Summary
Motherson Sumi Wiring India Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026 4:00 PM IST
Event Participants
Executives 5 Anurag Gahlot (COO and Whole-time Director), Gulshan Pahuja (CFO), Laksh Vaaman Sehgal (Director), Pankaj Mital (Whole-time Director and President, SAMIL), Vivek Chaand Sehgal (Chairman)
Analysts 5 Gunjan (Bank of America), Mumuksh Mandlesha (Anand Rathi), Prateek Bhandari (AART Ventures), Raghu (Nuvama Wealth Management), Siddhartha Bera (Nomura)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹ [Not explicitly stated in abs] | +25% YoY; growth driven by new model launches and strong industry production across segments. |
| EBITDA Margin (Ex-Greenfield) | 11.3% | Impacted by ~190-200 bps headwind due to copper price inflation and temporal pass-through lags. |
| Copper Price Impact | ~1.9% to 2.0% | Negative impact on margins in Q3; expected to be recovered via contractual pass-throughs by fiscal year-end. |
| Net Debt | ₹0 (Debt-free) | Maintained debt-free status through strong internal cash flow generation and prudent capital management. |
| Capex (9M FY26) | ₹150 crores | Part of the annual ₹220 crore budget; focused on capacity expansion and greenfield facilities. |
| EV Revenue Contribution | 6% | Remains stable compared to 7% in the previous quarter; reflects ongoing ramp-up of EV-specific programs. |
Geographic & Segment Commentary
- Passenger Vehicles (PV): Segment production grew 19% YoY and 6% QoQ. MSWIL outperformed industry growth through increased content per car and new model launches.
- Commercial Vehicles (CV): Production grew 18% YoY and 10% QoQ. Management noted positive momentum across the 9-month period with 10% overall growth.
- Two-Wheelers: Production increased 15% YoY, though it saw a 2% marginal decline on a sequential (QoQ) basis.
Company-Specific & Strategic Commentary
- Greenfield Facilities: Three strategic plants (Gujarat, Kharkhoda, Pune) are in various stages of ramp-up. Gujarat is reaching ~80% utilization, while Pune is being filled with new businesses to offset slower-than-expected EV volume ramp-ups from specific customers.
- Powertrain Agnosticism: The company is positioned to support ICE, EV, and Hybrid platforms simultaneously. Strategic localization of high-voltage and low-voltage harnesses is underway to support OEM transitions.
- Expansion Strategy: Management maintains a policy of scouting for new land and facilities once any existing plant reaches 80% utilization to stay ahead of customer demand.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Margin Recovery | Q4 FY26 | Management expects to recover the 200 bps copper impact through contractual adjustments by year-end. |
| Greenfield Utilization | Next 2-3 Quarters | Target to reach “optimal utilization” across the three new facilities as customer volumes stabilize and new models launch. |
| Annual Capex | ₹220 crores for FY26 | Remaining ₹70 crores to be deployed in Q4; FY27 budgets are currently being finalized with customers. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Inflation | Sustained upward pressure on copper prices creates temporary margin compression due to the 3-to-6 month contractual pass-through lag. |
| EV Adoption Lags | Some EV programs have seen slower ramp-ups or deferrals by customers, leading to temporary underutilization at specialized greenfield sites like Pune. |
| Regulatory Changes | While the “Labour Code” impact was deemed insignificant this quarter, management is monitoring the notification of state-level rules for future cost impacts. |
Q&A Highlights
Greenfield Performance & Margins
- Question: When will greenfield plants reach EBITDA breakeven? (Siddhartha Bera)
- Answer: Performance is improving as volumes kick in. Management expects these facilities to reach optimal utilization and margin parity with the rest of the business within the next 2-3 quarters (Pankaj Mital/Anurag Gahlot).
Copper Pass-Through Mechanism
- Question: How does the copper pass-through work and is the total inflation passed on? (Shubham Harne)
- Answer: It is a 100% transparent pass-through mechanism based on contractual agreements. The impact in Q3 (approx. 2%) is purely a time-lag issue (Pankaj Mital).
EV Program Status
- Question: Are EV programs gearing up and what is the status of high-voltage localization? (Raghu)
- Answer: EV powertrain volumes are gearing up in Q4, specifically in the Gujarat facility. Localization levels are increasing for both high and low voltage harnesses in collaboration with Sumitomo (Anurag Gahlot/Vivek Sehgal).
Segment Growth
- Question: How has the company performed across PV, 2W, and CV segments? (Mumuksh Mandlesha)
- Answer: Overall revenue grew 25% YoY, significantly outperforming the general industry growth of 15-19% in PV and CV. The company provides wiring solutions to nearly all major OEMs in India (Anurag Gahlot).
Key Takeaway
Motherson Sumi Wiring India Limited delivered a resilient Q3 FY26, characterized by a 25% YoY revenue growth that outpaced the broader automotive industry. Performance was supported by strong production volumes in PV and CV segments and increased content per vehicle. While EBITDA margins faced a temporary ~200 bps headwind due to a time lag in passing through copper price inflation, management confirmed these costs are contractually recoverable by the end of the fiscal year. Strategically, the company is progressing through the gestation phase of its three greenfield plants, with Gujarat reaching 80% utilization and others expected to reach optimal levels within 2-3 quarters. Maintaining a debt-free balance sheet and a ₹220 crore capex plan for the year, MSWIL remains powertrain-agnostic, with EV contributions steady at 6%. The outlook remains positive as the company scales capacity to meet OEM demand for new ICE and EV models.
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