Samvardhana Motherson International Ltd (NSE: MOTHERSON) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Laksh Vaaman — Vice Chairman
Vivek Chaand Sehgal — Chairman
Analysts:
Sajal Kapoor — Analyst
Nitij Mangal — Analyst
Siddhan Pora — Analyst
Aniket Madri — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3FY26 conference call hosted by Samvardhana Madison International Ltd. 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 0 on your touch tone phone. I now hand the conference over to Mr. V.C. sehgal from Madison. Thank you and over to you Mr.
Vivek Chaand Sehgal — Chairman
Sehgal thank you Good evening ladies and gentlemen and thank you very much for joining us today. I am pleased to announce that the board has approved the results for third quarter 2026 Q3 financial year 26 has been a strong quarter for Mother son delivering a dynamic environment. We reported our highest ever quarterly revenues with a double digit growth. This performance reinforces our position as a global design, engineering, manufacturing, assembly and logistics Demel specialist Underpinned by our execution capabilities and a diversified global presence across the automotive and non automotive industries we continue to invest in the future during the quarter we announced two greenfield projects taking our greenfields to 12 across emerging markets spanning both automotive and non automotive businesses we are also seeing strong momentum in our consumer electronics and aerospace business.
Importantly, this growth has been achieved while we maintain our financial discipline. Our net leverage stands at 1.1x well before our stated financial policy. None of this would have been possible without the dedication of our global teams and the workforce and the continued trust of our customers. With this foundation we remain confident in our ability to deliver long term sustainable value for all our stakeholders. With that I conclude my opening statement for in depth details on the results I would like to hand it over to Varman and the team to provide it provide a walkthrough and business insights.
Thank you. Over to you.
Laksh Vaaman — Vice Chairman
Thank you Papa. Good evening ladies and gentlemen and thank you for joining the earnings call for the Q3 FY 2026. Before we begin today’s discussion I’m very pleased to introduce all of you to Mr. Gandhar Tongia who has recently joined us as the Samil Group Chief Financial Officer. With over two decades of expertise spanning finance strategy, capital deployment, technology enabled transformation and investor engagement Kandav brings the leadership depth that will significantly strengthen Mahasan’s journey towards Vision 2030. So welcome to the family Kandar, proud to have you here. Coming to the Q3 FY26 performance I am pleased to inform that SAML continued to build on its solid growth momentum and and delivered the highest ever quarterly revenue of approximately 31,409 crores and EBITDA of 3,042 crores.
The revenue grew 14% year on year with multiple drivers at play including healthy organic growth backed by well diversified operations and consolidation of the atomitech business and of course some favorable foreign exchange movements. Normalized QC PAT stood at approximately10.61 crore reflecting a 21% year on year growth supported by savings from the transformative measures undertaken in Western and Central Europe, reduction in finance cost and higher contributions from our GVS and other associate companies. Normalizations to the reported PAT are on account of post tax impact of approximately 37 crores, primarily related to the new labor code implementation which is about 25 crores and costs for transformation measures being undertaken in Europe which is about 12 crores.
Further details on this are available on slides 2 and 8. Notably, we’ve delivered a strong Q3 FY26 performance on both revenue and profitability fronts. Despite the dynamic industry conditions where global PV production volumes have degrown on a year on year basis, emerging economies drove healthy production growth offsetting platform mix driven softness in the developed markets. The latest global PV production outlook remains encouraging with FY27 production projected to grow approximately around 93 million units up from around 91 million units expected in FY26. Further details on industry trends are available on slide 6. In addition to delivering small financial performance, we continue to maintain disciplined capital allocation with approximately 1,594 crores being reinvested into the business for capex.
