Thank you, and good evening, everyone. Thank you for joining us for the Q1 FY27 earnings call of Samvardhana Motherson International Limited.

We are pleased to report our highest-ever quarterly revenue in Q1 FY27, driven by robust performance across our businesses. Revenue grew by 17% year on year and 3% sequentially during the quarter.

It is worth noting that historically, Q1 has always seen a sequential decline in revenue over Q4. This year, however, Q1 revenues came in higher than Q4 FY26, underscoring the strength of the momentum across our businesses.

The growth was driven by healthy performance across all our core businesses as well as our emerging businesses, particularly those built using our DEMM capabilities, namely consumer electronics and aerospace. Within wiring harness, there was strong momentum in India, combined with a recovery in North American commercial vehicle business, which drove 31% year-on-year revenue growth.

The modules and polymer, vision systems, as well as integrated assemblies businesses grew in line with the industry. Our consumer electronics business continues to scale meaningfully.

The third facility remains on track for commissioning in the third quarter of FY27 and will bring added upstream integration capabilities. Capex for this third facility is expected to be approximately ₹65 billion, spread over a period of three years, building manufacturing capacity of 40 million units annually at full scale.

Our aerospace business delivered revenue growth of over 20% year on year, while the order book grew by more than 17% since FY26 end, giving a strong visibility on future growth. EBITDA grew by 26% during the quarter, ahead of revenue growth, with EBITDA margin improving by 60 basis points year on year.

This improvement was primarily driven by the modules and polymer business, wherein the restructuring initiatives undertaken over the last 1.5 years to breathe with the market has absorbed input cost inflation and delivered year-on-year margin improvement. Normalized PAT grew by 55% in the first quarter of FY27, driven by the scaled up across our businesses.

There were no one-off items impacting PAT this quarter. Adjusted for the normalization in the base quarter, the Q1 FY27 PAT grew 102% on reported basis.

These results were delivered against a genuinely tough external business environment, which makes this performance all the more meaningful. Globally, the light vehicle market and industry degrew by 1.8% year on year during the quarter, led by weaknesses in China, the largest automotive market, which degrew by 3.1%.

South Asia, led by India, was a clear bright spot and continued to see strong growth. Planned European OEM launches are expected to support industry growth in the quarters and years ahead.

On the commercial vehicle side, a recovery in North American market has sustained the CV industry's growth momentum, which is estimated to have grown 5.4% year on year. The outlook for the CV industry remains favorable through FY27.

That said, certain developments did weigh on the business during the quarter. Copper prices continued to rise up 4% sequentially, following increases of 13% and 15% sequentially in the third quarter of FY26 and the fourth quarter of FY26, respectively.

On a year-on-year basis, copper prices are now up 40%, creating near-term input cost pressures, as these costs are typically passed on to the customers with a lag of one or two quarters. Geopolitically driven crude price inflation also pushed polymer prices in Germany up by 55% year on year and 66% sequentially.

This primarily affected INTP and vision systems divisions. Nonetheless, both divisions held flat to improving margins, aided by ongoing cost optimization initiatives.

We continue to work with our customers to pass on these higher input costs. Freight costs were similarly affected, with the World Container Index up 40% year on year and 83% sequentially.

In certain instances, we incurred additional costs to ensure timely delivery to our customers. Detailed divisional performance and the underlying drivers of revenue and profitability are covered on slides 15 to 18 of the presentation.

With that, I will now hand over to our CFO, Kunal, to take you through the key highlights on capital allocation, our balance sheet, and recent M&A activity. Kunal?

Thank you, Vaman. We continue to invest heavily in capex during the quarter to build future revenue streams.

We spent ₹1,614 crores on capex in the first quarter, in line with our full-year guidance of ₹6,000 crores plus-minus 10%. This represented 52% of the quarter's EBITDA, invested across growth, backward integration, and maintenance capex, and should support both business expansion and margin improvement going forward.

Three plants were operationalized during the quarter, and we currently have 13 facilities at various stages of development, of which 10 are expected to become operational during the course of this year. Despite this continued investment in growth, we further improved our leverage position.

Our leverage ratio is now at an all-time low of 0.8x times, well within our financial policy ceiling of 2.5x and our internal aspiration of staying below 1.5x. This reflects the financial discipline we continue to maintain across the organization.

We also made further progress on the inorganic growth front during the quarter. We announced the acquisition of Shenzhen Autocruise, a company primarily engaged in interior and exterior digital vision and monitoring systems.

This acquisition broadens Motherson's technology offerings and competitiveness in interior and exterior digital vision systems and strengthens our position in next-generation mobility. Key products include camera monitoring systems, full-display mirrors, 360-degree around-view monitoring systems, driver monitoring systems, and dashcams with video recording.

We also completed the acquisition of Nexans Autoelectric and Yutaka Giken in July. The Nexans Autoelectric acquisition increases our addressable market through the addition of passenger vehicle and commercial vehicle wiring harness capabilities globally, improves our relationship with large OEMs, and opens up cross-selling possibilities.

Key products include EV and CV wiring harness, specialty harness, safety components, and body harness. Yutaka Giken marks our third acquisition of a Honda-founding asset.

It will be housed under a new vertical within our emerging businesses called Vehicle System, with a product range spanning exhaust systems, brake systems, and others. This acquisition expands our product portfolio and unlocks new growth opportunities for the company.

