Sundaram-Clayton Limited (SCL) delivered strong operational and financial performance on a standalone basis for Q2 FY27. The company reported income of ₹631.9 crore for the quarter, representing a 37% increase compared to ₹462.9 crore in the corresponding quarter of the previous year (Q2 FY26).
EBITDA for Q2 FY27 stood at ₹98.9 crore with a margin of 15.7%, compared to ₹79.1 crore and a margin of 17.1% in the corresponding quarter of the previous year. Profit After Tax (PAT) showed significant growth, reaching ₹39.5 crore against ₹20.2 crore in the previous corresponding quarter, representing a 96% year-on-year increase.
For the first half of FY27 (H1 FY27), income grew 28% year-on-year to ₹1,159.8 crore, while profit after tax increased 52% to ₹56.5 crore, reflecting strong growth and improved profitability during the period.
The strong quarterly performance was supported by broad-based customer growth and robust export demand. This performance was achieved despite continued pressure from elevated alloy, energy and logistics costs.
Market Overview
The Indian automotive industry recorded healthy growth during H1 FY27, particularly across segments relevant to SCL. Medium and Heavy Commercial Vehicle (M&HCV) sales increased 23% year-on-year, with Q2 growth accelerating to 33%, supported by pre-buying ahead of an October price increase as well as continued infrastructure and mining activity. The passenger vehicle segment maintained strong momentum with Q2 FY27 volumes growing 24% year-on-year, supported by healthy rural and urban demand and improved affordability following GST 2.0.
International commercial vehicle markets presented a mixed environment. North American Class 8 retail sales grew 10% year-on-year during Q3 CY2026, while production increased 53%, indicating an improvement in production momentum. In Europe, heavy commercial vehicle registrations above 16 tonnes continue to be positive.
India Operations
Ongoing geopolitical developments in the Middle East continue to create uncertainty across global commodity and logistics markets. Volatility in aluminium prices, energy costs and freight rates continues to exert pressure on input costs and operating margins.
The Company continues to navigate these challenges by proactively implementing measures to strengthen supply-chain resilience, improve cost competitiveness and ensure operational continuity. Production across the Company's manufacturing facilities continued to increase during the quarter in line with customer requirements.
During the quarter, the Company received the "Prithvi Award" 2026 for the third consecutive year and achieved ISO 50001:2018 Energy Management System certification, reinforcing its commitment to sustainability and ESG excellence. The Company also secured First Prize at India Mobile Congress 2026 for innovative 5G use cases deployed at its lighthouse die-casting facility in Thervoy Kandigai.
USA Operations
Production at the US facility continued to ramp up during the quarter, supporting improved manufacturing performance and reliable customer deliveries. However, the US operations continued to impact consolidated profitability.
Management remains focused on achieving a financial turnaround through appropriate restructuring and improvements in production and operating metrics. These initiatives are aimed at driving sales growth, enhancing cost competitiveness, strengthening execution, and delivering sustained improvement in business performance.