We currently have 12 greenfield plants under development all across emerging markets to support future growth in both automotive and non automotive segments. In Q3 we have added two new greenfield facilities, one coming up in Vision Systems in India and the other in wire harness in Morocco. The majority of these greenfields are expected to come on stream by the second half of which FY27 and will contribute towards growth in the FY27 year. More details are available on this on slide 9 and 10. Our leverage ratio remains comfortable at 1.1 times net debt to LTM EBITDA, providing us with the financial strength and flexibility to pursue our 2030 targets.
These details are presented on slide 11. Our financial strength is bolstered by robust demo design, engineering, manufacturing, assembly logistics capabilities positioning us to advance towards Vision 2030 targets. These integrated trends also fuel expansion into the non automotive sectors which we have been growing recently, evident in the accelerating growth of our consumer electronics and aerospace businesses. You can see that these businesses continue to gain traction, growing at 41% year on year growth rate in the third quarter, the Aerospace order book has been consistently growing supported by product portfolio expansion. We are now supplying to business jets and rotary wing aircraft, thereby further diversifying and increasing content with our customers.
The consumer electronic business is ramping up as planned with two operational plants on track to achieve an annual capacity of approximately 16 million units by end of the current fiscal year. The segment recorded a 75% quarter on quarter revenue growth along with meaningful margin improvement in Q3, marking an important milestone in its scale up journey. The third plant is expected to commence operations in the third quarter of FY27. We are very excited about this. It will double up the current capacity and enable vertical integration to enhance operating efficiencies to meet growing customer demands. We plan incremental investments in further capacity expansion in the coming fiscal year.
Additionally, we have also secured government incentives under the ECMS scheme which will further support scalability, competitiveness and long term profitability. More details on this are available on Slide 15. During the quarter we also signed an agreement to acquire 100% of the wiring harness business of Nexsen’s Auto Electricity which will provide SAML a scalable platform for PV and CV growth globally. This acquisition is expected to be completed by the end of H1FY26. We have also recently signed multiple strategic partnerships including the development of a dedicated state of the art Roh Row terminal at Digiport, Maharashtra for end to end handling of finished vehicles and joint and a joint venture with Egitronics Co.
Ltd. Focused on manufacturing clean mobility electronics. This is all done to support our customers even further. The earlier announced acquisition of Yutaka Gigen in Japan is expected to close in the first half of FY26 and our tender offer to Yutaka’s public shareholding which is about 30% has already commenced on the 9th of February. We will keep you updated and as we progress through the offer. Finally, I can confidently say that all business developments have been very positive and position us well to realize our 2030ambitions. Mother sun remains well positioned with his diversified business model backed by strong demo capabilities, deep customer relationships and disciplined financial strategy.
With the continued trust of our shareholders and the unwavering support of our customers and the commitment of our global teams, we look forward to a promising journey ahead. With this I conclude my remarks. I have on the call with me Pankit Sir, Gandharv and Rajat and of course Papa and we’ll be happy to take all your questions now. Moderator, please take over.
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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Sajal Kapoor from Antifragile. Please go ahead.
Sajal Kapoor
Yeah, hi. Thanks for the opportunity. I would like to acknowledge the scale and depth of Sanul’s multi domain capabilities. Starting from automotive of course, but then spreading into aerospace, consumer electronics and now health and medical which is rare globally. And I would like to explore how you are leveraging this platform to maximize long term optionality and capital efficiency across divisions. So my first question is with your ventures into now semiconductors, aerospace, health and medical cdmo, how do you create cost or capability synergies that enhance the overall roce at a group level and which of these synergies are quantifiable in terms of capital efficiency? Thank you.
Laksh Vaaman
Thank you. I’ll take this question. Look, everything is driven by our focus which is to be a globally preferred sustainable solution provider. So with an open mind and this not yet attitude of mother son, of course we get a lot of opportunities but we are extremely selective for the ones that we go after. And they have to show us a possibility to deliver that 40% ROCE down the path. I mean of course there is an investment time, there is a time where you know, these capacities have to be built up, new green fields have to come up, the orders have to be won.
