Motherson Sumi Wiring India Ltd (NSE: MSUMI) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Unidentified Speaker
Vivek Chaand Sehgal — Director
Pankaj Mital — Whole-time Director
Anurag Gahlot — Whole Time Director
Analysts:
Gunjan — Analyst
Siddharth Bera — Analyst
Raghu — Analyst
Shubham Harne — Analyst
Mumuksh Mandlesha — Analyst
Prateek Bhandari — Analyst
Presentation:
operator
[Starts Abruptly] 526 result. 526 result conference call hosted by Madhasan Sumy 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 call, please signal an operator by pressing Star then zero on your touch tone phone.
I now hand the conference over to Mr. V.C. sehgal from Madhasan Sumy Wiring India Ltd. Thank you and over to you Mr. Sehgal.
Vivek Chaand Sehgal — Director
Thank you Good evening ladies and gentlemen and thank you for joining us today. I’d like to introduce the people on the call. We have Pankaj Mitzu, we have Anurag Kelot, we have Gurshan Bahuda, we have Lakshman Segund and myself on the call. I warmly welcome you to the Madhasam Sumi Wiring India results call for the third quarter of FY26. I appreciate your continued interest and confidence in MSUL. The quarter has been marked by a mixed operating environment. While the Indian automotive industry demonstrated the very healthy growth, we also witnessed sustained upward pressure on commodity prices, particularly copper.
Against this backdrop, I am pleased to share that mswell has delivered a strong resilient performance reflecting the robustness of our business model and the disciplined execution of our teams. During the quarter three financial year 26 Mswell reported a healthy year on year growth in revenues, EBITDA and profitability and with both reported and ex greenfield operations showing steady progress. Our greenfield investments are strategic and position Ms. Well to support the future growth across ice, EV and hybrid platforms. The increased contribution from these facilities will further strengthen our scale and competitiveness over the medium to long term.
I’m also pleased to highlight that Ms. Will continue to maintain a debt free status supported by a strong cash flow generation and prudent capital management. Our performance remains on deepening customer relationships, increasing content per car and supporting OEMs as they transition over the powertrain technologies.
With that I now hand it over to Pankaj and Ragh and Gulshan who will be happy to address any questions that you may have. Thank you. And over to you. Operator.
Questions and Answers:
operator
Yes, thank you very much. We’ll now begin with the question and answer session. Participants who wish to ask questions may press STAR and one on a touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles to ask questions, please press STAR and one. First question is from Gunjan from Bank of America. Please go ahead.
Gunjan
Hi, thanks for taking my question. My first question is on the copper inflation that has affected the margins in this quarter. Can you just refresh as to what is the overall exposure, you know in terms of corporate, how big it is in terms of either RM or next sales and what is the typical contractual agreement with the customer OEMs in terms of pass through.
Vivek Chaand Sehgal
Thank you. Pankaj and Aram, either of you can.
Pankaj Mital
So this copper has given a total impact of approximately around 1.9 to 2% at this moment. And we have back to back arrangement contract with the customer for these arrangements that it will be by a quarter lag or in some cases a six month lag.
Vivek Chaand Sehgal
I hope that answers your question because the money will come before the end of the financial year but it only affects the time lag.
Gunjan
Got it. Just a follow up. I mean you quantified the impact in this quarter but the commodities continue to go up, right? I mean corporate has continued to go up. So is it fair to say that there is a similar sort of impact which we can see in quarter four as well? And I’m just trying to understand how much of the inflation is already factored in this quarter and how much more to vote a little bit more color on that.
Anurag Gahlot
So then the copper price will be an upward trend. There is an impact which is there on the temporal basis but we have a pass through arrangement with our customers so whenever it get increases we always get compensated. So in terms of inflationary we don’t have a control on the increasing copper prices. Having said so, whenever it is on an increasing trend, our discussions with the customer getting progressive at the fast pace that there should be a minimum impact which needs to be seen. But there are certain customer where we getting adjusted on a quarterly or a half yearly basis.
