Motherson Wiring Q2 FY27 Earnings Call — Analysis (NSE: MSUMI)
Motherson Sumi Wiring delivered 47% YoY revenue growth and 9.2% EBITDA margin in Q2FY27, driven by vehicle premiumization, Greenfield plant ramp-ups, and EV revenue reaching 10%.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue Growth 47% ( +47% YoY ) . New story: Greenfield plant ramp-up and capacity readiness .
Results
Revenue grew 47% YoY (+19% QoQ) and EBITDA expanded 34% YoY (+45% QoQ) with EBITDA margin reaching 9.2% (+160 bps QoQ), while PAT rose 35% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue Growth | 47% | +47% | yoy · Q2FY27 · vs Q2FY26 |
| Sequential Revenue Growth | 19% | +19% | sequential · Q2FY27 · vs Q1FY27 |
| EBITDA Growth | 34% | +34% | yoy · Q2FY27 · vs Q2FY26 |
| Sequential EBITDA Growth | 45% | +45% | sequential · Q2FY27 · vs Q1FY27 |
| EBITDA Margin | 9.2% | +160bps | sequential · Q2FY27 · vs 7.6% in Q1FY27 |
| PAT Growth | 35% | +35% | yoy · Q2FY27 · vs Q2FY26 |
| Sequential PAT Growth | 54% | +54% | sequential · Q2FY27 · vs Q1FY27 |
| EV Revenue Share | 10% | none · Q2FY27 · of total Q2FY27 revenue | |
| H1 EV Revenue Share | 9.3% | none · H1FY27 · of total H1FY27 revenue |
Guidance
FY27 capex is guided at approximately ₹200 Cr largely in line with previous year levels, while commodity and wage inflation pass-throughs are expected to reflect over a 3 to 6 month lag.
What management committed to
- within this financial year, [MSWIL] will report better numbers. — better numbers (unspecified), FY27
- in the next quarter, [MSWIL] will see a recovery of [copper cost pass-through]. — recovery (no numeric quantity), Q3 FY27
Key themes
Greenfield ramp-ups and content premiumization
How the narrative shifted
- Copper pass-through and cost headwinds: Management presents copper cost increases as a known headwind that is pass-through to customers with a lag, and they expect recovery within one quarter.
- Greenfield plant ramp-up and capacity readiness: Management highlights that greenfield plants have now reached optimal utilization and are contributing meaningfully to growth, with no further drag from new plant inefficiencies.
- Premiumization and content per vehicle: Vehicle premiumization and higher content per new model launch, across both EV and ICE platforms, are key drivers of revenue growth.
- Cost optimization and operational discipline: Management notes ongoing austerity measures and a focus on cost control to support margins despite inflationary pressures.
Operational commentary
- Three Greenfield plants (including Kharkhauda, Gujarat, and Pune) have completed ramp-ups and are now operating at optimal utilization levels alongside regular plants.
- Outperformed domestic PV industry growth (company volume growth of 35% ex-copper vs industry volume growth of 25% YoY).
- Copper prices rose 6% QoQ and 54% YoY; pass-through mechanism operates with a standard 3-month lag.
- Discussions ongoing with OEMs for cost compensation regarding state minimum wage revisions, expected over a 3 to 6 month lag.
- Company reiterated policy of initiating capex capacity expansion whenever aggregate capacity utilization approaches 80%.
Analyst Q&A
Q. Whether minimum wage inflation recovery from OEMs will be full or partial.
Negotiations are currently underway with customers and the company is aiming for full recovery.
Q. Impact of potential transition to zonal electrical architecture on content per vehicle and wiring volume.
Zonal architecture transition has been discussed globally for years, but customer feature innovation and vehicle premiumization continue to drive overall content per vehicle higher regardless of architecture changes.
Q. Expected normalized gross margin level once copper prices stabilize.
Management stated they do not provide margin guidance and focus primarily on Return on Capital Employed (ROCE) and absolute value recovery due to the numerator-denominator pass-through effect.
Q. Capex expectations and capacity planning for FY28.
Capex for FY28 will depend on final OEM customer launch schedules and will be quantified when plans are formalized.
Research and educational content only. Not investment advice.