Sharda Motor Industries (535602) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue from operations was ₹75,624.81 lakh; net profit was ₹9,993.96 lakh, including a ₹2,240.92 lakh exceptional gain from a land and building sale.

• Growth priorities include lightweighting, exports, stricter-emission demand and adjacent powertrain-agnostic products; 15 patents had been filed to date.

Financial highlights

• Consolidated revenue was ₹75,624.81 lakh versus ₹68,543.17 lakh in Q1 FY25, up 10% YoY.

• EBITDA was ₹98.4 crore, up 3% YoY, with a 13.0% margin; gross profit was ₹189.5 crore, up 5% YoY.

• Consolidated PBT was ₹130.1 crore, including the ₹22.4 crore exceptional gain; PAT was ₹99.9 crore versus ₹76.8 crore in Q1 FY25.

• Consolidated basic and diluted EPS were ₹34.82 versus ₹25.90 in Q1 FY25.

Outlook and guidance

• No firm annual revenue or margin guidance; management expects margins to remain within the current range amid dynamic conditions.

• Chakan operations have started, with revenue expected to ramp as volumes build across served models; average capacity utilization was ~80%.

• Four FY25 lightweighting, emission-component and CEV-adjacency orders carry annual values of $3.5M–$7M and lifetime values of $17.5M–$40M, with SOPs scheduled for Q3–Q4 FY26.

• CV temperature-control pipe SOP is expected in Q3; export business may start in Q4, subject to customer timelines and stabilization.

• Growth priorities include control arms, axle assemblies, export expansion in Europe and the USA, and emission products for CVs, tractors and gensets.