Motherson Sumi Wiring India Ltd (NSE: MSUMI) Q1 2026 Earnings Call dated Jul. 28, 2025
Corporate Participants:
Unidentified Speaker
Vivek Chaand Sehgal — Chairman
Gulshan Pahuja — Chief Financial Officer
Anurag Gahlot — Director
Analysts:
Unidentified Participant
Gunjan Prithyani — Analyst
Raghunandhan — Analyst
Mumuksh Mandlesha — Analyst
Siddhartha Bera — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 results conference call hosted by Madhasan Sumi Wiring India Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. VC Sehgal from Madhasan Sumi Wiring India Limited. Thank you. And over to you sir.
Vivek Chaand Sehgal — Chairman
Thank you. Good evening ladies and gentlemen. Thank you for joining the results conference call of msul. I am pleased to announce that the board has approved the results for the first quarter of the fiscal year 2026. The company has delivered a strong revenue of 2,494 crores during the quarter out of which the new green fields contributed approximately 156 crores. EBITDA for the quarter stood at 239 crores which is 15% growth year on year. Initial has significantly outpaced the industry demonstrating a favorable volume and content mix. Further bolstered by our presence across the majority of the new models launched by the OEMs.
I would like to highlight that one more greenfield has come on stream in the quarter. Production lines in Nevercom and Pune are now in ramp up mode for as per evolving customer schedules. With this I would like to conclude my remarks. I have Pankaj, Anurag and Gulshan with me to answer any questions. Over to you. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Kunchan Priyathani from Bank of America. Please go ahead.
Gunjan Prithyani
Thanks for taking my question. Just couple of queries on the results. Firstly on the cost side, can you just give us some sense on what led to the sharp jump in the staff cost this quarter? And directionally how should we be thinking is there more to come from the new plants in terms of the increase in this line item?
Vivek Chaand Sehgal
Go ahead Kulshan. Can you take this question?
Gulshan Pahuja
So the largely the manpower cost in the current quarter has got increased due to expansion units. There are a lot of manpower which have been which have been hired just to train them and upskill them. So before getting into the production line. And as you have already seen that the, some of the plans from the customer side have been deferred. So that’s all the manpower costs have been incurred in the current quarter.
Gunjan Prithyani
And is there more to go on account of these new plants or should we sort of assume that cost more or less remains in this range and we should see the revenue kicking in as the new programs commission.
Gulshan Pahuja
So as the programs commissioned and the new production orders have come in, you will find it consistent. We were there earlier. It’s just that in the current quarter you see a jump because of that expansion units and that and the plans are already being deferred from the customer side.
Vivek Chaand Sehgal
I think if we understand your question right, also as the volumes will kick in, it’s over a period of time. So this task cost will go up slightly more as more and more volumes will come in in the next quarters. Over a period of time.
Gunjan Prithyani
Okay, got it. And on the copper side, you did do point out that there is inflation. Have, is there an element of copper inflation also reflecting in this quarter.
Gulshan Pahuja
So in terms of the copper, they’re all. Sorry, is the question complete now? Is the question complete? Should I answer?
Gunjan Prithyani
Yes, yes, please go ahead. Yeah.
Gulshan Pahuja
So in terms of the copper prices, if you always see that there’s always a lag of quarter in terms of the adjustments. So, so, so there’s a marginal impact as the copper prices are upward. But, but, but if you see a longer term of like three or four quarters, the impact always get neutralized. So it’s a pass through arrangement with our customers.
Gunjan Prithyani
Okay, got it. And just last question on the EV side now the revenue ramp contribution from EVs is starting to reflect more. You know, it’s inching up. Can you share your thoughts on how the content value, you know, in the programs that you have now, how does it differ from the ICE model? Some, you know, some color around it.
Vivek Chaand Sehgal
Okay.
Gulshan Pahuja
I think if you see from the EV to the eyes, you will find we have done some study in the past also and it is Approximately increasing by 1.5 to 1.7 times in passenger vehicle.
Gunjan Prithyani
Okay. And profitability, it’s fair to assume should, you know, it should be neutral or lower.
Gulshan Pahuja
Why should be lower? I think profitability is something which is, you know, from the it, you know, start with some number and then over a period of time it get improved as the volumes take a shape and more changes comes in the vehicle.
