Samvardhana Motherson stock soars 4% as Q2 profit surges 62% YoY to ₹827 crore; revenue up 10%

The stock was trading 0.21% higher at ₹109.36 per equity share at around 1:07 pm.

Samvardhana Motherson Q2 results

The automotive component manufacturer reported a 61.57% year-on-year (YoY) increase in its consolidated net profit to ₹827 crore for the second quarter of the 2025-26 financial year (Q2FY26), supported by growth and improved business performance and a reduction in finance costs.

In the corresponding period of the previous fiscal year, it had clocked a profit of ₹511.84 crore, it said in a regulatory filing dated Thursday.

It clocked a total revenue from operations of ₹30,172.97 crore during the quarter under review, marking a 10% annual growth compared to ₹30,212 crore in the September quarter of the 2024-25 fiscal year (Q2FY25), bolstered by content growth and the addition of M&As (Atsumi).

At an operational level, its total EBITDA (earnings before interest, tax, depreciation, and amortisation) advanced 8.5% YoY to ₹2,719.21 crore in the September FY26 quarter, as against ₹2,465.85 crore in the year-ago period.

Its EBITDA margin expanded by 10 basis points (bps) annually to 9% for the reporting quarter, in contrast to 8.9% in Q2FY25.

The company stated that the EBITDA growth was driven by positive customer engagement on tariffs and pass-through of costs, although with a lag effect.

During the quarter, the firm operationalised two new greenfields. Furthermore, 10 of its greenfields are at various stages of completion, with the majority expected to start contributing from FY27 onwards.

Samvardhana Motherson announced three new acquisitions in Q2FY26, according to its press release.

What the management said

Commenting on the earnings, Vivek Chaand Sehgal, Chairman, Motherson, said: “Our performance demonstrates the resilience and adaptability of our global business teams, whose collaborative spirit has been essential in navigating a dynamic business environment. Leveraging our strong design, engineering, manufacturing, and assembly expertise, we are well-equipped to fulfil our customers' needs and deliver sustainable growth. The transformative measures we have implemented are expected to maintain momentum and accelerate further in H2FY26.”

He stated that the performance of its non-automotive businesses, such as Aerospace and Consumer Electronics, was highly encouraging, adding, “We are excited about their immediate future potential. Our strategic focus on prudent financial management enables us to maintain a strong balance sheet while investing in opportunities that drive our progress.”

Board approves 100% acquisition of Onega Solar Power

Its board of directors also considered and approved the acquisition of Onega Solar Power Ltd (OSPL-SPV), through its wholly owned subsidiary, Motherson New Energy Ltd (MNEL) from from IB Energy PTE Ltd, Singapore, for a cash consideration of ₹13.19 million (or ₹1.32 crore).

MNEL will enter into a definitive agreement to acquire the equity shares and compulsorily convertible debentures, which collectively constitute 100% ownership of OSPL-SPV, a special purpose vehicle set up for the development of a 15 MWp Group Captive Solar Project in the state of Uttar Pradesh.

Post the acquisition, OSPLSPV will develop, own, and operate the Project to meet the long-term renewable energy needs of the Motherson group, the company said in a separate regulatory filing.