But you must remember that we only get into these businesses when the customer support is there and the customer is directing us to be able to do it. So we kind of prove it out in a, in a small way perhaps in India. And then we have global ambitions with that product or that technology or that industry. And that customer usually is, you know, a blue chip or a leading customer with the global spread and depth. So the whole idea is to again, you know, with us being hugely successful on the automotive side, it was actually a platform that was built by papa on this, you know, operational excellence, financial discipline, follow the customer kind of mentality.
And we’re using that same strategy to go after these new industries. And of course we, we have strength in, for example wiring harness, we have strength in plastics, we have strength in all of that. So we go after those kind of places where we can draw from the group synergy. But it’s not only to that we also get technology partners. For example the consumer electronics, we have a global partner called Beale who has the technology. And our job is to be able to scale that. So we kind of de risk that with having a partner who’s fully capable.
So there are many ways and means. We don’t just follow one path, but the business plan has to make sense and it has to show us a path to 40% ROCE. And it’s the entrepreneur’s job to be able to make sure that we are able to get that funding and the team over here to make sure that the financial discipline is there and make sure that they execute, you know, to perfection. And we’ve shown that, that in the last five years, you know, having zero business in aerospace and consumer electronics, we’re now one of the, with God’s grace, one of the fastest growing companies out there with a significantly large order book and executed for the world’s best customers in these industries.
So I hope that gives you the confidence of our capability if we were able to convince those customers. And of course, as these places scale, you will also see the translation into rows and that the capital promise of returns is also maintained.
Sajal Kapoor
Sure, that’s helpful, Vaman. And just to clarify, because we do a lot of R and D and experimentation, is it fair to say that we follow kind of a quote unquote fail fast model and we only scale up the winners or what, what is not fragile or what doesn’t die out of those experiments and then we gain the confidence and the sort of empirical evidence that what we are putting, you know, the capital deployment and strategy is fit for the purpose. And is that, is that how you also approach?
Laksh Vaaman
Yeah, of course. For the, for the automotive side where we are quite mature, you know, we’re able to do a lot of those things in and have those customer relationships for very long period of time. So we’re able to do things which we know that they want to grow or they’re interested in and they want to grab. For the newer ones, we have a relatively more de risked way by joining up with partners like we have done in consumer electronics and even in the aerospace side, if you saw our entry, was through partnering with a company called SIM Tools, which has already got that customer portfolio and those technologies in there.
And all we have to do is work together with them to further enhance it and to scale it. So that’s the strategy that we use. We do not go for any blue, you know, ocean kind of technologies where we are burning a lot of money and hoping that the customer would grab it. It’s a more consistent approach and more de Risked approach where we follow the customer.
Sajal Kapoor
That’s very thoughtful. Thank you. I’ve got more questions. I will rejoin the queue. Thank you.
Laksh Vaaman
Okay, thank you.
operator
Thank you. Participants who wish us to ask a question, please press star and 1. Ladies and gentlemen, to ask a question, please press star and one. Now, Participants, you may please press star on one to ask a question. The next question is from the line of Nitaj Mangal from Jeffries. Please go ahead.
Nitij Mangal
Hi, good evening. Thanks for taking my question. First in the modules and polymer division, can you talk about what drove this big margin expansion? You talked about operational efficiencies, etc. But when you think of this improvement, is the sustainable, what is the path from there? Is there more left in terms of.
Laksh Vaaman
I’m sorry to interrupt you, Mr. Nitish. May we request you to speak a bit louder? We are unable to hear you clearly.
Nitij Mangal
Is this better?
Laksh Vaaman
Yes, please go ahead.
Nitij Mangal
Okay, sure. So in the modules and polymer division there is a very good margin improvement we have seen. And you talked about this potential margin improvement in the earlier quarters as well. So can you talk about what, how much of this is sustainable and is there more left in terms of the benefit of the transformative measures you have taken in Europe?
