Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Samvardhana Motherson International Ltd (NSE: MOTHERSON) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Vivek Chaand Sehgal — Chairman
Laksh Vaaman Sehgal — Vice Chairman
Analysts:
Raghunandhan NL — Analyst
Siddhan Pora — Analyst
Gunjan Prithyani — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Satan. Good day and welcome to the Q4FY26 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 and then zero on your touchtone phone. I now hand the conference over to Mr. V.C. Segal from Madhasan Sumi Wiring India Ltd. Thank you.
And over to you Mr. Sehgal.
Vivek Chaand Sehgal — Chairman
Thank you. Good evening ladies and gentlemen and thank you for joining us today. Warmly welcome you to the Mother Soon SUI Rising India Limited results call for the fourth quarter 2026 and I’m thankful for continued confidence in MSW. I am pleased to announce that the company has delivered best quality results and their unit performance has cost 10,000 crores of yearly revenues. For the first time during the quarter we have seen copper prices rise significantly and expect to remain at elevated levels as these are under pass through arrangements with the customer with a timeline.
The impact on our profitability is transitional. Our greenfield facilities are progressing well and have commenced contributing. We anticipate the contribution will further increase once customer volumes attain the project level. I’m also pleased to highlight that Ms. Will continue to retain a debt free status since inception supporting our preparedness for the future with a diversified powertrain for portfolio, disciplined capital allocation and a steadfast focus on operational excellence. With that I hand you over to Varman, Pankaj, Anurag and Gulshan who will be happy to address any questions that you may have.
Thank you. And over to you.
Operator
Thank you very much. We will now begin. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on your touchstone phone. If you wish to remove yourself from the question queue you may press star and then 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 again. To register for a question please press Star and then one. Our first question comes from the line of Raghunandan from Nuama Institutional Equities.
Please go ahead.
Questions and Answers:
Vivek Chaand Sehgal
Good evening team. Thank you very much for the opportunity. It is good to see the strong revenue performance on the demand side. Can you talk about how has been the traction in terms of new orders? Has there been any new order wins lately? Do you see the need for adding more capacities in
Raghunandhan NL
FY27. And can you talk about the Quebec plans for 27, sir?
Vivek Chaand Sehgal
Sure. I think Anurag and Pankaj can take this question please. Sure sir. As far as new orders are winning, we are winning the businesses in all powertrains whether it’s ice, EV or even the hybrid. Also as you have seen that we have grown with around 33% on the sales revenue and the market has grown in the single digit for the whole year. And looking into the Q1 as we are talking right now we think that this will continue in this quarter as well. Regarding the capacities, our existing plants they are running around 80% of capacity utilization at this moment and the green fields are in the different stages.
But as we have informed earlier also that as soon as we are touching to the 80% capacity we started expanding ourselves but backed by the customer firm orders only. So the way everybody has announced their expansion, the various OEMs we will also be expanding in this year. And so far we have done the capex of around 190crores in last year and for this year also these numbers will be on the similar lines. Thank you Anuragi. On the cost side There is a 2.9% compression in gross margin due to temporary factors.
The major one would be copper where there is a pass through which will happen within three to six months. I wanted to understand on the other cost there is adverse currency impact also is there an increase in power cost, freight cost, insurance cost on imports, is there a pass through for currency and other costs to customers? As far as currency is concerned, yes, currency is also as we have the back to back arrangement with the customer on 3 to 6 months lag major customer on the 3 months but the balance are on 6 months lag.
Raghunandhan NL
Got it sir. On
Vivek Chaand Sehgal
Greenfields what would be the current utilization level? The revenue performance has been good in Q4 at 443 crores maybe the utilization is at 75%. At what utilization
Raghunandhan NL
Levels do you see these plants contributing positively to EBITDA?
Vivek Chaand Sehgal
As far as capacity is concerned for three greenfield like Kharka is coming around 80% Pune location whereas the volumes has not gone to the forecasted number so it is approximately 50%. And the third location is in Gujarat in Nawagam which is approximately 60%. Because as the one of the model is ramping up right now in the Q1 also. So this is the status of the capacity at this moment and as you rightly said that 400 plus crores is the quarterly turnover for these three green field. And as we have projected earlier also that it will be in the tune of around 2,000 crore on the annualized basis.
