Financial Performance Highlights
Sharda Motor Industries Limited reported strong FY26 results with revenue growth of 20% YoY to ₹3,396.80 crores and PAT growth of 9.7% to ₹345.40 crores. Basic EPS stood at ₹60.17 compared to ₹54.86 in FY25. The company maintained a zero-debt position with strong surplus and demonstrated robust financial health.
Capital Structure & Corporate Actions
The company completed a 1:1 bonus issue, increasing share capital from ₹574.08 lakh to ₹1,148.16 lakh, and declared a final dividend of ₹20 per equity share (1000% of face value) for FY26. Investments surged significantly with non-current investments growing from ₹500.50 lakh to ₹20,500.76 lakh, primarily in debentures and bonds of financial institutions.
Business Strategy & Growth Initiatives
Sharda Motor maintained ~30% value market share in PV & LCV Emission System and ~14% in PV & LCV Control Arms & Links. The company focused on strategic growth through lightweighting vertical expansion (now ~10% of gross sales), global exports from North American and agricultural equipment manufacturers, and R&D enhancement with 22 patents filed and 4 granted. New facilities were commissioned at Chakan and Uttarakhand.
Corporate Governance & Management
The Board approved reappointment of Ajay Relan as Executive Chairperson for 5 years with proposed remuneration including basic salary of ₹35 lakhs per month. The company maintained strong corporate governance with 6 directors (3 independent) and proper committee structures. CSR expenditure of ₹714.90 lakh met mandated requirements through Sharda CSR Foundation Trust.
Exceptional Items & Asset Transactions
The company recorded an exceptional gain of ₹2,240.92 lakh from the sale of its Haridwar unit assets. Total payments to auditors amounted to ₹43.65 lakh, and the statutory auditors issued an unqualified opinion confirming adequate internal financial controls and compliance with accounting standards.
Regulatory Compliance & Contingencies
The company complied with SEBI Regulation 34 requirements and disclosed contingent liabilities including tax demands under dispute of ₹1,220.16 lakh for various assessment years. Bank guarantees included Foreign LC ₹6,406.59 lakh and Inland LC ₹8,909.38 lakh. All related party transactions were conducted at arm's length basis.
Forward Outlook & Market Position
Growth drivers include BS7 emission norms preparation, China+1 export opportunities, and lightweighting trend adoption. The company maintains a disciplined M&A strategy focusing on powertrain-agnostic products and lightweighting technologies, with 9 manufacturing facilities across India and international design capabilities through its South Korea development center.