Laksh Vaaman
Yeah, thanks for that question. I think, you know, we have talked about this with previous quarters where, you know, we have done a lot of acquisitions also and we have tried to streamline because the growth has also come in those regions. The customer asked us to do a whole bunch of acquisitions over there, as you know, in the last couple of years. And it was a good time to kind of streamline and restructure and make sure that, you know, all our plants are positioned for the long term. So we did announce that in the previous quarters of some restructuring costs that we had taken.
And you’re seeing the benefits of that? Of course. I think always more to do to drive more efficiencies. You know, with the onset of AI, with the onset of more automation, our focus on robotics, our in house capabilities, we believe that there is a lot more that of course we want to bring in and drive efficiency. As you know, Mother Son does not believe in export business. We source locally, produce locally, supply locally. So we have to be constantly on our toes in every country, whether it is low cost or high cost, to be able to sustain our operations as that’s our responsibility.
So this is an ongoing thing. But as you can see, obviously the steps that we had taken have resulted in the positive way. The customers are still getting the quality that they deserve and are Recalibrating with even the customers, customers doing a recalibrating of what’s coming out in EV and ice. And there was a lot of, you know, uncertainty over there, which models will take off and not. And as we are getting more and more clarity as well, and our restructuring thing is happening, I think, you know, we’re able to deliver better performance, but more to come on this.
Nitij Mangal
Okay. And secondly, we keep thinking about the pressures that the European OEMs are facing within China as well as this risk, whether Chinese OEMs can become bigger in Europe. From your perspective, is that something that worries you? I know you are present with both Chinese and the Europeans, but the overall exposure of the business is higher in Europe. How do you assess this risk for your business?
Vivek Chaand Sehgal
I don’t think we take guess as to which one was going to do better or not. Look, automotive business, you’ve been there for some time, but we’ve been there for a long lifetime actually. We’ve seen somebody going down and then the next model Nexus thing, he’s back on the top. So there’s much to say. I don’t think the same this thing is going to happen with EVs as you project it. But anyway, time is on our side. We, we are very sure that the best car which you as a customer will choose is going to do well.
So it’s not going to be only Chinese cars which will do very well or something like what you alluded to. I think everybody has a very clear need and focuses on the kind of kilometric he does in a day and that kind of decides which kind of vehicle he’s going to go for. But time and again, we don’t want to get into that particular argument, but I think time will show that actually everything is going to come back. I would recommend that you please have a look at the Noa Classic from BMW. Then you will understand what, what the west is capable of.
Nitij Mangal
Okay, sure. Thank you, sir. And one last question, if I may, on the electronic side. So your plants have started to ramp up and there’s a bigger facility which will come in three QFI. 27. But beyond this, 26.
Vivek Chaand Sehgal
27 this year. 26, yeah. Okay.
Nitij Mangal
More activity you’re seeing there. Thanks.
Laksh Vaaman
Yeah. So look, this plant that is, that’s coming up is fully already spoken for, but you know, this has opened up a lot of doors for other customers. So we will be coming back to you in time and telling you about other wins. Of course, our idea is to completely diversify this business. But you Know, showcasing that we can scale a large plant for a new customer, for a new technology, for a new product is something very important and something we take very seriously as our reputation is definitely on the line. So to be able to attract even more customers we have to show them, you know, what we are able to do.
So I think that’s happening now. The customers are extremely interested in our capabilities and how we’ve been able to expand this business in such a short period of time. And I think we are extremely excited about what that brings. So, you know, more to come on this. And definitely this will be a place where we will look to have significant wins of new customer names and product lines as this new plant comes up and we can showcase it even more.
Nitij Mangal
Okay. Thanks Raman and wish you the best.
Laksh Vaaman
Thank you.
operator
Thank you. The next question is from the line of Siddhan Pora from Nomura. Please go ahead.
