SEDEMAC Mechatronics (SEDEMAC) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue from operations rose 40% YoY to INR 400.64 crore; H1FY27 revenue rose 41% to INR 710.41 crore, with H1 net profit of INR 72.49 crore.

• Record growth reflected ECU launches and ramp-ups; trailing-12-month control-intensive ECU shipments reached ~4.6 million, up 44% YoY.

Financial highlights

• Q2FY27 EBITDA was INR 76 crore and net profit INR 39.18 crore; H1FY27 EBITDA was INR 136 crore, up 26% YoY, and net profit was up 53%.

• TTM Q2FY27 revenue was INR 1,265 crore, EBITDA INR 250 crore and PAT INR 129 crore, up 48%, 47% and 82% YoY, respectively.

• TTM revenue grew at a 38% three-year CAGR; EBITDA margin was 19.8%, while Q2FY27 EBITDA margin was 19.0% versus 21.7% a year earlier.

• EBITDA margin faced raw-material, PCB and semiconductor cost pressures; revenue growth and operating leverage partly offset them. PAT comparisons also reflected the FY27 tax-regime change.

Outlook and guidance

• H2FY27 EBITDA margin is expected near H1 levels; price corrections and the newer-generation ISG controller are expected to partly offset raw-material and PCB cost increases.

• CV aftertreatment controllers, EFI ECUs and MCUs are expected to enter production in coming quarters; cited CV program timing is H1FY28.

• A sensorless electric power-tool motor controller is expected to enter production in H1 of the next financial year; the opportunity remains early-stage and success uncertain.

• H2 CapEx is expected below H1 as MF3 spending declines; production is expected to shift substantially to MF3 by FY27 year-end, without a hard deadline.