Samvardhana Motherson beats Street estimates in Q4; debt declines sharply and stock jumps 3%
Sarthak Kumar
Samvardhana Motherson International Ltd reported a strong set of Q4 FY26 numbers, surpassing analyst expectations across profitability and operational metrics, while also reporting a sharp reduction in consolidated debt.
The company posted a consolidated net profit of ₹1,561.56 crore in the March quarter, sharply higher than analyst estimates of ₹1,303 crore. Profit also rose 40% year-on-year from ₹1,115.38 crore reported in Q4 FY25.
Revenue from operations came in at ₹34,309.31 crore during Q4 FY26, ahead of Street estimates of ₹32,694 crore. The company had reported revenue of ₹29,316.83 crore in the corresponding quarter last year.
Operationally, EBITDA stood at ₹3,794.16 crore compared with analyst expectations of ₹3,215 crore. EBITDA margin improved to 11.1%, significantly above estimates of 9.8%.
The company’s operational performance was supported by strong revenue growth and improved profitability across segments. Profit before tax stood at ₹1,989.42 crore during the quarter against ₹1,252.02 crore reported in the year-ago period.
Samvardhana Motherson also reported a notable improvement in its balance sheet position. Consolidated debt declined to ₹9,800 crore from ₹12,000 crore reported a year ago.
In a shareholder-friendly move, the board approved a final dividend of ₹0.25 per equity share for FY26. With this, the total dividend payout for FY26 stands at ₹0.60 per share, higher than ₹0.57 per share declared in FY25. The company said the proposed dividend payout ratio for FY26 stands at 16.4%.
Finance costs for the quarter stood at ₹471.76 crore, while depreciation expense and amortisation expense were reported at ₹1,187.78 crore and ₹177.66 crore respectively.
Total comprehensive income surged to ₹2,975.73 crore in Q4 FY26 compared with ₹1,252.88 crore in the corresponding quarter last year.
Shares of Samvardhana Motherson International also gained in trade following the earnings announcement. The stock rose nearly 2.5% to ₹134.75 on the NSE after hitting an intraday high of ₹136. The stock is currently trading close to its 52-week high of ₹136.15, with strong trading volumes seen during the session. Investors appeared to cheer the company’s better-than-expected Q4 performance, margin expansion, dividend announcement and reduction in consolidated debt.