Sandhar Technologies reported a 40% year-on-year increase in consolidated net profit to ₹199 crore for the financial year ended March 31, 2026. Consolidated revenue from operations for FY26 stood at ₹4,852 crore, representing a 25% growth compared to the previous year. The company’s EBITDA rose by 28% to ₹513 crore, with an EBITDA margin of 10.6%. For the quarter ended March 31, 2026, the company recorded a consolidated net profit of ₹638.24 crore and revenue of ₹1,306.99 crore.

Operational Highlights

The Indian auto industry recorded growth across all segments in FY26, with domestic sales hitting a seven-year high. Sandhar’s India business grew revenue by 28% to ₹4,384 crore, outperforming the industry growth rate of 12.7%. In the two-wheeler segment, the company achieved a growth rate of 35.1% compared to the industry's 12.9%. Joint ventures registered revenue of ₹257 crore and an EBITDA of ₹28.25 crore. The company’s overseas subsidiaries, which had sustained an annual loss of €2.56 million (₹26.19 crore) at the EBT level, turned around in Q4 FY26 to achieve break-even at the EBT level with an EBITDA margin of 14.6%.

Future Guidance and Outlook

The company has provided a conservative revenue growth guidance of over 15% for FY27, excluding potential price increases due to rising input costs. Management expects to double revenues every three to four years with consistent improvements in margins. The Electric Vehicle (EV) business, which recorded a revenue of ₹20 crore in FY26 with the sale of 41,000 battery chargers and 5,500 motor control units, is expected to double its revenue in the current financial year. The company targets an improvement in EBITDA margins by at least 0.25% for existing projects and aims for a post-tax return on capital employed between 15% and 20%.

Financial Metrics

Strategic Initiatives

Sandhar Technologies is focusing on optimizing its overseas operations and expects the Romania subsidiary to reach break-even or profitability by FY28. The company is also working on new technologies in telematics and smart locks, with plans to present products to customers in the current financial year. Management indicated that new projects, including the Sundaram-Clayton Aluminum Business and facilities in Khed City and Pune, are expected to start generating positive EBT margins from Q2 or Q3 FY27.

Sandhar Technologies has outlined an ambitious long-term growth roadmap, targeting revenue of INR 10,000 crores with an estimated profit after tax (PAT) of around INR 450 crores. The company expects revenue to grow over 15% in the current financial year, excluding any price changes, and aims to double its revenue every three to four years. A post-tax return on capital employed of 18% to 20% has been set as a key financial benchmark alongside an 11% EBITDA margin target.

New Project Pipeline Driving Near-Term Growth

Sandhar Technologies has announced plans for new projects worth INR 342 crores, designed to deliver 2X to 2.5X revenue growth from these initiatives. The company is targeting revenues of INR 700-750 crores from these projects by FY '27, compared to INR 468 crores in FY '26. Management has indicated that the bottom line is expected to grow faster than revenue over this period.

The following table summarises the key revenue targets from the new project pipeline:

Margin Outlook and Project Profitability Timeline

On the margin front, Sandhar Technologies expects EBITDA margins to improve by 0.25% to 0.5% for current projects. However, the company has acknowledged that new projects may weigh on overall margins during their initial phases, a typical dynamic during capacity ramp-up periods.

Several new projects are anticipated to reach profitability at distinct milestones, as outlined below:

• Sundaram-Clayton: Expected to turn profitable by Q3 FY27
• Khed City and Sanaswadi facilities: Projected to become profitable by Q2 FY27
• EV Business and Romania Operations: Both expected to achieve profitability by FY28

Long-Term Financial Targets at a Glance

Sandhar Technologies' strategic financial targets reflect a structured approach to scaling operations while maintaining profitability discipline. The company's goal to double revenue every three to four years underpins the INR 10,000 crores long-term target, with profitability metrics anchored by the ~INR 450 crores PAT estimate and 18% to 20% post-tax return on capital employed. The phased profitability timeline across new projects—spanning FY27 to FY28—indicates a deliberate ramp-up strategy as the company expands its footprint across domestic and international operations.