Samvardhana Motherson Shares in Focus Amid Release of Five-Year Roadmap

Samvardhana Motherson shares International Ltd., a leading global manufacturer of auto components and systems, has recently unveiled its bold new five-year strategic roadmap. Under the revised plan, the company has set an aggressive revenue target of $108 billion by FY2030, a more than fourfold increase from the $25.7 billion recorded in FY2025.

Shareholders Returns: Focus on Dividend Payout of 40%

Aiming for improved operational efficiency, SamvardhanaMotherson also plans to double its Return on Capital Employed (RoCE) to 40% by the end of the plan period, up from 18% in the previous fiscal year.

In line with its global diversification strategy, the group emphasised that no single country would contribute more than 10% to its total revenue, reducing geographical concentration risk. The company also reaffirmed its commitment to shareholder returns, aiming to maintain a dividend payout ratio of up to 40%.

Impact of Trump’s 50% Tariffs

The management anticipates that over 75% of its future revenue growth will stem from recent acquisitions, highlighting the pivotal role of M&A in its expansion strategy.

The company noted that more group entities are expected to be listed once they achieve operational self-sufficiency, in a move aimed at unlocking long-term shareholder value.

Addressing concerns about trade policy, Samvardhana Motherson reiterated that the 50% tariffs introduced during the Trump administration will have no material impact on its operations.

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Samvardhana Motherson Q1FY26 Earnings Highlights

Samvardhana Motherson reported strong operational and strategic performance, delivering revenue of ₹30,212 crores, EBITDA of ₹2,466 crores, and a PAT of ₹667 crores. Revenue growth outpaced the industry, driven by well-executed mergers and acquisitions alongside a resilient organic business, showcasing the strength of its well-diversified model.

However, profitability faced temporary pressures due to targeted cost optimisation in Western and Central Europe, timing lags in tariff-related pass-through, FX volatility, and startup costs from new Greenfield projects. This performance came against a challenging macro backdrop, with developed markets under structural pressures, evolving global trade dynamics, and recalibration in production driven by shifts in the powertrain mix.

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