Samvardhana Motherson International Ltd laid out its ambitious Vision 2030 at its 5 September analyst meet. After clocking $25.7 billion in revenues in FY25, well short of its $36 billion aim, the company is now targeting $108 billion in revenues and a 40% return on capital employed (RoCE), up from 18.4% in FY25, by the end of the decade.
The roadmap rests on two growth engines: consumer electronics and aerospace. Expansion of product lines, a steady stream of acquisitions and rising content in both automotive and non-automotive products are expected to drive the topline.
“Samvardhana Motherson has a track record of setting ambitious five-year targets since 2000. While most of its targets until 2015 were achieved, it missed both its 2020 and 2025 goals by a margin,” analysts at Motilal Oswal Financial Services noted.
Automotive remains the backbone, contributing nearly 95% of FY25 revenues. Here, Samvardhana is eyeing white spaces in the global supply chain and deeper relationships with Chinese and Japanese OEMs. More content per vehicle, enabled by new capabilities and vertical integration, is the near-term lever. The long-term ambition is bolder: to assemble a full car by 2030 and capture the entire value chain.
The aerospace business, launched in FY17, has made rapid strides. Samvardhana is now a tier-1 supplier to Airbus and Boeing and the only Indian firm exporting aerospace components to Japan. With a $1 billion order book and a 10-year backlog in global aircraft demand, it is preparing to expand into higher-margin complex assemblies and maintenance contracts.
In consumer electronics, a marquee global order has led to a mega Chennai facility, expected to go live in 12-18 months. The management is confident that the targeted returns from this business will surpass the core business’s current returns.
These non-auto bets are central to Samvardhana’s diversification goal, with no single country, customer, or component accounting for more than 10% of revenues.
On profitability, Samvardhana is banking on operational efficiencies, higher contributions from non-auto, and the turnaround of 70 acquired units—together offering an Ebit improvement potential of ₹1,100 crore, against FY25 Ebit of ₹6,384 crore.
The flip side: aerospace and electronics require heavy upfront investment, long qualification cycles and dependence on demanding global OEMs. A reliance on acquisitions—23 in the past five years—also raises integration risks in capital-heavy businesses. With past targets missed and the stock trading at 20x FY27 estimated earnings, investors will want to see execution match ambition.
