 "Samvardhana Motherson rallies 4%, nears 52-wk high. Should you buy or hold?")
Samvardhana Motherson International share price today
Shares of Samvardhana Motherson International hit its highest level in calendar year 2025 at ₹113.50, up 4 per cent on the BSE in Friday’s intra-day trade after the company reported a steady performance for the quarter ended September 2025 (Q2FY26).
In the past two trading days, the stock price of the auto components & equipments company has rallied 7 per cent. It was trading close to its 52-week high of ₹116.39 touched on December 6, 2024.
At 09:35 AM; Samvardhana Motherson was quoting 3 per cent higher at ₹112.25, as compared to 0.03 per cent rise in the BSE Sensex. A combined 17.17 million equity shares changed hands on the NSE and BSE.
Samvardhana Motherson Q2 results
Samvardhana Motherson reported a steady performance in Q2FY26. Total operating income for the quarter came in at ₹30,173 crore, up 8.5 per cent year-on-year (YoY). EBITDA for the quarter came in at ₹2,611 crore with corresponding EBITDA margins at 8.7 per cent, down 10bps YoY, up 50 bps quarter-on-quarter (QoQ). However, profit after tax was down 6 per cent YoY at ₹827 crore in Q2FY26. However, the focused strategic initiatives and disciplined cost management helped improve profitability (concern share) by 15 per cent YoY at ₹856 crore.
The company has 12 Greenfields under various stages of completion, out of which 2 Greenfields were operationalised during the quarter. According to its press release, company announced 3 new acquisitions during the quarter. It is also positive about the performance of their non-automotive businesses, such as Aerospace and Consumer electronics.
The management said the transformative measures the company has implemented are expected to maintain momentum and accelerate further in H2FY26. The performance of the company’s non-automotive businesses, such as Aerospace and Consumer Electronics, is highly encouraging, and the management is excited about their immediate future potential. CATCH STOCK MARKET LIVE UPDATES TODAY
JM Financial Institutional Securities view on Samvardhana Motherson
Margins were impacted by structural challenges in the EU, tariff-related costs ($10 million), and start-up expenses from greenfield projects. Despite subdued global light vehicle demand, Samvardhana Motherson continues to outperform, driven by higher content per vehicle owing to premiumisation. The company does not expect a material tariff impact, as most US sales are USMCA-compliant, while discussions with customers are ongoing for the remainder.
Although management remains silent on the EMS business, analysts at JM Financial Institutional Securities expect it to contribute meaningfully to revenue from FY27 onwards. The aerospace business continues to gain traction with 37 per cent YoY growth in H1FY26 and is a Tier-1 supplier to Airbus, with multiple high-value complex packages in advanced stages of the RFQ process. Near-term margin pressures are likely to persist due to ramp-up costs from greenfields. Therefore, analysts marginally lower EBITDA margin estimates by 20bps each for FY26E and FY27E. The brokerage firm maintained a ‘BUY’ rating on stock with a target price of ₹127.