Samvardhana Motherson International Limited (SAMIL) has announced its Q2 FY27 results, reporting record revenues of INR38,280 crores, a 27% year-on-year growth. The company also saw a 23% increase in EBITDA to INR3,353 crores and a 37% rise in normalized PAT to INR1,175 crores for the quarter. These results reflect strong operational performance and strategic integration of recent acquisitions.
Q2 FY27 Earnings Call Highlights
Samvardhana Motherson International Limited (SAMIL) hosted its Q2 FY27 earnings conference call, where management detailed robust financial performance and strategic initiatives. The company achieved record quarterly and half-yearly revenues, demonstrating resilience amidst a challenging global economic environment.
Financial Performance: Q2 FY27
In the second quarter of fiscal year 2027, SAMIL reported revenues of INR38,280 crores, marking a significant 27% increase year-on-year and a 9% sequential rise. This growth was primarily driven by the successful integration of recent acquisitions, Autoelectric and Yutaka Giken, alongside a strong performance in the wiring harness business.
EBITDA for the quarter grew by 23% year-on-year to INR3,353 crores. While the EBITDA margin saw a slight contraction to 8.8% compared to 9% in Q2 FY26, this was attributed to the integration of new businesses. However, excluding acquisition impacts, margins improved year-on-year and sequentially, supported by cost optimization and operating leverage.
Normalized Profit After Tax (PAT) for the quarter stood at INR1,175 crores, a substantial 37% increase year-on-year. For the first half of FY27, revenues exceeded INR73,500 crores, with a 22% year-on-year growth, and normalized PAT grew by 45% to INR2,207 crores.
Key Business Drivers and Outlook
The company highlighted its increasing booked business, which has reached an all-time high of USD 106 billion, reflecting strong customer confidence. Management emphasized a continued focus on operational efficiency, cost optimization, and automation to navigate higher input costs.
Strategic priorities include supporting customers, improving existing business performance, realizing synergies from acquisitions, and pursuing long-term value creation. The non-automotive segments, including aerospace and consumer electronics, are witnessing encouraging growth, contributing to portfolio diversification and overall group resilience.
Capital Expenditure and Balance Sheet
Capital expenditure for the second quarter was INR1,971 crores, bringing the first-half capex to INR3,585 crores. Growth investments are prioritizing emerging markets and non-automotive businesses, with approximately 60% of full-year capex earmarked for these segments. The company maintained a stable leverage ratio of 0.8x, well within its financial policy ceiling.
Effective net debt increased to INR11,292 crores at the end of September, primarily due to higher working capital, increased capex, and lease liabilities from acquisitions. The company expressed confidence in its strong liquidity and comfortable balance sheet position.
Segmental Performance and Future Growth
The wiring harness business showed strong growth, with the integration of Autoelectric expected to bolster passenger vehicle wiring harness presence globally. The emerging business segment, particularly diagnostics and medical devices, is also showing promising traction, with new plants operational and acquisitions contributing to growth.
Management expressed optimism for continued growth, supported by a diversified strategy and increasing customer demands. The company is actively pursuing new opportunities in both automotive and emerging sectors, aiming for sustainable long-term value creation.
Source: BSE
