Motherson to invest Rs 6,000 crore in FY27, targets growth in business segments

Samvardhana Motherson International Ltd. will allocate around Rs 6,000 crore for capital expenditure in the 2027 financial year. Half of this investment will fund growth projects, while the remainder will cover maintenance and operational needs. The company will direct a larger share of spending toward emerging businesses, especially consumer electronics, as it expands beyond its core automotive operations.

Key Highlights

• Motherson to invest Rs 6,000 crore in FY27 capex with half for growth projects
• Sixteen new facilities under development with focus on emerging markets and consumer electronics
• FY26 revenue rose 11 percent to over Rs 1.25 lakh crore with stable EBITDA margins

Capex Distribution and Expansion Plans

Chief Financial Officer Gandharv Tongia stated that for FY27, capital expenditure is expected to be approximately Rs 6,000 crore, with a possible variation of 10 percent. Of this amount, 50 percent will be dedicated to growth initiatives and 50 percent to maintenance. The company will continue to prioritize investment in emerging businesses, with consumer electronics identified as a key area of opportunity.

Motherson currently has 16 facilities under development worldwide. Thirteen of these are expected to become operational in the current financial year. Since the last update, the company announced four additional facilities, including two for wiring harness operations and two for logistics. All 16 facilities are located in emerging markets, reflecting the company’s focus on fast-growing manufacturing and consumption regions.

Financial Performance and Strategic Focus

In the financial year ending March 2026, Motherson spent Rs 5,911 crore on capital expenditures. This amount represented 49 percent of the company’s annual EBITDA. Investments were directed toward growth projects, backward integration, and maintenance. Tongia noted that capex discipline was maintained in line with guidance, with spending aimed at supporting future growth and new capabilities.

The company operates across five business segments: wiring harnesses, vision systems, modules and polymer products, integrated assemblies, and emerging businesses. The first four segments primarily serve the automotive sector. Emerging businesses include aerospace, healthcare, lighting, electronics, and industrial solutions.

Motherson reported its highest-ever annual revenue in FY26, surpassing Rs 1.25 lakh crore. This marked an 11 percent increase from the previous year. EBITDA also rose by 11 percent to Rs 12,033 crore, with margins stable at 9.5 percent despite higher commodity prices and geopolitical uncertainties.

Operational Resilience and Future Targets

Management stated that the company managed supply chain disruptions and inflationary pressures through long-term material pass-through agreements and a "globally local" manufacturing approach. This strategy involves producing goods close to customer markets, reducing reliance on long-distance supply chains. Disruptions from Red Sea shipping issues and geopolitical tensions had minimal impact on operations.

Motherson’s "Vision 2030" strategy targets gross revenues of $108 billion by 2030, compared to $25.7 billion in FY25. The company plans to achieve this goal through expansion in both automotive and non-automotive sectors, supported by acquisitions, localization, and investments in new technologies.

Also Read: Samvardhana Motherson achieves record FY26 revenue, strengthens global expansion strategy

CarBike 360 Says

​Motherson’s Rs 6,000 crore capex plan for FY27 reflects its strategic shift toward future-ready business segments and global scalability. By investing in emerging areas, the company is positioning itself to stay competitive amid evolving industry dynamics. This forward-looking approach not only strengthens its core operations but also sets the stage for sustained long-term growth.