Gunjan Prithyani
Okay, got it. Thank you so much. I’ll join back with you.
operator
Thank you. The next question is from the line of Raghunandanan from Novama Wealth Management. Please go ahead.
Raghunandhan
Thank you sir very much for the opportunity. Firstly on ramp up of green fields there is some delay in ramp up in Gujarat plant. How do you see the timeline for achieving optimal utilization? Earlier the target was at the end of FY26.
Vivek Chaand Sehgal
I think you know with the relation of the magnets and things like that really we can’t be the right people to guide you. But Anurag, if you want to, if you can add some more color.
Anurag Gahlot
You very rightly said sir that there would be certain uncertainties. And we do expect that there will be solutions to those issues at the moment. And if we do not consider them as constraints then usually customers take 2 3/4 to come to a good utilization level.
Raghunandhan
Fair point. Thank you. For greenfields currently we have a revenue of 156 crore crore and EBITDA there is a cost in fact of around 30 odd crore. So at approximately what level of utilization would we be closer to Breakeven?
Vivek Chaand Sehgal
If you can try to help in.
Anurag Gahlot
I think these plants are going to take because as we have seen on one of the slides on the projects that there are few volumes has to be ramped up as well as the project has got delayed by a few quarters so there is some lag into that. But I think as if these volumes met what customer has forecasted and if they are able to perform it on those timeline which they have suggested and no further delay in that I think subject to that you will see a good improvement in that area. So it’s very hard to say because we have seen this in previous quarters also that there is a delay or volume ramp up has not happened what has been projected because of XYZ reasons But I think the time it should improve.
Raghunandhan
Understood sir. And all three green fields put together employee requirement was about 7 7,500 employees assuming 22 and a half thousand per plant. Just was trying to understand how many have already been employed and trying to understand whether there can be a further increase in employee cost from current level of 476 crore.
Gulshan Pahuja
Viji, it’s very difficult to answer these questions and exactly small increase or decrease might be there but we have to employ the people before to make sure that the plants are optimally used when we have to train them. There’s a little bit of wastage and all that thing is there. Those all things are part of life in our kind of business. But I don’t think the substantial missing would be there. But Anurag will guide you more on the situation. Can you tell them how many people have been guessworking on people and the cost of that? Can you help them out on that?
Anurag Gahlot
Yes, currently there are two plants which are all three plants has started the ramp up but. But obviously in between some of these projects have got differed by few quarters. So manpower. Yes, as you rightly said it is approximately 7,000. It should be but as the volumes grow then it will go and touch to 7,000. So it is not yet the complete 7,000 and it is in between of the figure somewhere and it will grow as the. You will see the SOP will ramp up. Then you will see it will come to 7,000 and then it will, you know should normalize over there.
Raghunandhan
Thank you sir, that’s very helpful. And I’ll fall back to the queue before I come back. Thank you.
operator
Thank you. The next question is from the line of Momox Mandalaysha from Anandrati Institutional Equities. Please go ahead.
Mumuksh Mandlesha
Yeah, thank you so much for the opportunity and congrats on the healthy top line performance. So I just want to understand for. FY27 for next year how do you see the order pipeline and any plans for the capex for the next year and can you share more lights on how you seeing the orders pipeline for the two wheelers and CV segment as well?
Vivek Chaand Sehgal
Go ahead.
Anurag Gahlot
Yep. See these projections will be you know get clear as we move forward in this year because it will be very difficult to say right now that what will be the first projections of 2027. But it should be in a positive way. Obviously for Q1 you have seen there is A. You know 3% is the total passenger vehicle growth has happened and I think it’s a single digit number but it will be more get once you are reaching in H2 then you have a better, you know clarity on the for fi to. As far as you know as soon as these new models get ramped up their volumes will come and the market will respond and then you will see FY27 with a more better clear picture that how the volumes will look.
Vivek Chaand Sehgal
Hello.
Mumuksh Mandlesha
Yeah, sorry, sorry. Any flavor on the. On the orders for the two wheelers in CV also Sir, how do you see the orders there? Sir.
Anurag Gahlot
I think two wheelers and CVS also. You know obviously there are some ups and down. You can see two wheeler remain a flat but obviously Q1 always remain a little subdued and you don’t see a big growth because now in the Q2 and Q3 more festivals are coming and things will happen. So we see a good growth over there in two wheeler side commercial vehicle obviously has not grown in a very significantly. But I think important is for MSVL is to be ready to serve the customer as soon as these volumes comes up. In case it comes up, let this H2 happen and then more clear picture that how it is going to take a change into that.
