Samvardhana Motherson’s Q1 net profit drops 44.7 pc

Mumbai, Aug 13 Indian multinational manufacturer of automotive components Samvardhana Motherson on Wednesday reported a sharp year-on-year (YoY) drop of 44.76 per cent in profit to Rs 606 crore for the first quarter of the financial year 2025-26 (Q1 FY26) compared to Rs 1,097.2 crore in the same quarter previous fiscal (Q1 FY25).

Despite the decline in profitability, the company’s revenue rose 4.7 per cent to Rs 30,212 crore from Rs 28,868 crore a year earlier, according to its stock exchange filing.

However, operating performance weakened, with EBITDA falling 11.4 per cent to Rs 2,458 crore compared with Rs 2,775 crore previous year.

Margins slipped to 8.1 per cent from 9.6 per cent -- reflecting pressure on operational efficiency.

After the earnings announcement, Chairman Vivek Chaand Sehgal said that the new tariffs imposed on India by the US President Donald Trump administration are unlikely to significantly affect the company’s operations.

“Although uncertainties remain in the business environment, they also create potential opportunities for inorganic growth,” said Sehgal.

He noted that most of Motherson’s US sales are compliant with the US-Mexico-Canada (USMCA) trade agreement, and cost pass-through arrangements with customers are in progress, though with some delay.

Sehgal also highlighted that while the global business environment remains uncertain, it also presents opportunities for inorganic growth.

“Further, recently levied tariffs on India do not have any material impact on our operations. While uncertainties in the business environment persist, it also offers inorganic opportunities for growth. The trust and confidence of our customers continue to be a key driver of our success,” he mentioned.

“Our teams across the globe are committed to delivering on our vision and creating long-term value for our stakeholders,” Sehgal added.

Following the results, Samvardhana Motherson’s shares rose 3.3 per cent to touch the day’s high of Rs 93.28. However, the stock has lost 28 per cent over the past year and is down 10 per cent so far in 2025.

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