Sharda Motor Industries Limited has delivered strong financial results for the third quarter ended December 31, 2025, demonstrating robust growth across key performance metrics. The auto component manufacturer reported significant revenue expansion and maintained healthy profitability despite facing some exceptional charges during the quarter.

Strong Revenue Performance

The company achieved impressive top-line growth with revenue from operations reaching ₹88,155.02 lakh in Q3FY26, marking a substantial 27.8% increase compared to ₹68,999.47 lakh in Q3FY25. This growth momentum was supported by strong demand across the company's product portfolio and effective market positioning.

Profitability Analysis

Despite facing exceptional charges of ₹446.13 lakh related to employee benefit provisions, the company maintained solid profitability. Net profit for Q3FY26 stood at ₹8,013.01 lakh, representing a 7.2% increase from ₹7,472.02 lakh in the corresponding quarter of the previous year. The company's profit from operations before exceptional items and tax reached ₹11,041.90 lakh, up 10.4% year-on-year.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company demonstrated consistent growth with revenue from operations increasing 16.2% to ₹2,42,500.75 lakh from ₹2,08,671.69 lakh in the previous year. Nine-month net profit grew 10.7% to ₹25,462.54 lakh, reflecting the company's ability to maintain margin discipline while scaling operations.

Manufacturing Expansion Initiative

The company announced plans to establish a new manufacturing unit in Haridwar, Uttarakhand, representing a significant capacity expansion initiative. The facility will add 1,50,000 sets per annum to the company's production capacity, with modular design allowing for future augmentation with limited capital expenditure.

Major New Order Wins

The company has secured significant new orders across its business verticals, strengthening its growth trajectory. These orders span emission control systems, lightweighting solutions, and global business segments, with combined lifetime value exceeding $200 million.

Strategic Business Expansion

Sharda Motor has strengthened its lightweighting vertical through a technology licensing agreement with Donghee Industrial Co. Ltd., South Korea. This partnership expands the company's suspension portfolio to include control arms, links, subframes, and torsion beams, increasing content per vehicle from the current ₹2,000-8,000 to ₹6,000-18,000.

Conference Call Recording Available

Following the investor and analyst conference call held on February 09, 2026, at 05:00 P.M. (IST) to discuss the Q3FY26 financial performance, the company has made the audio recording available on its website. The recording provides detailed insights into the operational and financial performance for the quarter ended December 31, 2025.

Exceptional Items Impact

The quarter included exceptional charges of ₹446.13 lakh primarily related to employee benefit provisions arising from new Labour Code implementations. These provisions covered gratuity revisions of ₹367.76 lakh and long-term compensated absences of ₹78.37 lakh, reflecting the company's proactive approach to regulatory compliance.

Sharda Motor Industries Limited has announced a restructuring of its senior management personnel effective January 31, 2026, as part of broader organizational changes. The company communicated this development to BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Organizational Structure Changes

The restructuring affects the classification of senior management personnel within the company's reporting hierarchy. Due to changes in the organizational structure, two employees who were previously identified as Senior Management Personnel (SMP) will no longer fall under this definition as per Regulation 16(1)(d) of SEBI Listing Regulations.

Personnel Affected by Restructuring

The following table outlines the employees impacted by the organizational changes:

Both employees ceased to be classified as Senior Management Personnel with effect from the closure of business hours on January 31, 2026. However, the company emphasized that there is no cessation of employment, and both individuals will continue working under the new reporting structure.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company provided detailed information as required under these regulations, including the reason for change, effective date, and confirmation that both employees remain with the organization.

Company Communication

The formal communication was signed by Iti Goyal, Assistant Company Secretary & Compliance Officer, and submitted to both stock exchanges where the company is listed. Sharda Motor Industries trades on BSE with scrip code 535602 and on NSE with the symbol SHARDAMOTR in the equity series.

This restructuring represents an internal organizational optimization while maintaining continuity in key personnel roles within the company's operational framework.