Sandhar Technologies posts record Q1FY27 revenue, net profit up 33% YoY
Sandhar Technologies achieved record Q1FY27 revenue of ₹1,381.89 crore, driving a 33.14% YoY increase in net profit to ₹37.28 crore. While consolidated EBITDA grew 15.23%, margins faced pressure from new project losses and energy/wage costs. Standalone revenue fell due to restructuring, but profit rose 20.46%. Overseas EBITDA doubled, signaling operational improvements abroad.
*this image is generated using AI for illustrative purposes only.
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:
| Particulars: | Q1FY27 | Q1FY26 | Change (YoY) |
|---|---|---|---|
| Revenue from Operations: | ₹1,381.89 cr | ₹1,090.09 cr | +26.77% |
| EBITDA: | ₹117.33 cr | ₹101.82 cr | +15.23% |
| EBITDA Margin: | 8.49% | 9.34% | -85 bps |
| Profit Before Tax: | ₹51.14 cr | ₹36.31 cr | +40.84% |
| Net Profit After Tax: | ₹37.28 cr | ₹28.00 cr | +33.14% |
| EPS (Basic/Diluted): | ₹6.19 | ₹4.65 | +33.08% |
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.
Historical Stock Returns for Sandhar Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.75% | -1.47% | -5.43% | +23.01% | +34.11% | 0.0% |
When do analysts expect the new aluminum die casting and sheet metal facilities to reach full commercial scale, and how might this impact EBITDA margins in FY28?
Given the significant margin pressure from energy costs and minimum wage hikes, what specific hedging or operational strategies is Sandhar implementing to protect profitability in the near term?
How does the company plan to diversify its revenue mix beyond the dominant two-wheeler segment, particularly with the expansion into passenger vehicle and off-highway applications?
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