So lag will remain but the discussions with the customer how to minimize that so that we can consider the inflationary which is going right now as for the current markets in there.
Gunjan
Got it. And my second question is on this, the new plant, the new startup plans which you know you had all these programs which you’ve spelled out in one of these slides that there’s been some delays on the programs and some of them are I think EV programs. Can you give some color on when do we expect those programs to come on stream and how should we think about the utilization ramp up of the new plants?
Pankaj Mital
I can tell you that for the EV powertrain you can see that in the month one of the project of EV, that is the volumes are gearing up right now in Q4 and the other location is in Pune where the EV powertrain one model is launched in the earlier year. And this is again the volumes are still ramping up onto those as suggested by the. By the customer in their RFQs. But we have to watch it carefully and because as the, they are not going to ramp up as the volume has been, you know, suggested in the first place. But slowly we are seeing that there is an improvement in that.
Gunjan
Okay, got it. Thank you. I joined that.
operator
Thank you. The next question is from Siddharth Bera from Nomura. Please go ahead.
Siddharth Bera
Yeah, thanks for the opportunity, sir. First question on the growth side. So in the last few quarters with the industry growing at 4 to 5%, we have been growing at close to mid teens. But now with the industry growth picking up meaningfully, given the copper price, which also sort of benefits your revenues as it is a pass through, is there anything else which is sort of maybe dragging down the growth to some extent given the strong industry momentum? If you can sort of talk about something there.
Vivek Chaand Sehgal
I think this particular thing refers to just the time lag really. You know, the second quarter, third quarter, second quarter we had the Diwali and all these other particular thing and the announcement by the government. But I’d like to answer that question or punkish to help it necessary.
Pankaj Mital
So I would say that there is. Nothing else which we can think of but the newer models getting launched. The volumes have come up of course with the reduction in VAT and therefore we see higher revenues as well. And the entire impact of copper, as my colleagues already explained, has not been factored in the revenue, but it is in the cost.
Siddharth Bera
Understood? Understood. And second question is for all these greenfield plants, again I think if I look at the revenue ramp up they are probably reaching may be close to the 50% utilization levels. And the EBITDA losses also haven’t gone down meaningfully. So when should we expect probably an EBITDA break even? At what utilization level do you think we can achieve the break even at the EBITDA level at least.
Pankaj Mital
So as the volumes of the customers are ramping up, I think we have also mentioned in our presentation that in some cases the ramp up has been slower than expected. In some cases it had been deferred. So we believe that in the coming quarters, step by step, it will continue to improve. Already the performance is improving as the volumes have kicked in. And you know, before the start we. Have to put all the costs so. We Try to build that up and they will continue to taper down and in the next I think two to three quarters we should see these ramp ups reaching the right levels.
Siddharth Bera
Got it. So last question is on the. Cost. Impact which you highlighted of about close to 200bps in the quarter. So if you look at the Hilfill margins which are at 11.3% that also will be impacted by this copper. Is it the right assumption?
Pankaj Mital
Yeah, yes it’s the right assumption because copper is all across.
Siddharth Bera
Okay. Okay. So even there as well we should. See improvement as these get passed on to the customers over the period.
Vivek Chaand Sehgal
Right?
Siddharth Bera
Okay. Yeah.
Vivek Chaand Sehgal
Actually I don’t think anybody in this particular thing can. In the kind of scenario, you know you have the rupee devaluation also and you have the price increases also. So definitely it’s not seen anywhere resistance from the customer. They are very much helpful to make sure that we are maintaining this particular facility.
Pankaj Mital
That’s right. So it has always been, it’s a contractual understanding between us and the customers for this bus.
Siddharth Bera
Got it. So lastly on the capex side if you can just highlight what is the capex plan for this year and next year if possible.
Vivek Chaand Sehgal
Go ahead, go ahead.
