1. At a Glance
India’s wiring harness boss, Motherson Sumi Wiring (MSWIL), posted Q1 FY26 revenue of ₹2,494 Cr (+14% YoY) with PAT at ₹143 Cr (-4% YoY). Margins are under slight voltage drop, but ROCE and ROE are still sizzling hot.
2. Introduction
If the auto industry is the brain, wiring harnesses are the nerves. MSWIL keeps those nerves firing, with a market share north of 40%. But Q1’s profit slip hints at some loose connections in the margin department.
3. Business Model – WTF Do They Even Do?
- Core: Manufactures wiring harnesses for Indian OEMs.
- Parentage: JV between Sumitomo Wiring Systems (Japan) & Motherson Group.
- Edge: Dominance in supply chains, scale with Indian OEM contracts, global tech backing.
4. Financials Overview
- Revenue Q1 FY26: ₹2,494 Cr (+14%)
- PAT: ₹143 Cr (-4%)
- OPM: 10% (was 11–12% last year)
Verdict: Growth intact, profits need a caffeine shot.
5. Valuation – What’s This Stock Worth?
- Current P/E: 44x
- Fair Value Range: ₹35 – ₹45
Punchline: Valuation is as tight as its wiring – no room for shocks.
6. What-If Scenarios
- Bull Case: Margin recovery + volume growth → ₹50.
- Bear Case: Input cost spike + OEM slowdown → ₹32.
- Base Case: ₹38–₹42 remains comfortable.
7. What’s Cooking (SWOT Analysis)
Strengths: Market leader, high ROCE/ROE, debt-free.
Weakness: Thin OPM, dependence on OEM demand.
Opportunities: EV wiring boom, new contracts.
Threats: Raw material prices, competition, auto slowdown.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 442 |
| Reserves | 1,256 |
| Borrowings | 269 |
| Total Assets | 3,729 |
| Comment: Light borrowings, strong equity cushion – balance sheet behaves. |
9. Cash Flow (FY23–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | 224 | -194 | -287 |
| FY24 | 791 | -208 | -452 |
| FY25 | 365 | -60 | -457 |
| Snark: Cash from ops is positive, but financing flows are bleeding – dividend payouts and capex keep draining. |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 35.9% |
| ROCE | 42.5% |
| D/E | 0.06 |
| PAT Margin | 6% |
| P/E | 44x |
| Punchline: ROE is rockstar-level, but margins are the weak drummer. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 7,068 | 792 | 487 |
| FY24 | 8,328 | 1,013 | 638 |
| FY25 | 9,320 | 997 | 606 |
| TTM | 9,629 | 1,003 | 600 |
| Comment: Revenue steady, profits slightly frayed. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bosch | 18,087 | 2,012 | 56 |
| Uno Minda | 16,775 | 934 | 65 |
| Motherson Wiring | 9,629 | 600 | 44 |
| Endurance Tech. | 11,561 | 782 | 46 |
| Peer check: MSWIL trades at a decent multiple versus peers with similar growth. |
13. EduInvesting Verdict™
Motherson Sumi Wiring remains the big daddy of auto wiring in India. Revenue growth hums, but profit wires need a bit of rewiring. Valuation is fair, but only if margins stay plugged in.
Written by EduInvesting Team | 28 July 2025
Tags: Motherson Sumi Wiring, Auto Components, Q1 FY26 Results, EduInvesting Premium