So we are going to touch soon if the volumes forecasted by the customer to met.
Raghunandhan NL
Got it. So thank you very much. I’ll come back in the queue.
Siddhan Pora
Thanks.
Operator
Thank you. The next question comes from the line of Siddharth Beira from Nomura. Please go ahead.
Siddhan Pora
Thanks for the opportunity. So first question on the revenue. So like we said that last quarter we revenues were really not fully reflecting the copper price increase. So we had to say that the current revenues will be fully reflecting the sharp increases in copper we have seen till the last quarter.
Laksh Vaaman Sehgal
Largely so. So with respect to the previous quarter prices that is there. But for the quarter four, the. The lag. The lag. Will the lag or I mean in terms of the pass on impact will happen in the next quarter.
Siddhan Pora
Okay. But sir, if I. Because copper has been going up consistently in the last three quarters. If we look like from quarter one to quarter four our gross margins have come down by close to 600 bits. So I mean when this pass through happens would you be able to recover the entire sort of cost pressure or you think because there is a numerator denominator asset the recovery may not be able to fully cover up the levels that we were at operating act. So how should I think about going ahead?
Laksh Vaaman Sehgal
See the cost will be recovered fully with the lag and there will be a denominator effect which is. Which will be there. Right. Because there is no percentage increases. Whatever increase will be built in the same sales same same amount will be built in the cost. So due to denominator effect some marginal dip will see in the EBITDA always. But just to add that it is pretty evident from the. From the full year profitability the. The cost rises in the first few quarters have already been passed on to the customers.
So whatever dip is seen in this quarter it is not pronounced for a full year. If you just see.
Siddhan Pora
Understood. Understood sir. Last question on this greenfield plant. So like we discussed we are already at 440crores run rate quarterly. At what run rate do we expect the profitability to be similar to our existing business? Is there any sort of guidance you can give given that we have continued to ramp up quite well in the last few few quarters. So some sense like how much is the fixed cost and by what utilization or revenue run rate we can sort of touch our company average margins will be very helpful.
Vivek Chaand Sehgal
As I was earlier explaining that these plants are still under, you know ramp up like Mandala. I was talking about still the volumes which has been come in the Q4 in one particular model, they are still ramping up and in Pune also where volumes are not there. So those volumes are yet to come which has been forecasted earlier. So as soon as these green field will come to the complete capacity utilization and they will turn into the normal plant for like our existing plant plants, I think then we can see that you know that margins in totality will will be give our total picture at the company level.
So we are not going into specific to that and trying to just tell you that you know how the once the volumes will geared up and reach to that 80% capacity then we can see a improvement there.
Siddhan Pora
Understood sir. Thanks a lot. I’ll come back in the queue.
Operator
Thank you. The next question comes from the line of Gunjan Prithiani from Bank of America. Please go ahead.
Gunjan Prithyani
Yeah, hi, thanks for taking my question. Just a quick follow up again on the copper side, could you just refresh as to how much. How do we think about the proportion of copper. Copper in the raw material basket or if you can share a number in terms of percentage of revenues and the typical pass through, is it three months, is it six months? Some color? If you can give on that. And similar to last quarter, you had quantified the impact of copper inflation that we saw on gross margin. Is it possible to quantify that for this quarter as well?
Laksh Vaaman Sehgal
So with respect to the copper prices, if you see on a sequential basis there’s a 18% increase in the copper prices. So if you just look at the sales number and the increase on account of 2% just because of the increase in the copper prices. So firstly take that out. The remaining is pronounced to the growth volumes which were there in the revenue. The second, with respect to the cost part, I mean it’s fairly in the percentages of. I mean 24 to 28% roughly sitting in the cost on account of copper.
Right. Secondly, in terms of quantifying the impact, it would be very difficult considering the last set of components we have in the wiring harness. But on a ballpark number you can just put it around 2 to 2.5% on the bottom line effect on account of increase in copper prices due to lag. Due to. Due to some lag in the recovery from the customer.
Gunjan Prithyani
Okay, and this should. Three months, six months. What’s the typical pass through timeline?
Laksh Vaaman Sehgal
Largely our customer falls in a three month bracket. But there are few customers where the six month arrangements are also there.
