Revenue grew 36.62% YoY, but operating margin fell 2.21 points
Costs rose faster than sales, while higher interest and tax rates reduced sequential profitability.
Filed 04 Aug 2026, 11:19 IST · Motherson Sumi Wiring India Ltd (MSUMI)
Key takeaways
- Standalone revenue rose 36.62% YoY, but expenses grew 39.97%, pulling operating margin down 2.21 percentage points.
- Standalone net profit increased just 1.55% YoY as interest rose 28.73% and the tax rate rose 1.08 percentage points.
- At 7.58%, operating margin was 5.80 percentage points below the 13.38% median of 66 reporting Consumer Discretionary peers.
Price around the results
Standalone growth failed to translate into operating profit
Revenue grew 36.62% YoY, but operating profit increased only 5.73% because expenses rose faster at 39.97%. That mismatch reduced operating margin by 2.21 percentage points to 7.58%. Management said revenue growth of 37% YoY significantly outperformed industry growth.
Sequential margin pressure continued in Q1FY27
On a sequential basis, revenue grew 2.18% while expenses rose 2.89%, reducing operating profit by 5.77% and net profit by 13.14%. Operating margin fell another 0.64 percentage points, marking its third straight quarterly decline after 10.13% in Q2FY26, 9.09% in Q3FY26 and 8.22% in Q4FY26. Interest expense rose 27.72% sequentially, while the tax rate increased 4.64 percentage points.
Standalone margin trails the reporting peer set
The company's 7.58% operating margin was 5.80 percentage points below the 13.38% median for 66 Consumer Discretionary peers that had reported the quarter. It ranked 15th from the bottom on this measure. Other income contributed 2.75% of pre-tax profit, so non-operating income did not materially drive reported earnings.
No post-result move yet; past reactions have been mixed
The results are too fresh for a post-result market move to assess. Across the stock's last 8 result reactions, it rose after 5 and fell after 3, with a median absolute move of 1.19%, indicating that past reactions have generally been modest and mixed.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,407 cr | ₹3,335 cr | +2.18% | +36.62% |
| Other income | ₹5 cr | ₹1 cr | +307.58% | +525.58% |
| Expenses | ₹3,149 cr | ₹3,061 cr | +2.89% | +39.97% |
| Operating profit | ₹258 cr | ₹274 cr | -5.77% | +5.73% |
| Operating margin (%) | 7.58% | 8.22% | — | — |
| Interest | ₹8 cr | ₹6 cr | +27.72% | +28.73% |
| Depreciation | ₹60 cr | ₹57 cr | +4.92% | +22.29% |
| Profit before tax | ₹195 cr | ₹212 cr | -7.71% | +3.03% |
| Tax | ₹50 cr | ₹44 cr | +12.72% | +7.59% |
| Net profit | ₹145 cr | ₹167 cr | -13.14% | +1.55% |
| EPS (₹) | ₹0.22 | ₹0.25 | -12.00% | +0.00% |
Operating margin of 7.58% compares with a Consumer Discretionary sector median of 13.38% across 66 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Competition
- MSWIL reported revenue growth of 37% year-on-year, significantly outperforming industry growth.
What to watch
- Whether standalone operating margin stabilises above 7.58% after three consecutive quarterly declines.
- Whether expense growth falls below the current 39.97% YoY rate and moves closer to revenue growth of 36.62%.
- Whether interest growth moderates from 28.73% YoY and the tax rate from 25.62%.