Net profit rose 19.6% to ₹1,051 crore from ₹878.6 crore that it had reported during the same quarter last year. Revenue grew by 6% year-on-year to ₹29,317 crore. Lower tax expenses contributed to the boost in profitability.
However, Samvardhana Motherson’s EBITDA fell by 1.6% from the year-ago quarter to ₹2,643 crore, while margins narrowed by 70 basis points from last year to 9%.
Analysts have maintained their bullish stance on Samvardhana Motherson following its earnings report. Brokerage firms such as Nomura, Jefferies, and Nuvama Institutional Equities continue to maintain a ‘Buy’ rating on the stock.
Nomura has a ‘Buy’ rating and a price target of ₹170 on Samvardhana Motherson, citing its current valuation as attractive.
The brokerage highlighted the company’s strong growth potential in non-auto segments and through inorganic initiatives.
While Q4FY25 margins were below estimates, they are expected to improve. The company has also set a revenue target of $108 billion in its next five-year plan.
Jefferies has a ‘Buy’ rating on Samvardhana Motherson with a price target of ₹180. It said that Q4 EBITDA dropped 10% year-on-year and was 11% below its estimates due to lower margins.
EBITDA margins declined by 4.3 percentage points in the polymers segment and by 1 percentage point in the vision and integrated assemblies segment.
Despite a challenging macro environment, SAMIL is rapidly growing its non-auto business, particularly in electronics. In addition to glass manufacturing, it is now setting up facilities to produce components for semiconductor equipment and PCBA for automobiles.
Jefferies has cut its FY26–27 EPS estimates by 14–19%.
While Nuvama has retained its ‘Buy’ rating on the stock, it has raised its price target to ₹175 from ₹166 earlier.
The brokerage is constructive on SAMIL’s prospects on the back of strong management capability, inorganic initiatives, pending order book and increasing content.
It has slightly raised its FY26E and FY27E EBITDA estimates by 2% each, driven by higher revenue assumptions. Following the revision, Nuvama is factoring in a revenue and earnings CAGR of 5% and 17%, respectively, over FY25–27E.
Out of the 26 analysts that have coverage on Samvardhana Motherson, 21 of them have a ‘Buy’ rating on the stock, two say ‘Hold’, while three others have a ‘Sell’ rating.
Shares of Samvardhana Motherson International Ltd. are currently trading 0.56% higher at ₹153. The stock has gained 15% in the last one month.
