Motherson's Q4 margin rises 2.04 pp but trails sector median
Revenue growth outpaced expenses, lifting operating profit 43.44% year on year, while the tax-rate increase limited net-profit growth to 40.00%.
Filed 13 Jul 2026, 11:09 IST · Samvardhana Motherson International Ltd (MOTHERSON)
Key takeaways
- Consolidated operating margin expanded 2.04 percentage points year on year to 11.05% as revenue grew 17.03% and expenses grew 14.41%.
- Net profit rose 40.00% to Rs 1,561.56 cr even as the tax rate increased 10.60 percentage points, while other income contributed only 1.80% of pre-tax profit.
- The stock rose 3.65% on the reaction day, above its 2.70% median absolute move across the past eight results, with six of those reactions being positive.
Price around the results
Revenue growth translated into a wider Q4 margin
Samvardhana Motherson International's consolidated revenue grew 17.03% year on year, faster than the 14.41% increase in expenses. That operating leverage lifted operating profit 43.44% and expanded margin by 2.04 percentage points to 11.05%. Momentum also improved sequentially: revenue rose 9.23% against 7.59% expense growth, taking margin up 1.36 percentage points.
Higher tax and financing costs tempered earnings conversion
Pre-tax profit increased 58.90% year on year, but net profit grew 40.00% as the tax rate rose 10.60 percentage points to 21.51%. Interest expense increased 10.84% year on year and 38.32% sequentially, adding pressure below the operating line. Other income was just 1.80% of pre-tax profit, so the earnings increase was not materially dependent on non-operating income.
Margin trend is improving, but remains below peers
Operating margin has risen for four consecutive quarters, from 8.14% in Q1FY26 to 11.05% in Q4FY26. Even after that recovery, Motherson's margin was 3.76 percentage points below the 14.81% median among 93 reported Consumer Discretionary peers. The company ranked 29th from the bottom on this measure.
The market reaction was firmer than Motherson's usual result-day move
The stock gained 3.65% on the recorded reaction day and was up 10.27% after five trading days. The initial move was above the 2.70% median absolute move across the past eight results, during which the stock rose six times and fell twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹34,309 cr | ₹31,409 cr | +9.23% | +17.03% |
| Other income | ₹36 cr | ₹145 cr | -75.36% | -85.58% |
| Expenses | ₹30,519 cr | ₹28,366 cr | +7.59% | +14.41% |
| Operating profit | ₹3,791 cr | ₹3,043 cr | +24.57% | +43.44% |
| Operating margin (%) | 11.05% | 9.69% | — | — |
| Interest | ₹472 cr | ₹341 cr | +38.32% | +10.84% |
| Depreciation | ₹1,365 cr | ₹1,321 cr | +3.38% | +12.51% |
| Profit before tax | ₹1,989 cr | ₹1,527 cr | +30.32% | +58.90% |
| Tax | ₹428 cr | ₹454 cr | -5.83% | +213.13% |
| Net profit | ₹1,562 cr | ₹1,072 cr | +45.63% | +40.00% |
| EPS (₹) | ₹1.42 | ₹0.97 | +46.39% | -4.70% |
Operating margin of 11.05% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.65% | +3.67% |
| Next session | +3.03% | — |
| 5 sessions | +10.27% | +10.74% |
| 15 sessions | +8.50% | — |
| 30 sessions | +9.96% | — |
Volume on the results session was 3.19× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 11.05% after four consecutive quarterly increases.
- Whether revenue growth continues to exceed expense growth, following the year-on-year gap of 17.03% versus 14.41%.
- Whether the 38.32% sequential increase in interest expense moderates.