Obviously for the new models even in two wheeler as well as in commercial vehicle we are working very closely with the customers and we’ll find there will be new launches as well in both segments.
Mumuksh Mandlesha
Okay sir. And lastly sir, what are the capex expectations for the FY26 and 27? Sir.
Anurag Gahlot
See generally for this year and we have our capex around 200 crores. And it is based on the projections. Which we have received from the customer. So as we progressing further we will, we will, we will have an update on that.
Mumuksh Mandlesha
Thank you so much for the opportunity.
operator
Thank you. Before we take the next question we would like to remind that you may press star and one to ask a question. The next question is from the line of Siddhartha Bera from Nomora. Please go ahead. Yeah.
Siddhartha Bera
Hi sir, thanks for the opportunity. Sir, first question is on the X Greenfield numbers which we have disclosed we do see that margins there also have come down a bit from the 12.5% levels we have been doing in the last couple of quarters to 11.8% in the current quarter. So possible to highlight why has it also probably moved downwards? Any particular thing to call out that and how should we sort of see that going ahead?
Anurag Gahlot
So there is no unusual thing which had happened which are impacting our cost. Our margins are pretty consistent. The changes are only on account of the product mix which kept on changing. So as we mentioned earlier also that we have a space, we have a role in our new models as well. So it is largely on account of product mix.
Siddhartha Bera
Okay, so product mix by means you mean EV share or is it between PV or two wheelers? The mix has changed. What exactly is that?
Anurag Gahlot
It could be anything. I mean there are a lot of models we are already in. So it could be on round of EV is or any kind of. Because we are manufacturing a lot of models into supplying to the lot of models.
Vivek Chaand Sehgal
Also in the first quarter there is no possibility of, you know, the movement of copper and yen and all these particular things. So first quarter is first quarter and third quarter, second quarter, fourth quarter. All quarters have their own unique this thing. If you understand what I’m Saying.
Siddhartha Bera
Got it sir, thank you. And in. In terms of the greenfield. So right now will it be fair to say that I think the Gujarat and Maharashtra are operational and Haryana will come up in the current year or all three are operational as of now. See all three are.
Vivek Chaand Sehgal
Sorry, go ahead, go ahead. I just want to churn in.
Anurag Gahlot
See for the Maharashtra one it has been operational. For the Haryana one it is going to be operational now and the Gujarat one is also operational. Obviously you have seen on the slide also that there are few projects which has gone delayed in that.
Siddhartha Bera
Understood. And so lastly for these delayed projects. I mean. Is there some sort of compensation which we sort of get in case the project gets delayed or the numbers are lower than what the company has targeted? So in any case is there any sort of compensation for us in these scenarios?
Vivek Chaand Sehgal
Please understand we. Our relationship with the customer is not a one off in a quarter or something like that. So what compensation should we ask? I think we are all in this industry, we were together so compensation is not coming like that but only once after finding that, you know, they had committed a particular number for the year and that has not come about. If there is need then we will approach the subject. But it’s not that, you know you said that they are making also predictions to the market. So it’s a long term relationship.
Yeah, not. Not a day night operation kind of a thing. You want to add something over there I think.
Anurag Gahlot
Exactly. So this is right and of course there will. There are always discussions with the customers and they also take care. So as Mr. Sehgal said it’s a long term partnership and considering that partnership the decisions get made jointly and mutually.
Siddhartha Bera
Got it. Okay sir, thanks a lot. I’ll come back in the chair.
operator
Thank you. Participants who wish to ask questions may please press char and 1 at this time to ask a question please press char and 1 now as there are no further questions from the participants I now hand the conference over to Mr. VC Sehgal for closing comments.
Vivek Chaand Sehgal
Yeah, I think it’s very obvious that mswell has outperformed the market. We think that it’s the first quarter and the new plants that are coming in will come in at the speed at which the government is going through with the import of rare earths and magnets and all that. The government is trying its best also. The customers are doing their best also. So it’s work in progress according to me and I think we have to be a bit patient. But the good news is very clear that we are outperforming the market. Thank you all very much and wish you a very good week up ahead.
Thank you. Bye bye.
operator
Thank you on behalf of Mother San Sumi Wiring India limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.