August 14, 2025

Samvardhana Motherson International Ltd (SAMIL) is not worried about the new US tariffs on imports from India. The company revealed in its latest investor presentation that exports from India to the US were less than USD 10 million in the first quarter of FY26. This tiny figure means the new tariffs won’t hit them hard. Why? Most of their contracts are “ex-works,” meaning customers pay for shipping and import costs, so the tariffs don't directly affect Samvardhana Motherson’s finances. For the smaller deals where this doesn’t apply, the company is already taking action. They are looking into new supply chain options to cut extra costs. Plus, a big chunk of their sales to US customers already follow the US-Mexico-Canada Agreement (USMCA). This agreement protects those products from the new tariffs. For the rest that don’t meet USMCA rules, talks are on with customers to pass on the extra charges, but it might take some time to fully adjust. In terms of numbers, Samvardhana Motherson posted ₹30,212 crore in consolidated revenues for Q1 FY26, up from ₹28,868 crore a year ago. But EBITDA margins slipped to 8.2% from 9.6%. The company blamed this on ongoing challenges in Europe, currency ups and downs, and costs to start new projects. On August 13, shares of the auto components maker started weak but then zoomed up 4.45% after management said the US tariffs, introduced during Donald Trump’s administration, wouldn’t cause major problems. “While uncertainties in the business environment persist, it also offers inorganic opportunities for growth,” said Vivek Chaand Sehgal, Chairman of Motherson. This shows confidence that despite bumps, the road ahead is full of chances to grow bigger and stronger.

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Tags: Samvardhana motherson international, Us tariffs, India exports, Auto components, Usmca, Fy26 earnings,