Samvardhana Motherson International Limited (SAMIL) delivered impressive Q4 FY26 results, reporting a consolidated net profit of ₹1,497 crore, representing a 46% year-on-year surge compared to ₹1,024 crore in the same quarter last year. According to reports from ET Now, the profit after tax (PAT) is attributable to the owners of the company. Revenue from operations rose 8% YoY to ₹32,356 crore, achieving record-high quarterly numbers. The company's EBITDA increased 25.1% YoY to ₹3,613.3 crore, with EBITDA margin improving to 10.5% from 9.2% in Q4 FY25.
Multiple brokerages have maintained positive ratings on the automotive components manufacturer following the Q4 results. Emkay maintains a buy rating with a target price of ₹150 versus ₹140, citing robust Q4 FY26 performance, broad-based revenue growth, and sequential margin expansion. Motilal Oswal maintains a buy call with a target price of ₹160 from ₹138, raising earnings estimates by 8% each for FY27/FY28 and expecting continued outperformance in global automobile sales. Nuvama maintains a buy call with a target price of ₹155 versus ₹142, projecting emerging businesses revenue CAGR of 42% over FY26-28E and overall revenue/earnings CAGR of 12%/24% expected over the same period.
The company has recommended a final dividend of ₹0.25 per equity share for financial year 2025-26, subject to shareholder approval at the Annual General Meeting scheduled for July 30, 2026. According to ET Now, this will bring the total dividend for FY26 to ₹0.60 per share, compared to ₹0.57 per share paid for FY24-25. The company's diversification into emerging businesses, including aerospace and consumer electronics, is expected to drive significant growth with aerospace revenue rising 40% YoY in FY26 and the aerospace order book at US$1.6 billion.
As reported by ET Now, the company is on track to complete the Yutaka Giken acquisition by 1HFY27 and expects the consumer electronics third facility to be commissioned in Q3FY27. Morgan Stanley maintains an overweight rating with a target price of ₹150, expecting FY27 as an inflection year for aerospace and consumer electronics businesses. The company's capex guidance for FY27 is expected to have 50% for growth and 50% for maintenance, with growth to apply 60% to the non-auto business, especially consumer electronics.
