Samvardhana Motherson Q2 Preview: Profit Expected to Dip Despite Revenue Growth

Samvardhana Motherson International Ltd. shares edged 0.5% higher as investors awaited the company's September quarter results. Analysts anticipate a mixed bag of financial outcomes, with revenue growth offset by a decline in profitability.

Analyst Expectations

According to a poll conducted by CNBC-TV18, here's what analysts expect from Samvardhana Motherson's Q2 results:

Metric	Expected Value	YoY Change
Net Profit	₹750 crore	-15%
EBITDA	₹2,536 crore	+4%
Revenue	₹29,800 crore	+7%
EBITDA Margin	8.50%	-30 bps

Revenue Drivers and Margin Pressure

The anticipated 7% year-on-year revenue growth is expected to be driven by strong performance in:

Wiring harness segment
Integrated assemblies
Vision systems

However, the EBITDA margin is projected to contract by 30 basis points, from 8.80% to 8.50%. This compression is primarily attributed to margin pressures in the modules and polymers businesses.

Stock Performance

The stock has shown modest gains year-to-date:

Current trading price: ₹106.61
Year-to-date gain: 3.00%

Investors will be closely watching the actual results to see how they align with these projections and to gauge the company's performance in a challenging economic environment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.08%	+1.85%	+1.67%	+11.45%	-0.70%	+120.45%

Samvardhana Motherson International Limited has announced the issuance of commercial paper worth INR 250 crores. This move highlights the company's approach to short-term financing and liquidity management.

Key Details of the Commercial Paper Issue

Parameter	Details
Total Issue Size	INR 250.00 crores
Number of Papers	5,000
Face Value per Paper	Rs. 5.00 lakh
Issue Date	November 6, 2025
Maturity Date	December 17, 2025
Interest Rate	5.95% (charged upfront)
Issue Price per Paper	Rs. 4,96,680.50
Listing	BSE Limited
ISIN	INE775A14798
Credit Rating	ICRA A1+ IND A1+
Issuing and Paying Agent	ICICI Bank Limited

Trading Information

The commercial papers will be traded in dematerialized form, with a standard denomination of Rs. 5.00 lakhs and multiples thereof. This structure allows for flexibility and ease of trading for investors.

Significance of the Issue

The issuance of commercial paper by Samvardhana Motherson International Limited indicates the company's ability to access short-term financing. The high credit rating of ICRA A1+ IND A1+ suggests strong creditworthiness and a very low credit risk, which may have contributed to the interest rate of 5.95%.

This move could potentially help the company manage its working capital needs, taking advantage of the relatively short maturity period of about 41 days. The listing on BSE Limited ensures transparency and provides liquidity to investors interested in short-term debt instruments.

As the automotive components sector continues to evolve, Samvardhana Motherson's financial strategies, including this commercial paper issuance, may play a role in supporting its operational needs.