Siddhan Pora
Yeah. Thanks for the opportunity. Sir, first question is on the strong ramp up of aerospace and the consumer electronic business which you mentioned we have done in the quarter. So possible to give some indication like of 4000 crore emerging business revenue in the quarter. What percentage? If you can throw some color about the contribution from the consumer electronics and aerospace businesses in this quarter.
Laksh Vaaman
Kandhar. What? What numbers are we allowed to share? Because we’re not reporting them, you know. Individually. Yeah. So Siddharth, as you know our emerging business has ensured a fair amount of growth. It’s more than 50%. It has mainly two major components. One is the two set of businesses which you called out which has registered a fair amount of growth. Consumer electronics has grown sequentially by 75%. And arrow has also registered a year on growth of north of 40%. We have also considered astrometer first time. And that is also getting reflected in emerging businesses. At this stage. We are not giving breakup at individual business label. But it’s safe to assume that these businesses will continue to grow as at a rapid pace.
As we had called out on page 15 of our presentation. The consumer electronics capacity will be doubled in fiscal 27 by Q3 of fiscal 27. And which will also help us in improving the performance of this business and its contribution to the emerging businesses in the quarters to come.
Siddhan Pora
Got it, sir. But like for consumer electronics you mentioned that we will be probably touching the run rate of 16 million plus by end of FY26. Where are we right now? So if you can give us some indication of the current status it will help us appreciate the increase in the next few years.
Laksh Vaaman
Again Khan can’t give you the exact number, but it’s a fraction of that.
Siddhan Pora
Okay, okay, understood. And sir, from the modules and polymer segment specifically like you mentioned that the growth had sort of multiple tailwinds from both Forex commodity and also possible to highlight what will be the euro growth for this business in the current quarter. And given that backdrop, I mean the margin improvement has been quite commendable. So some more thoughts there that given the challenges we see in some of the businesses globally with commodity costs also rising, is some of this improvement on the margin sustainable or there can be some cost pressure we can expect in the longer term or medium term going ahead.
Laksh Vaaman
Which product group are you specifically talking to? Because all of them are slightly different. The modules and polymer. Modules and polymer, yeah. So look over there, you know, the commodities obviously play a little bit, but it’s more plastics is the most dominant one. So of course there will be a small impact for the copper prices and things like that, but not as meaningful as it is on the plastics and engineering plastics side. So most of the expansion in the margin that you’re seeing over there is definitely due to operational improvements. There could be some small ones due to currency movements and stuff like that. But in majority we are seeing that the restructuring measures and everything that we put in definitely into Europe that’s playing a part of and a lot of our operations globally are more stable and growing in this area.
Especially the India side also contributes to it and that’s also doing fairly well. So new model launches, new programs that are coming in, some of the old programs leaving out restructuring, all of this is definitely helping which was under pressure in the last few quarters because we were waiting to do all of this. And like I said from here we definitely look to push on. There’s more to happen from here.
Siddhan Pora
Okay sir, thanks sir, I’ll come back in the time.
operator
Thank you. Ladies and gentlemen, to ask a question please press star and 1. The next question is from the line of Sajal Kapoor from Antifragile. Please go ahead.
Sajal Kapoor
Yeah, many thanks for the follow up Bhavan. With aerospace now tier one at Airbus and semiconductors emerging as a high margin sort of an adjacent space on the same precision platform. I mean which two, three operating metrics over the next, let’s say two years would prove this is a, you know, self reinforcing aerospace semiconductor virtuous kind of a circle circle, not just, not just parallel growth or not something which is flash in the pan kind of. You. Know and because I mean how will they differ from aerospace earlier, you know, tier two phase kind of because you have jumped from tier two to tier one. I mean I’m more interested in, you know, how can, what can we track to see if this aerospace semiconductor virtuous circle is taking shape.
