Sundram Fasteners (SUNDRMFAST) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue grew 30% YoY to Rs. 1,984.50 crore and net profit rose 13% to Rs. 172.63 crore; H1 revenue rose 25% to Rs. 3,830.57 crore and net profit increased 14% to Rs. 341.32 crore.

• Strong OE schedules and export momentum supported the outlook, while higher material costs pressured contribution margins.

Financial highlights

• Standalone Q2 revenue rose 32% to Rs. 1,760.77 crore; PBT increased 15% to Rs. 214.76 crore and PAT rose 14% to Rs. 159.98 crore.

• Standalone H1 revenue grew 26% to Rs. 3,375.53 crore and PAT rose 12% to Rs. 310.95 crore; consolidated H1 PBT was Rs. 454.09 crore, up 13%.

• Standalone Q2 EBITDA grew 14% YoY to Rs. 277.58 crore despite higher raw and indirect material prices; Q2 PBT was reported at INR 160 crore vs INR 140 crore in the corresponding quarter.

• Q2 standalone exports grew 57% to Rs. 530.95 crore, with ~10% attributed to rupee weakness; H1 exports grew 40%.

• Q2 recorded an INR 7 crore foreign-exchange gain.

Outlook and guidance

• H2 growth is expected to mirror H1, with slight improvement across OE, retail and exports; H2 domestic performance was expected to be 3%-5% higher.

• H2 EBITDA margin is expected to expand as export share rises; current raw-material impacts are already in the P&L and are not expected to worsen absent further price increases.

• FY27 CapEx remains on track at INR 400 crore, with possible slight upside; FY28 indicative CapEx is INR 350-450 crore. FY28 growth guidance was considered premature amid market volatility.