Sharda Motor Industries (535602) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue from operations was ₹78,720.92 lakh; EBITDA was ₹101.0 crore, down 4% YoY, and standalone and consolidated net profit was ₹9,910.27 lakh and ₹9,993.96 lakh.

• H1 FY26 revenue from operations was ₹1,54,345.73 lakh; standalone and consolidated net profit was ₹17,449.52 lakh and ₹17,463.40 lakh, while EBITDA declined 1% to ₹199.4 crore.

• Growth priorities include scaling lightweighting, expanding exports, developing emission adjacencies and pursuing localization-focused M&A; Donghee technology adds suspension products and capabilities.

Financial highlights

• Q2 FY26 consolidated revenue was ₹787.2 crore, up 11% YoY and 4% QoQ; gross profit rose 4% to ₹194.9 crore, while EBITDA was ₹101.0 crore, down 4% YoY.

• Q2 FY26 total income was ₹80,554.12 lakh versus ₹72,668.00 lakh a year earlier; standalone profit before tax was ₹12,921.96 lakh.

• H1 FY26 total income was ₹1,58,476.07 lakh versus ₹1,43,173.82 lakh; consolidated profit before tax was ₹23,196.05 lakh versus ₹20,856.65 lakh.

• H1 EBITDA was ₹199.4 crore versus ₹201.1 crore; EBIT was ₹211.6 crore versus ₹209.2 crore.

• H1 PBT included a ₹2,240.92 lakh exceptional gain from the sale of land and buildings; the gain was recorded in Q1 and Q2 exceptional items were nil.

Outlook and guidance

• Priorities include increasing control-arm and axle-assembly share, adding lightweighting content per vehicle, expanding exports to Europe and the USA, and pursuing localization-focused M&A.

• Plans target domestic opportunities from BS 7 and TREM V, plus adjacent products such as temperature-controlled pipes and heat shields.

• Current CapEx guidance is ₹70 crore–₹75 crore, excluding investment linked to future order wins; further spending will depend on orders secured.

• New awards are scheduled to begin production from Q4 FY27 to Q1 FY28, with gradual ramp-up over two years for emission adjacencies; the North American export order is delayed two quarters due to the customer’s model launch timing.