Unidentified Speaker
So for this year we projected a capex of 220 crores. So out of that 150 crores have already been incurred. And and we expected to go as per the plan in the remaining, remaining. The remaining period of this year. For the next year we are populating the budgets, our discussions with the customers are ongoing how the plans would be placed so basis that we would be able to finalize that. So probably in the next quarter or so we would be able to give a clarity on the numbers for that part.
Siddharth Bera
Understood sir. Thanks a lot. I’ll come back in the queue.
operator
Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Rahul Kumar from Noama Wealth Management. Please go ahead. Mr. Rahul Kumar from Nirvama. Please go ahead with the question.
Raghu
Hello, Am I audible?
operator
Yes sir. Please go ahead.
Raghu
Yeah. Good evening sir. Raghu here from Nuama and thank you for the opportunity and congratulations for the strong revenue performance. Sir, my question was on the ramp up of the green fields. You have indicated in the presentation also that Gujarat plant is ramping up in Q4. Even the Krakoda plant ramp up is continuing. So going forward over the next six to nine months do you expect the plants to reach optimal utilization? And once they reach that kind of Utilization, would you expect the margins for green fields to be closer to the blended margins?
Vivek Chaand Sehgal
Thanks.
Anurag Gahlot
Yeah. You know obviously as you have seen in the presentation also that one of the location these green field is already reaching to around 80% of the utilization. And Gujarat 1 is also going to happen as the volumes are going to ramp up. And the new launch which is happening in this quarter as well as in the Kuna location, obviously their volume has gone down but by one of the customer. So I think for the other two locations for Gujarat and Kolkata, yes in the coming time this will reach to the optimum utilization. But for Pune we will be filling with the to the new businesses also.
So I think another two to three quarters you will see that they will be reaching to the optimal utilization. And thus as you asked for the margins also that will also get improved over a period of time.
Raghu
Thank you sir. And given that several new models are being launched by OEMs and industry growth is also healthy, do you see the need for more facilities coming up in the subsequent quarters?
Vivek Chaand Sehgal
Absolutely. I don’t know next quarter or next year but whenever any plant in Mother sun reaches close to 80% utilization, we are already in the look for land building and new facility. We always do that every year. That’s the reason why we are far ahead of the competition and always in sync with what the customer wants or expects.
Raghu
Good to hear that sir. And with relation to the top three customers which you are serving from the three Greenfields, would you be supplying both the high voltage as well as low voltage harness for their EVs?
Vivek Chaand Sehgal
All right, this is a loaded question. Let’s see if we can help. See if we can help.
Anurag Gahlot
Yeah, if you can see the presentation also we have also mentioned that the powertrain we are going to supply. So if you see then the Gujarat we are in the EV and ICE both, Karkada is only ice. But again the Pune is having EV and ICE both. So you know powertrain is not an issue for us. We are engine agnostic organization and we can do any of the, you know, business.
Raghu
Got it sir. Given that V share has reached 6% in Q3 and last quarter also it was broadly in similar range at 7%. And given that EV share keeps increasing, would you have similar level of localization and profitability for high voltage versus low voltage?
Vivek Chaand Sehgal
Absolutely. You know. We have a lot of inputs from Sumitomasa and even Mother sun in its own capacity to localize. And all those investments are being done by SAML and the suppliers and also some dorsal companies from MSV So I think they’re all based on what the customer wants and we do that. But you want to add something or punk it.
Pankaj Mital
What you said is right. The localization level is increasing with the new models. And of course when you ask about the profitability then it has no specifics on a particular type of product.
Raghu
Got it. Very helpful. Thank you so much.
operator
Thank you. Participants who wish to ask questions please press star and one on your touchstone telephone. Ladies and gentlemen, to ask questions please press star and one. Next question is from Shubham Harne from Purinatra Investment Advisors. Please go ahead.
Shubham Harne
Hello?
Vivek Chaand Sehgal
Hello.
Shubham Harne
C an you hear me?
