SAMIL climbs 5% after strong Q3; analysts lift targets on EV push
SAMIL climbs 5% after strong Q3; analysts lift targets on EV push
Samvardhana Motherson International posts a robust Q3 with a 21% profit rise, 14% revenue growth, and improving margins as acquisitions and EV momentum boost the outlook.
Samvardhana Motherson International (SAMIL) jumped as much as 5.4% to a day high of Rs 136 on the BSE after reporting a strong third quarter performance for FY2026. The company’s net profit rose 21% to Rs 1,061 crore in Q3, up from Rs 879 crore in the same quarter of the previous year. Revenue from operations stood at Rs 31,409 crore, marking a 14% rise from Rs 27,666 crore a year earlier. The improvement in profit after tax was supported by lower finance costs and higher contributions from joint ventures and associates, the investor presentation noted. EBITDA for the quarter came in at Rs 3,042 crore, up 9.5% from Rs 2,776 crore, while margins expanded to 10% from 9.7%. Operational gains were attributed to the realisation of benefits from Transformative Measures in the MPP division and the impact of strategic initiatives.
Analysts remained positive on SAMIL. Motilal Oswal reiterated a Buy rating with a higher target of Rs 148 after lifting earnings estimates for FY26 and FY27 following the strong Q3. The brokerage highlighted management’s five-year revenue aspiration of USD 108 billion and expects the company to keep outperforming global automobile sales, supported by premiumisation trends, the EV transition, a solid order backlog across auto and non-auto segments, and the successful integration of recent acquisitions. Investors are also eyeing the company’s continued growth in the aerospace orderbook and its expanding partnerships in the nascent semiconductor space in India, which were noted by several equity watchers.
The company also benefited from the acquisition of Atsumitec and ongoing organic growth, with favorable commodity pricing and FX movements contributing to the revenue mix. The stock’s intraday rally reflects investor confidence in SAMIL’s ability to sustain momentum amid a challenging macro backdrop and ongoing sector-wide consolidation. With a robust backlog and a diversified mix of auto and non-auto segments, SAMIL remains positioned to capitalize on the EV shift while pursuing its expansion strategy across geographies.
As markets digest the latest quarterly numbers, brokerages continue to monitor the mix of profitability, integration execution, and the trajectory of the five-year revenue goal, weighing the bullish long-term potential against near-term macro risks. Still, today’s performance underscores a constructive tone for SAMIL as it leverages acquisitions and a growing product portfolio to drive earnings growth and shareholder value.
