Motherson Sumi Wiring India Limited — Q2 FY26 earnings call

Call held 5 Nov 2025

Management summary

Motherson Sumi Wiring India Limited (MSWIL) delivered a record revenue performance in Q2 FY26, driven by strong content per vehicle and the ramp-up of new Greenfield facilities. While overall margins are currently weighed down by startup costs and lower utilization at new plants (36%), the core business maintains healthy profitability. Management remains focused on the EV transition and premiumization, though they maintain a cautious stance on the exact timeline for Greenfield plants to reach optimal 70-80% utilization levels.

Highlights

  • Achieved best-ever quarterly revenue of ₹2,762 crores.

  • EBITDA stood at ₹280 crores, representing a 12% year-on-year growth.

  • EV share of revenue increased to 7%, up from 5% in the previous quarter.

  • New Greenfield plants contributed approximately ₹190 crores to the quarterly revenue.

  • Greenfield capacity utilization reached 36%, showing sequential improvement.

  • Capex guidance for the current fiscal year (FY26) is set at approximately ₹210 crores.

  • Reported EBITDA margin was approximately 10.1%, while adjusted margin (ex-startup costs) was cited at 12.7%.

  • Copper prices increased 5% QoQ and 13% YoY, impacting raw material costs with a quarterly pass-through lag.

Concerns

  • Greenfield Ramp-up Delays

Key financials

  1. Revenue ₹2,762 Cr
  2. EBITDA ₹280 Cr +12%YoY
  3. EBITDA Margin 10.1%
  4. EV Revenue Share 7% +40%QoQ

What they filed

Q1 FY27: revenue up 36.6%, net profit up 1.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,326 2,300 2,510 2,494 2,762 +19%2,887 +26%3,335 +33%3,407 +37%
EBITDA250 238 271 244 280 +12%262 +10%274 +1%258 +6%
Net profit152 140 165 143 165 +9%149 +6%167 +1%145 +1%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Greenfield Units
    ₹190 Cr Revenue₹46 Cr EBITDA Loss36% Capacity Utilization

Guidance & targets

Capex

  • Budgeted Capex Capex · FY26 · High confidence ₹210 crores
    For this year, the CAPEX would be around 210 crores. That is something we have budgeted.

    — Gulshan, CFO

Capacity

  • Greenfield Utilization for Profitability Capacity · Medium Term · Medium confidence 70%-80%
    as soon as the utilization comes and the volumes ramp up and the utilization reaches to a level of around more than 70% or 80%, at that time you are utilizing the plant completely... And then you will get those results out of that.

    — Anurag Gahlot, COO

Risks & concerns

  • Greenfield Ramp-up Delays

    high

    Utilization is currently only at 36%, and profitability depends entirely on customer volume projections which are outside the company's direct control.

    Both acknowledged

  • Commodity Price Volatility

    medium

    Copper prices rose 13% YoY; while pass-through exists, the quarterly lag affects short-term financial performance.

    Management acknowledged

  • EV Adoption Uncertainty

    medium

    Analysts questioned if higher EV mix in new plants would make reaching historical margins difficult; management insists ROCE will be consistent.

    Analyst downplayed

Areas of evasion (2)

  • Specific margin targets for EV components vs ICE.
  • Exact timeline for reaching 70-80% utilization at new plants.

Q&A highlights

2 direct
Greenfield EBITDA losses increasing despite revenue growth Direct
If you just remove that impact [recoveries], the losses were around 70 crores on a gross level number. So, the situation is improving quarter-on-quarter, if you see with respect to the Greenfield expansion performance.

Clarifies that the apparent increase in losses (from 31cr to 46cr) was due to one-time recoveries in the previous quarter, masking underlying operational improvement.

Asked by Siddhartha Bera, Nomura

EV vs ICE margin profile Partial
The Company as a Group, we have been focused on return on capital employed... even when we will look at what we supply to EV or what we supply to non-EV, we do not kind of see that there has to be a difference in terms of our return on capital employed.

Management avoids confirming if EV margins will match ICE margins (12.7%+), instead pivoting to ROCE as the primary success metric.

Asked by Jay Kale, Elara Capital

Copper price inflation and top-line impact Direct
whenever the copper prices increase, we always get it compensated from the customer... but this has always happened with a quarterly lag because the quarter resetting of the prices always happen in the beginning of the quarter.

Confirms the contractual pass-through mechanism but highlights the timing mismatch (quarterly lag) that can temporarily suppress margins during price spikes.

Asked by Sonaal Gupta, HSBC Mutual Fund

1 min read 4 chapters

Detailed narrative

Greenfield Expansion Weighs on Near-Term Margins

MSWIL's three new Greenfield facilities contributed ₹190 crores to revenue in Q2 FY26, but capacity utilization remains low at 36%. These units recorded an EBITDA loss of ₹46 crores during the quarter, which management explained was an improvement on a gross basis after adjusting for prior-period recoveries. Profitability for these units is expected only when utilization reaches the 70-80% threshold, a timeline that remains dependent on OEM customer ramp-ups.

EV Transition and Content Premiumization

The company is seeing a steady shift toward Electric Vehicles, with the EV share of revenue rising to 7% from 5% in the previous quarter. Management highlighted that the EV shift leads to increased content per vehicle, particularly in high-voltage harnesses. While analysts questioned the margin profile of EV components, management emphasized that their focus remains on maintaining consistent Return on Capital Employed (ROCE) across all powertrain types.

Commodity Headwinds and Pass-Through Dynamics

Copper prices, a critical raw material for wiring harnesses, increased by 13% year-on-year and 5% sequentially. MSWIL has contractual agreements to pass these costs to customers, but this occurs with a quarterly lag. This lag, combined with the higher copper content in newer vehicle models, has put temporary pressure on raw material costs as a percentage of sales, though management expects these to be absorbed as volumes scale.

Operational Stability and Capex Outlook

Staff costs have stabilized between ₹475 crores and ₹480 crores over the last two quarters. Management indicated that while shop floor hiring will continue in tandem with volume growth, the bulk of the Greenfield-related employee additions are likely reflected in current levels. The company has budgeted a Capex of ₹210 crores for FY26, focusing on supporting customer requirements and the ongoing ramp-up of new capacities.

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