is Samvardhana Motherson International Ltd's operating margin trending?
Samvardhana Motherson International Ltd's operating margin is stable.
- Current OPM: 10.0%
- OPM Change YoY: 0.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Samvardhana Motherson International Ltd's 3-year profit and revenue CAGR?
Samvardhana Motherson International Ltd's long-term compounding rates
- 3-Year Profit CAGR: +51.9%
- 3-Year Revenue CAGR: +21.4%
Is Samvardhana Motherson International Ltd's growth accelerating or decelerating?
Samvardhana Motherson International Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +19.8% bps
- Sequential Acceleration: -12.9% bps
What is Samvardhana Motherson International Ltd's trailing twelve month (TTM) performance?
Samvardhana Motherson International Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹4,000 Cr
- TTM PAT Growth: -18.7% YoY
- TTM Revenue: ₹1.2 Lakh Cr
- TTM Revenue Growth: +8.7% YoY
- TTM Operating Margin: 9.0%
Is Samvardhana Motherson International Ltd overvalued or undervalued?
Samvardhana Motherson International Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 39.5x
- Price-to-Book: 3.8x
What is Samvardhana Motherson International Ltd's current PE ratio?
Samvardhana Motherson International Ltd's current PE ratio is 39.5x.
- Current PE: 39.5x
- Market Cap: 1.4 Lakh Cr
- Dividend Yield: 0.43%
How does Samvardhana Motherson International Ltd's valuation compare to its history?
Samvardhana Motherson International Ltd's current PE is 39.5x.
- Current PE: 39.5x
- Valuation Assessment: Significantly Undervalued
What is Samvardhana Motherson International Ltd's price-to-book ratio?
Samvardhana Motherson International Ltd's price-to-book ratio is 3.8x.
- Price-to-Book (P/B): 3.8x
- Book Value per Share: ₹35
- Current Price: ₹132
Is Samvardhana Motherson International Ltd a fundamentally strong company?
Samvardhana Motherson International Ltd is rated Strong with a fundamental score of 61.65/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +13.5% (10% weight)
- PAT Growth YoY: +8.9% (10% weight)
- PAT Growth QoQ: +26.7% (10% weight)
- Margins stable (10% weight)
Is Samvardhana Motherson International Ltd debt free?
Samvardhana Motherson International Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹17,000 Cr
What is Samvardhana Motherson International Ltd's return on equity (ROE) and ROCE?
Samvardhana Motherson International Ltd's return ratios over recent years
- FY2023: ROCE 9.0%
- FY2024: ROCE 14.0%
- FY2025: ROCE 14.0%
Is Samvardhana Motherson International Ltd's cash flow positive?
Samvardhana Motherson International Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹6,000 Cr
- Free Cash Flow (FCF): ₹1,000 Cr
- CFO/PAT Ratio: 152% (strong cash conversion)
What is Samvardhana Motherson International Ltd's dividend yield?
Samvardhana Motherson International Ltd's current dividend yield is 0.43%.
- Dividend Yield: 0.43%
- Current Price: ₹132
Who holds Samvardhana Motherson International Ltd shares — promoters, FII, DII?
Samvardhana Motherson International Ltd's shareholding pattern (Mar 2026)
- Promoters: 48.6%
- FII (Foreign): 12.4%
- DII (Domestic): 21.1%
- Public: 17.6%
Is promoter holding increasing or decreasing in Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 48.6% (Mar 2026)
- Previous Quarter: 48.6% (Dec 2025)
- Change: 0.00% (stable)
How long has Samvardhana Motherson International Ltd been outperforming Nifty 500?
Samvardhana Motherson International Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Samvardhana Motherson International Ltd a new momentum entry or an established outperformer?
Samvardhana Motherson International Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd has 7 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Strong momentum in aerospace and consumer electronics is building a long-term revenue pipeline.
- Geographical Expansion — Expansion into emerging markets like Morocco and India to support local OEM demand.
- Operating Leverage Inflection — Restructuring in Europe is beginning to yield results through better fixed-cost absorption.
- Value Added Product Mix Shift — Becoming a Tier 1 supplier to Airbus allows for higher-value, complex package wins.
What are the key risks in Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd has 4 key risks worth monitoring
- [MEDIUM] Tariff-related costs impacting the P&L by approximately $10 million — Evolving trade dynamics and customer-directed sourcing changes.
- [LOW] Impact of new labor code implementation in India — Regulatory changes requiring one-time provisioning.
- [LOW] Volatility in plastic and copper prices affecting the polymer and wiring harness — Fluctuations in global raw material markets.
- [LOW] Translation issues due to volatility in foreign currency, specifically Euro-INR — Global operations with significant revenue in non-INR currencies.
What did Samvardhana Motherson International Ltd's management say in the latest earnings call?
In Q3 FY26, Samvardhana Motherson International Ltd's management highlighted
- "for the full year would still be within our annual guidance... although we would be on the upper end of the scale, Rs. 6,000 crores plus 10%. [Previo..."
- "signed an agreement to acquire 100% of the wiring harness business of Nexans Autoelectric, which will provide SAMIL a scalable platform for PV and CV ..."
- "consumer electronics business is ramping up as planned with 2 operational plants on track to achieve an annual capacity of approximately 16 million un..."
What is Samvardhana Motherson International Ltd's management guidance for growth?
Samvardhana Motherson International Ltd's management has provided the following forward guidance for FY26-FY27
- Revenue outlook: Double-digit growth
- OPM guidance: 40%
- Capex plan: ₹6000 Cr for Greenfield expansions and capacity upgrades for non-automotive sectors.
- Management tone: bullish
- Milestone: [RAISED] Global PV Production Outlook: 91 million units → 93 million units
What sector-specific metrics matter most for Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd's most important sub-sector-specific KPIs from the latest concall
- Non-Automotive Order Book (Aero + Electronics): $3.0 billion (YoY +11.1%) — Strong momentum and new contract wins in aerospace and consumer electronics.
- EV Revenue Share %: 11% — Reflects the current mix of electric vehicle components in the total revenue stream.
- EV Share in Order Book: 22% (YoY -200 bps) — The share shifted as the pace of growth anticipated in EVs ebbed and non-EV powertrain launches increased.
- Total Order Book: $87.2 billion — Continued trust from customers and new platform wins across global OEMs.
- Greenfield Projects Under Development: 12 (YoY +2) — Added two new facilities in Q3 (Vision Systems in India and Wiring Harness in Morocco).
- Net Debt to EBITDA Leverage: 1.1x (YoY 0.0) (QoQ 0.0) — Maintained stable leverage despite high growth capital expenditure.
Is Samvardhana Motherson International Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Samvardhana Motherson International Ltd may be worth studying
- Earnings growing at +8.9% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹6,000 Cr
What is the investment thesis for Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +13.5% YoY
- Appears significantly undervalued
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: Tariff-related costs impacting the P&L by approximately $10 million
What is the future outlook for Samvardhana Motherson International Ltd?
Samvardhana Motherson International Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Undervalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Tariff-related costs impacting the P&L by approximately $10 million
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.