Sharda Motor FY26 net profit rises 10%; revenue up 20%
Sharda Motor Industries Limited reported a 10% year-on-year increase in net profit to ₹345.4 crore for FY26, driven by a 20% rise in revenue to ₹3,396.8 crore. The Board recommended a final dividend of ₹20 per share. The company highlighted growth in its lightweighting vertical, which now holds a 14% market share, and secured new export orders worth $2 million annually from a global agricultural equipment OEM. For FY27, capex guidance is set between ₹90 crore and ₹110 crore.
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Sharda Motor Industries Limited has reported a 10% year-on-year increase in net profit to ₹345.4 crore for the fiscal year ended March 31, 2026, driven by a 20% rise in revenue to ₹3,396.8 crore. The Board of Directors has recommended a final dividend of ₹20 per equity share, subject to shareholder approval. The company provided detailed business updates during its earnings conference call, highlighting growth in its lightweighting vertical and new export orders.
Consolidated Financial Performance
For the full year FY26, the company reported total revenues of ₹3,396.8 crore, a 20% increase over the previous year. Gross profit stood at ₹802.8 crore, up 8% year-on-year, while EBITDA rose 6% to ₹419.1 crore. Profit before tax for the period was ₹459 crore, which included an exceptional gain of ₹22.41 crore on the sale of an industrial parcel and an exceptional loss of ₹4.26 crore related to new Labour codes.
In the fourth quarter of FY26, consolidated revenue grew 30% year-on-year to ₹971.8 crore. Net profit for the quarter increased to ₹89.4 crore from ₹83.9 crore in the corresponding period of the previous year. EBITDA for the quarter stood at ₹112.9 crore with a margin of 11.6%, compared to 13.4% in Q4 FY25.
| Metric | FY26 | FY25 | Change (YoY) |
|---|---|---|---|
| Total Revenues | ₹3,396.8 crore | ₹2,836.6 crore | ↑ 20% |
| Net Profit | ₹345.4 crore | ₹314.9 crore | ↑ 10% |
| EBITDA | ₹419.1 crore | - | ↑ 6% |
Business Updates and Outlook
Management highlighted that the Indian automobile industry witnessed broad-based growth in FY26, supported by GST rate reductions and lower financing costs. Sharda Motor's lightweighting vertical, comprising approximately 10% of gross sales, saw its market share increase to 14% in FY26 and is expected to rise further in FY27 and FY28 based on booked orders.
The company announced a new export order from a leading global agricultural equipment OEM for supplies to Europe, with an annual value of approximately $2 million and a lifetime value of $10 million. Start of production (SOP) is scheduled for Q1 FY28. Additionally, SOP for a North American engine and genset manufacturer has been moved to Q3 FY27.
Capital Expenditure and Dividend
The Board has recommended a final dividend of ₹20 per equity share of face value ₹2 each, equivalent to 1000% of the face value, for the financial year 2025-26. For FY27, the company has provided a capex guidance of ₹90 crore to ₹110 crore, primarily for augmenting R&D capabilities in lightweighting and readiness for new emission norms. Investments in new facilities will be additional to this guidance.
Historical Stock Returns for Sharda Motor
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.03% | -3.64% | -8.03% | -15.39% | -14.42% | +297.67% |
How will the planned ₹90-110 crore capex for FY27 specifically impact R&D capabilities and time-to-market for new lightweighting products?
What are the expected margin contributions from the new European and North American export orders once production begins in FY27 and FY28?
Can the company sustain the current revenue growth momentum in FY27 despite the pressure from new Labour codes and potential changes in financing costs?
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