Samvardhana Motherson and Other Auto Ancillary Stocks in Focus After Announcing Q3 Results

Synopsis: Two auto ancillary stocks, one being a  headlamps and tail lamps manufacturer saw a 60 percent YoY EBITDA growth, while the other being a wiring harnesses producer saw profits from one of its segments grow by 33 percent on YoY basis.

Two auto ancillary stocks both based out of the Delhi NCR region have given out their robust Q3FY26 result, while one witnessed its highest ever quarterly revenue the other saw its stock hit the upper circuit soon after the results were posted.

Samvardhana Motherson International Ltd has a market cap of Rs 1,36,700 Crore and its stock hit an intraday high of Rs 132 which is 6 percent higher than the previous close of Rs 124. The company stock has given a compounded return of 33 percent in the last three years.

The second auto ancillary stock has a market cap of more than Rs 5700 Cr, and is listed as Lumax Industries Ltd which hit the upper circuit with an intraday high of Rs 6161 which is 20 percent higher than the previous close of Rs 5134. This company’s stock has given a compounded return of 41 percent in the last three years.

The Q3FY26 Result

Starting with Samvardhana Motherson International Ltd, In the latest quarterly result the company saw its revenue from operations increase by 4 percent YoY, from Rs 29,876 Cr in Q3FY25 to Rs 31,185 Cr in Q3FY26, while the QoQ increased by 14 percent from Rs 27,231 Cr. The net profits grew by 27 percent going from Rs 845 Cr in Q3FY25 to Rs 1,072 Cr in Q3FY26, while the QoQ increased by 9 percent from Q2FY26’s Rs 984 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 9 percent YoY, from Rs 83,421 Cr in 9MFY25 to Rs 91,004 Cr in 9MFY26. The net profits for the same period fell by 17 percent going from Rs 3,030 Cr to Rs 2,524 Cr.

In Q3FY26 Samvardhana Motherson International Ltd has generated the highest-ever quarterly revenue for the company despite prevailing market uncertainties, apart from this the company also saw its profits from the Integrated Assemblies segment grow the most, which was at 33 percent on YoY basis. Additionally, the company also stated that it has  done Capex worth Rs 1,594 Crores in the quarter, which was primarily allocated for upcoming Greenfields and maintenance needs.

The company has a 3 year sales CAGR of 21 percent, while the TTM is at 7 percent. The company’s 3 year profit CAGR is at 60 percent, while the TTM number is negative 12 percent. The company also has a ROCE of 14 percent and a ROE of 12 percent.

Moving on to Lumax Industries Ltd, the company has  seen its revenue from operations increase by 19 percent YoY, from Rs 887 Cr in Q3FY25 to Rs 1052 Cr in Q3FY26, while the QoQ increased by 4 percent from Rs 1008 Cr. The net profits grew by 40 percent going from Rs 33 Cr in Q3FY25 to Rs 46 Cr in Q3FY26, while the QoQ increased by 31 percent from Q2FY26’s Rs 35 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 20 percent YoY, from Rs 2477 Cr in 9MFY25 to Rs 2983 Cr in 9MFY26. The net profits for the same period grew by 24 percent going from Rs 95 Cr to Rs 118 Cr.

Lumax Industries also saw its EBITDA grow by 60 percent on YoY basis, while the margins also grew by 260 bps on YoY basis with the current margins as of Q3FY26 to be at 10.5 percent.

The company has a 3 year sales CAGR of 25 percent, while the TTM is at 27 percent. The company’s 3 year profit CAGR is at 38 percent, while the TTM number is at 20 percent. The company also has a ROCE of 16 percent and a ROE of 19 percent.

Business Overview

Samvardhana Motherson International Ltd was incorporated on 19 December 1986, and is a global automotive components manufacturer headquartered in Noida, Uttar Pradesh, India. The company designs and produces wiring harnesses, mirrors, plastic modules, lighting systems, electronics, and precision metal parts.

While Lumax Industries Ltd was incorporated on 10 December 1981, is an Indian auto ancillary company specializing in automotive lighting systems and solutions. Headquartered in New Delhi, it manufactures headlamps, tail lamps, fog lamps, and electronic components for two-wheelers, passenger vehicles, and commercial vehicles. 

Both the companies serve leading global OEMs, such as Maruti Suzuki,, Hyundai, Tata Motors, while Samvardhana Motherson also has international companies like- Mercedes-Benz, BMW, Ford, and General Motors,  Lumax Industries also serves to non- four wheeler OEMs such as TVS, Royal Enfield, and Ashok Leyland.

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