Sandhar Technologies (SANDHAR) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue for Q1 FY26 grew 19% year-over-year to ₹1,09,008.84 lacs, with India contributing 88.7%–89% and overseas 11.3%.

• Net profit after tax for the quarter was ₹2,801.26 lacs, slightly down from ₹2,906.29 lacs in Q1 FY25.

• Overseas operations faced losses due to geopolitical and currency headwinds, but cost reduction and efficiency measures are underway.

• New product lines in battery chargers, controllers, and EV components launched, generating initial revenue and positive market response.

• Two joint ventures were divested, resulting in significant one-time gains recognized in the consolidated results.

Financial highlights

• Consolidated EBITDA for Q1 FY26 was ₹101.8 Cr, with a margin of 9.3%; PAT declined 4% year-over-year to ₹28.0 Cr.

• Foreign currency translation loss of INR 4.5 crore and commodity price impact of INR 3 crore affected profitability.

• Overseas subsidiary registered a loss of EUR 1.06 million, including EUR 0.46 million in FX losses.

• Revenue from acquired business was INR 103 crore, with EBITDA of INR 4 crore (4% margin), but PBT level losses due to higher costs.

• JVs contributed INR 37 crore in revenue, with 10.72% EBITDA margin and 5.15% PAT margin.

Outlook and guidance

• Management maintains 14-15% revenue growth guidance for FY26, expecting recovery in subsequent quarters as customer supply issues resolve.

• Targeting 50 basis points improvement in consolidated EBITDA margin for the year, despite short-term margin pressure from new acquisitions.

• Overseas operations expected to turn around and become profitable in FY26.

• Smart lock volumes expected to ramp up in H2 FY26, with 60,000-70,000 units for customer one and half that for customer two.

• The Board recommended a final dividend of ₹3.50 per equity share (35%), with book closure and AGM dates to be announced.