Samvardhana Motherson shares gain 15% in three sessions, here is why

Shares of Samvardhana Motherson rose for a third straight session on Wednesday, February 11. The stock has surged as much as 15% in the last three sessions to hit a fresh 52-week high of ₹135.83 on the National Stock Exchange (NSE). In intraday deals Samvardhana Motherson shares climbed as much as 4.9% amid spike in trading activity.

Samvardhana Motherson shares were witnessing higher than usual trading activity as trading volume on the NSE spiked by 1.5 times to 3.44 crore shares compared with an average trading volume of 2.26 crore shares.

On the BSE, as many as 32.74 lakh shares changed hands compared with an average of 9.19 lakh shares traded daily in the past two weeks.

Samvardhana Motherson shares came under strong buying interest a day after it reported its December quarter earnings.

The Noida-based company reported net profit of ₹1,024 crore in the third quarter of current financial year (Q3FY26), marking an increase of 16.5% from ₹879 crore in the same period last year.

The auto parts maker's revenue from operations advanced 14% to ₹31,409 crore in October-December period from ₹27,666 crore in the corresponding period last year.

Samvardhana Motherson reported stable operational performance as its EBITDA rose 13% to ₹3,043 crore and its EBITDA margin came in at 9.7%.

The company reported continued volume growth in emerging markets across passenger vehicles (PVs) and commercial vehicles (CVs), partly offset by mix-led softness in developed PV markets. In North America, the CV cycle showed early signs of recovery with 5% QoQ growth following a cyclical downturn, the company said in an investor presentation.

Despite sustained growth investments and elevated working capital, leverage remained stable, with focused deleveraging efforts underway.

The aerospace business delivered strong momentum, posting 41% YoY growth in Q3, supported by a robust order book. The product portfolio was further expanded to include business jets and rotary-wing aircraft, enhancing customer diversification and increasing content per platform.

“This quarter is a significant step towards reaffirming Motherson's position as a global design, engineering, manufacturing, assembly and logistics specialist. Customer trust, combined with our diverse capabilities, traction across automotive and non-automotive businesses, and the dedication of our global teams, has resulted in our highest-ever quarterly revenues," said Vivek Chaand Sehgal, Chairman, Motherson, said.

"Our strategic investments and capacity expansions demonstrate our commitment to future growth while maintaining a comfortable 1.1x leverage ratio, highlighting our operational excellence. We are confident that with the support of our customers and dedication of our teams, we will continue to deliver long-term value to our stakeholders,” he added.

As of 11:41 am, Samvardhana Motherson shares traded 4% higher at ₹134.35, outperforming the NIFTY NEXT 50 index which was up 0.34%.