Did Motherson Sumi Wiring’s Q1 Net Profit Drop by 4% to Rs 143 Crore?
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Synopsis
Motherson Sumi Wiring India Limited reports a 4% decrease in net profit for Q1 FY26, dropping to Rs 143 crore amidst rising revenues. Explore the company's performance, challenges, and strategic future in the competitive automotive landscape.
Key Takeaways
- Motherson Sumi Wiring's Q1 net profit declined by 4% to Rs 143 crore.
- Company revenue increased by 14.2% to Rs 2,494 crore.
- Operating margins narrowed to 9.8% due to ramp-up costs.
- EBITDA rose by 2.3% to Rs 244.2 crore.
- EV segment contributed 5.4% to total revenue.
Mumbai, July 28 (NationPress) - The Noida-based auto components manufacturer, Motherson Sumi Wiring India Limited, announced a 4% year-on-year decline in net profit for the first quarter (Q1) of FY26 on Monday. The company reported a net profit of Rs 143 crore for the June quarter, down from Rs 149 crore in the corresponding quarter of the previous year (Q1 FY25), as stated in its stock exchange notification.
During this quarter, the company’s revenue saw a robust increase of 14.2%, reaching Rs 2,494 crore, attributed to new model launches and an uptick in content per vehicle.
However, despite the revenue growth, Motherson Sumi Wiring faced pressure on its operating margins due to the ramp-up costs associated with new Greenfield projects.
Operating margins decreased to 9.8% in Q1 FY26, compared to 10.9% in the same quarter last year.
In its exchange filing, the company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 244.2 crore, reflecting a 2.3% increase from Rs 238.7 crore in the prior year’s quarter.
The electric vehicle (EV) sector made up 5.4% of the total revenue in Q1.
Chairman Vivek Chaand Sehgal highlighted the company’s impressive revenue performance, which surpassed the overall trends in the auto industry.
He acknowledged that the ramp-up at a specific Greenfield project was slower than anticipated, but he confirmed that the company is on track with its expansion initiatives to cater to the evolving demands of original equipment manufacturers (OEMs).
Motherson Sumi Wiring India was formed in 2020 following the demerger of the domestic wiring harness segment from its parent organization.
Promoted by Samvardhana Motherson International Limited, the company benefits from technological support provided by Japan’s Sumitomo Wiring Systems.
With a comprehensive network of manufacturing and technical centers near major automotive OEM hubs throughout India, it efficiently delivers wiring harness solutions.
Moreover, the company maintains a debt-free status, bolstering its ongoing expansion plans.
On the Bombay Stock Exchange (BSE), Motherson Sumi Wiring shares closed the day down 1.2% at Rs 40.
Point of View
It’s crucial to recognize Motherson Sumi Wiring's resilience in the face of challenges. While the dip in net profit may raise concerns, the company’s strategic focus on expansion and innovations in the EV segment reflects a proactive approach to stay ahead in the dynamic automotive industry.
NationPress
20/09/2025
Frequently Asked Questions
What caused the decline in net profit for Motherson Sumi Wiring?
The decline in net profit is attributed to increased operational costs related to the ramp-up of new Greenfield projects despite a significant revenue increase.
How did the company's revenue perform in Q1 FY26?
Motherson Sumi Wiring saw a 14.2% growth in revenue, reaching Rs 2,494 crore due to new model launches and heightened content per vehicle.
What percentage of revenue came from the electric vehicle segment?
The electric vehicle segment contributed 5.4% of the total revenue in Q1 FY26.
Is Motherson Sumi Wiring debt-free?
Yes, Motherson Sumi Wiring maintains a debt-free status, which supports its ongoing expansion strategy.
Who promoted Motherson Sumi Wiring India Limited?
The company is promoted by Samvardhana Motherson International Limited and receives technological support from Japan’s Sumitomo Wiring Systems.
