Motherson Group Plans Rs 6,000 Crore Capital Expenditure in FY27

Auto component major Samvardhana Motherson International Ltd plans to invest around Rs 6,000 crore in capital expenditure in the 2027 financial year, with half of the spending earmarked for growth projects, and the rest for maintenance and operational requirements. The company would continue investing heavily in emerging businesses, particularly consumer electronics, as it looks to expand beyond its traditional automotive business.

“For FY27, we expect capital expenditure of approximately Rs 6,000 crores, plus or minus 10%,” Chief Financial Officer Gandharv Tongia said. “Of this, 50% will be growth CapEx and 50% maintenance CapEx,”

He said the company would continue to allocate “disproportionately higher investment towards emerging businesses, especially consumer electronics, where we see substantial opportunities.”

Tongia said 16 facilities are currently under development globally, with 13 expected to become operational during the current financial year. The company has also announced four additional facilities since its last update, including two for wiring harness operations and two for logistics business.

“Notably, all 16 facilities currently under development are located in emerging markets,” he said, adding that the company remains focused on fast-growing manufacturing and consumption hubs.

In the financial year ended March 2026, the company spent Rs 5,911 crore as capital expenditure, equivalent to 49% of annual EBITDA. The investments were directed towards growth projects, backward integration and maintenance initiatives.

“For the full year financial year 26, we maintained capex discipline in line with the guidance with investments largely directed towards future growth and new capabilities,” Tongia said.

Motherson operates across five business segments including wiring harnesses, vision systems, modules and polymer products, integrated assemblies and emerging businesses. 

While the first four segments cater mainly to the automotive sector, the emerging businesses include aerospace, healthcare, lighting, electronics and industrial solutions.

The company reported its highest-ever annual revenue in the financial year 2026, crossing Rs 1.25 lakh crore, up 11% from a year earlier. EBITDA also rose 11% to Rs 12,033 crore, while margins remained at 9.5% despite rising commodity prices and geopolitical uncertainties.

Management said the company navigated supply chain disruptions and inflationary pressures through long-term material pass-through agreements with customers and its “globally local” manufacturing strategy, under which it manufactures close to customer markets to reduce dependence on long-distance supply chains.

The company noted that disruptions linked to Red Sea shipping challenges and geopolitical tensions had minimal impact on operations.

Motherson had earlier unveiled its “Vision 2030” strategy, targeting gross revenues of $108 billion by 2030, compared with $25.7 billion in the financial year 2025. The company aims to achieve this through expansion across automotive and non-automotive businesses, supported by acquisitions, localisation and investments in emerging technologies.