Gunjan Prithyani
Okay, got it. And I mean looking at copper now, does it Seem like we have the headwinds completely baked in in quarter four. Or you’re continuing to see pressure in terms of going into quarter one as well.
Laksh Vaaman Sehgal
I wish I could predict the copper prices where it will be in the future, but that’s for sure the increase which is there in the quarter four we would be able to offset in the quarter one volumes. That’s there. That’s as per the contractual terms with the customers.
Gunjan Prithyani
Okay, got it. And the other question I had was on the greenfield I’m like little bit confused as to how to think about the profitability of these units because you mentioned 440 crores revenue in this quarter which is there in the presentation. And 2000 crore is the annualized run rate that we sort of look at as revenues from these greenfield plants. I mean 440 crores in itself would mean we are closer to 88, 89% of the revenue run rate that we are anticipating from these plants. And you know, why are there startup costs then?
I mean I’m, I mean is that the right way to think about it? I’m, I’m just little confused because it already reflects 90% of the revenue run rate. Now
Laksh Vaaman Sehgal
Just, just to, just to clarify, see in this quarter some of the greenfield were supposed to be ramped up in the quarter t quarter two but somehow have not ramped up fully. First thing the second is in Navagam. The SOP was there for the one of the model in the quarter four only so that they are in the process of ramping up. And if you see quarter on quarter also the profitability have in profitability or the cost have improved, the performance of the green fields have improved, our loss has gone down.
So probably in the, I mean Koda is going as per plan, Navagam is going as per plan. The volumes will be rather than one and a half quarter is Pune is the one thing where the volumes have not come up. And this is something we have been maintaining from the past two quarters as well. So I think it will take mean couple of quarters. The profitability will be there with respect, I mean we can, we will be able to compare with our existing plants.
Gunjan Prithyani
Okay, well this is just first quarter is what you’re meaning. I mean if you see the stabilized run rate of this revenue, we should certainly see margins coming at parity to where the earlier plans were. That reading correct?
Laksh Vaaman Sehgal
Absolutely. Once the volumes will be ramped up and if we are able to recover our initial ramp up cost obviously that will be there as the performance will be of existing Performance of the greenfield plant will be there. As for the existing plant, it will take some time. Few quarters. Yeah.
Gunjan Prithyani
Okay, got it. Thank you so much.
Operator
Thank you. Your next question comes from the line of Himanshu Singh from Baroda BNP Pariba Mutual Funds. Please go ahead. Mr. Himanshu Singh, your line is unmuted. Please proceed with your question.
Vivek Chaand Sehgal
Hi, my questions have been answered. Thank you.
Operator
Thank you. Your next question comes from the line of Preet from Incred amc. Please go ahead.
Vivek Chaand Sehgal
Yeah, thank you for the opportunity. My first question would be line of what. What would be our gross margin in the greenfield plant in quarter four?
Laksh Vaaman Sehgal
I think this is not the right time to measure the cost element by element with respect to the greenfield because there are certain level of optimization we do across the plants. So. And also we don’t go plan by plan profitability in that way.
Vivek Chaand Sehgal
Just to rephrase it is my understanding clear that if copper prices impact would have not been happen in Greenfield Greenfield we would have been a bitter break even in this quarter.
Laksh Vaaman Sehgal
Could be, could be. But as I told that there was some time where where we are seeing improvement in the Greenfield. Once these volumes will be ramped up I think then will be breakeven and the the profitability will start positive.
Vivek Chaand Sehgal
And sir, for full year we have incurred around 127 crores of net cost for the entire green field. How much amount will be one off in this that we will not be seeing in the coming years or one time setup or something like that.
Laksh Vaaman Sehgal
Could you repeat your question? Sorry, I didn’t get it.
Vivek Chaand Sehgal
We had around 127 crore of net startup cost from our greenfield plant. What would be the one off in this one off or one time setup cost in this for this greenfield plant or full year or for this quarter?
