Sundaram Clayton Limited has executed an agreement to sell 16.381 acres of Chennai land to Canopy Living LLP for ₹560.67 crores, as disclosed under Regulation 30 of SEBI Listing Regulations on January 8, 2026. The transaction represents a significant asset monetization initiative for the company.

Transaction Overview

The company signed the Agreement to Sell (ATS) on January 8, 2026 at 1:15 PM with Canopy Living LLP, a joint venture between Arihant Foundations & Housing Limited and Prestige Estates Projects Limited. The land is situated at Korattur Village, Ambattur Taluk, Chennai District, Tamil Nadu.

Payment Structure and Timeline

Sundaram Clayton Limited has received an advance payment of ₹25.00 crores from Canopy Living LLP. The remaining consideration of ₹535.67 crores will be paid upon execution of the sale deed. The transaction is subject to completion of conditions precedent as agreed between the parties and is expected to be completed on or before February 11, 2026.

Buyer Details and Compliance

Canopy Living LLP, the buyer, is a joint venture between Arihant Foundations & Housing Limited and Prestige Estates Projects Limited. The company has confirmed that Canopy Living LLP does not belong to the promoter, promoter group, or group companies. The transaction does not fall within related party transactions and is not part of any scheme of arrangement.

Strategic Significance

This land divestment provides substantial capital generation for Sundaram Clayton Limited, with the ₹560.67 crores transaction value offering significant liquidity for corporate purposes. The disposal of the Chennai land asset demonstrates the company's strategic optimization of its real estate portfolio in key metropolitan areas.

Sundaram Clayton Limited (SCL), a leading manufacturer of engineered aluminium die-cast components for the automotive sector, has reported a 9% year-on-year growth in EBITDA for the second quarter of fiscal year 2025-26, despite a decline in revenue. The company's financial results highlight its resilience in the face of challenging market conditions and strategic business decisions.

Financial Performance

Quarterly Results

SCL reported the following results for Q2 FY2025-26:

The company attributes part of this revenue decline to the sale of its 2W casting business in Hosur during Q4 FY2024-25. Despite the lower revenue, SCL's ability to improve its EBITDA demonstrates effective cost management and operational efficiency.

Half-Year Performance

For the half-year ended September 2025, SCL's financial results show:

The half-yearly figures further underscore SCL's ability to enhance profitability despite revenue challenges.

Market Overview and Operations

Domestic Market

The Indian automotive market shows promising signs for the second half of FY2025-26:

• Commercial Vehicle (CV) and Passenger Vehicle (PV) segments are expected to maintain growth momentum.
• Recent GST rate reductions are anticipated to boost overall demand.
• These factors contribute to a positive industry outlook in the domestic market.

Export Market

The North American automotive market, an important export destination for SCL, faces some headwinds:

• The market remains subdued due to ongoing tariff uncertainties in the United States.
• This situation may impact production schedules in the near term.

Operational Highlights

SCL's operations have received notable recognition:

• The company's state-of-the-art mega die-casting smart factory in Thervoy Kandigai Plant (TKP), Chennai, has garnered appreciation from customers for its logical flow and operational efficiency.
• SCL has been awarded by customers for its cost management and safety practices.
• The company received the Prithvi Award from the ESG Research Foundation, New Delhi.
• SCL also won the STAR Award for ESG practices from the Honorable Minister of Labor Welfare & Skill Development, Tamil Nadu.

USA Operations

In the United States, SCL is strategically positioned:

• The company remains a trusted partner to its customers.
• With a focus on local manufacturing, SCL is well-placed to leverage domestic growth opportunities in the USA over the long term.
• The company continues to engage closely with customers and launch new products.

Conclusion

Sundaram Clayton Limited's Q2 FY2025-26 results demonstrate the company's ability to improve profitability despite revenue challenges. The 9% growth in EBITDA, coupled with operational recognitions and strategic positioning in both domestic and international markets, indicates SCL's resilience and adaptability in a dynamic automotive component sector. As the company continues to focus on efficiency, innovation, and sustainability, it appears well-equipped to navigate the evolving landscape of the automotive industry.