Aerospace and defence keeps pulling in companies that started out somewhere else entirely. Big manufacturers already have the factories, the customers and the know-how, so adding a new vertical isn’t that hard on paper. What matters is finding the right small partner to plug into. Sometimes the smaller deals say more about where a group is heading than the loud, headline ones do. Let’s look at one that landed today.
Shares of Samvardhana Motherson International Ltd are trading at ₹162.2, down 1.31% from the previous close of ₹164.40. The stock has a market cap of ₹1,71,239.90 crore and a P/E of 37.59.
What Motherson Is Actually Buying
The board of Samvardhana Motherson International Limited (SAMIL), cleared the purchase of a 50.1% stake in Rotary Connectors Private Limited. The buyer is Samvardhana Motherson Adsys Tech Limited, a wholly owned subsidiary, so SAMIL owns it fully. After closing, Rotary Connectors becomes an indirect subsidiary, meaning it sits one step down in the ownership chain. Its promoters keep the other 49.9%, and Motherson gets to appoint most of the board directors.
Rotary makes military grade circular connectors, basically the plugs and links that join wires and electronics inside aircraft and defence equipment. It runs three factories, all in Bengaluru.
How the Price Works
The whole business is valued at ₹500.4 crore, and Motherson will pay in cash. That figure is called enterprise value, which just means what the entire company is worth. What the sellers finally get, the equity value, is this number plus whatever net cash the company had on March 31, 2026. That date is called the “locked box” date, and the price is fixed based on the company’s books as they stood that day. If the sellers take any money out after that date, it gets adjusted. So the final amount paid could be a little different from the headline number.
Small Company, Quick Growth
Rotary’s turnover was ₹75.2 crore in FY24, ₹102.8 crore in FY25 and ₹123.5 crore in FY26 (unaudited). That’s roughly 37% growth in FY25 and around 20% in FY26, so the pace is cooling a little. The price works out to about 4 times last year’s turnover. Also, Rotary’s full year of turnover is only around 0.35% of what Motherson made in just one quarter, so the fit matters far more than the money.
Motherson wants to scale its Aerospace and Defence business, especially in EWIS, short for Electrical Wiring Interconnect System, which is the wiring network inside an aircraft. It also feels its reach and customer access can help Rotary grow faster.
Q1 FY27 Results: Best Quarter Ever
On a consolidated basis, revenue came in at ₹35,244 crore, up 17% from ₹30,212 crore a year ago, and the company calls it its highest-ever quarterly revenue. EBITDA, which is roughly operating profit before interest, tax and wear-and-tear charges, rose 26% to ₹3,104 crore from ₹2,466 crore. Margin moved up to 8.8% from 8.2%.
Normalized PAT, meaning profit after tax with one-time items adjusted, jumped 55% to ₹1,032 crore from ₹667 crore. Last year’s figure had ₹155 crore of one-offs added back, and before that it was ₹512 crore. Interesting bit, profit grew more than twice as fast as EBITDA.
About the Company
Samvardhana Motherson International Limited, or Motherson, is listed on NSE and BSE and has its head office in Noida. It runs five divisions: Wiring Harness, Modules and Polymer Products, Vision Systems, Integrated Assemblies and Emerging Businesses. It also has an Aerospace and Defence vertical that it wants to scale up.