This article first appeared on GuruFocus .
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Yearly Revenue:Crossed INR 10,000 crore for the first time.
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Debt Status:Maintained a debt-free status since inception.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Motherson Sumi Wiring India Ltd ( BOM:543498 ) achieved a significant milestone by surpassing INR10,000 crore in yearly revenues for the first time.
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The company maintains a debt-free status, which supports its financial stability and future growth plans.
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Greenfield facilities have started contributing to the company's performance, with expectations for increased contributions as customer volumes grow.
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The company has a diversified powertrain portfolio, including ICE, EV, and hybrid, which positions it well for future market demands.
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Motherson Sumi Wiring India Ltd ( BOM:543498 ) has shown strong revenue growth of around 33% in sales revenue, outperforming the market's single-digit growth.
Negative Points
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Rising copper prices have led to a 2.9% compression in gross margin, with a pass-through lag of three to six months affecting profitability.
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Currency fluctuations and increased costs in power, freight, and insurance have also impacted the company's cost structure.
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Greenfield plants are not yet at full capacity, with some locations like Pune operating at only 50% utilization, affecting overall profitability.
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The company faces challenges in ramping up new greenfield plants to achieve profitability similar to existing operations.
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There is uncertainty regarding the timing of customer volume ramp-ups, which could impact future revenue and profitability projections.
Q & A Highlights
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Q: Can you discuss the demand side, new order wins, and capacity expansion plans for FY27? A: We are winning orders across all powertrains, including ICE, EV, and hybrid. Our sales revenue grew by 33%, outpacing the market's single-digit growth. Current capacity utilization is around 80%, and we plan to expand as we reach this threshold, backed by firm customer orders. Last year's CapEx was INR190 crore, and we expect similar numbers for this year.
Q: How are you managing the cost side, particularly with copper price increases and currency impacts? A: Copper price increases are passed through to customers with a three to six-month lag. Currency impacts are also managed with similar arrangements. Other costs like power, freight, and insurance are being monitored, and we have back-to-back arrangements with customers to mitigate these impacts.
Q: What is the current utilization level of greenfield plants, and when do you expect them to contribute positively to EBITDA? A: Kharkhoda is at 80% utilization, Pune at 50%, and Navagam at 60%. The quarterly turnover for these plants is over INR400 crore, and we expect to reach an annualized INR2,000 crore soon. Once volumes meet forecasts, these plants will contribute positively to EBITDA.
Q: How does the copper price increase affect revenue and gross margins? A: The copper price increase is reflected in revenue with a lag. Gross margins have decreased by about 600 bps from Q1 to Q4 due to copper price increases. The cost will be fully recovered with a lag, but there will be a denominator effect impacting EBITDA margins slightly.
Q: Can you provide details on the CapEx plans for next year and its impact on margins? A: The INR200 crore CapEx for next year will be a mix of greenfield expansion, automation, digitization, and replacement CapEx for existing plants. Automation is expected to help improve margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