Laksh Vaaman Sehgal
So very difficult to break into the greenfield part. This is all the cost where we need to do upfront loading of the manpower resources. So we spent some, we will spend some cost on that part. But it’s very difficult to put it in a number. There is a one time cost or one off course because all greenfields are in an operationalized mode. It’s not like they are in a very starting mode or SOP has just announced. So it is not like that. We have covered our journey in the greenfields also. And now in the process of getting we reached a stage where we see that there will be a stabilization in the green fields.
Vivek Chaand Sehgal
If we stabilize our greenfield revenue and comes at the same capacity utilization of whichever X greenfield is there, will we be able to make maintain same kind of margin 11 12% what we do in existence is that possible.
Laksh Vaaman Sehgal
Contribute? See I think we have already maintained that we don’t go by margin. I mean we are rose focused company and we have been able to deliver consistently more than what the deliver that return. Right. We don’t go by that black plant based profitability we always see at a cumulative at a company level.
Vivek Chaand Sehgal
And look I think the are definitely all picking up in the Indian context. So that is a very good sign. And also if you see that you know as long as the copper prices don’t continue to appreciate with all the volatility volatility that’s there in the market, you know this should normalize and you would see that the of course the plants are showing much better performance because of this. So couple of double hits in this quarter because of the rising prices. But as the take on volumes and the prices of copper stabilized you definitely should see a much better delivery on those numbers.
But we are fairly confident that this should happen in the next few quarters. Thank you so much sir. I’ll be right back in the day.
Operator
Thank you. Your next question comes from the line of Ashin from Canada Robeco. Please go ahead.
Unidentified Participant
Yeah hi, thanks for the opportunity. I had this one question regarding this 200 crore capex which we are talking about next year. So could you please give us the nature of this capex? I mean will it be a new greenfield plant or will it be capacity addition at our existing plants and will we see again startup cost or that won’t happen.
Laksh Vaaman Sehgal
So it is a combination of what you have said. Something will be obviously towards our greenfield because the customers have already announced their expansion plan. We need to cater that. Second is something will be towards automatic automation and digitization also the third will be a replacement Capex also within in terms of the existing plants. So it will be a combination of the permanent combination. I think you already already covered it.
Unidentified Participant
Okay, so this automation should help our margin going forward.
Laksh Vaaman Sehgal
It
Operator
Should be
Unidentified Participant
Okay. Okay, thanks. Thanks.
Operator
Thank you. Your next question comes from the line of Nandan Pradhan from MK Global. Please go.
Vivek Chaand Sehgal
Hello, am I audible?
Operator
Yes sir, you’re audible. Please go ahead.
Vivek Chaand Sehgal
Yeah, so just a small clarification at mine I think as a follow from the previous participant we mentioned. So 24 to 28% is sitting in the cost due to copper. I mean did I get that right? The question was around proportion of copper in the RM basket of.
Laksh Vaaman Sehgal
You’re talking about cost or you talking about the cost with respect to sales?
Vivek Chaand Sehgal
No so in the current RM basket, so we’ve got about 70% is RM cost check. So effectively remaining 50% would be conversion cost and this 24 to 28 would be your commodity cost. Roughly.
Laksh Vaaman Sehgal
No. So commodity cost would be approximately, I would say in the range of 9 to 10% the increases,
Vivek Chaand Sehgal
Not the relative change within that 70%. How would you break that down into commodity cost and second origin cost.
Laksh Vaaman Sehgal
So that we have covered. I think this is in the range of 24 to 28% in the RMC with respect to the COPUs.
Vivek Chaand Sehgal
Okay. Okay. Thank you so much.
Operator
Thank you. Your next question comes from the line of Vijay Pandey from Access Capital. Please go ahead.
Vivek Chaand Sehgal
Hi. Thank you for taking my question. I have a couple of questions when I wanted to check about the senior ramp up plan. So when do you expect to see the volumes coming back from the OEM side? Do you expect to see this FY27 or it might be like this calendar year or probably it will go to the next calendar year. Can you just help us understand how the ramp up schedule will be for the. See these customers bring lot of variation into the volumes and they launch the new models as well. So there is no as such fixed date.
If you’re asking us that when these volumes will be back. But there are replacement models also and there are, you know, new model launches also keep coming. Which, which takes care for these low volumes. Like if the plan was delayed by the oem then probably you would have got it whether it’s delayed by six months or three months. That I was asking in that aspect.
