Sandhar Technologies targets INR 10,000 crores revenue with 15% growth
Sandhar Technologies has set a long-term revenue target of INR 10,000 crores with an estimated PAT of INR 450 crores, aiming for 15% revenue growth in the current year. The company plans to double revenue every three to four years, supported by new projects worth INR 342 crores targeting INR 700-750 crores in revenue by FY '27. Key profitability milestones include the Sundaram-Clayton unit turning profitable by Q3 FY27 and the EV business by FY28, while maintaining an 11% EBITDA margin target and an 18-20% post-tax ROCE.
*this image is generated using AI for illustrative purposes only.
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:
| Metric: | Details |
|---|---|
| New Project Investment: | INR 342 crores |
| Revenue Target (FY '26): | INR 468 crores |
| Revenue Target (FY '27): | INR 700-750 crores |
| Revenue Growth Target: | 2X to 2.5X |
| Long-Term Revenue Target: | INR 10,000 crores |
| Estimated PAT (Long-Term): | Around INR 450 crores |
| Post-Tax ROCE Target: | 18% to 20% |
| EBITDA Margin Target: | 11% |
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.
Historical Stock Returns for Sandhar Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.05% | -1.20% | +41.11% | +24.26% | +34.79% | +193.10% |
What strategies will Sandhar Technologies employ to maintain the 11% EBITDA margin target during the initial margin pressure from new project ramp-ups?
How will the company fund the INR 342 crore investment for new projects, and what impact might this have on its debt levels?
What are the key risks associated with the international expansion into Romania, and how does the company plan to mitigate them?
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