Motherson Sumi Wiring India Limited — Q4 FY25 earnings call

Call held 9 May 2025

Management summary

Motherson Sumi Wiring India Limited (MSWIL) delivered record financial performance in FY25, driven by strong demand and market share gains among top-selling Indian vehicles. The company is in a heavy investment phase, commissioning three Greenfield plants to support both ICE and EV platforms. While current margins face temporary pressure from Greenfield start-up costs and copper price pass-through lags, management expects a significant revenue ramp-up and margin improvement through localization in H2 FY26.

Highlights

  • Achieved highest ever revenues on both a quarterly and full-year basis for FY25.

  • Revenue growth of 12% YoY reported, significantly outperforming mid-single-digit industry growth.

  • EV revenue share currently stands at 4% of total company revenue.

  • Three new Greenfield plants (Gujarat, Haryana, Pune) expected to generate ₹2,100 crores in annualized sales upon full ramp-up.

  • Supplying to 9 out of the top 10 selling four-wheeler models in India as of FY25.

  • Planned CAPEX for FY26 is approximately ₹200 crores.

  • Greenfield revenue for the reporting period was ₹119 crores from the first operational plant.

Key financials

  1. Revenue Growth 12% +12%YoY
  2. EV Revenue Mix 4%
  3. Greenfield Revenue ₹119 Cr
  4. Employee Cost ₹410 Cr

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.

Guidance & targets

Revenue

  • Annualized Sales from 3 New Greenfields Revenue · H2 FY26 · High confidence ₹2,100 crores
    the total sales from these three new Greenfields is Rs. 2,100 crores on an annualized basis. And once the volumes will pick up, which we are expecting in H2... this sales will get realized on the annual basis.

    — Anurag Gahlot, COO

Capex

  • FY26 Planned CAPEX Capex · FY26 · High confidence ₹200 crores
    CAPEX is about Rs. 200 crores also, isn't it Mahender and Anurag?

    — Vivek Chaand Sehgal, Chairman

Capacity

  • Greenfield Plant Utilization Capacity · H2 FY26 · Medium confidence Optimum Capacity
    towards H2 we should be able to utilize them to the optimum capacity.

    — Mahender Chhabra, CFO

  • Gujarat Greenfield Project Launch Capacity · H1 FY26 · High confidence Q1 and Q2 FY26
    In Gujarat, there are two sort of projects and one project is going to happen in Q1 of FY ‘26 and the other project is going to happen in Q2 of FY ‘26.

    — Anurag Gahlot, COO

Risks & concerns

  • Copper Price Pass-through Lag

    medium

    A 3-to-6-month time lag in passing through copper price increases can lead to temporary margin dips.

    Both acknowledged

  • Greenfield Start-up Losses

    medium

    New plants in Gujarat, Haryana, and Pune are currently under-utilized, weighing on overall profitability until the H2 FY26 ramp-up.

    Analyst acknowledged

  • Supply Chain Constraints (Rare Earths)

    low

    Management stated they do not see immediate disruption risks for connectors despite Chinese restrictions on rare earth materials.

    Analyst downplayed

Areas of evasion (2)

  • Specific capacity numbers for new plants
  • Contractual compensation from customers for project delays

Q&A highlights

2 direct
Greenfield Revenue and EV Contribution Direct
Out of the total revenue of the company, about 4% has come from the EV side. But these investments are in these new plants, in Greenfield and it's a mix of EV and ICE engine vehicles.

Clarifies that the new capacity is powertrain-agnostic and that EV penetration is still in early stages for the company.

Asked by Raghunandhan NL, Nuvama Wealth Management

Gross Margin Compression and Copper Pass-through Partial
As far as copper is concerned, even though there is a pass-through arrangement with the customer, there is a time lag. So there could be an impact on the margin for a particular quarter.

Explains the volatility in gross margins despite pass-through clauses, highlighting a 3-6 month lag risk.

Asked by Siddhartha Bera, Nomura

Profitability of High Voltage (EV) Harnesses Direct
I think first of all, it is wrong to say that there will be no profitability into the high voltages harness also... we should look for the opportunity where we can do a lot of localization... and keep improving the margins.

Management defends EV segment profitability, noting that margins will improve as localization of cables and connectors increases over the next 2-3 years.

Asked by Raghunandhan NL, Nuvama Wealth Management

2 min read 5 chapters

Detailed narrative

Greenfield Expansion and Revenue Trajectory

MSWIL is aggressively expanding its manufacturing footprint with three new Greenfield plants in Gujarat, Haryana, and Pune. These facilities are expected to contribute ₹2,100 crores in annualized revenue once they reach optimum capacity utilization, which management targets for the second half of FY26. Currently, the first plant has already ramped up, contributing ₹119 crores in the reported period, while the remaining two are slated for launch in Q1 and Q2 of FY26.

EV Strategy and Localization Efforts

Electric Vehicle (EV) components currently account for 4% of total revenue, primarily through high-voltage harnesses. Management is focused on localizing critical components such as high-voltage cables and CCS2 charging connectors to drive margin expansion. While high-voltage harnesses currently have different margin profiles than traditional low-voltage ones, the company expects profitability to align over the next 2-3 years as scale and localization increase.

Margin Dynamics and Commodity Pass-through

Gross margins experienced some pressure due to a combination of product mix shifts and a time lag in copper price pass-throughs. Although MSWIL has pass-through arrangements with all major customers, the typical 3-to-6-month adjustment period means that rapid commodity price spikes can temporarily impact quarterly results. Management emphasized that they do not hedge copper themselves but work in tandem with customer hedging strategies.

Operational Flexibility and Market Position

The company maintains a powertrain-agnostic approach, supporting ICE, Hybrid, EV, and CNG platforms. This flexibility allows MSWIL to 'breathe with the market' and adjust assembly capacity based on actual OEM demand rather than speculative bets on technology adoption. This strategy has solidified their market position, with the company now supplying wiring harnesses to 9 of the top 10 selling four-wheeler models in India.

Workforce and Cost Management

To support the new Greenfield plants, MSWIL anticipates a total requirement of 7,000 to 7,500 employees. Hiring is being conducted in a staggered, modular manner to align with production ramp-ups and manage employee costs, which are currently around ₹410 crores per quarter. Management noted that while some manpower has been pre-hired for trials, full staffing will only occur as mass production volumes materialize.

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