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Motherson Group has set a new five-year revenue target in line with its practice of coming out with five-year plans twice every decade—consolidated net sales of $108 billion by FY30.
Its last five-year plan was announced in 2020, with a targeted net sales of $36 billion by FY25 at a constant dollar exchange rate of Rs 70.89. Converted to rupees, this meant a target of Rs 2.55 lakh crore by FY25. Against this, the company was able to achieve consolidated net revenue of Rs 1.14 lakh crore for FY25.
According to sources, the company aims to achieve its next target through aggressive expansion, diversification, and a robust order pipeline.
The group is backed by a healthy order book of USD 88.1 billion, with electric vehicles contributing USD 21 billion, and a growing share from non-automotive sectors. To support future growth, Samvardhana Motherson International Ltd (SAMIL) has announced a capex plan of Rs 6,000 crore (USD 720 million) for FY26, with 70% dedicated to non-auto segments, including Printed Circuit Board Assembly (PCBA), semiconductor components, and greenfield facilities in India, China, Poland, Mexico, and the UAE.
“We are making proactive investments to scale non-auto verticals and strengthen geographic diversity,” the company announced at an analysts’ meeting. Of the total Rs 2,600 crore (USD 312 million) investment planned for consumer electronics, Rs 1,000 crore (USD 120 million) was spent in FY25. The majority of remaining funds will be deployed in the current financial year.
Aerospace, Electronics, and Strategic Wins
The Aerospace business delivered a fivefold revenue increase to Rs 1,750 crore (USD 210 million) in FY25, with EBITDA doubling to Rs 130 crore (USD 16 million). Motherson has been empaneled as a Tier-1 supplier to Airbus, covering commercial aircraft, helicopters, and advanced systems. The aerospace order book stands at USD 1.3 billion (approximately Rs 10,800 crore) and is expected to be executed over the next five years.
In consumer electronics, Plant 1 is now operational, and output is expected to reach 15–17 million units by the End of FY26. Plant 2 will be commissioned by Q2 FY26, further enhancing our vertical integration.
SAMIL also secured a USD 400 million (Rs 3,320 crore) lifetime order from a leading European commercial vehicle OEM for camera monitoring systems, reflecting growing traction in advanced electronics. Meanwhile, Motherson Yachiyo is expanding its sunroof and plastic fuel tank business beyond Honda.
The Modules and Polymers business saw EBITDA margin fall to 6.5% in Q4FY25, down 430 bps YoY, due to challenges related to customer product launches and European production realignment. The company expects improvement in the coming quarters.
Tariff Resilience
SAMIL stated that most of its U.S. revenue is USMCA-compliant, reducing tariff risk. “We are engaged in positive discussions with customers on pass-through of tariff costs and reshoring RFQ packages,” it said.
Working capital increased by Rs 2,000 crore (USD 240 million) YoY in FY25, driven by inventory and receivables buildup amid evolving trade dynamics. The company anticipates a normalization in working capital days.
Net debt, including lease liabilities, stood at Rs 9,800 crore (USD 1.18 billion) as of March 2025, down from Rs 12,900 crore (USD 1.57 billion) a year earlier. The net debt-to-EBITDA ratio improved to 0.9x, reflecting strong balance sheet discipline.
Raghunandhan NL, auto analyst at Nuvama Institutional Equities, has maintained a Buy rating on the stock. “We are constructive on SAMIL’s prospects on the back of strong management capabilities, addition of cash-EPS accretive acquisitions, and increasing content per vehicle due to premiumisation and electrification,” he said.
This article first appeared on Autocar
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