Record Q1 revenue, margins held amid commodity storm, but capex bet uncertain

Revenue ₹35,243.8 Cr, 16.7% YoY, 2.7% QoQ — marginally rounded claims

PAT ₹1,075.7 Cr, 77.5% YoY growth — sits between normalized & reported figures, base adjustments material

OPM 8.8%, delivered with restructuring benefits and cost absorption despite 40% copper/55-66% polymer inflation

Segment growth credible; management cited cost actions, mix improvements, India wage pressure offset by geographies

Normalized vs reported PAT variance (55% vs 77.5%) suggests material base quarter adjustments; claim questionable

QoQ growth only 2.7%; if Q4 was ₹34,300 Cr, Q1 ₹35,244 Cr is barely higher — claim technically supported but modest

31% YoY growth driven by India strength and North American CV recovery; prior call emphasized weakness. Now diversified beyond distressed China JVs.

Leverage to all-time low 0.8x despite ₹1,614 Cr Q1 capex (52% of EBITDA). Prior guidance aspired for <1.5x; now achieved through EBITDA growth and disciplined M&A.

GF-3 on track Q3 FY27 vs 'third quarter' prior. Still 2-3 quarters for material revenue ramp. ₹7,500 Cr total capex confirmed, but revenue projection horizon extended.

Nexans + Yutaka USD 2B combined revenue marks largest multi-acquisition quarter. Prior calls focused organic growth; now strategic inorganic at fortress balance sheet.

Health & medical still loss-making despite new Chennai facility. Vision systems (mirrors) noted as resilient cash generator but not highlighted. Consumer electronics burn ongoing.

USD 2B combined annualized revenue. Margins to broadly reflect industry; aspiration is 40% ROCE over time via transformation.

Total capex ₹7,500 Cr across GF1/2/3. ~1/3 incurred, 2/3 to come. GF-3 capacity 40M units annually at full scale.

Each customer has different polymer grades; not 1:1 with crude. Detailed netting happens only at year-end. Cannot quantify by quarter due to complexity.

Pass-through lag 3-6 months. 4-5% impact globally, higher in India due to rupee. Cost actions and mix improvements offset near-term impact.

Current 2 facilities are prototypes. GF-3 is 40M units, largest Motherson facility (33 football fields). Deferred detailed disclosure to couple quarters.

Cannot give forward projections. Facilities for 20-year life. Aspire for 40% ROCE. Depends on products won.

Currently 90-10, partner happy at 10%. No indication of conversion. Will update if changed.

Emerging businesses clubbed together, at infancy stage, new programs launching, facilities ramping. Once meaningful, will bifurcate and give more clarity.

Autocruis acquisition targets this exactly (interior mirrors, driver monitoring). Products in early stage, homologation required. Platform strong to build on.

Definitely within 5-year plan. Faster the better. Depends on ramp and market perception. Everything on cards but execution priority. Internal plans in place.

Prior FY26 call; Q1 delivered 16.7% YoY (17% rounded). Guidance vague on FY27 full-year target.

Q1 delivered 60bps improvement. Input cost pass-through lag to persist Q2-Q3. Q4 typically sees netting.

Q1 spent ₹1,614 Cr (52% of EBITDA). 3 plants operationalized, 10 more expected in FY27.

₹7,500 Cr capex (including GF-3 ₹65B) targeting 40M units annually. 17-stage glass manufacturing process highly technical. Management explicitly deferred revenue ramp visibility to 'couple of quarters.' Binary execution bet.

Copper +40% YoY, polymers +55-66% YoY (Germany), freight (WCI) +40% YoY, +83% sequentially. Pass-through lags 1-2 quarters. Q1 held margins via restructuring; Q2-Q3 likely pressure.

Nexans Autoelectric and Yutaka Giken completed July 2026 (combined USD 2B annualized revenue). Both acquired below Motherson's 11% EBITDA margin target. Transformation timeline vague ('over time', 'over the period').

Health & Medical segment showing declining revenue and increasing losses over 3 years. Consumer electronics burning cash (₹7,500 Cr capex phase). Vision systems stable but not yet a major growth contributor.

Global light vehicle industry de-grew 1.8% YoY; China de-grew 3.1% (largest market). Europe facing Chinese OEM EV competition. India bright spot but concentrated exposure. CV industry favorable (5.4% growth) but cyclical.