Sandhar Technologies (SANDHAR) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue grew 29% year-over-year in Q2 FY26, with PAT up 246% and strong contributions from the India business.

• Board approved unaudited financial results for Q2 and H1 FY26, with no material misstatements found by auditors.

• All five joint ventures are PAT positive and on a growth trajectory, contributing 68.57% of revenue on an attributable basis.

• Commercial invoicing for EV battery chargers and motor controllers began, with INR 6.4 crore revenue in H1 and a full-year target of INR 15 crore.

• One-time gain of INR 34 crore from land sale and asset disposals contributed to other income.

Financial highlights

• Q2 FY26 consolidated revenue: ₹1,270.37 Cr (up 29% YoY); EBITDA: ₹155.38 Cr (up 48.5% YoY); PAT: ₹40.94 Cr (up 246% YoY).

• H1 FY26 consolidated revenue: ₹2,360.46 Cr (up 24% YoY); EBITDA: ₹200.49 Cr (up 9% YoY); PAT: ₹61.24 Cr (down 11% YoY).

• India business Q2 revenue up 33% YoY; PAT up 138% YoY; overseas business faced margin pressure and negative EBT.

• Standalone Q2 FY26 revenue: ₹80,502.52 lacs; consolidated revenue: ₹1,27,037.37 lacs; standalone PAT: ₹7,458.36 lacs; consolidated PAT: ₹7,337.59 lacs.

• EBITDA margin improved due to higher other income from asset sale.

Outlook and guidance

• Management expects a stronger second half, with Q3 and Q4 anticipated to outperform due to festive demand and new orders.

• Overseas business margins expected to recover, targeting break-even in Q4 and a return to historical 12.5%-13% margins.

• India business margins projected to normalize at 10.44% in FY26, with a target of 11% EBITDA margin by FY27.

• ROCE target set at 18% pre-tax in the medium term, up from 16.09% annualized as of September 2025.

• Board declared and paid a final dividend of ₹3.50 per equity share (35%) as approved in the AGM.