SAMIL (Motherson International): Strong Q4 delivery. Execution on non-Auto diversification & M&A key to watch

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SAMIL (Motherson International): Strong Q4 delivery. Execution on non-Auto diversification & M&A key to watch

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SAMIL (Motherson International)

Strong Q4 delivery. Execution on non-Auto

diversification & M&A key to watch

Reiterate Rating: NEUTRAL | PO: 150.00 INR | Price: 132.17 INR

Good Q4 & confident growth comments amid weak macro 21 May 2026

SAMIL’s Q4 EBITDA at Rs38B (+44% Y/Y, BofAe Rs32B) and EBITDA margin at 11.0% Equity

(+130bps Q/Q, BofAe: 9.5%) was a significant beat on our and street expectations. Co’s

transformative cost program for EU operations is yielding operational efficiencies and

Key Changespositive results especially in Modules segment. Operating leverage and seasonality were

also favorable in other segments, as reflected in revenues being up 9% Q/Q & 17% Y/Y. (Rs) Previous Current

As we look ahead, Q1 will likely be a weak one given low seasonality and complete flow Price Obj. 140.00 150.00

through of steep polymer and metal inflation. That said, these costs tend to be 2026E Rev (m) 1,217,034.5 1,261,036.7

contractual pass through for Motherson and should even out with a lag as RM basket 2027E Rev (m) 1,401,703.7 1,467,211.8

stabilizes hopefully in 2H. Overall it was a good quarter and management commentary 2028E Rev (m) 1,539,355.9 1,628,447.1

also exuded confidence on growth delivery ahead, despite the macro challenges. Key 2026E EPS 3.86 3.87

drivers for growth in F27-28 are global truck cycle (esp in US), ramp up of new segments 2027E EPS 5.17 5.52

of aerospace and consumer electronics and consolidation of recent new acquisitions. As 2028E EPS 6.12 6.69

we factor in better margin performance and add in 2 new M&As (Yutaka & Nexans), our 2026E EBITDA (m) 112,166.2 119,029.2

EPS estimates are revised up by 7-9% (Ex. 15).