Laksh Vaaman
So I think first thing is that you have to look at our customer list, you know, with customers like Airbus and Boeing and what they’re saying and how much they want to grow in India on our investor day. Also, you know, we had people on the panel that were talking about it. I think that should really give you the confidence that they’re here for the long term, they’re putting up meaningful capacities and their order book wins are significant in India. So that makes it quite there for the long term. I don’t think they are trying to do something fad or something like that.
So this is something that’s important. I think we build partnerships. It’s not something that’s happened overnight. We were seeding this aerospace division since 2017 and it took us multiple years to break in and to get a customer. So it was not something that was easy and took a lot of time as well. And again that should give you the confidence that it’s not something that it’s kind of off the cuff. Semiconductor on the other side of course is something that is extremely new in India. You know, you’re seeing only a few companies that are investing really over there to go after this because the entry barriers are quite large.
A lot of technology that is needed and you know, we’re working with again some of the top names in this industry, not with more tier 2s or tier 3s kind of companies. We’re talking about companies with big stature in the US that are looking to set up footprint in India and support their supply chains globally. So again all the customers that we are going after are the well reputed names, are the top names in the semiconductors. You take their names, they’ll feature in the top five, 10 teams of their category which have multi billion dollar market caps, sometimes even hundreds of billions.
So these are very, very strong companies with strong development cycles and very strong entry barriers for to come in. So if you come in then you make investments, you foster relationships and it’s something that is quite difficult to do. So again all of this has been extremely calculated by us. A lot of time that is spent on it and all investment decisions come with this, that these investments are you have to build capability, foster partnerships with even technology partners that are again putting equity into the company so that they are, you know, fully fully versed into it.
And that’s how we do business. We’re not taking, you know, off the cuff for, you know, you know, nuts and bolts kind of operations that can be, you know, moved overnight with the wind. We are, you know, building capability, technology and partnerships here.
Sajal Kapoor
No, that’s helpful. I mean, putting equity. Yeah, putting equity.
Vivek Chaand Sehgal
I just wanted to say that almost all the cases they have identified us as a partner in India and it’s not just we going after them. We have not gone after any of these particular things. And the proof of that is five, six, five and a half years ago when we came out with a five year plan, the fifth vertical of consumer electronics, we were not there. We didn’t want to go into that. And then the customer came and he wanted it this way only and that’s why it’s happened. So it’s not that we go after these guys, they come after us because they know that we have the capability and the resolve and the wherewithal.
Thanks. Sorry.
Sajal Kapoor
No, I fully appreciate and you know on your website you have got this four hour long video of the September five year investor connect and I watched the entire video and you know, one thing that was kind of flashing out in that one is the Rosie Focus, you know, is at a machine level and you know, and there was an statement that said something along the, I think it’s there in your annual report as well that when the capital goes to zero, the roce goes to infinite, something along those lines. And that was, that was very impressive, the whole four hour recording.
I mean it’s great that you know, I can access it from thousands of miles away on the, on the website. So that was helpful and coming to my last question really, I mean it’s good to see skin in the game because if the partner is putting the equity, you know, so they are kind of locking themselves. And you mentioned entry barrier. I mean there is also a strong exit barrier for customers because once you come in, you know, we need to give them a very strong reason to make a U turn and go elsewhere because qualifying a partner is a time consuming, resource intensive process that no customer would want to do it again and again.
So I completely appreciate. My question really is, my question really is this aerospace to semiconductor pivot, that’s a clear long jump, right? I mean what is that single constraint to your mind and that might hamper it to scale? I mean is it customer trust you think because we are still early on or is it engineering depth or maybe capital or leadership bandwidth and you know, what concrete steps you are taking to make it, you know Kind of a repeatable playbook and not a one off.
Vivek Chaand Sehgal
That’s the way Mother sun works. We are known as a not yet company. You know, once we get into something, once we put in our resources, we put in our engineering, we put in our capital, we don’t run away. Tell me which plant we have closed in the last 20, 30 years, which technology have we entered into and then walked out? I mean, we can go on, but you know, we are that company. We will never say no, we’re not. We’re known as a not yet company. These are things that we all sit down at the top and we agree that yes, this is subworth something that we want to get into and we want to be somebody in this particular game.
