Samvardhana Motherson International Limited (SMIL) announced a robust Q3 FY26, achieving its highest ever quarterly revenue of INR 31,409 crores and an EBITDA of INR 3,042 crores. Revenue grew 14% year-on-year, driven by organic growth, the consolidation of Atsumitec, and favorable forex movements. The company maintained a strong financial discipline with a net leverage of 1.1x, while actively investing INR 1,594 crores in capex.
Q3 FY26 Performance Highlights
Samvardhana Motherson International Limited reported excellent results for the third quarter of FY26, as announced on February 10, 2026. The Board approved results showcasing strong momentum in a dynamic environment, marked by the highest ever quarterly revenues.
- Quarterly Revenue: INR 31,409 crores (14% year-on-year growth).
- EBITDA: INR 3,042 crores.
- Normalized Q3 PAT: INR 1,061 crores (21% year-on-year growth).
Growth drivers included healthy organic performance, consolidation of the Atsumitec business, and favorable foreign exchange movements. The reported PAT included normalization adjustments of INR 37 crores related to the new labor code and European restructuring costs.
Strategic Focus and Emerging Businesses
The company continues to reinforce its position as a global D.E.M.A.L. (Design, Engineering, Manufacturing, Assembly, and Logistics) specialist, maintaining financial discipline with a net leverage ratio of 1.1x Net Debt to LTM EBITDA.
Investments in future growth include 12 Greenfield projects across emerging markets, with two new facilities added in Q3 for Vision Systems (India) and Wiring Harness (Morocco). These are expected to come online by the second half of FY’27.
The aerospace and consumer electronics businesses showed significant acceleration:
- Consumer Electronics grew 75% quarter-on-quarter, with capacity set to double by Q3 FY’27.
- Aerospace registered a year-on-year growth of over 40%.
The company is also progressing with key strategic moves:
- The acquisition of the wiring harness business of Nexans Autoelectric is expected to complete by the end of H1 FY’26.
- The acquisition of Yutaka Giken in Japan is expected to close in the first half of FY’26.
Operational Strategy and Sustainability
Management emphasized the strategy of pursuing opportunities where customer direction and existing group synergies (plastics, wiring harness expertise) exist, maintaining a highly selective approach focused on achieving a 40% ROCE path for new ventures.
Regarding margin expansion in the Modules and Polymer division, management attributed the improvement largely to operational efficiencies and restructuring measures undertaken in Europe, confirming this path is sustainable through ongoing focus on automation and in-house capabilities.
The integrated assemblies segment also delivered marked margin improvement due to full integration, leveraging group synergies, and a focus on financial discipline, demonstrating an excellent playbook of focused execution.
Capital Expenditure Outlook
Current capex for the first 9 months stands at INR 4,200 crores. The company confirmed its guidance of around INR 6,000 crores plus 10% for the full year, expecting the exit number to be well within this range.
Guidance for FY’27 capex outflow will be provided during the March year-end call.
Source: BSE
