India’s auto components sector grew 9.6% in FY25, with strong exports and OEM demand. Motherson posted 8% revenue growth, announced a 1:2 bonus issue, and focuses on diversification, EVs, non-auto sectors, and ₹6,000 crore FY26 capex for sustained global expansion.
The Auto ancillary company is driving strategic growth through diversification, capex investment, and global expansion. With a strong $88.1 billion order book, rising EV contributions, and a 1:2 bonus issue, the company aims to enhance shareholder value while focusing on non-automotive segments and emerging markets like the UAE.
With a market capitalization of Rs 1.05 lakh crore, the shares of Samvardhana Motherson International Ltd closed at Rs 150.30 per share, decreased around 2.08 percent as compared to the previous closing price of Rs 153.50 apiece.
The company has approved a bonus issue in a 1:2 ratio, granting one additional share for every two held, with a face value of ₹1 each. This move aims to enhance shareholder value and improve stock liquidity. Eligible shareholders as of the record date, 18 July 2025, will benefit from the bonus.
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Looking forward to the company’s financial performance, revenue increased by 8 percent from Rs 27,058 crore in Q4FY24 to Rs 29,317 crore in Q4FY25. Further, during the same time frame, net profit decreased by 23 percent from Rs 1,444 crore to Rs 1,115 crore.
Motherson is leveraging its engineering strengths to fuel growth by investing in greenfield projects for both automotive (PCBA) and non-automotive (semiconductor components) industries. It is expanding capacity in emerging markets and entering new geographies like the UAE. FY26 capex guidance stands at ₹6,000 crore, split equally between growth and regular capex, with 70% focused on non-auto businesses.
Motherson boasts a robust $88.1 billion booked business as of March 31, 2025, showcasing a well-diversified portfolio. Notably, 24% of automotive bookings stem from EVs, and $2.7 billion is from non-automotive sectors. The company’s strong performance is driven by a diversified business model and reflects its commitment to sustainable value creation across industries.
Written by Abhishek Singh
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