Vivek Chaand Sehgal
Yeah, we can hear you.
Shubham Harne
Hello.
Vivek Chaand Sehgal
Please go ahead.
Shubham Harne
Yeah, I just wanted to ask how. Much percentage of copper impact? If copper increases by 10% then the. Whole 10% is passed on to customer. Or there is some impact which we take in our books
Vivek Chaand Sehgal
And ragh. It depends on the customer. But an rag will give you an answer.
Anurag Gahlot
It’s, you know, whether the goes up or down. It’s a very transparent mechanism of complete pass through.
Shubham Harne
Okay. It’s complete pass through. Okay, that’s it. Thank you.
operator
Thank you. Participants who wish to ask questions please press star and one. Next question is from Mumuksh Mandisha from Anandrati Institutional Equities. Please go ahead.
Mumuksh Mandlesha
Yeah, thank you sir for the opportunity. Sorry I joined you later but anything sir, on the labor quotes impact for this quarter and incrementally how much could be the impact, sir?
Vivek Chaand Sehgal
Sure. Aran Gulchen.
Anurag Gahlot
So for this quarter the impact is not that significant. This is the information currently available and the draft rules came in place. Of course there has to be a development which needs to be seen in the as we progresses further because state rules and the central rules needs yet to be notified. So far, whatever the understanding of best understanding we have the impact have been certain and that impacts come out to be insignificant. For the, for the. For the current quarter in the nine months.
Mumuksh Mandlesha
Got it sir. So second on the this last few quarters growth has been very strong. Just want to understand if we can give some flavor how some of the segments like TVs, two wheelers, CVs have done so in one few quarters.
Vivek Chaand Sehgal
Sure.
Anurag Gahlot
So I can tell you the PV industry on year on year has grown by 19% sequential basis around 6% and 9 months. If you see compared to the last year it was 9% in two wheeler year on year is 15%. Quarter on quarter it has gone declined by 2% whereas nine months is around 9%. CV industry year on year is 18% quarter on quarter 10% and nine months is 10%. So everything remain in positive side.
Mumuksh Mandlesha
Yeah, yeah. This on our side, how we have played, sir, in each of the segments.
Anurag Gahlot
See we are giving only the overall basis that that’s what we have grown by 25% in year on year basis. And we don’t go into the segment wise specifically but as we are supplying to all the OEMs in the country so you can understand that this 25% is coming from all these categories.
Mumuksh Mandlesha
Got it sir. Thank you. Thank you so much for the opportunity.
operator
Thank you. Participants who wish to ask questions, please press star and 1. Ladies and gentlemen, to ask a question please press Star and one on your touchstone telephone. The next question is from Pratik Bhandari from Art Ventures. Please go ahead.
Prateek Bhandari
Yeah, hi, thanks for the opportunity. Just if you can, you know, repeat the numbers for the CV industry you mentioned as to how that has grown. If you just can repeat the numbers.
Anurag Gahlot
Yes. The CV industry year on year is around 18%. I am talking about these manufacturing, production of commercial vehicle.
Prateek Bhandari
Right, right.
Anurag Gahlot
And quarter on quarter is 10% and nine month is around 10%.
Prateek Bhandari
All right, that’s helpful. Thank you.
operator
Thank you. To ask questions please press star and 1. Well, as there are no further questions, I’d like to hand the conference over to Mr. VC Sehgal for closing comments.
Vivek Chaand Sehgal
Thank you. Thank you all very much for attending this Ms. Field. Third quarter. Numbers. I think the teams have done a phenomenal job. Multiple plants everywhere. They have made sure that they have not lost vehicles. They are absolutely in sync with what the customer wants. Board congratulated all the team members and said phenomenal job done. In spite of whatever the headwinds, we still did phenomenally well. So thank you all very much for attending and wish you all a happy weekend up in front of you. Thank you. Bye bye.
operator
Thank you very much on behalf of Mandasan Sumi Wiring India limited. That concludes this conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines.