Sandhar Technologies (SANDHAR) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 and nine-month results showed strong growth, with consolidated revenue up 24% YoY and net profit for nine months at ₹134.84 Cr, up 36.2% YoY.

• The Indian auto industry posted record Q3 sales, supporting robust demand for auto components and driving India operations.

• Management remains optimistic, citing strong order books, operational improvements, and ongoing business consolidation.

• Un-audited financials for Q3 and nine months ended December 2025 were approved, with an unmodified review opinion from auditors.

• Board approved inclusion of land and building in the slump sale of the Aluminium Die Casting unit to a wholly owned subsidiary.

Financial highlights

• India operations revenue grew 14.5% YoY to ₹2,893.38 Cr, with EBITDA margin rising to 12% and ROCE improving from 16.3% to 21.1%.

• Overseas revenue up 2% YoY to ₹346.67 Cr, but EBITDA down 22.8% and EBT down 48.7% due to global slowdown and currency depreciation.

• New projects revenue surged from ₹2.74 Cr to ₹305.05 Cr YoY, with EBITDA turning positive.

• Net profit for nine months was ₹134.84 Cr; losses in overseas and new projects totaled ₹50 Cr but are expected to reverse.

• EV business generated ₹12 Cr revenue YTD, with ramp-up expected to accelerate.

Outlook and guidance

• Management expects margin improvement in Q4 and into FY27, with overseas and new projects turning profitable from April 2026.

• Focus on scaling new projects, improving overseas efficiency, and consolidating Aluminium Die Casting for synergies.

• Overseas business projected to return to 9-10% operating margins and 15-16% volume growth.

• Sundaram ADC business expected to reach 7-7.5% EBITDA margin in FY27, rising to 10.5% in three years.

• Slump sale of TN Unit-I expected to complete by March 2026, subject to approvals.