Auto components maker Samvardhana Motherson to spend 70% of FY26 capex beyond cars

Automotive components maker Samvardhana Motherson International Ltd (SAMIL) on Thursday said it will allocate nearly 70% of its planned ₹6,000 crore capital expenditure for FY26 to non-automotive businesses, as per its FY25 earnings presentation.

The company is investing in greenfield projects across aerospace, consumer electronics, industrial solutions, and other sectors. In FY25, the company spent ₹4,433 crore in capex, focusing on growth opportunities in emerging markets and non-auto businesses. Its capex-to-EBITDA ratio stood at 41% for the year.

Of the 14 greenfield projects currently under execution, nine are expected to go onstream in FY26. These include facilities in India, China, Poland, Mexico, and the UAE, catering to both automotive and non-automotive divisions.

Also Read: Samvardhana Motherson proposes 1:2 bonus issue, recommends final dividend of Rs 0.35 per share

Notably, three greenfield projects were newly announced during the year, including one in aerospace and another in lighting and electronics for non-automotive applications.

One key project involves a new plant in India to manufacture and assemble components for semiconductor manufacturing machines. Other major non-auto investments include capacity expansion in aerospace and industrial technology solutions.

Q4 and FY25 financial performance

For the January–March quarter (Q4FY25), Motherson reported a 22.75% year-on-year (YoY) drop in consolidated profit after tax (PAT) at ₹1,115.38 crore, compared with ₹1,444 crore a year earlier. However, revenue from operations rose 8.34% YoY to ₹29,316.83 crore from ₹27,058.22 crore in Q4FY24.

For the full fiscal year FY25, the company posted a 40% YoY increase in PAT at ₹3,803 crore, up from ₹2,716 crore in FY24. Consolidated revenue rose 15% YoY to ₹1,13,663 crore, while EBITDA increased 17% to ₹10,877 crore.

The net debt-to-EBITDA ratio remained steady at 0.9x, reflecting a strong balance sheet. As of March 31, 2025, effective net debt stood at ₹9,791 crore.

Segment performance and outlook

Revenue from emerging businesses, which include both auto and non-auto operations, rose to ₹11,418 crore in FY25 from ₹8,090 crore in FY24. Within this, non-automotive revenue contributed ₹3,186 crore, led by a fivefold jump in aerospace revenue to ₹1,749 crore.

Motherson continues to benefit from its “globally local” business model and robust order book valued at over $88 billion, with healthy traction across segments.

The company also noted that most trade barrier impacts were mitigated due to USMCA compliance and added that it is in constructive talks with customers regarding pass-through of tariff-related costs.

Dividend and bonus issue

The board has recommended a final dividend of ₹0.35 per share, with June 23 set as the record date. The dividend will be paid by September 26.

Additionally, the board has proposed a bonus issue in a 1:2 ratio, meaning shareholders will receive one additional share for every two shares held.

FY26 capex plans

For FY26, Motherson has earmarked ₹6,000 crore in capital expenditure, with a 10% margin of variation. About 50% of this will go towards business expansion, while nearly 70% will be directed toward non-automotive sectors, in line with the group’s broader diversification strategy.

Shares of Samvardhana Motherson International Ltd closed at ₹152.12 on Thursday, up ₹3.42 or 2.30%.