Overall, this was a very good quarter for the company. We remain very positive on the company's growth prospects through increasing content per vehicle, deepening relationships with our OEM partners, and serving new opportunities across powertrains.

We will continue to leverage our DEMM capabilities to scale up our non-automotive businesses. As always, our focus remains on financial prudence.

Thank you, and we will now open the floor for questions.

Hi, team. Thanks for the opportunity.

Two questions. One on the existing business.

We are adding two companies this quarter, Yutaka and Nexans. Could you remind us again about the annualized run rate and the margin that these businesses are at?

The second one on consumer electronics. The capex number that we've disclosed, as I understand, it's only for what Motherson will do, 65 billion.

What is the full capex of this project, is the other partner also bringing in capital, and any sort of trajectory on how to think about revenue potential from this 40 million annual capacity? That's it.

Thanks.

Kunal, you can take the first one on the sales and what we have disclosed for the acquisitions on Nexans, and I'll take the consumer electronics one.

Sure. Thanks, Binay, for your question.

Both of these businesses put together, Yutaka and Nexans, should contribute almost close to $2 billion to our top line on annualized basis. Over the mid-term, the margin profile should broadly reflect the comparable margins in this particular industry.

As in general, our aspiration is that all of our businesses, whether the recently acquired businesses or the existing businesses, should meet our internal expectation of 40% ROCE, and we believe that over the period, all the acquisitions should contribute and move in that direction. On the second part of the question, as Vaman mentioned, I'll probably defer it to him.

Vaman, over to you.

Thanks, Kunal. For the consumer electronics business, our joint venture partner does have 10%, they are bringing 10% of their of their equity.

They do have an opportunity to go up to 49%, but at the moment, they're holding at that 10%. We are funding 90% of the of the equity.

The complete, I think, capex requirement will be finished in this year, and it will ramp. We're very close to, of course, the the facility is fully ready.

We will have a formal inauguration in a couple of months as well for that facility, which will be the largest facility in in Motherson's historic moment for us. The size and scale of that facility is close to, fully offline, at full ramp.

I request for another two quarters for you to really see the impact of of that and what sort of revenues run rate that will that will come to. It does ramp much faster, unlike the automotive business, which ramps as the customer, program launches and it takes about two years, years, two years to really get to the height of the of the of the program.

Here you'll see a much faster launch that will happen in the next couple of months. These orders are are also currently in negotiation.

As you can imagine, the consumer electronics does not have such large, such long order tails. It happens more in the same year itself.

All that is happening as we speak, and I think you'll you'll see that impact in the next couple of quarters as these plants launch. There could be a quarter here and there, but like I said, we're we're really excited in the next two quarters.

This this will launch in a very meaningful way.

Thanks, team. Thanks for that.

Just one follow-up on the first question. Even Nexans and wiring harness, is it now closer to our EBITDA margin of 11% or so?

See,

as of now, not necessarily the newly acquired businesses are meeting the comparable industry benchmark, but as we have done in several of these acquisitions over the period, the objective is to transform, and we believe that the new acquisitions, including Nexans and Yutaka, we should be able to transform over the period and improve their margin profile in times to come.

Just

to add on that, look, I think these are meaningful and strategic acquisitions for us. The size and scale of our wiring harness business is, of course, much larger than what we have acquired from Nexans.

We are very much excited about the possibilities of clubbing together our purchasing and driving synergies together, which we have done, if you have seen that how we did with MWS I, PKC. I'm sure that the wiring harness team is extremely excited about this opportunity.

Yutaka brings in completely new products for us, and so it perhaps will take slightly longer as we get more comfortable and understand how to drive more synergies with this, but again, opening up new customers, opening up new locations for this business, and bringing in wider capability to increase our product portfolio that we can bring to all the other customers as well. Of course, that takes a little bit of time, but that should blow up nicely.

We're very excited about these two acquisitions.

Great. Thanks, team.

Thanks a lot. I'll come back in the queue.

Hi. Thanks for taking my questions.

Just a quick follow-up again on the consumer electronics. Looking for a bit more clarity, there was this 26 billion that you'd called out earlier in terms of investment.

This 40 billion, this 65 billion is on top of that. Just trying to understand, the cumulative business is 65 plus 26, the 26 is already done, is that fair to assume?

What would be the cumulative units that you've called out 40 million for third plant? Is there a cumulative number for the business that you can share on the consumer electronics?

Vaman, you want me to clarify that?

Please. Please go ahead, Kunal.

I'll add on.

Sure. Thanks a lot for your question.

The overall capex, including what we already incurred in this facility, including GF1, GF2, and GF3, should be around 7,500 crore rupees. As of now, we have more or less incurred 1/3 of it, 1/3 of 7,500 crore rupees, and balance is expected to be incurred in the next two to three years.

As far as the third plant capacity is concerned, it should be around 40 million units annually at full capacity, and this will be achieved over the period. As Vaman mentioned in the response to the first question, we are trying our level best to commission this facility later in the current calendar year.

I hope I have clarified, but happy to attend your follow-up question. No,

that's helpful. The second question that I had was on the margins.

There's a, there's a fair bit of benefit that we are getting from the restructuring program or optimization program. Is there a way you can give us a give us some sense of what was the commodity or, material, I mean all these pressures that you're seeing, what was that headwind in this quarter, and, the offset that we saw from the restructuring program, and how do we think, is there a way that we can think through more pressure in quarter two?

