Samvardhana Motherson International has posted record first-quarter revenue for fiscal 2027, driven by substantial growth in wiring harness division and aggressive expansion into new sectors amid ongoing restructuring efforts and resilient financial performance.
Samvardhana Motherson International said its first quarter of fiscal 2027 delivered record revenue, extending a run of resilient performance even as the broader automotive market remained uneven. In the latest earnings call, the company said sales rose 17% from a year earlier and 3% from the previous quarter, while EBITDA increased 26% and normalised profit after tax climbed 55%. Management attributed the margin improvement partly to restructuring work across its European footprint, which it said is helping offset inflationary pressure in key inputs and logistics.
The group also ended the quarter with leverage of 0.8 times, a level management described as well below its internal threshold despite continued capital spending. That marks a further strengthening from the 1.1 times leverage reported a year earlier, when the company was already highlighting disciplined execution and organic as well as inorganic growth options, according to disclosures reviewed by analysts.
Samvardhana Motherson’s wiring harness division remained a major driver, with revenue up 31% year on year on the back of strength in India and a recovery in North American commercial vehicles. The company said three new plants were brought on stream during the quarter and that 10 more are expected to open during the year, underscoring the scale of its expansion plans. By comparison, the company had operationalised three greenfield facilities in the prior-year quarter, with additional sites still under construction, suggesting the current investment cycle is gathering pace.
The company acknowledged that costs remain a headwind. Copper prices were up sharply from a year earlier, while polymer and freight costs also rose, creating a lag before price increases can be passed on to customers. Management said restructuring gains and improved performance in previously weaker facilities have helped cushion the impact so far, but also indicated that the full benefit of pricing negotiations should come later in the year.
Beyond its core auto business, Samvardhana Motherson is pushing into faster-growing areas including consumer electronics, aerospace, robotics, semiconductors and humanoid-related production. The company said its aerospace revenue rose more than 20% and its order book grew 17%, while consumer electronics remains in a heavy investment and ramp-up phase. New acquisitions, including Nexans, Yutaka and Autocruis, are meant to widen the product mix and add scale, with management saying the combined annualised revenue contribution of Nexans and Yutaka could approach $2 billion over time.
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