Samvardhana Motherson reported a rise in profit, its operating margins and EBITDA declined, raising concerns about underlying strength. Net profit rose 19.6% year-on-year to ₹1,051 crore, up from ₹878.6 crore. Revenue for the quarter also grew 6% to ₹29,317 crore. A reduction in tax expenses helped boost the bottom line.
Net profit rose 19.6% year-on-year to ₹1,051 crore, up from ₹878.6 crore. Revenue for the quarter also grew 6% to ₹29,317 crore. A reduction in tax expenses helped boost the bottom line.
However, operational performance weakened. EBITDA dropped 1.6% to ₹2,643 crore from the year-ago period, and EBITDA margins slipped to 9% from 9.7%, showing a decline of 70 basis points.
Alongside its results, the company’s board announced a bonus issue of shares in the ratio of 1:2. This is subject to shareholder approval in the upcoming annual general meeting.
The board also gave in-principle approval to raise funds through non-convertible debentures. It plans to issue ₹8,500 crore worth of rated, listed, unsecured, redeemable debentures on a private placement basis. Each debenture will have a face value of ₹1 lakh.
Samvardhana Motherson’s segment-wise performance was mixed in the March quarter.
The Wiring Harness business, which contributes 29% to total revenue, posted 5% topline growth. EBIT for this segment rose 18%, and margins improved by 130 basis points to 12.4%.
The Modules and Polymer Products segment, which contributes 52% of the company’s revenue, saw its topline rise 12%. However, EBIT fell 32%, and margins declined sharply by 430 basis points to 6.5%.
The Vision Systems division, responsible for 17% of the revenue, faced a 1% fall in revenue and an 8% drop in EBIT. Its margins also narrowed by 100 basis points.
Chairman Vivek Chaand Sehgal stated in a post-earnings statement that the company’s booked business value is now over $88 billion. He noted that this includes non-automotive operations as well, reflecting the group's broader vision.
The company also addressed trade barriers, saying it is mitigating most of the impact by staying compliant with US MCA rules. It added that talks are ongoing with customers to pass on tariff-related costs.
On May 29, 2025, Samvardhana Motherson share price opened at ₹151.00, up from the previous close of ₹148.70. At the end of the session, the stock was trading at ₹152.12 on the NSE.
The stock’s 52-week high stands at ₹216.99, hit on September 27, 2024, while the 52-week low of ₹107.25 was recorded on April 7, 2025.
Samvardhana Motherson’s fourth quarter showed a rise in profit but weak operational results. While some segments posted growth, others saw margin pressure. Investors will be watching future quarters closely for signs of sustainable improvement and the outcome of the proposed bonus and fundraising plans.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 29, 2025, 4:12 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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