Samvardhana Motherson sees no material impact from US tariffs

Samvardhana Motherson International Ltd (SAMIL) has said the recently announced US tariffs on imports from India don't have a material impact on its operations. According to the company’s latest investor presentation, exports from India to the US stood at less than USD 10 million in the first quarter of FY26.

The company explained that most of its external contracts are structured on an ex-works basis, under which customers bear the shipping and import costs. For the smaller portion of contracts where this is not the case, Motherson is implementing mitigation measures, including exploring alternative supply chain solutions.

A large part of the company’s sales to US customers already comply with the US-Mexico-Canada Agreement (USMCA), shielding them from the new tariff regime. For non-USMCA compliant products, discussions are underway with customers to pass on the additional costs, though this process is expected to involve some time lag.

In its Q1 FY26 results, Motherson reported consolidated revenues of ₹30,212 crore, compared with ₹28,868 crore in the same quarter last year. However, EBITDA margins slipped to 8.2% from 9.6%, which the company attributed to structural challenges in Europe, foreign exchange volatility, and start-up costs related to new projects.

Shares of the auto components manufacturer recovered from early losses to rise as much as 4.45% on Wednesday, August 13, after management reassured investors in its post-earnings statement that the tariffs imposed by the Donald Trump administration would not significantly affect its operations.

“While uncertainties in the business environment persist, it also offers inorganic opportunities for growth,” said Vivek Chaand Sehgal, Chairman of Motherson.