Motherson Sumi Wiring Q2 FY27 Earnings Call: Revenue Jumps 47%, Margin Hits Four-Quarter High (MSUMI)

Motherson Sumi Wiring India Ltd held its Q2 FY27 earnings call on October 30, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Strong All-Round Beat, Margin at Four-Quarter High

• Revenue grew 47% YoY and 19% QoQ in Q2 FY 2026-2027, supported by higher customer volumes, new program launches and contributions from greenfield plants.
• EBITDA rose 34% YoY and 45% QoQ; PAT grew 35% YoY and 54% QoQ in Q2 FY 2026-2027.
• EBITDA margin improved to 9.2% in Q2 FY 2026-2027 from 7.6% in Q1 FY 2026-2027 on operational efficiencies — a four-quarter high — despite higher copper prices, minimum wage revisions and other inflationary pressures.
• Raw material cost stayed elevated at 70% of revenue, near an all-time high, in Q2 FY 2026-2027.
• Company outgrew the industry — PV industry volumes rose 25% YoY and 14% QoQ in Q2 FY 2026-2027, aided by premiumization (higher content per vehicle) and participation in new EV and ICE model launches.
• EVs contributed 10% of revenue in Q2 FY 2026-2027 and 9.3% in H1 FY 2026-2027.

Pass-Through Lag Under Negotiation; Recovery Expected in Q3

• Copper prices rose ~6% QoQ and 54% YoY in Q2 FY 2026-2027; copper is a pass-through item with a typical ~3-month recovery lag from the majority of customers, with some cases extending up to 6 months.
• Of the 47% Q2 FY 2026-2027 revenue growth, 12% was copper inflation — excluding copper, revenue growth was 35% versus EBITDA growth of 34%, which management said are "practically on similar lines."
• Management (Gulshan) expects recovery of the copper pass-through in Q3 FY 2026-2027, as copper flows through with a one-quarter lag for major customers.
• Minimum wage pass-through is under negotiation — unlike copper, where 100% is generally passed through (analyst context); Chairman V. C. Sehgal said the company will "try to do our best" to secure full recovery, stopping short of a commitment.
• Price hikes for input and minimum wage inflation are likely over the next 3-6 months (relative to the Q2 FY 2026-2027 call), per management commentary cited on the call; Chairman Sehgal said better numbers will be reported within FY 2026-2027.
• No commitment on shortening the 3-month lag to 1 month — Pankaj Mital said the lag exists so far, is a matter of negotiation with customers, and investors will be kept informed if anything changes.
• Copper prices have been volatile over the past 4-5 quarters (through Q2 FY 2026-2027); management cautioned prices have not stabilized and cannot be predicted, though Chairman Sehgal noted recoveries "equal out" over time whether prices rise or fall.

Compression Is Optical, But No Guidance Forthcoming

• Gross margin eroded from ~35% in FY 2023-2024–FY 2024-2025 to 32.5% in FY 2025-2026 and 30% in Q2 FY 2026-2027 (analyst Shubham Batra, Ambit Asset Management), attributed to copper costs.
• Management declined to provide margin guidance — Chairman Sehgal said the company normally does not guide on margins and talks about growth instead; Pankaj Mital added the focus is on return on capital employed, which has remained healthy.
• Compression framed as a numerator/denominator effect — copper increases are recovered from customers, keeping margins healthy in absolute terms while optically lower as a percentage; no sudden sharp margin increase should be expected over the medium term since customers are compensating for these increases.
• Comparability of the historical baseline questioned — Chairman Sehgal noted the international wiring harness business was part of reported numbers 3 years ago; Pankaj Mital noted the analyst was comparing MSUMI-only figures for FY 2023-2024/FY 2024-2025.
• Other operating costs falling as% of sales — Pankaj Mital attributed this to greenfield sites that carried costs before revenues, with ratios improving as revenues come in; he declined to give a forward-looking statement.
• Greenfield-specific margins not disclosed — management (Gulshan) declined plant-wise profitability data, stating reported margins represent overall MSW performance.

Three Greenfields at Optimal Utilization; Capex Held Flat

• All three greenfield plants (Karkoda, Gujarat, Pune) are at "very optimal utilization" as of Q2 FY 2026-2027 and are no longer treated as greenfields; Karkoda had already reached high utilization in Q1 FY 2026-2027 per the press release, as cited by the analyst.
• FY 2026-2027 capex guidance reaffirmed at approximately Rs.200 crore, broadly in line with the FY 2025-2026 capex level.
• FY28 capex cannot be quantified at this stage — customer supply schedules are not finalized; quantified guidance to be provided later.
• Expansion policy triggers at ~80% utilization (standing policy, period unspecified) — facilities have been expanded over the past 2-3 years to stay ahead of customer growth; "we never second guess their growth."
• Localization of imported components remains an ongoing focus ("always on our cards", moving "in the right direction"), with no timeline or quantified target provided.

Zonal Architecture Concern Raised; Management Unmoved

• Analyst (Kaustav, Kamana Holdings) flagged zonal architecture risk — EV-transitioning Indian OEMs, citing Mahindra, shifting fully to zonal architecture require significantly less wiring; management was asked to quantify exposure of current growth to this transition.
• Management (Pankaj Mital) responded that the transition has been discussed for a long time and that globally, content per vehicle has increased so far, driven by consumer aspirations and carmaker innovations making vehicles "more than just a mode of transportation."
• Chairman V. C. Sehgal noted the EV transition narrative has persisted for approximately 20 years.
• ~7 to 8 million components and terminals go into wiring harnesses, per Chairman Sehgal, making it impractical for any single company to manufacture all in-house; the company manufactures wires and its highest-usage components in-house and sources the rest per customer-specified suppliers.
• Components are customer-specific designs (Toyota, Suzuki, Honda cited as examples) and must conform to customer drawings; the company has a collaboration with Sumitomo for wires and components.

H2 FY27 Growth to Continue, But Off a Higher Base

• H2 FY 2026-2027 faces a higher base following the GST reduction implemented last year (FY 2025-2026); based on current visibility, management expects the industry to continue registering healthy growth in H2 FY 2026-2027, with premiumization and new model launches providing a favorable backdrop.
• Growth-rate moderation flagged — Pankaj Mital said post-GST-cut momentum is continuing and growth should continue in H2 FY 2026-2027, but the range of growth in percentage terms may not be as wide as growth seen with respect to FY 2025-2026.
• Q3 FY 2026-2027 typically strong on festive demand, partly balanced by the preceding Shrad period; responding to Nomura's note that most OEMs have given fairly strong H2 growth guidance, Vaman said the GST cut provided a very strong demand boost and management is hopeful the festive period continues to deliver strong revenue growth.
• New programs keep coming in as car makers launch new vehicles — a continued process, with no specific count of launches quantified for H2 FY 2026-2027.
• Chairman V. C. Sehgal closed the call stating management is "very excited" about what the company has achieved, noting recurring analyst questions "have been answered over time"; no new financial figures, guidance or risk disclosures were provided in the closing segment.