Financial Performance Highlights

Consolidated FY26 Performance (vs FY25):

  • Revenue: ₹4,852 crore, up 25% YoY
  • EBITDA: ₹513 crore, up 28% YoY
  • EBITDA Margin: 10.6%
  • PBT: ₹256 crore, up 39% YoY
  • PAT: ₹199 crore, up 40% YoY

Consolidated Q4 FY26 Performance (YoY):

  • Revenue: up 29%
  • EBITDA: up 33%
  • EBITDA Margin: 11.0%
  • PBT: up 42%

India Business FY26 Performance:

  • Revenue: ₹4,384 crore, up 28% YoY
  • EBITDA: ₹472 crore, up 32% YoY
  • PBT: ₹282 crore, up 37% YoY
  • PAT: ₹221 crore, up 44% YoY

India Business Q4 FY26 Performance:

  • Revenue: up 32%
  • EBITDA: up 32%
  • EBT: up 37%

Joint Ventures Performance:

  • Revenue: ₹257 crore
  • EBITDA: ₹28.25 crore
  • Sandhar's investment in JVs: ₹62 crore

Overseas Subsidiaries Performance:

  • Annual EBT loss: €2.56 million (₹26.19 crore)
  • Q4 FY26 turned around with 14.6% EBITDA margin and break-even at EBT level

EV Business Performance:

  • FY26 Revenue: ₹20 crore
  • Products sold: 41,000 battery chargers, 5,500 motor control units
  • Expected to double revenue in FY27

Growth Guidance and Outlook

Management provided conservative revenue growth guidance of 15%+ for FY27, excluding potential price retrigger benefits. The company expects to double revenues every 3-4 years with consistent margin improvements and targets 15-20% post-tax return on capital employed.

Capital Expenditure and Investments

  • Current capital work in progress: ₹115 crore (as per slide 12)
  • FY27 Capex guidance: 5-7% of revenue (approximately ₹275-310 crore based on projected ₹5,500 crore revenue)
  • Investment in new projects: ₹342 crore generating ₹468 crore revenue (expected to achieve 2.5x asset turnover ratio)

Turnaround Timelines for Loss-making Units

  • Sundaram-Clayton aluminum business: Expected turnaround by Q3 FY27 (currently showing EBT level losses)
  • Khed City aluminum die-casting project: Expected to generate EBT margins from Q2 FY27
  • Pune cabins and fabrication project: Expected turnaround by end of Q2 FY27
  • EV business: Expected profitability in FY28
  • Romania operations: Expected break-even or profitability in FY28

Debt Position

As of March 2026:

  • Gross debt: ₹948 crore
  • Net debt: ₹897 crore
  • Working capital debt: ₹564 crore
  • Term loans: ₹384 crore
  • FY27 debt repayment commitment: ₹103 crore

Working Capital Metrics

  • Receivables cycle: 44 days (consolidated), 51 days (standalone)
  • Inventory holding period: 54-55 days (higher in overseas operations)
  • Normal receivable cycle: 40-45 days

Commodity Price Impact

Aluminum price increases are expected to cause margin pressure in Q1 FY27, particularly in overseas operations due to longer pass-through periods (180 days vs 30-90 days in India). The company is negotiating with customers to shorten payment terms.

New Business Initiatives

The company is working on telematics technology products through technology transfer/collaboration agreements rather than joint ventures. Smart key production has reached approximately 5,000 locksets per month and is growing.

Market Context

The Indian auto industry recorded growth across all segments in FY26 with domestic sales hitting a seven-year high. Two-wheeler industry growth was 12.9% while Sandhar achieved 35.1% growth in this segment.