Motherson Wiring Q1 FY27 Results (NSE: MSUMI)
Signal: Margin pressure
The read
India auto wiring harness giant saw a massive 36.6% YoY revenue surge to ₹3,407 Cr, but a 1707bp drop in EBITDA margin to 7.7% (and a 130bp drop in gross margin) kept net profit virtually flat at ₹145 Cr. This is a clear case of input cost inflation outpacing the scale benefits, a key trend to monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,407.26 Cr | +36.6% | -70.3% |
| EBIT | ₹203.49 Cr | +3.9% | |
| Net profit | ₹145.32 Cr | +1.6% | |
| EPS | ₹0.22 | 0.0% | |
| EBIT margin | 7.7% |
P&L walk
Revenues surged 36.6% YoY to ₹3,407 Cr, but profitability was squeezed: EBITDA margin contracted by 440bps YoY to 7.7%, leading to a modest +1.6% YoY PAT growth to ₹145 Cr.
Key positives
- Revenue growth of 36.6% YoY to ₹3,407 Cr, despite a sequential decline of 70.3% (seasonal Q4 skew).
Key concerns
- EBITDA margin contracted by 440bps YoY to 7.7%, driven by a 130bps YoY increase in raw material costs as a % of revenue and a 230bps increase in employee costs as a % of revenue.
- Net profit growth of just +1.6% YoY lags revenue growth significantly, indicating the company absorbed cost pressures.
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