Motherson : Profit Jumps 42%, Revenue Hits Record High

Samvardhana Motherson International delivered a strong Q2 FY27 performance, with consolidated net profit attributable to owners rising 42.1% YoY to ₹1,175.32 crore against ₹827 crore last year. Key Q2 FY27 Highlights: Revenue from operations surged 26.9% YoY to ₹38,279.85 crore, marking the company's highest-ever quarterly revenue. Net profit jumped 42.1% to ₹1,175.32 crore. EBITDA increased 23% YoY to ₹3,353 crore. EBITDA margin stood at 8.8%, slightly lower than 9% a year ago. Booked business reached an all-time high of $106 billion. Leverage ratio remained healthy at 0.8x. The strong performance was supported by wiring harness demand and the integration of newly acquired businesses. However, acquisition-related integration and input-cost pressures remain important factors to monitor. Technical Outlook: The stock closed at ₹168, gaining approximately 5.34% on the NSE. The chart indicates improving momentum, with RSI recovering above 50 and MACD showing positive momentum. Immediate support is placed around ₹160–158, followed by ₹155. Resistance lies around ₹168–170. A sustained breakout above ₹170 could strengthen the bullish setup, while failure to hold ₹158 may lead to consolidation. My View: The results are encouraging, particularly the record revenue, strong profit growth and $106 billion order book. However, margin improvement and successful integration of acquisitions will be crucial for sustaining earnings growth. The stock's reaction to results is positive. Watch for follow-through buying above ₹170 before considering the next leg of the rally. Disclosure: The analyst or his family does not have any position in the stock. MOTHERSON