Samvardh. Mothe. Q2 FY27 Results (NSE: MOTHERSON)
Signal: Growth reaccelerated
The read
The trajectory improved materially after the weak Q1FY27 margin outcome: Q2FY27 revenue grew 26.9% YoY and PAT grew 44.0% YoY, while the P&L-derived operating margin held near 8.8%; however, raw-material cost rose to 55.9% of revenue from 54.2%, and finance costs grew 35.8%, so the profit acceleration was not driven by clear operating leverage.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹38,279.85 Cr | +26.9% | +8.6% |
| Net profit | ₹1,217.57 Cr | +44.0% | |
| EBIT margin | 8.8% |
P&L walk
Consolidated revenue increased to ₹38,279.85 crore, +26.9% YoY and +8.6% QoQ, with profit before tax rising to ₹1,705.11 crore, +37.8% YoY; operating profitability was broadly stable near 9% despite raw-material cost rising to 55.9% of revenue from 54.2%.
Key positives
- Revenue reached ₹38,279.85 crore, up 26.9% YoY and 8.6% QoQ, accelerating from the prior quarter's ₹35,243.77 crore.
- Profit for the period increased 44.0% YoY to ₹1,217.57 crore, with associate and JV profit contributing ₹191.72 crore, up 31.7% YoY.
- Employee cost rose 26.6% YoY versus revenue growth of 26.9%, keeping employee-cost intensity broadly stable at 24.6% of revenue versus 24.7% YoY.
- Exceptional expense was ₹0.00 crore in Q2FY27 versus ₹36.16 crore YoY, removing a small prior-period drag.
Key concerns
- Raw-material cost increased 30.9% YoY to ₹21,392.47 crore, faster than revenue, lifting raw-material intensity to 55.9% from 54.2%.
- Finance costs rose 35.8% YoY to ₹524.75 crore, faster than revenue growth and a potential constraint on conversion of operating growth into net profit.
- Sequential operating profitability softened: the P&L-derived operating margin was approximately 8.8% versus approximately 9.0% in Q1FY27.
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