Is there more to come through in terms of the headwind on the RM side? Some color on that margins if you can focus a bit more on the modules because that's where the restructuring bit was.

Sure. I see how I can help that.

Look, the restructuring on the European footprint was, if you look at it from what we've been saying for the last two years, we've acquired a lot of businesses as well, a lot of businesses the customers requested us to look into. We actually added a lot of footprint in Europe through the acquisitions that we had done.

The restructuring was done so that to fit in line with these new facilities that we had also acquired. Of course, some of the distressed assets, businesses were not running at full capacity, so as to speak, because the EVs did not come out as expected by a lot of these suppliers who had invested heavily.

Restructuring the footprint required that we were able to drive some of these units that were not operating at full capacity to merge them, combine them, and also, of course, trim some headcount at these locations and focus and combine more locations together, so that the locations are now able to sustain at decent capacity levels, with headroom for future growth as we do believe that the new programs with the customers are now launching with new state of EVs, definitely have a much better response from the customers. It's evident that the erstwhile ones didn't perform as expected.

This headcount restructuring in tune with the market, as our customers were also rebalancing their lines, you saw a lot of news coming from the general OEMs, that they were also reducing, was done in line with that and to make our footprint more optimized. Right now, we believe, of course, that it is at a decent level.

Of course, there are new programs that are still coming. Customers are still asking us to do more acquisitions.

We're constantly looking at balancing this, holding up. There is also an opportunity perhaps to do more in this financial year, which we are focusing on to try to be the most efficient producer.

Of course, the commodity pressures which are happening, those are negotiations that we continue to have with the customers, which are out of our control. We try to get of course compensation if it goes either which way.

That of course in the last couple of quarters, it's only been going in a negative manner. There is a lag for us to be able to go and claim that.

I think the reduction in the headcount and the optimization of the footprint, you've seen those benefits, which are meaningful, that even with such high impacts of the commodity prices and logistics for all these that are happening in the world, that we've been able to maintain and, of course, improve some of our performance in the margins. Again, as a company, we're not really focused on just EBITDA margins.

We believe that the whole program should deliver 40% ROCEs. That takes time.

Of course, margins have a contribution to that, we are tracking it. Overall, the idea is to have a extremely efficient footprint in the region, one that is profitable, and then, of course, get back our lost contribution for the margin pressures towards the end of the year when we see the entire volume play out of the customers of these programs.

I hope that was there. There's tremendous amount of programs, customers, locations.

To get into finer details of all of that only happens towards the end of the year as we go customer by customer, program by program. We're in the middle of a lot of launches that are happening right now as well.

Really difficult to quantify it in the first quarter.

Got it. That's pretty useful color.

Just a follow-up, is there any way to break up the benefit that we have in terms of, just to understand how much were we able to offset, or maybe if you can give us a color on how much was the commodity impact, RM impact in this quarter just to think through, how do we think about the normalized margin if there is a number that you guys can share?

Ma'am, I would love to give you a number. The thing is that each customers have different grades of engineered plastics.

These do not move exactly in line with just how crude prices move. Some moves higher, some moves lower.

Some are fairly static. As we're not making one product.

It's not just a bumper. It's dashboards, door trims, claddings, mirrors.

There is hundreds of different products that we're supplying. Each program is actually what we look at towards again the end of the year only with the whole year going through, because some quarters, they might be lower pickup, but then that picks up later up in the other quarter.

We don't have that kind of a mechanism where we're doing it every month or something like that. I think with the wiring harness, the copper, that's a more direct one because it's a direct commodity.

With the plastics and what we have in Europe, it's a lot more complicated, and the relationship is not exactly one is to one. That happens only towards the end of the year.

That's why you see most of our Q4s are the ones where we have the strongest kind of performance, because all the nettings and all of that kind of happen in that quarter. The volume also is enough time for the customer to understand that it's a meaningful impact over the year, and we're not going back every single month for something like that.

Of course, if the impact is, there's something is way really out of the extraordinary, like in terms of, send this logistics cost, because of what happened in Strait of Hormuz or stuff like that, we would look for immediate support on things like that. Mostly, these volume compensations and what happens on commodity price, it doesn't happen in every month or so.

There is a little bit of lag in time that the customer needs, and also some time for them to catch up on their volumes. We'd really be able to talk more about that in Q4 and what kind of numbers that kind of impacted.

I think that will be the right time to discuss that. I think what you should take heart is that look, even in probably one of the most difficult quarters in terms of fluctuation of commodity prices and logistics and what's happening in the world, we were able to hold margins, improve margins, which means that the other actions which we have taken to rightsize our operations has really worked and helped us in our favor.

Again, the customers will be appreciating us, because there are not so many strong suppliers with a strong balance sheet and performance like us. Hence, we're also getting a lot more growth opportunities.

We've just announced two more acquisitions. Our balance sheet is again at one of the strongest points.

I think you should really take a lot of strength from this kind of reporting that we're making, that we're in good shape.

Got it. No, that's really helpful.

Best wishes. I'll join back the queue.

Thank you.

Thank you.

Yes. Hi.

Thanks for the opportunity. Two questions.

