Samvardhana Motherson Q1FY26 results: Net profit down 48.5% to ₹511.84 crore; revenue up 4.7% YoY to ₹30,212 crore. Stock gains over 4% on tariff impact clarity.

Samvardhana Motherson Q1FY26 Results: Profit Falls, Revenue Rises, Shares Gain

Samvardhana Motherson International Ltd saw its share price rise more than 4% on Wednesday, closing at ₹93.44 on the BSE, after the company announced its Q1FY26 earnings. While the results revealed a sharp decline in net profit, the market reacted positively to the company’s assurance that US tariffs will have minimal impact on operations.

Q1FY26 Key Highlights

• Net Profit: ₹511.84 crore, down 48.5% YoY from ₹994.17 crore.

• Revenue from Operations: ₹30,212 crore, up 4.7% YoY from ₹28,867.96 crore.

• EBITDA: ₹2,458 crore, down 11.4% YoY from ₹2,775 crore.

• EBITDA Margin: 8.1% (down 150 bps from 9.6% YoY).

• Closing Price: ₹93.44 per share, up 3.51% from the previous day’s close.

Management Commentary on Tariffs

Chairman Vivek Chaand Sehgal stated that the company’s US operations are largely USMCA compliant, limiting exposure to recently imposed tariffs.

“We are well-positioned to navigate evolving tariffs with most of our US sales being USMCA compliant. For non-compliant parts, cost pass-through agreements with customers are progressing, though with a slight lag,” Sehgal said.

He also noted that the new tariffs on India would not materially affect the company’s operations. Exports from India to the US were less than $10 million in Q1FY26.

Operational Challenges and Outlook

The company attributed the profit decline to transitory industry challenges, adding that measures are already being implemented in close collaboration with customers to restore margins.

Despite ongoing global supply chain uncertainties, the management sees potential inorganic growth opportunities ahead.

Stock Performance and Technical View

Market expert Anshul Jain, Head of Research at Lakshmishree, highlighted that the stock has been trading in the ₹87.59–₹105.53 range for the past 17 weeks.

“Volumes have been low, and intraday price movements are narrowing daily. Until we see a significant breakout with higher volumes, sideways consolidation is expected,” Jain noted.

Industry Context

The automotive components sector is navigating a mixed landscape in FY26:

• Demand Recovery: Gradual rebound in auto production post-pandemic supply chain disruptions.

• Margin Pressures: Rising input costs and volatile freight charges.

• Tariff Risks: Geopolitical trade policies adding uncertainty to global supply chains.

Samvardhana Motherson’s strong global presence and customer diversification give it resilience against regional disruptions.

Investor Takeaways

• Revenue growth remains positive despite profit contraction.

• Minimal tariff exposure could safeguard future earnings.

• Stock remains range-bound; breakout potential hinges on volume expansion.

• Long-term investors may see value in the company’s global footprint and inorganic growth strategy.