Sandhar Technologies (SANDHAR) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 and nine-month results showed strong growth, with consolidated revenue up 24% year-over-year and nine-month revenue reaching ₹3,54,509.97 lacs, driven by higher business volumes and robust Indian auto industry demand.

• EBITDA increased 26.7% year-over-year, with margin improvement to 10%-12% and net profit for nine months at ₹13,483.55 lacs, up 36.2% year-over-year.

• Management remains optimistic for the current and next financial year, citing operational improvements, new business ramp-ups, and ongoing consolidation of the Aluminium Die Casting business.

• Statutory auditors issued an unmodified review opinion on the financial results.

Financial highlights

• India operations revenue grew 14.5% year-over-year to ₹2,893.38 Cr, with EBITDA margin improving to 12% and ROCE rising from 16.3% to 21.1%.

• Overseas revenue increased 2% year-over-year to ₹346.67 Cr, but EBITDA declined 22.8% due to global slowdown and currency depreciation.

• New projects revenue surged from ₹2.74 Cr to ₹305.05 Cr year-over-year, with EBITDA turning positive.

• Net profit for nine months was ₹13,483.55 lacs, with losses in overseas and new projects totaling ₹50 crore, expected to reverse next year.

• Other income includes one-time gains: ₹34.01 Cr from asset sale and ₹13.76 Cr from JV exit.

Outlook and guidance

• Management expects margin improvement in Q4 and into FY27, with overseas and new businesses turning profitable from April 2026.

• Sundaram ADC business to reach 7%-7.5% EBITDA margin in FY27, targeting 10.5% in three years; revenue expected to approach INR 500 crore in FY27.

• Focus on scaling new projects, improving overseas efficiency, and expanding customer base globally.

• The slump sale of the TN Unit-I is expected to be completed by March 2026, subject to approvals.