Unidentified Participant
Sorry, your question was not very clear. If you could kindly repeat,
Vivek Chaand Sehgal
I was asking in that aspect that generally when a model gets delayed customer OEMs like if it’s a for short duration delay then they provide whether it’s three months or six months or otherwise. If it’s delayed for larger period then probably we may, we may not know. So that’s why I was asking what the management
Unidentified Participant
Has been explaining is that those delays are over. The models have been launched in certain regions. The volumes have not achieved. Volumes achieved are not what were forecasted at the beginning. And we do hope as Nurag was explaining that customers do launch many variants over a period of time to also improve upon that. Plus many new things happen. That’s how he tried to explain for certain region and in the other regions the ramp ups are still happening which of course as you asked that the expectation is that the market is growing within this year those launches and the volume should grow of course Market variables remain at play.
So there are some pluses and some minuses. Some things click much better, some things do not click that well. So those are the kind of market variables which remain.
Vivek Chaand Sehgal
Just wanted to clarify. So I think you said that greenfield revenue target revenue, steady revenue expectation is 2000 crores. Is it for the car quarter plant or is it all three plants combined? Because we already had 400 crores quarterly done there. So
Unidentified Participant
When we had mentioned this about some time ago that was for all the plants put together around 2,000, 2,100. That was our expectation at that time for based on the volumes and which were there at that time. So it was not any plant specific. We do not give any guidance on any plant specific revenue. Sir,
Vivek Chaand Sehgal
Has this increased over last 2/4, last 2, 3/4 or do you expect it still the 2000? This is now I think should be
Unidentified Participant
As you see, as you see in quarter four the revenue achieved from the greenfields is more than 400 crores already. So if we extrapolate the volumes are growing and greenfields are doing much better revenues now.
Vivek Chaand Sehgal
Okay. Okay.
Unidentified Participant
Thank you so much sir.
Operator
Thank you. Your next question comes from the line of Sonal Gupta from HSBC Asset Management India. Please go ahead.
Unidentified Participant
Hi, good evening and thanks for taking my question. So just a couple of questions, just follow ups to the existing ones. So one is that in terms of we also have fair amount of import content which is I think yen denominated and we’ve not really seen much, I mean while yen has also been weak like the rupee so it’s not really been relatively, we’ve not seen much depreciation of the rupee versus the yen. So would it be correct to understand that then that the rupee depreciation would not have impacted you other than the copper related stuff.
Right.
Laksh Vaaman Sehgal
So there is a marginal impact with respect to the currency movement sitting in this quarter because if you have noticed that JPY has depreciated appreciated in this, in this quarter and we have a, we have a pass through element for this currency movement as well which will pass on in the next quarter. So so precisely it’s not that significant but some part is sitting in the the current quarter profitability also.
Unidentified Participant
Got it. And the arrangements would be similar. Right. Like you’re saying three months for most customers.
Laksh Vaaman Sehgal
Right, Right.
Unidentified Participant
And just another cost element was on the polymer side. Right. Like the what you’re using while making the wires other than copper. So the, I mean like given the pet chem prices etc all going up and PVC prices have Also gone up. So will that how material is that for you? Could you sort of give a sense on that? Because that will again start hitting us. I don’t know if it’s already started hitting us.
Unidentified Participant
Yes, I think polymer prices due to the situation, global situation are growing. So it’s a very recent phenomena and definitely it is not as big as a copper element but then it will definitely have an impact. And as you know we work very transparently with our customers. So our working is very transparent. And anything which is happening due to the global scenario which is beyond any one of us, we sit together and find solutions together jointly.
Unidentified Participant
And this would also have a pass through element or this will have to go back and negotiate.
Unidentified Participant
It will be something as I mentioned that we are quite open working together with all our customers. They do recognize when things which are happening for everyone that we have to find solutions together. So we are all in the same boat. Let me put it like that.
Unidentified Participant
Got it. So and just lastly, I know there’s been questions around the, I mean like what it looks like given that we’ve already hit 80% Krakoda and 60% in Gujarat that those plants are probably not. I mean it’s mainly the Pune plant which was started first. But given the volumes are not ramped up there is dragging the overall greenfield profitability. So is there, I mean like, or are there any startup, I mean like you’re still upcoming up the learning curve in Gujarat and in Kolkoda and that is why these plants are also below normalized profitability.
