Samvardhana Motherson Get 'AAA' Rating For ₹25-Billion Debentures From Agencies

Samvardhana Motherson International Ltd. on Wednesday said Crisil Ratings Ltd., India Ratings & Research Pvt. Ltd., and ICRA Ltd. have assigned a ‘AAA’ rating with a stable outlook to the company’s ₹25-billion non-convertible debentures.

Crisil Ratings said the rating reflects the company’s growing scale, strong market position in the automotive components sector, and diversified revenue across clients, geographies and product segments. The company has built healthy relationships with global original equipment makers and has a solid record in turning around overseas acquisitions while maintaining strong operating efficiency.

 Crisil added that the company’s credit profile is underpinned by its robust business risk profile and strong financial metrics, supported by a solid net worth and high liquidity.

India Ratings said the rating reflects the group’s diversified footprint across products, geographies and customers, along with its established links with global OEMs. Revenue grew at a compound annual growth rate of 19% from 2020-21 to 2024-25, aided by both organic and inorganic growth.

India Ratings noted that the company is benefitting from a shift towards premiumisation in the industry and maintains a stable operating performance, strong credit profile and solid liquidity despite multiple acquisitions.

ICRA said its rating reflects Samvardhana Motherson’s 2024-25 revenue growth, driven by contributions from recent acquisitions, with the company continuing to outpace industry growth globally.

Operating margin remained flat at 9.3% in 2024-25. The stable outlook indicates ICRA’s confidence in the company maintaining a healthy credit profile over the medium term. The agency also expects management to remain prudent in pursuing further acquisitions.