Sundaram-Clayton (SUNCLAY) Q3 25/26 earnings summary

Executive summary

• EBITDA margin improved to 19.7% (Rs. 88.7 Cr) in Q3 FY26 from 14.7% (Rs. 73.7 Cr) in Q3 FY25, despite lower revenue due to the sale of the 2W casting business.

• Standalone revenue for Q3 FY26 was Rs. 450.8 Cr, down from Rs. 500.1 Cr in Q3 FY25, reflecting the business unit transfer.

• Consolidated results show a net loss of Rs. 51.92 Cr for Q3 FY26, with total comprehensive loss of Rs. 42.71 Cr.

• Plant consolidation and operational efficiency initiatives completed, with recognition for quality and sustainability.

Financial highlights

• Standalone profit after tax for Q3 FY26 was Rs. 20.74 Cr, up from Rs. 10.35 Cr in Q3 FY25.

• Standalone EBITDA for nine months was Rs. 238.4 Cr (17.6%), up from Rs. 207.3 Cr (13.0%) YoY.

• Consolidated revenue for Q3 FY26 was Rs. 505.95 Cr, down from Rs. 529.35 Cr YoY.

• Exceptional cost of Rs. 7.67 Cr in Q3 FY26 due to past period employee benefit liability under new labour codes.

Outlook and guidance

• Domestic automotive market remains robust, driven by strong demand in CV and PV segments.

• North American truck market faces demand softness due to geopolitical and freight uncertainties.

• SCL is positioned to leverage growth opportunities in the US through local manufacturing and new product ramp-up.