Unidentified Participant
I think you’re putting it very right that when new things happen and totally brand new plants ramp up, you know it’s a cost of growth. You’ve seen that MSVL has grown at a very fast pace setting up these large plants. And the last quarter saw the ramp up in the Gujarat plant for one of our customers. So it’s a steep ramp up and all these things do matter. So once everything is stabilizes it gives you much better, gives us a much better result.
Vivek Chaand Sehgal
And just to add also that that in these plants the customer has also postponed their project launch also model launch also. So it has gone delayed. But for us as we said in the past also that we have to front load with manpower to make the skill and all that. So you, you have to take that cost up front. Maybe customer has delayed. But then these are the cost which are already occurring into these projects.
Unidentified Participant
Got it. And this was the last question if I may on the manpower cost. Right. Like so this year has been very strong Growth in manpower, obviously that’s also reflected in the strong growth on the top line. And like you said, we have to upfront manpower costs. So we’ve seen a very strong growth. I just wanted to understand like given next year’s outlook, will we see more normalized growth? Or you see that manpower growth will also still keep, I mean will be keeping pace with the top line growth itself.
Just trying to understand,
Vivek Chaand Sehgal
Are you talking about the costs of manpower growing in line with the sales growth? So your question wasn’t very clear. Yeah,
Unidentified Participant
Yeah. So I’m trying to understand this here. I think our manpower growth is probably in excess of 20%, right? Like 25, which is because we were obviously setting up these new green feeds so we had to hire also a lot of new people. But I’m just trying to understand like now we have the manpower in place and the growth in manpower costs will be more normalized related to annual increments, etc. Or we still see that manpower, we have to still given our projects for next year, we need to hire a lot more people and therefore manpower costs will sort of continue to grow much faster.
Vivek Chaand Sehgal
Look, at least for the plants that have already started and ramped up, they are now in a good way and they should deliver better returns because they’ve been fully utilized and everybody has been trained over there. For some of the newer capex, the new expansions, of course they will again the same process will have to be repeated for those plants where at least for if it’s a green field they will take take some time but the brownfields will have much faster execution and existing usage of the manpower that’s already there.
But overall, like I said, I think this was a big spurt of growth for us in this year with multiple plants coming online at the same time and they have all now started to take to ramp in a good way. We are really bullish on the market and things that sales will grow nicely in the next year and this will even out this growth that we had in the cost side and we should perform much better. So you should see definitely a lot more realization that’s happening from these plants than the opposite effect.
But also we are very hopeful of more growth and more orders. So if you’re setting up more greenfields, it’s a good thing. But yeah, we are constantly looking at ways that we can, you know, do more with the people that we have. There is also interesting developments in obviously in computers with the AI agents and things like that. So we’re all looking at all those ways that we can develop faster, develop better, make people more productive and of course being sensible about it where we can give our people opportunities of growth as well.
So we’re trying to balance this whole thing out. I think it’s interesting, very interesting time for us with lots of opportunities. The team is quite focused and I think next year is really going to be a strong year for us.
Unidentified Participant
Okay, great. Thank you so much. Thanks a lot.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question you may press star and then one. Our next question comes from the line of Bhavan Vetlani from SBI Mutual Fund. Please go ahead.
Unidentified Participant
Good evening, Pardon me if this question is answered. So 33% growth for the quarter looks strong but we see your gross profit growth which is revenues minus the raw material growth was about 15%. It will be helpful if you can break the revenue growth in terms of volume growth and the content growth. And so we understand that the pass through impact of the commodities which you’ve outlined that can be ironed out.
Vivek Chaand Sehgal
We normally, normally don’t do that because it’s quite a fluid situation and to be looking at these numbers on what that thing is and we know that we’re going to compensated by the customer in the following quarter but we take your feedback, we will look at it and see if we can provide more color down the line. We have not done that yet.
Unidentified Participant
Fair enough. So while you, I mean correct me if I’m wrong, while you answered that what 25 odd percent of the bill of material is copper and how, if you could also help us what will be contribution from aluminum and the pvc? These are the major commodities where the prices are moving and lot volatile and that eventually is a pass through for you to the customers.