We’re not enthused just by turnover numbers or something. And we’re not a company which runs away. We’ve never run away. So we are there for the long haul. We would definitely follow it through. So that’s all I can say because it’s not very subjective. So that’s why I can tell you. That. We have a history of.
Sajal Kapoor
That’s very helpful. Yeah. Yes, that’s very helpful. And I’m sure your, your DNA to scale is, you know, deeply rooted, not just into Vaman, but you know, the entire motherson family. So I wish you guys all the very best and hopefully, you know, scale higher and higher. Thank you.
Vivek Chaand Sehgal
Just watch this page.
Sajal Kapoor
Yeah, yeah, sure, sure. All of us are definitely, we are excited. Thank you.
Vivek Chaand Sehgal
Thanks.
operator
Thank you. Ladies and gentlemen, to ask a question, please press star and 1. Now, participants who wishes to ask a question may press star and 1. Anyone to ask a question, please press star and 1. The next question is from the line of Aniket Madri from Motilal Oswal Securities. Please go ahead.
Aniket Madri
Hello sir. Thank you for the opportunity. Just quickly, on the integrated Assemblies facility segment, we have seen a very marked improvement in margins. Could you just help us understand what’s. Driven this and can we expect this to be sustainable going forward?
Laksh Vaaman
Yeah, I can start. Look, Integrated Assemblies has now been with us for a couple of years. So of course now they are fully integrated. They are drawing on the group strength. They are being able to get into a lot of their numbers with a lot of depth with the group strategy and synergy. And our customers are also, you know, appreciating that. We bring a lot more synergies to the table because, you know, integrated assembly only does the assembly side and the manufacturing side is not done by them. But in the last couple of years, working Together we’ve also been able to enhance their capabilities, go after some product lines that they were not doing before, doing some more manufacturing in house to support their kind of operations.
And of course you know, the focus on the financial discipline that motherson brings together with the, the expert leadership of Frederick over really turned up the, you know, turned up the keys to the next level. And you’re seeing, you know, an excellent focused approach to improve the margins over there which was the playbook of Mother sun. Because this, you know, was not, you know, a sick company or something like that. We paid a fair value for it and we saw the synergy, strength that it would bring to the next step for the assemblies and logistics side of Mother sun and that’s playing out.
So hopefully this continues. Not hopefully, I’m sure it will continue with the focused efforts and the team will continue to grow from here. So this is again an excellent example of focused execution and teamwork that Frederic and the whole team were able to bring and show an improved performance even in tough conditions.
Aniket Madri
Got it. Thanks for that. Just one final question on capex. We have done about 4200 crores capex. So far in the night nine months. Where will we end up this year at and any guidance for FY27?
Laksh Vaaman
Yeah, so earlier this year we gave guidance of around 6,000 crore plus 10%. We believe our exit number would be well within this guidance as far as next year is concerned. Allow us a quarter during the March year End call will probably give you update on the next year’s guidance. Apex Outflow.
Aniket Madri
Thanks and all the best. Thank you.
operator
Thank you. 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
Thank you ladies and gentlemen, thank you very much for attending this call. We are very excited because the writing is very positive, the team is extremely excited and right in the second quarter end we had said that the third quarter and fourth quarter would be much better than what we have given in second quarter. So we are one quarter down and we feel the thing is going to be even better in the fourth quarter because I think most of our copper scenarios will play out. We will get the final. Money that we have to get from the customers by the fourth quarter.
So all I can say is that all our teams are very excited and are working very hard to ensure that we have a Great financial year, first financial year for our 108 target. Thank you very much and wish you all the very best in the future. Thanks, bye.
operator
Thank you. On behalf of Samvardhana. Madison International Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.