One related to the quarter on wiring harness. Now, you mentioned that obviously copper prices went up, and margins were impacted by the denominator effect and the pass-through.

If I look at the numbers, honestly, it doesn't look like there has been any impact, and I just wonder how much higher the margins could have been if the commodity was not there. Like you have spoken at length about the polymer, is there any structural cost changes, any mix changes, which are helping the underlying margins for wiring harness?

Because given the commodity and the copper inflation, a 30 basis points margin impact is, at least in our view, not really anything material. What's going on there if you could help us?

Pankaj sir, you want to take that, and I can support together with Kunal, or—

I can explain that. Basically, while copper has gone up, there is an impact as you explained, but on overall basis, we have a pass-through which has a lag of three to six months.

If you see quarter on quarter, there was a 4% impact if you look at a global thing. The impact has been very, very high in India because the impact is also having the currency factor with the rupee depreciation.

However, globally if we look at it, the impact is not so much because if we are in Europe, that the impact has been in dollar terms, but in euro terms has been much less. Secondly, on overall basis, some of the facilities globally, since we are in so many geographies and there are multiple businesses, some of them which were not doing so well in the first quarter of last year have shaped better.

The US market has also started to revive, so that has also given us a very improved performance compared to the last year.

Pankaj sir, if I could add, I think it'd be fantastic performance by the wiring harness team. In the last few years, the China volumes were significantly impacted, and in the US also, it seemed slowed down.

We've really worked hard at again chipping away at the cost base that we have for these businesses. Now that those markets are coming back, I think you've seen that the impact of what happened in India with the rate increases and the copper hitting harder here, overall, it was fairly muted because of the diversification, the cost improvement actions taken by the team.

Really, we're really quite impressed with how hard the team has worked during these tough times, and those steps which were taken in the last couple of years for the international wiring harness business is really helping us to show this kind of a performance. It was really well done by the team.

Yes, a very good performance here as well. Thanks for that.

My second question is slightly more medium-term. In your automotive business, obviously Europe is a large part of revenues across segments, and even China is an important part.

How should we think about the Chinese OEM engagement in China, because in China also, I think most of your engagement is with European OEMs. Is there an engagement happening with Chinese OEMs in China?

The medium-term question is with respect to Europe, because as these Chinese are already gaining market share in Europe and planning to put up facilities in Europe, do you think that there will be engagement for you with Chinese OEMs? How should we think about the medium-term opportunity here?

Because it looks like the European OEMs at the margin are losing some share to this new competition.

Look, that business in China is balanced well. I think, of course, we started the business in China with the international OEMs, but the local market is also transitioning more towards the local OEMs, which we are also reflecting in our business.

Of course, we're being extremely picky because we are very focused on the top line and bottom line. We do not chase top lines where we cannot make the profitability margins.

We have seen a lot of the local Chinese OEMs also been added to our product mix in China. However, we still are representing the larger share of the businesses with the international OEMs within local JV partnerships in China, which I think is still holding on and doing well.

Yes, the numbers have come down, and we've seen a little bit of shift towards the Chinese OEMs, which our businesses are also making that shift. Now, because we already have those good relationships with those local Chinese OEMs that we have over time and successfully built, I think that gives us good strength for us as these OEMs move to Europe and other locations.

We've already been visited by them. We already have those relationships with them.

They're also discussing supplies with them. Motherson is, as an independent supplier.

We supply to all OEMs. Wherever we do see that we can make the returns and there's profitable business, we will surely supply.

I think we're probably one of the best placed because of our international presence, because of our local presence in China, our numerous local Chinese JV partners, which we have a very strong relationship with. Wherever these OEMs are going outside, they're definitely getting the opportunity to supply to them first because they're already supplying to them in China.

Like I said, I think when you're talking about market share loss and things like that for the OEMs, I would be careful, and I would look at the numbers a little bit more in detail on what's really going on over there. The situation is not as bad.

I think the international OEMs are, of course, holding ground in their regions. We're seeing some OEMs also have growth with their new program launches that are competing head-on with the easy launches of the Chinese OEMs.

Like I said, for us, the more customers there are, the more opportunities for us to supply. For us, we are fairly balanced, and we will continue to grow, even with the Chinese OEMs that are coming into Europe, because of our deep relationships already established with them in the local market.

That's really good to know. Thanks for that, Vaman.

I'll come back in the queue.

Good evening, sir. The question is a bit strategic in nature.

Just wanted to understand, there are several new areas which are throwing up substantial opportunities, for example, robotics or industrial automation, AI-related areas, or semiconductors. Which of these areas are of interest for you, or you are studying, and you think there is a match in terms of ability for Motherson to tap those opportunities?

Great question. The answer is all of them.

Look, we haven't really spoken about some of the other businesses because we are in building block phase of these businesses, because these are new growth opportunities. Again, with our DEMM, the design, engineering, manufacturing, assembly, logistics framework and core competence that we have developed at Motherson, we are being looked at many of these companies that are looking for meaningful partnerships, of course, in India, but globally also, to be able to take advantage of the prowess that we have in the operational excellence of manufacturing and be able to supply to them.

We are definitely doing stuff in semiconductor. We are supplying already to some of the players in that field, of course, in the B2B kind of segments and manufacturing and supporting their ambitions in India and in their countries.

There's some opportunities there which we will again come back to once it reaches a sizable scale that is currently being reflected in a small way in the numbers that you're seeing. Again, I'm really positive about what we're going to be doing in the semiconductor.

You will also hear more about potential joint ventures that we are discussing with at the moment. Of course, I cannot disclose until they are signed, but we're very much a JV specialist.

Many of these partners that are looking to again expand in India, we become a partner of choice with our standard track record of that. I'm also really glad to tell you that we already have one small orders for actually supporting humanoids production.

Again, cannot really disclose too much on that, because, as the market right now is extremely niche and only growing, but we've already targeted those kind of customers and to bring newer solutions from our product portfolio to be able to supply to that. Again, the numbers are extremely small right now, but I think, again, as this business grows, we're setting ourselves and sowing the seeds to be in a great position to be able to supply to these businesses, because if you look at from its volume projections are absolutely mind-boggling.

Again, we cannot comment on any of that right now because it really hasn't happened. We will wait for that to happen.

We are positioning ourselves that if these businesses do take off in the future, we are well positioned to take advantage and supply from our complete solution suite in terms of plastics, electronics, wire harness, everything that is required in these businesses to be able to go after them. Our own use of robotics is also really increasing.

We have our own company inside Motherson called Robex, which has been doing some stellar work to be able to help manufacturing and automation drive that we are putting in all our facilities globally. Our strategy of producing locally, source locally, produce locally, supply locally, now with AI automation, the labor arbitrage and everything really becomes really miniscule, because if you're able to really automate and bring all of these kind of cost synergies or drives, you can really be competitive in any location, because now with logistics costs being so high and so much volatility in currencies and logistics, I think local production is being preferred everywhere by a lot of our customers.

That really gives us upper hand to be able to supply, again, our DEMM capabilities to these customers for all bunch of different things, everything that needs manufacturing, and we're really going after these businesses. To get to 108, you will see that some of these things will stick and help us to get there.

Thanks, Vaman. That's very exciting to hear about.

A few of the questions on consumer electronics, just wanted to know what is our current capacity and the utilization level?

Again, I can't tell you too much about those numbers. The current two facilities are a fraction of what the new facility is going to be at.

These were just to prove it out that we could do it, and we have experience, because this is the largest facility in Motherson Group. You can understand the size and scale of this.

It's the factory is the size of 50, 60 football fields in a row. In that sense, the first two facilities were just prototypes and, I think, small batch productions just for the process.

It's a 17-stage process to make the glass products that we do. Highly technical, requires a lot of engineering, a lot of getting used to, and the scrap rates and everything are, even a small fraction one is a meaningful impact.

To really get it right, to understand the chemistry, to understand how to deal with glass, extremely fragile, scratches very, very easily, and gets completely rejected. Very different to what we've been doing in some of the other products portfolio.

Again, I think you guys have to be just a little bit more patient with us. I think two quarters, you will see that, and like I said, we can give you a volume kind of growth, but what kind of revenues and all that generated depends on the programs, depends on the features, depends on what we finally win, which is all happening as we speak.

Please just be a little bit more patient. I know we've kept you guys waiting for some of this, but please believe me, it's worth it.

It's going to be great for our company to be able to upstream into this new business and create something, a complete new line of business for the group that will be meaningful. We will share a lot of these things with you in couple of quarters, as we ourselves learn and understand how this business is fully ramped up and how it goes.

Just lastly on emerging businesses, because it involves a lot of new businesses and probably we don't understand it so well, what I'm noticing is that the margins, at least on a quarter-on-quarter basis, have been moving up and down a lot. Can you just help us understand what is causing this?

Is there some kind of seasonality here we should keep in mind, or is the mix changing? Just any color here to help understand this will be helpful.

Look, and Kunal, please support me. I think, look, in the emerging businesses, we are clubbing a lot of different businesses together right now, because they're all at that infancy stage.

There are facilities that are ramping up. There are new programs that are launching over there.

Again, once these become of meaningful size, we will bifurcate them, so that you will get a more detailed picture on, for example, consumer electronics itself. We will look to give you a lot more clarity, because that is obviously one of our largest facilities with the capex, etc.

Right now, you see some of that clubbing effort, which is happening with some of those emerging businesses all coming together to give you a more consolidated view. Like I said, we're in the middle of ramp-ups, new facilities that have come up to support what the orders are going to come.

I think, again, in coming quarters, you will see a lot more detailed view of that. You can see the there's tremendous amount of growth there, a lot of the electronics piece that we are doing in consumer electronics, not just with this facility of glass, but also other capabilities that we are building for what we want to do with SMT lines, and things like that.

We have a lot of use for PCBs ourselves. There are a lot of things that we are building and trying out ourselves, which is there.

Again, I think, in a couple of quarters, by the end of this year, you will see a lot more clarity on that as some of these things come up to full swing and we are kind of fully ready to present you what we are doing in some of these new growth areas.

Thank you so much, and look forward to that. Best wishes.

Thank you.

Good evening, team. In the investor presentation, thank you for sharing quarterly region-wise revenue mix.

That is very helpful. On my first question, with the Nexans acquisition, will the existing India business, for instance, Kyungshin and Motherson Wiring India, benefit from the support, like technology support, can it yield synergies?

Pankaj sir, will you take that?

Raghunandhan, obviously, wherever we do business, we always support, if there is something which is required in the Indian market, that will always be available. The moment both panels continuous knowledge gain, and the company in India is supported by Sumitomo-san and as well, and Kyungshin is supported by Kyungshin's technical knowledge.

That's dedicated to Hyundai and Kia businesses. Whatever we gain knowledge anywhere in the world is obviously available to our child companies.

Noted, sir. Thank you.

Sir, going back to consumer electronics, for FY26, it is great to see ₹1,300 crore revenue and 8% EBITDA margin. This increase in capex to ₹7,500 crore, if I assume 2.5 times gross asset turnover, it can grow as much as ₹20,000 crore revenue by 2030 with double-digit margins.

Do you think something like that is realistic and achievable?

Look, we cannot give you forward projections, but, of course, you have to understand that these facilities and things that we are putting in will be one-time kind of investments for this facility, and we will hopefully be able to reap the rewards of it for the next 20 years in the facility that we do put in. It's not something that is only for this program or something for that.

Please do have heart. These are really flagship kind of investments that we are making in these things.

Then, of course, over the years, we do see this business also being able to give us 40% ROCEs as we grow. How we have to get there, of course, it's an uphill climb, but I think the most important thing is to be able to show to the customer that we can ramp very, very large facilities in new product lines, with new customers, with new quality specs, and do that very successfully.

I think this is just first of many. Hopefully, with the launch of this, we will be able to showcase to this customer and to other customers that we could now perhaps attempt to double the size of this facility with our capabilities, with the learnings and everything that we have got.

Definitely looking to ramp from here. Of course, a lot depends on the product actually that we win, because it's a fairly diversified kind of a product.

Applications are very, very large. We're only focusing on one side as we are proving ourselves in this business.

We are very, very hopeful that this capacity will give us returns for many, many years. This product is definitely not going anywhere.

Glass will continue to be used in a meaningful way in a lot of consumer electronics, and we hope to give you a lot better returns. This is what you're seeing right now at the start-up phase when it's at the ramp.

Is there another question?

Yes.

Okay. Go ahead.

Mr. Raghunandhan, does that answer your question?

Yes, sir. Thank you very much.

That was very helpful.

Good evening, everyone. Am I audible?

Yes, please go ahead. Yeah.

Sir,

my first question is just a clarification. When we say that 38% of the wiring harness revenue came from India, we are including 100% of the Motherson wiring business, and then later on we are deducting the 100% under the JV method.

Is it right?

Kunal?

Yeah. Vaman, I'll take this.

Whatever is of MSWIL, that is accounted as associate or joint venture. What you explained, that is what we do.

We also have exports business that is included in SAMIL.

My understanding was correct, right? We'll be including a 100% of the Motherson wiring, and then we are deducting 100%.

That's right, and the profit is then accounted for as a share of

Share of JV and associate,

yes. You are absolutely right.

Right. Sir, my second question is regarding the JS3 facility.

Right now, the JV share is 90:10. How should we model the revenue going forward?

Will it be like 90:10, or it'll be 50:50 once they convert their shares?

Right now, we don't have any indication that they want to go up, I cannot really comment on that. They have the opportunity to do so, but they are currently quite happy at that 10%.

If that changes, we will definitely come back to you. Until then, it is what it is.

Okay. Thank you, sir.

I'll get back in the queue.

Hi, good evening, and thank you for taking my questions. My first question is just around the upcoming facility, the third facility under consumer electronics business.

Just given the scale and size of the plant, is this being planned to have maybe fungible lines and capabilities to have products beyond the glass products that we're already making today? Just related to this, wanted to understand in your own sort of internal models, when do you expect the consumer electronics business to fund its own capex?

What is the sort of time frame that you have on that? In a steady state, what sort of asset turns would you aspire for in the consumer electronics business?

That's my first question.

Thanks for that. Look, in the consumer electronics business, like I said, this current product is glass, and the applications are large.

What we're doing and the capacity that we're setting up in this facility are already completely taken by the customer that we have. It's Motherson's prerogative always to diversify and make sure that, again, no single facility is only or no company is only focused on concentrated customer.

We want to bring in more and more customers, and I think those opportunities will definitely come as we're able to show, again, that we're fully capable to run large programs in this industry, which is a new industry for us. Definitely with the profits of this, we're looking to reinvest that and further grow this industry and make to be on its own.

In the investor conference, we also spoke about how some of these incubations, as they become young adults, we would like them to hive off and become just standing on their own feet. I think that's what we're following with all of our new businesses, the aspirations for all the new businesses to be completely standing on their own feet.

Again, depending on how this thing performs, which we are very hopeful and positive about, these should be good candidates for this companies to be standing on their own feet, funding their own capex, and growing up on their own. I think SAMIL has done its bit with this first facility.

After that, everything that we need to do is hopefully this company is able to stand on its own and drive its own future. That was the whole strategy behind incubating all the new verticals in SAMIL.

Got it. That's helpful.

Second question is just around the emerging opportunities in the industrial space globally around some of the topics that were earlier discussed—robotics, humanoids, physical AI, and so on. Just want to understand from your standpoint, how long does it typically take potentially to develop parts in-house for sale into these supply chains, and are there also products just given your scale globally and your variety of SKUs, are there some products in the basket at some of your plants globally that you think can be cross-sold into this supply chain, just trying to understand what is the breadth of products and the time taken to develop products for this emerging growth opportunity?

I was not able to grasp the question completely, but I'll probably start, and maybe my team can help if they understood it better. Look, the idea from developing new products and things like that, all the companies that we are acquiring, we're obviously adding to the product portfolio, and the customer wants this company to survive because it has good technology and it needs to be serviced in their growth plans.

Our idea is always to be able to take the existing products, can we show them to more customers, can we take them to more geographies? We did that very successfully when we acquired SMR, for example.

There was new glass technologies on the rearview mirror that we were able to bring into the Indian customers that saw a lot of value in these new attributes that were coming out, which is the European cars. We had a lot of success with things like that.

It's not just about, of course, we're continuing to spend money on our development of our feature-rich content, because if you look at the key real estate in the car and look at all the electronics and the features and the attributes that are coming, we own that real estate. If you're looking at all the electronics for exterior environment, that comes in the front bumper, back bumper, exterior mirrors, that's our real estate.

If you look at all the features that are coming in the interior, it's coming on the dashboard, it's coming on the doors, that's our real estate. There's huge opportunity there to be able to, again, continuously develop more and more features.

That's why we say that we're not producing something static like cement or something like that, which is the same with perhaps small changes that go into the compound, but actual features and the amount of products that go inside our product continuously changes with every new program, which allows us to bring in, again, new electronics, new touch and feels, new materials, new ways of processing. All of that kind of is our core competence to be able to go to the customers and help them achieve their goals of driving the value up in their products and also better ways and sustainability drives to be able to change the way that some of these things have been done historically.

A lot of avenues of growth. That's what really excites us.

I think we've always told you that, look, our engine exposure is minimal. We're engine agnostic companies.

We do have a very small product line that is really focused on ICE, but the majority of our product portfolio is applicable to the entire car, no matter what, whether it's ICE, or hybrid, or hydrogen in the future, or whatever that comes. We're fully capable to ramp up to that.

With that also, we can also take these kind of products to not just pass car. We're seeing synergies that we can drive in the aerospace, we're seeing synergies that we can drive in the rolling stock business.

A lot of opportunities for growth. Now space is, of course, something that's heating up and something that we're also looking to go after, with huge amounts of money that is being spent, again, globally on these kind of programs and how quickly this is going to also ramp up.

It's a mixture of all of these things. We allow the autonomy to the companies to go after their products and see the development that they want to make in the industries and the customers that they want to go after.

Pretty extremely exciting, because we are very relevant in the age of mobility, and mobility is only increasing, and the number of options for the consumer and the number of customers are also increasing who are providing new mobility solutions. Even stuff with the new-age mobility, such as short-term transportation.

A lot of exciting stuff is coming. Again, these are all things which are niche industries, which are growing.

I can't name some of the customers that we are talking to. They're completely new age.

Again, very exciting opportunities, and even if one of these things click, it's really meaningful. I think when EVs were just coming up, we were one of the first companies to support the large ones that were coming out internationally.

Building those strong relationships really helped us to grow meaningfully in the EV space as well, providing all our platform of products, especially SMR did a wonderful job at that time because they were global. I think that continues, that kind of ethos continues, and we see a lot of opportunity for our products to grow with the new-age customers, the new-age mobility that's coming, and we will stay focused on growing that.

Got it. That's helpful.

Thank you very much, and all the best.

Thank you for the opportunity. Just a clarification, we said that JS3 is 40 million units eventual capacity in around let's say FY29.

In FY26, the exit run rate was 16 million units. Is it fair to assume that the total capacity will be like 56 million units at the end of or in FY29?

Is that the correct understanding?

Again, yes, and thereabouts. I think, again, depending on the programs that we win and the number of processes that product has, maybe we could definitely do a little bit more than that or less, depending, again, on the programs.

It's going to be significantly more than what we are doing right now. Again, like I said, you have to wait a couple of quarters to really get more idea on that.

I think trying to piece together more numbers and stuff like that, I don't think will give you the best view of that. Please be patient for another couple of quarters.

You will have all the information you need to understand this business.

Sure, sure. I was just trying to get an, idea of the size of the expansion that we're doing.

My next question, Vaman, you mentioned about some of these businesses that we're incubating will be ready to stand on their own. I think you also mentioned talked about that in the investor day on the investor day.

Now,

does it also mean that at some point of time, we will look at separately listing them, some of these businesses, and unlock unlock value?

Yes, absolutely. I think how we do it, what are the semantics, that's something that will depend on what the structure of that business is, what is the best way to create value.

Our drive is to create a lot of value for all the investors that have incubated these businesses and supported them together in SAMIL, and for them to drive their own path and to grow up. Yes, everything is on the cards.

I can't tell you exactly what happens, because right now we're really focused on execution and making sure that these companies become extremely valuable and stand alone on their own. How and what shape that will happen will, again, come in this five-year plan.

We will come back to you and tell you how exactly we're doing it. That's definitely a drive for us to create independent, because if you look at SAMIL, we're doing a lot of different industries, incubating it in SAMIL, and I think the way to unlock that value will be that once they're of a certain size and scale, to give them that independence to be able to grow and stand on their own feet, and that the dependence on SAMIL be cut off, and have their own trajectory of growth, which is slightly different to where the automotive businesses in that scenario.