Vivek Chaand Sehgal
So we take your, take your suggestion but you know the complexity of multiple plants projects, you know to really get into these kind of details when we are anyway having those kind of discussions on a rolling basis with the customer. I’m not sure if it will provide a lot of value. But like I said, we take your suggestion and we look into it.
Unidentified Participant
Great. Could you talk about the growth, incremental growth from what we understand is that Aurangabad is going to be a very significant hub for passenger vehicles. Given that two large OEMs are setting shop there, would Msumi be a participant in that growth? What is, what are your plans for capturing that piece of the market?
Unidentified Participant
I mean definitely wherever our customers go and the best locations to support them from, we work together with them and decide our location of the plants. So sometimes some existing plants are used and as the volumes grow, new plants come up and that’s how we work together with the OEMs very carefully.
Unidentified Participant
Sure. So just, I mean, just to clarify the new plans of Toyota and BMG that we would be seeing over the next couple of years, would Msumi be a beneficiary of that or are there are those being taken up by our competition?
Vivek Chaand Sehgal
You know we are not allowed to disclose the exact programs of our customers. I think you would have seen a slide where we are supplying 9 out of the 10 the top PV. So I think that should answer your question that if we are currently on the programs which are selling the most in the market, then of course the customer would like us to continue, otherwise we wouldn’t have that position. So we don’t buy land and then hope till the customer gives us orders. Of course we are in very close contact with the customer wherever they want us, that’s where we set up the plant.
We don’t set up plants without having the firm orders in hand. So we already told you that they’re going to expand in CapEx, we’re going to expand in Greenfield, we’re going to expand in Brownfield and hopefully you know, you know, where the customers are also expanding. So that should give you an idea that you know, wherever the growth is happening, motherfun will definitely be a beneficiary of that growth as long as the customer continues to source us. And that is the case right now.
Unidentified Participant
Okay, yeah. Thanks so much for taking my questions.
Vivek Chaand Sehgal
Thank you sir.
Operator
Thank you. Your next question comes from the line of Neil Shah from Punartha Investment Advisors. Please go ahead.
Vivek Chaand Sehgal
Hello. Am I audible?
Laksh Vaaman Sehgal
Yes,
Vivek Chaand Sehgal
Yes. So I basically just wanted the number on CapEx that you guided for in FY27.
Laksh Vaaman Sehgal
It will be largely in line with what we have incurred in the current. The current year approximate approximately 200 crores.
Vivek Chaand Sehgal
Okay. Yeah. So I, one of the previous participants asked about the impact on the sales growth due to copper prices. So the year on year increase in sales is around 33%. So how much of this was due to the copper prices? If you can quantify that.
Laksh Vaaman Sehgal
So increase of, you’re saying 44%, right? 43%. 44%.
Vivek Chaand Sehgal
So the year on year increase for March 26th was 33% in the top line. Right. So how, how much of that came due to copper. Copper pricing.
Laksh Vaaman Sehgal
Yeah. So, so, so there is an increase of copper prices quarter three versus quarter three this year is around 18%. So and that is the price which is the basis of for the quarter four and if you see in terms of the copper prices it contributes around 5% and the remaining is approximately 20 to 29% contribute towards volume.
Vivek Chaand Sehgal
And can you do a similar analysis for the increase in cost due to copper?
Laksh Vaaman Sehgal
I think I’ve already told that the copper content is around 24 to 28% sitting in the the Cox. So I think it’s fairly there. And, and we are procuring co at a, at a, at a. At a like prices only which is prevailing in the the current quarter. So that’s there.
Vivek Chaand Sehgal
Okay. And in Q4 the price has averaged around 12,800 for copper. Assuming that the prices continue to be in the Same level in Q1 FY26 can you guide for the gross margin? Like what would you expect the change in gross margin to be if the prices remain the same?
Laksh Vaaman Sehgal
See we are not a margin driven company. These elements are the pass through elements with our customers. So if you look at the rows we are rose focused company and we look at the rows for any year it’s already pretty there close to 40% for this year as well. So obviously this have some for some customers it will be a three three months or some, some customers will six months. So you have to look at us from a, from a good amount of period to, to, to get the profitability that you want.
