Sharda Motor Industries (535602) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was ₹685.4317 crore, up 5% YoY; EBITDA rose 40% to ₹95.7 crore and PAT increased 39% to ₹76.8278 crore.

• Holds ~30% share of India’s passenger-vehicle emission-control market, with ~1 million units of annual installed capacity.

• Growth priorities include TREM V, commercial vehicles, exports, farm equipment, lightweighting and powertrain-agnostic inorganic opportunities; no specific quarterly or annual growth guidance was given.

Financial highlights

• Consolidated revenue was ₹685.4317 crore versus ₹654.1013 crore YoY and ₹703.3939 crore QoQ; EBITDA was ₹95.7 crore versus ₹68.2 crore YoY and ₹99.4 crore QoQ.

• Consolidated PAT was ₹76.8278 crore versus ₹55.2243 crore YoY and ₹88.2975 crore QoQ; EPS was ₹25.90 versus ₹18.57 YoY.

• Gross margin was 26.3% versus 20.9% YoY; EBITDA margin was 14.0% versus 10.4%, and EBIT margin was 14.9% versus 11.4%.

• Gross-profit outperformance reflected incremental business, favorable product mix and RDE product maturity against the prior-year SOP ramp-up.

Outlook and guidance

• TREM V implementation is scheduled for April 1, 2026; OEMs have nominated and are developing products for that timeline. CEV V is expected from January 2025.

• Five-year priorities include outperformance versus the industry, but no quarterly, annual, revenue-growth or outperformance-multiple guidance was provided.

• Export, off-highway and tractor activities are expected to expand over five years, with no sales-mix or inflection-year target.

• Export opportunities are supported by a strong RFQ pipeline and dedicated team; pilot orders and customer validations are expected to precede broader scaling.