Motherson's Profit Surge Highlights Strong YoY Recovery
Samvardhana Motherson's Q1 profit jumped 77.5% year-on-year, though it dipped sequentially from a strong Q4.
The auto component giant posted robust annual profit growth, but quarterly profit declined 31% from the previous quarter. Revenue growth remained steady.
Samvardhana Motherson International reported a powerful year-on-year earnings recovery for the quarter ended June 2026, with profit nearly doubling from a low base. However, the profit momentum cooled off compared to the preceding quarter, indicating a potential normalization after a strong finish to the prior fiscal year.
The company's revenue grew 16.7% year-on-year to ₹35,244 crore, continuing a steady upward trajectory over the past year. The real story is in profitability: net profit soared 77.5% to ₹1,076 crore compared to Q1 FY26. This translated to a net profit margin of 3.1%, a significant 110 basis point improvement from the 2.0% margin a year ago. Sequentially, revenue edged up 2.7%, but profit fell 31.1% from the ₹1,562 crore earned in Q4 FY26, which had a notably higher margin of 4.6%.
The recent quarterly performance shows a clear pattern of improvement over the past year.
Revenue (₹ crore)
Profit (₹ crore)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ crore) | 35,243.77YoY +17% | 34,309.31 | 30,212.00 |
| Profit (₹ crore) | 1,075.66YoY +77% | 1,561.56 | 606.09 |
| Net Profit Margin | 3.1%YoY +55% | 4.6% | 2.0% |
Over the trailing twelve months (TTM), the company's net profit margin stands at 3.5%, slightly above the latest quarter's figure. The stock has been a strong performer, delivering an 80.8% return over the past year. Despite this run-up, the company's valuation, at a P/E of 28.7, trades at a discount to the broader auto ancillary industry average.
The key question for Motherson is whether it can sustain the elevated profitability levels seen in Q4 FY26, or if the Q1 FY27 margin represents a more sustainable run-rate for the current business cycle.
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.