That is something that we are more mature in. These are more new growth, high growth areas, and something that's very exciting, and will require, like I said, complete independence from SAMIL once they are able to stand up on their own feet, which is not far away.

Great. Thanks.

Should we look at something happening in FY28, some value unlocking, or would it be beyond that?

Look, it's definitely in this five-year plan. For us, the faster, the better, depends on how, again, they ramp and how the market perceives that they are just valuable as well.

From our side, we are taking all the steps for as soon as possible that these things happen. For us, it's better faster than later.

Definitely we have set up plans internally, and everything depends on the execution for the next couple of years for that to, of course, happen, as we need to have some performance of these companies so that people understand what's really happening over there. The good news is that everything is on track.

It's as we had imagined. Of course, there's headwinds which in terms of geopolitical and all those kind of things which affect the markets.

In terms of our performance, in terms of what we are winning in terms of customer confidence, in terms of our execution, we are very much on track.

All right. Thank you.

One final question, Vaman. This is more specific to our vision systems vertical.

Are there regulatory tailwinds that we're seeing, especially in India, with these AIS-184 regulation about driver drowsiness detection that is probably coming in, and this requires a lot of sensors, maybe a camera for monitoring the driver and some software to decipher that and all that. Is it a meaningful growth opportunity for us because we're present in the CV space and do we have capability across the stack, across sensor, camera, software, and is it a meaningful opportunity for our vision systems vertical?

Just wanted to—

Thank you. Thank you so much for asking that question.

My friend, Rajat, on the call, unfortunately, does not get a lot of airtime because everybody is only asking me about the consumer electronics business, whether mirror business has been one of the most resilient, one of the highest cash generators for us in terms of free cash flow, and is doing phenomenal things under his leadership. Really, I'm so glad that someone asked this question and recognized that the mirror business is also in a very, very good trajectory.

Rajat, please. The stage is yours, and finally, somebody has asked about the mirror business.

Yeah.

Thank you so much. I think a good question.

Yes, we are seeing these new regulatory tailwinds helping us, and if you see what we've done in this new acquisition, Autocruise, this is exactly in that direction, because they have a good product portfolio. They are already doing interior digital mirrors.

They are also doing driver monitoring systems for buses. They are also doing other products which then we can scale up in China itself, and we can also then add these products in India.

Of course, there'll be work that will have to be done, because these would require homologation, they would have to clear all the requirements that we have from the regulators. Clearly, it provides us a very strong platform to then build upon and catch up.

I think these things are still in the starting phase, and we are just in time to bring in these technologies and then ride on the growth that the market would see with these regulations coming in more and more.

Great. Thanks.

Can I ask one more if it's possible?

Sure. Please go ahead.

Yeah.

This is more on the health and medical side. Our revenues have degrown over the last few years, our losses have increased.

What is the grand vision with the health and medical side of the emerging business? Do we see ourselves becoming like a GE Healthcare of India?

Just want to know the grand vision there and what are we doing to grow our capabilities in that vertical? Yes.

Look, the vision remains the same for the rest of our other businesses. We do not have any ambitions to become a OEM of that size and scale.

We definitely want to be supplying to customers like that, and that's the idea. Yes, you're right.

The business is slightly slower to get off the blocks, but that happens. There were extreme high valuations in this industry.

To try to do a large acquisition or something, we didn't see any path to delivering 40% ROCEs if you're paying those kind of multiples. I think now under the leadership of Sachin Mene, we are really looking at a much more sound way of driving this business.

We've opened up our first plant in Chennai, which is the largest plant that we have for health and medical, which is gaining orders. Hopefully, this trend that you see of the negative should reverse in coming quarters, because that's fully up and ready now and commissioned.

I think we're also looking at some strategic plays globally. With, again, our competence now in the other product groups, I think there's a lot to add to that vertical.

We have also partnered and done some of our own stuff in terms of partnership in Enex for ultrasound kind of machines. I think that's gaining some traction now.

It was a startup that we're working with, there's a lot of stuff that they needed to do to bring the manufacturing, robust sales sector to sync all of that up. I think that's happened.

We should see meaningful growth there also. I think please wait and watch.

The vision is exactly the same. It's been slightly slower.

When the things will click, I'm pretty sure that that will happen fairly quickly, and this will grow also rapidly at the right time, and also looking at cementing some good joint ventures to bring some really good technology into India to support the needs of the health and medical industry in India, because most of the stuff that we see in India is all also a lot of it is imported. Huge growth opportunities there.

Like I said, I think just because of the nature of that business was we were not able to get global traction on that very, very quickly. I think now in this five-year plan, you will see meaningful growth that comes over there.

I'm sure the teams will show you a good performance by the end of this five-year plan.

Great. Thank you, Vaman.

Appreciate your time.

Thank you so much, everybody, for all your questions. I think, again, you've seen a really resilient performance by our group in really tough, challenging conditions.

I think the operating teams are completely flat out, combating all of these things and yet showing you, even in stressed performances, one of our strongest performance in Q1. We're extremely proud of what we have built.

I think you're seeing the full engine of Motherson running now with the DEMM capabilities that we've been harping on and building on as a platform for the last so many years. We're really excited for our upcoming quarters and extremely bullish about where we go from here.

Look forward to your support, and see you all in the next quarter. Thank you all so very much for your time.

All the best. Thank you.

Bye-bye.