MSUMI jumps 11%

Motherson Sumi Wiring India is among the top gainers on the BSE today, November 2, 2026, rising 10.72% to Rs. 38.95, a gain of Rs. 3.77 over its previous close of Rs. 35.18. The stock opened at Rs. 38.11 and touched an intraday high of Rs. 39.66. Trading volumes surged to 77.94 lakh shares against the two-week average of 5.86 lakh shares, a more than 13-fold increase. Market capitalisation stood at Rs. 25,830 crore. Market depth showed sell quantity of 18.77 lakh shares against buy quantity of 5.58 lakh shares, indicating significant profit booking despite the rally.

Trigger

• Strong Q2 FY27 results announced on October 30.
• Revenue rose 46.8% YoY and 19% QoQ to Rs. 4,053.83 crore.
• EBITDA increased 33.6% YoY and 42.1% QoQ to Rs. 374.72 crore.
• EBITDA margin improved sequentially to 9.2% from 7.6%, although it declined from 10.1% YoY.
• Net profit grew 35.1% YoY and 53.7% QoQ to Rs. 223.37 crore.
• H1 FY27 revenue increased 42% YoY to Rs. 7,461 crore, while PAT grew 20% to Rs. 369 crore.
• EV models contributed 10% of Q2 revenue, supported by new vehicle launches and higher wiring content per vehicle.

While domestic passenger vehicle industry volumes grew around 25% YoY, the company's underlying revenue growth, excluding copper inflation, was approximately 35%, suggesting market outperformance. New model launches across both electric and conventional vehicles, along with the ramp-up of three greenfield plants, supported higher production and revenue.

The increasing contribution from electric vehicles is another structural growth driver. The c company is expecting to benefit from higher content per vehicle rather than relying entirely on automobile sales volumes. Management remains optimistic about demand in the second half, supported by vehicle launches and improving utilisation of new capacities.

However, copper inflation remains an important concern. Higher copper prices contributed approximately 12 percentage points to reported revenue growth, while raw material costs increased 55% YoY to Rs. 2,905 crore. Consequently, despite strong revenue growth, EBITDA margin declined by around 90 basis points YoY. The sequential recovery in margins is encouraging, but the company will need to consistently recover higher input costs from customers to protect profitability.

Valuation is the key caution. At a PE of 37.67 times and price-to-book of 15.90 times, Motherson Sumi Wiring commands a premium valuation.