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Key Points

Motherson Sumi Wiring has reported its Q1 financial performance with a slight decline in net profit. The company saw robust revenue growth of 14.2%, driven by new model launches and increased vehicle content. Despite challenges in operating margins, the firm remains optimistic about its expansion strategy. The electric vehicle segment continues to show promise, contributing 5.4% to total revenue.

Key Points: Motherson Sumi Wiring Q1 Profit Dips 4% Despite Revenue Growth

  • Q1 net profit falls to Rs 143 crore from Rs 149 crore
  • Revenue grows 14.2% to Rs 2,494 crore
  • EV segment contributes 5.4% to total revenue
  • Operating margins narrow to 9.8% due to project ramp-up costs
2 min read

Motherson Sumi Wiring's Q1 net profit falls 4 pc to Rs 143 crore

Auto components maker Motherson Sumi Wiring reports Q1 financial results with revenue increase and challenges in operating margins

"We have delivered strong revenue growth, outperforming the broader auto industry - Vivek Chaand Sehgal, Chairman"

Mumbai, July 28

Noida-based auto components maker Motherson Sumi Wiring India Limited on Monday reported a 4 per cent decline in net profit year-on-year (YoY) in the first quarter (Q1) of FY26.

The auto components manufacturer recorded a net profit of Rs 143 crore for the June quarter, compared to Rs 149 crore in the same period previous year (Q1 FY25), according to its stock exchange filing.

The company's revenue grew by 14.2 per cent to Rs 2,494 crore during the quarter, driven by new model launches and increased content per vehicle.

Despite this rise in revenue, the company's operating margins came under pressure due to ramp-up costs at new Greenfield projects.

Operating margins narrowed to 9.8 per cent in Q1 FY26, down from 10.9 per cent in the year-ago quarter.

In an exchange filing, the company said its earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 244.2 crore, up 2.3 per cent from Rs 238.7 crore in the same quarter previous year.

The electric vehicle (EV) segment contributed 5.4 per cent to the total revenue in Q1.

Chairman Vivek Chaand Sehgal said the company had delivered strong revenue growth, outperforming the broader auto industry.

He acknowledged that ramp-up at a specific Greenfield project was slower than expected, but affirmed that the company remains on track with its expansion plans to support the evolving needs of original equipment manufacturers (OEMs).

Motherson Sumi Wiring India was established in 2020 after the demerger of the domestic wiring harness business from its parent company.

It is promoted by Samvardhana Motherson International Limited and receives technological support from Japan's Sumitomo Wiring Systems.

The company has a wide network of manufacturing and technical centres located close to major automotive OEM hubs across India, allowing it to deliver wiring harness solutions on time and efficiently.

It also remains debt-free, which supports its ongoing expansion strategy.

Shares of Motherson Sumi Wiring ended the day 1.2 per cent lower at Rs 40 on the Bombay Stock Exchange (BSE).

- IANS

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Reader Comments

P
Priyanka N
The 14% revenue growth is impressive despite profit dip. Shows they're expanding capacity for long-term gains. My husband works in auto components sector - these Greenfield projects take time but pay off later.
A
Aman W
Disappointing results for shareholders. Management should focus more on cost control instead of just expansion. Margins shrinking from 10.9% to 9.8% is concerning. Hope they turn it around next quarter.
S
Shweta Y
EV contribution at 5.4% is good start! This company will benefit from India's push for electric mobility. Smart move to stay debt-free while expanding. Long-term investors should hold this stock.
V
Vikram M
As someone from Noida, proud to see local companies competing globally! The Japanese tech partnership gives them edge. Temporary profit dip is normal during expansion phases.
K
Kiran H
They need better communication about these Greenfield projects. Retail investors like me get nervous when results fluctuate. Transparency would help maintain confidence in the stock.

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