Synopsis: The global auto component major reported 14% YoY growth in Q3FY26, with net earnings rising 9%. Margins improved across key divisions, including 12.9% in integrated assemblies. Brokerages remain divided, with targets ranging from ₹95 to ₹160, implying up to 20% upside from current levels.
India’s Auto Components & Equipment sector powers the nation’s booming auto industry, hitting a robust Rs 6.73 lakh crore ($80.2B) turnover in FY25, up 9.6% YoY. Domestic OEM supplies surged 10% to Rs 5.7 lakh crore, exports climbed 8% to $22.9B, and the aftermarket grew 6% to Rs 99,948 crore, yielding a $453M trade surplus. This resilience underscores its global manufacturing edge.
With a market capitalisation of Rs 1,41,108.01 crore, the shares of Samvardhana Motherson International Ltd were trading at Rs 133.70 per share, increasing around 3.28 percent as compared to the previous closing price of Rs 129.45 apiece.
Q3FY26 Highlights
Samvardhana Motherson International Ltd announced its robust financial performance in Q3FY26, in which revenue increased by 14 percent on a year-on-year basis from Rs 27,666 crore in Q3FY25 to Rs 31,409 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 4 percent from Rs 30,173 crore in Q2FY26 to Rs 31,409 crore in Q3FY26.
Moreover, net profit increased by 9 percent on a yearly basis from Rs 984 crore in Q3FY25 to Rs 1,072 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 27 percent from Rs 846 crore in Q2FY26 to Rs 1,072 crore in Q3FY26.
In 9MFY26, Motherson reported broad-based growth across divisions. Wiring Harness revenues rose to Rs 26,272 crore with EBITDA margin at 10.5%. Modules and Polymer Products generated Rs 46,157 crore at 7.7% margin. Vision Systems posted Rs 15,468 crore with 9.2% margin, while Integrated Assemblies improved margins to 12.9%. Emerging Businesses delivered Rs 11,921 crore in revenues.
Brokerage Views
As per the brokerage Jefferies, the company delivered a margin beat with sequential expansion driven by polymers and integrated assemblies. It has maintained a Buy rating and raised the target price to Rs 160, which is showing 20 percent upside potential from the current level. Jefferies expects recent acquisitions to accelerate growth in FY27 and projects a strong 31% EPS CAGR over FY26-28.
Moreover, Morgan Stanley maintained an Overweight stance and lifted its target price to Rs 144, citing improving EU business trends and steady non-auto ramp-up. The brokerage believes new acquisitions will further strengthen growth momentum from the second half of FY27, supporting a more constructive medium-term outlook.
Citi, however, remains cautious despite acknowledging that Q3 surpassed estimates. The brokerage maintained a Sell rating while increasing the target price to Rs 95. It highlighted operational efficiencies supporting margins but flagged concerns around muted global demand and profitability of emerging businesses, especially in developed markets.
Samvardhana Motherson International Limited is a leading global automotive component manufacturer with a diversified presence across wiring harnesses, polymer products, vision systems, and integrated assemblies. The company serves major OEMs worldwide and has expanded into aerospace and consumer electronics. With operations in multiple countries, it focuses on scale, innovation, and strategic acquisitions.
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