Sandhar Technologies filed its Business Responsibility and Sustainability Report (BRSR) for FY26, highlighting operational improvements in resource efficiency. The automotive components manufacturer reported a 15% increase in renewable energy consumption compared to the previous year.

The company achieved this growth by raising renewable energy usage to 12,713.37 GJ from 10,808.40 GJ in FY25. This shift contributed to a decline in total energy intensity per rupee of turnover, which fell from 0.000009 to 0.000007. Total energy consumption dropped significantly to 174,022.14 GJ from 2,74,128.50 GJ, driven largely by a sharp reduction in non-renewable sources.

What the Numbers Show

The divergence between the rise in renewable energy and the steep fall in total energy consumption points to a broader efficiency drive rather than just fuel substitution. Non-renewable energy use fell from 2,63,320.10 GJ in FY25 to 1,61,308.77 GJ in FY26. This indicates that while the company is adding green capacity, it is simultaneously reducing overall power demand across its manufacturing footprint.

Environmental Metrics

Water management also saw improved efficiency. Total water withdrawal declined to 1,35,716.94 kilolitres from 2,49,452.67 kilolitres. Consequently, water intensity per rupee of turnover halved from 0.000006 to 0.0000027. The company implemented Zero Liquid Discharge (ZLD) compliant systems in four major units.

Governance and Social Indicators

The report disclosed that 100% of employees and workers received health and accident insurance coverage. The company maintained a zero-tolerance policy towards bribery, with no disciplinary actions taken against directors or employees for corruption during the year. Turnover rates for permanent employees decreased to 18.54% from 26.92% in the prior year.

Sandhar Technologies reported a consolidated net profit of ₹37.28 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 33.14% increase from ₹28.00 crore in the same period of the prior year. This profitability growth was underpinned by a record quarterly revenue of ₹1,381.89 crore, which surged 26.77% year-on-year from ₹1,090.09 crore. Despite the top-line expansion, earnings per share (EPS) stood at ₹6.19, down 41.59% quarter-on-quarter from ₹10.60 in Q4FY26, reflecting seasonal adjustments and increased operational costs associated with new capacity additions.

The Board of Directors approved the unaudited financial results on August 11, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI Listing Regulations. Statutory Auditors B S R & Co. LLP issued an unmodified limited review report. The company fixed September 11, 2026, as the record date for the final dividend of ₹4.00 per equity share, subject to shareholder approval at the 34th Annual General Meeting scheduled for September 22, 2026.

Financial Performance Highlights

Consolidated EBITDA rose 15.23% year-on-year to ₹117.33 crore, though the EBITDA margin contracted to 8.49% from 9.34% in Q1FY26. Profit before tax (PBT) improved significantly by 40.84% to ₹51.14 crore. The margin compression was primarily attributed to specific cost headwinds disclosed in the investor presentation: a minimum wage impact of ₹5.84 crore in Haryana and Uttarakhand, an energy cost impact of ₹7.50 crore, and a PBT loss of ₹4.81 crore from new projects that have yet to achieve commercial volumes.

The following table summarises the consolidated quarterly performance:

Standalone results showed mixed trends. Standalone revenue declined 8.54% to ₹665.96 crore from ₹728.12 crore, largely due to the restructuring of castings and sheet metal businesses into wholly owned subsidiaries during FY26. However, standalone net profit grew 20.46% to ₹30.61 crore from ₹25.41 crore, supported by a higher EBITDA margin of 9.57% compared to 9.05% in the prior year.

Segment and Operational Details

India operations contributed ₹1,253.12 crore to consolidated revenue, representing 90.7% of the total. Overseas revenue stood at ₹128.77 crore, up 4.7% year-on-year. While overseas revenue dipped slightly in Euro terms (€11.71 million vs €12.66 million), the segment’s EBITDA more than doubled to €1.32 million (₹14.56 crore) from €0.52 million, driven by operational efficiencies.

The company continues to expand its manufacturing footprint. Key developments include:

• Aluminum Die Casting: Phase I of the new facility at Avigna Industrial Park, Hosur, is expected to start by end-August 2026. This is one of Sandhar’s largest casting facilities.
• Sheet Metal: Phase I of the Chennai (Oragadam) plant for sheet metal fabricated parts has commenced operations.
• Automation: Increased focus on robotization and high-tonnage HPDC casting machines (1250T capacity).

Revenue breakdown by product category shows Aluminum Die Casting (ADC) as the largest contributor at 34.4%, followed by Sheet Metal at 18.6% and Locking Systems at 17.2%. Two-wheeler (2W) applications accounted for 69.5% of total revenue, maintaining its dominance over passenger vehicles (11.5%) and off-highway vehicles (10.6%).

Corporate Actions

The Board appointed Smt. Gazal Kalra as an Additional Director and designated her as a Non-Executive Independent Director effective August 11, 2026. Her five-year term appointment is subject to shareholder approval at the upcoming AGM. M/s. Satija & Co. was re-appointed as Cost Auditor for FY27. M/s. K.K. Sachdeva & Associates was appointed as scrutinizer for the AGM e-voting process.

What the Numbers Show

The divergence between consolidated revenue growth (+26.77%) and standalone revenue decline (-8.54%) highlights the successful integration of subsidiaries post-restructuring. The significant margin contraction in consolidated EBITDA (from 9.34% to 8.49%) despite robust volume growth indicates that the current phase is capital-intensive, with new projects absorbing margins before reaching scale. The overseas segment’s ability to double its EBITDA despite flat revenue suggests improving operational leverage in international markets.