Sundram Fasteners (SUNDRMFAST) Q2 25/26 earnings summary

Executive summary

• Achieved record half-year revenue of INR 2,723 crores and profit after tax of INR 278 crores, the highest in company history, with consolidated net profit reaching ₹300.69 crores and interim dividend declared at ₹3.75 per share, a 25% increase year-over-year.

• Maintained robust growth in both auto and non-auto segments, with continued focus on expanding in Europe and adjacent markets.

• Domestic segment grew 12% year-over-year, while exports moderated to INR 338 crores from INR 389 crores.

• Rupee depreciation benefited export realizations and receivables restatement.

Financial highlights

• Standalone total revenue for H1 FY25 reached ₹2,723.20 Cr, up from ₹2,599.17 Cr year-over-year; PAT at ₹278.62 Cr, up from ₹262.28 Cr; consolidated H1 FY25 revenue at ₹3,094.80 Cr, PAT at ₹300.69 Cr.

• Q2 revenue reached INR 1,356 crores, up from INR 1,300 crores year-over-year; standalone Q2 FY25 revenue at ₹1,356.09 Cr, PAT at ₹140.27 Cr, both highest ever.

• EBITDA margin for Q2 FY25 expanded to 18.0% from 17.3% year-over-year, aided by domestic growth and lower commodity prices.

• Earnings per share for Q2 FY25 at ₹6.68 standalone and ₹7.18 consolidated, both up year-over-year.

• Gross margin exceeded 60% due to softer raw material prices and improved product mix.

Outlook and guidance

• Rupee expected to remain at current levels, supporting export margins.

• Domestic industry outlook strong for Q3 and Q4; export recovery anticipated in Q4 and Q1 next year.

• Double-digit CAGR targeted over the next three years, with revenue certainty supported by MOUs and customer engagements.

• Strengthening sales and marketing in Europe as part of key customer-acquisition strategies.

• Investments planned to scale non-auto, EV, hybrid, and adjacent businesses.