Sundram Fasteners (SUNDRMFAST) Q3 25/26 earnings summary

Executive summary

• Domestic segment delivered strong growth with 18% increase in both OE and aftermarket businesses for Q3 FY26; exports moderated due to tariff pressures.

• Standalone revenue for the quarter ended December 31, 2025, was Rs 1,351.47 crores, up from Rs 1,256.58 crores year-over-year; consolidated revenue was Rs 1,541.11 crores, up from Rs 1,441.12 crores.

• Overall Q3 revenue reached INR 1,359 crores, with stable raw material costs and improved gross margins at the RMC stage above 60%.

• Net profit for the quarter (standalone) was Rs 121.88 crores, slightly higher than Rs 120.36 crores in the prior year; consolidated net profit was Rs 130.80 crores, nearly flat year-over-year.

• Profit before tax (PBT) before exceptional items was INR 174 crores, down from INR 186 crores in the previous quarter, mainly due to tariffs; after a one-time INR 11 crore labor code impact, PBT was INR 162 crores and PAT INR 128 crores, up from INR 120 crores YoY.

Financial highlights

• Domestic revenue grew 18% YoY in Q3; exports now comprise 23-25% of revenue, down from 30-33% previously.

• Standalone profit before exceptional item and tax for the quarter was Rs 173.97 crores, up 14% year-over-year.

• Nine-month PAT stood at INR 400-401 crores, up from INR 382 crores YoY, with EBITDA margin at 17.3%.

• Exceptional item of INR 11 crores related to labor code provision.

• Borrowings reduced due to better working capital and lower inventory.

Outlook and guidance

• Targeting double-digit revenue growth for FY27, with a minimum of 10% and potential to outperform industry growth by 2%.

• Margin guidance is to reach 18% EBITDA, with potential to cross this as exports recover and high-margin businesses expand.

• CapEx planned at INR 250 crores for FY27, with 30% for replacement and the rest for growth; FY26 CapEx to close at INR 350 crores.

• The company continues to monitor regulatory developments regarding the new Labour Codes and will assess future accounting implications as guidance emerges.

• EV business expected to see meaningful ramp-up in the second half of FY27.