Samvardhana Motherson International has announced its audited consolidated financial results for the quarter and financial year ended March 31, 2026. The company reported its highest-ever annual revenue of ₹126,414.20 crore for the year ended March 31, 2026, compared to ₹114,220.28 crore in the previous year. Profit for the period stood at ₹4,085.55 crore. For the quarter ended March 31, 2026, revenue from operations was ₹34,309.31 crore, with a net profit of ₹1,561.56 crore.

Financial Performance

The company's operational metrics showed improvement year-on-year. EBITDA for the year ended March 31, 2026, was ₹12,032.63 crore, up from ₹10,877.45 crore in the previous year. The EBITDA margin for the year was 9.5%. The leverage ratio improved to 0.8x, down from 0.9x at the end of FY25, marking the lowest level in the company's history.

Strategic Developments

Samvardhana Motherson International reported a booked business of USD 96 billion, providing robust visibility for near-to-mid-term growth. The company recorded a capital expenditure of ₹5,911 crore for FY26 and provided an outlook of ₹6,000 crore +/- 10% for FY27. Emerging businesses grew 50% year-on-year, with Consumer Electronics growing 7.5x and Aerospace registering 40% growth. The company currently has 16 Greenfield projects at different stages of completion, with 13 expected to come onstream during FY27.

Dividend Declaration

The Board of Directors has recommended a final dividend of ₹0.25 per equity share for the financial year 2025-26. This is in addition to the interim dividend of ₹0.35 per share already paid. The total dividend for the financial year aggregates to ₹0.60 per share, compared to ₹0.57 per share paid in the previous year. The record date to determine shareholder eligibility for the final dividend is July 14, 2026, subject to shareholder approval at the Annual General Meeting scheduled for July 30, 2026.

Samvardhana Motherson International has received sustained bullish coverage from two prominent brokerages — Jefferies and CLSA — both reaffirming their positive ratings following the company's strong fourth-quarter performance. The two firms highlight robust growth across key business segments, including aerospace and consumer electronics, while projecting multi-year earnings expansion. Adding to the positive momentum, the company has outlined ambitious long-term targets, including a revenue goal of $108 billion by 2030 and the launch of its third consumer electronics facility in Q3 FY27.

Aerospace Orders and Acquisition Pipeline

Samvardhana Motherson's aerospace segment has recorded significant order momentum, with aerospace orders increasing by over 20% to $1.6 billion, providing revenue visibility for five to eight years. Management has indicated plans for additional growth in the segment, potentially through acquisitions. On the inorganic front, two key deals are progressing toward closure: the Yutaka Giken acquisition is set to be completed by the end of H1 FY27, while the Nexans deal is expected to conclude by late June or early July.

Expansion in Consumer Electronics

Samvardhana Motherson's consumer electronics segment continues to scale rapidly. The company's Q4 FY26 production matched its annual target of 14–16 million units, reflecting strong execution in the segment. The upcoming third consumer electronics facility, slated for launch in Q3 FY27, is aimed at achieving much higher capacity and reinforcing the company's growth trajectory in this vertical.

For FY27, the company has estimated capital expenditure at approximately ₹6,000 crore, with equal focus on growth and maintenance, and a particular emphasis on investment in consumer electronics.

Long-Term Strategic Targets

Samvardhana Motherson has set a target of 40% business growth by 2030, aiming for $108 billion in revenues. The company also targets a dividend payout of up to 40%, signalling confidence in sustained cash generation over the medium to long term.

Jefferies Maintains Buy Rating

Jefferies has maintained its Buy rating on Samvardhana Motherson, setting a target price of ₹160. The brokerage points to strong Q4 EBITDA growth as a key positive, reflecting the company's operational momentum. Jefferies also projects a 26% EPS CAGR over FY26–28, underpinned by the company's recent acquisitions and its strategic expansion into electronics and aerospace segments. However, Jefferies notes near-term margin pressure stemming from higher commodity costs, though expects these incremental costs to eventually be passed on to customers, limiting the long-term impact on profitability.

CLSA Maintains Outperform Rating

CLSA has maintained its Outperform rating on Samvardhana Motherson with a target price of ₹173. The brokerage cites strong Q4 margin and revenue growth, driven primarily by the aerospace and consumer electronics verticals. CLSA projects a 13% organic growth CAGR over FY26–28, reflecting confidence in the company's core business trajectory. Beyond organic growth, CLSA highlights the company's rising focus on ASEAN markets as a strategic priority, and underscores significant inorganic growth potential supported by a low leverage ratio that provides financial flexibility for future acquisitions.

Key Takeaways

• Aerospace orders rose over 20% to $1.6 billion, offering revenue visibility for five to eight years; management plans further growth, potentially through acquisitions.
• The Yutaka Giken acquisition is expected to close by the end of H1 FY27, while the Nexans deal is targeted for completion by late June or early July.
• Samvardhana Motherson targets $108 billion in revenues by 2030, with 40% business growth and a dividend payout of up to 40%.
• The third consumer electronics facility is set to launch in Q3 FY27; Q4 FY26 production met the annual target of 14–16 million units; FY27 capex is estimated at ₹6,000 crore.
• Jefferies projects a 26% EPS CAGR over FY26–28; CLSA forecasts a 13% organic growth CAGR over the same period, with both brokerages flagging aerospace and consumer electronics as key growth themes.