Revenue surged, but higher costs and interest limited profit growth
Standalone operating margin recovered sequentially as expenses grew slower than revenue, but remained 3.28 percentage points below the sector median.
Filed 30 Oct 2026, 16:51 IST · after market close · Motherson Sumi Wiring India Ltd (MSUMI)
Key takeaways
- Standalone operating margin recovered 1.64 percentage points sequentially to 9.22% as revenue grew 18.98% and expenses grew 16.87%.
- Year-on-year revenue growth of 46.78% was outpaced by 48.27% expense growth, leaving operating margin 0.91 percentage points lower.
- Net profit rose 35.10% year-on-year despite interest expense increasing 127.94%, while other income contributed only 0.38% of pre-tax profit.
Price around the results
Sequential recovery after a four-quarter margin slide
Standalone revenue growth of 18.98% sequentially outpaced expense growth of 16.87%, lifting operating margin by 1.64 percentage points. This ended the decline from 10.13% in Q2FY26 through 7.58% in Q1FY27, with the margin now at 9.22%. On a year-on-year basis, however, expenses grew faster than revenue, so margin was down 0.91 percentage points.
Higher interest limited the profit conversion
Interest expense rose 79.04% sequentially and 127.94% year-on-year, outpacing revenue growth in both comparisons. The tax rate eased 0.24 percentage points sequentially but increased 0.19 percentage points year-on-year, so the year-on-year net-profit increase was not helped by a lower tax rate. Other income was only 0.38% of pre-tax profit, making reported earnings largely operational rather than other-income driven.
Operating margin remains below reported peer median
Motherson Sumi Wiring's 9.22% operating margin was 3.87 percentage points below the 13.09% median for the 129 Consumer Discretionary peers that had reported the quarter. The gap remains notable even after the sequential recovery. Year-on-year net profit still increased 35.10%, as revenue growth remained substantial despite the weaker operating conversion.
No immediate market reaction after the filing
The standalone results were filed after market close, so there is no post-results market move to assess yet. Across the stock's previous eight result reactions, moves were evenly split between four rises and four falls, with a median absolute move of 1.19%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,054 cr | ₹3,407 cr | +18.98% | +46.78% |
| Other income | ₹1 cr | ₹5 cr | -78.81% | +40.74% |
| Expenses | ₹3,680 cr | ₹3,149 cr | +16.87% | +48.27% |
| Operating profit | ₹374 cr | ₹258 cr | +44.66% | +33.57% |
| Operating margin (%) | 9.22% | 7.58% | — | — |
| Interest | ₹15 cr | ₹8 cr | +79.04% | +127.94% |
| Depreciation | ₹61 cr | ₹60 cr | +1.21% | +14.59% |
| Profit before tax | ₹299 cr | ₹195 cr | +53.20% | +35.44% |
| Tax | ₹76 cr | ₹50 cr | +51.74% | +36.47% |
| Net profit | ₹223 cr | ₹145 cr | +53.71% | +35.10% |
| EPS (₹) | ₹0.34 | ₹0.22 | +54.55% | +36.00% |
Operating margin of 9.22% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin holds above 9.22% after the sequential recovery.
- Whether interest expense growth moderates from 79.04% sequentially and 127.94% year-on-year.
- Whether expenses continue to grow more slowly than revenue after the current 16.87% versus 18.98% sequential spread.