Vivek Chaand Sehgal
Okay. Actually I was just having a bit of difficulty understanding the past the mechanism that I was asking. So if you can just again try to give me some light that if the copper prices remain the same the margin should ideally bounce back a little bit.
Laksh Vaaman Sehgal
Absolutely. If the copper prices will remain same as the base of the selling prices obviously the margins will be back to the normal in which you are there.
Vivek Chaand Sehgal
Okay fine. Thank you.
Operator
Thank you. Your next question comes from the line of Pranav Doshi from Decker. Please go ahead.
Raghunandhan NL
Yeah, hi, thank you for. Thank you for taking my question. So just a couple of questions. One is that sir, in an earlier interaction we had mentioned that greenfield capacity is fungible and that you know IC engine business could be redirected to the EV plants. So and especially if the volumes are delayed. So can you share any incremental progress on that front? So have we got any IC engine orders for which have been allocated for the Pune or the Navagam plants.
Vivek Chaand Sehgal
So I think you’re asking more the customer information that should be asked by you to the customer. I can’t, we can’t answer these questions here. Basic care.
Raghunandhan NL
Yeah. No, no sir, this was more on. Let’s say that if we are facing an issue with the EV ramp up. So is it I have any orders
Vivek Chaand Sehgal
Sir? I can’t comment about the customer facing ramp up issues on EV orders or IC engines or something like that.
Raghunandhan NL
Okay sir, okay, no issue. I
Vivek Chaand Sehgal
Can tell you about my product but I can’t tell you about the customer’s product, what the customers will say.
Raghunandhan NL
Right sir, no question. I’ll move on to the second, the next question. So just that on the greenfield startup costs. So now we’ve been impacted by those on the profitability front for almost two years. So I just have two related questions on that front. So first is that let’s say we’ll be approving more Capexes in the future. So like are we looking for any former customer commitments before breaking ground given like the kind of experience that we’ve had for this round of capex. So that is the first question.
Vivek Chaand Sehgal
Look again, the Capex is only based on getting firm orders from the customer. So you know we will not build a plant if we don’t have the order.
Raghunandhan NL
Okay. And secondly like what is the plan B for the underutilized plants? Like let’s say if the customer launches they continue to be delayed even in the future quarters. So like do we have any plan B for that?
Vivek Chaand Sehgal
Look, we’re always looking at bringing different customers into those locations but we’re overall bullish on the Indian automotive scenario. I think there could be hiccups of small here and there but over the long term the car penetration ratios. Why are all the OEMs investing so much money in building new capacity? Because everybody sees huge potential in growth. Now it might not happen equivalent in every quarter but overall if you see the growth over the long term we believe that these plants will take up and we need to expand more with more orders that will become.
So overall maybe it’s a breathe with the market sort of situation. If a quarter happens where certain volume doesn’t do well, we of course try to diversify. That’s why no customer, no country, no component as a group philosophy should be more than a certain percentage of our, our overall sales which we are constantly bringing down also every single year and we continue to do that even in Ms. Well and try to onboard new customers and new products and go after you know, even two wheelers, commercial vehicles, all different types that we can do to diversify the risk.
So you know it might be again maybe breathe and slow down maybe for a quarter or two. But objective of the entire team is to win new business and try to win new new customers from that location.
Raghunandhan NL
Right sir. Right. Got it sir. And just finally since I missed it earlier, just wanted to confirm the utilization of the Pune plant. So currently at what utilization are we operating that greenfield plant?
Vivek Chaand Sehgal
See this obviously that as we said in the earlier conversation also that was coming around 40 to 50%. But it we have to see how if the volumes comes up again from these customer.
Raghunandhan NL
Right sir. So that’s it from my side. Thank you.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. VC Segal for closing comments.
Vivek Chaand Sehgal
Thank you all very much for your questions. To try and understand our business, it appears that we are trying to find out more and more about things that we cannot talk about because we are bound by the secrecy of the customer. And every customer is very important to us. So I hope you take that in the right spirit and take care and thank you very much for your questions and have a good evening. Bye bye.
Unidentified Participant
Thank you. Thank you.
Operator
Thank you. On behalf of Mother Son Sumy Wiring India limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.