Near-term demand challenges for Samvardhana Motherson International

The country’s largest listed auto-parts company, Samvardhana Motherson International (SAMIL), disappointed the Street with its performance in the fourth quarter of 2024-25 (Q4FY25). Weak global demand and the company’s ongoing expansion impacted its margins. However, despite weakness in global passenger vehicle production amid demand and tariff woes, the company was able to outperform peers and gain market share.

 

The company also unveiled plans to quadruple its gross revenues over the next five years. The aggressive growth plan is expected to be led by acquisitions, new product lines, premiumisation, and higher content per vehicle. Given the medium-term prospects led by consolidation