Samvardhana Motherson International Limited (SAMIL) reported a robust performance for Q2 FY26, demonstrating solid operational momentum and financial discipline. The company achieved revenue of Rs. 30,173 crores, EBITDA of Rs. 2,719 crores, and normalised PAT of Rs. 856 crores. SAMIL outperformed the industry, achieving an impressive 8.5% revenue growth year-on-year. The company expects production momentum to strengthen, with global production forecasts converging around 90 million plus units.
Financial Highlights for Q2 FY26
Samvardhana Motherson International Limited (SAMIL) announced strong financial results for the second quarter of fiscal year 2026. Key highlights include:
- Revenue: Rs. 30,173 crores
- EBITDA: Rs. 2,719 crores
- Normalised PAT: Rs. 856 crores
The company outperformed the industry with a revenue growth of 8.5% year-on-year. This growth was driven by volume, content, and the addition of Atsumitec.
Business Updates and Growth Drivers
Several factors contributed to the company’s strong performance:
- Emerging Businesses: Consumer electronics and aerospace businesses showed strong momentum.
- Order Book: The current order book stands at $87.2 billion as of September 2025.
- Consumer Electronics: Demonstrated a 36% growth over the first quarter, based on the September run rate revenue.
- Aerospace: Delivered a 37% revenue growth in the first half of FY26 on a year-on-year basis, becoming a Tier 1 supplier to Airbus.
Strategic Initiatives
SAMIL is focused on several strategic initiatives to drive future growth:
- Capacity Expansion: Two new green fields were operationalized during the quarter, with 10 more in progress.
- Engineering Capabilities: Plans to add more than 5,000 engineers in the next five years.
- Capital Expenditure: Approximately Rs. 2,600 crores spent in 1H, with full-year guidance at Rs. 6,000 crores plus 10%.
Outlook and Future Plans
The company anticipates further acceleration of improvements in performance during the second half of the year. SAMIL expects production momentum to strengthen, with global production forecasts converging around 90 million plus units. The company is committed to investing in growth and enhancing its technology capabilities.
Leverage
The leverage ratio at the end of Q2 remains stable at 1.1x net effective debt to EBITDA. The company expects the leverage ratio to be around 0.9x by the end of the year, contributed by improvement in the business profile, better free cash flows and reduction on the working capital front.
Source: BSE
