1. At a Glance
Samvardhana Motherson is India’s biggest auto ancillary giant, selling everything from wiring harnesses to rear-view mirrors that cost more than your chai budget for a year. In Q1 FY26, they clocked₹30,212 Cr in revenueand₹606 Cr PAT, proving that even in a sluggish global auto market, Motherson can still bolt itself to OEMs’ balance sheets. The twist? Profits took a 43% YoY hit, showing that scaling up and holding margins in a tough macro is like trying to keep your dhokla fluffy in the monsoon.
2. Introduction
From a small components maker in the ’80s to a global tier-1 supplier spanning41 countries, Samvardhana Motherson has become the WhatsApp group admin of the auto component world — connected to everyone, controlling the narrative, but occasionally blamed for stuff they didn’t do.
They’ve built their empire on acquisitions, long-term supply contracts, and a “we’ll make anything for a car except the petrol” strategy. But as with any sprawling conglomerate, integration and cost control are where the rubber meets the road.
3. Business Model (WTF Do They Even Do?)
- Exterior Rear-View Mirrors– Global leader, dominant market share.
- Polymer Modules– Interior and exterior panels, bumpers, dashboards.
- Wiring Harnesses– For passenger vehicles in India, they’rethename.
- Acquisition-Driven Growth– Expanding capacity and geography through takeovers.
- OEM Dependency– Top customers include the world’s largest carmakers — stable orders but tight pricing.
Think of them as the IKEA of auto parts — vast catalogue, global footprint, everything designed to fit together (eventually).
4.
Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 30,212 | 28,868 | 29,317 | 4.66% | 3.05% |
| EBITDA (₹ Cr) | 2,458 | 2,775 | 2,643 | -11.42% | -7.01% |
| PAT (₹ Cr) | 606.09 | 1,097 | 1,115 | -44.77% | -45.63% |
| EPS (₹) | 0.48 | 0.98 | 1.00 | -51.02% | -52.00% |
Commentary:
- Sales growth modest, but profit erosion massive — likely a mix of cost pressures, interest, and depreciation jumps.
- OPM back down to 8% from double digits in FY24 peak — global demand softness + ramp-up costs from new plants.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- TTM EPS ≈ ₹3.14
- Auto ancillary peers trade ~25–35×.
- FV = ₹3.14 × 25–35 ≈ ₹78 – ₹110.
Method 2: EV/EBITDA
- TTM EBITDA ≈ ₹10,235 Cr.
- Sector multiple ≈ 8–10×.
- EV ≈ ₹81,880 – ₹1,02,350 Cr → per share ≈ ₹77 – ₹96.
Method 3: DCF (simplified)
- Assume 8% revenue CAGR, steady margins, discount rate 12%.
- FV ≈ ₹80 – ₹105.
Educational FV Range:₹78 – ₹105This FV range is for educational purposes only and
