Samvardhana Motherson International

Samvardhana Motherson International shares are in focus after Volkswagen AG, its largest client contributing 9% of revenue in financial year 2025, warned of potential production stoppages due to supply chain issues. The disruption stems from a dispute over Chinese-owned chipmaker Nexperia, which has created semiconductor supply constraints for European automakers after the Dutch government seized control citing security concerns and Beijing restricted chip exports in response. Volkswagen indicated production hasn't been affected yet but cautioned disruptions could occur short-term. Additionally, BMW, another major client accounting for 5% of Samvardhana Motherson's revenue, issued a profit warning reducing its automotive EBIT margin guidance to 5-6% from 5-7% and cutting free cash flow projections from over €5 billion to over €2.5 billion due to weak Chinese sales and higher costs. Samvardhana Motherson has implemented a mandate ensuring no single client exceeds 10% of total revenue as part of its five-year plan. The company's shares closed 0.5% lower at ₹105.25, up only 1.5% year-to-date but down 6% in the past month.

Motherson SAS Automotive Modules and Services Argentina S.A., a wholly owned subsidiary of Samvardhana Motherson International Limited, received a penalty of ARS 56,436,886.20 (approximately INR 3,665,406) from Argentina's tax authority ARCA. The penalty relates to improper VAT input claims and deductions made between 2019-2023 against non-compliant supplier invoices. The violations occurred before Motherson's acquisition of the business, which was completed on July 31, 2023. The company states there is no material impact on financial or operational activities and plans to pursue indemnity provisions with the seller, subject to limitation periods.

Samvardhana Motherson International Limited (SAMIL) provided an update on its subsidiary Motherson Technology Services Limited's (MTSL) share capital reduction scheme. MTSL submitted an application on October 15, 2025, to the National Company Law Tribunal Mumbai Bench under Section 66 of the Companies Act 2013 for approval of the share capital reduction. SAMIL currently holds 92.96% equity shareholding in MTSL. Upon completion of the scheme, MTSL and its subsidiaries will become wholly-owned subsidiaries of SAMIL. The company had previously disclosed this scheme on August 29, 2025.