Sandhar Technologies (SANDHAR) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated total income growth of 9.7% in Q3 and 10.34% for nine months year-over-year, with PAT rising 18% in Q3 and 33% for nine months, outperforming peers despite macroeconomic challenges.

• Joint ventures remained PAT positive, contributing INR 270 crores in total income and 12.5% average EBITDA, while all JVs showed improved synergy and localization.

• Overseas business faced losses due to weak European demand, but green shoots are expected in FY26.

• Board approved unaudited financial results for Q3 and nine months ended 31 Dec 2024, with no material misstatements found.

• In-principle approval granted for slump sale of Zinc Die Casting units to a wholly owned subsidiary, subject to regulatory and customer approvals.

Financial highlights

• Consolidated EBITDA margin improved by 50 basis points to 10.34% for nine months, with consolidated EBITDA growing 5% in Q3 and 16% for nine months year-over-year.

• Two-wheeler segment grew 17.58% year-over-year for nine months, outperforming the industry’s 13% growth.

• Overseas subsidiaries posted an EBITDA loss of INR 17.35 crores for nine months and INR 10.78 crores in Q3.

• Standalone EBITDA margin improved by 30 bps to 10.6% in Q3 and by 70 bps to 10.1% for nine months.

• Basic and diluted EPS (consolidated) for Q3 was Rs 4.97, up from Rs 4.21 YoY; nine months EPS: Rs 16.45, up from Rs 12.36 YoY.

Outlook and guidance

• Revenue guidance for FY25-26 set at INR 4,500 crores, with EBITDA margin targeted between 10.5% and 10.95%.

• Board continues to focus on internal restructuring and operational consolidation, including the proposed slump sale of Zinc Die Casting business units.

• Expecting Q4 margin improvement as overseas business volumes rebound.

• Confident in achieving previously stated 25%+ growth trajectory over three to five years, barring macro disruptions.

• New product lines and customer additions, especially in EV and smart lock segments, to drive future growth.