Sandhar Technologies , a leading auto component manufacturer, has set ambitious growth targets and is expanding into new high-margin product segments. The company's Chairman, Managing Director, and CEO, Jayant Davar, recently shared insights into the firm's strategic plans and financial projections.

Double-Digit EBITDA Margins on the Horizon

Sandhar Technologies expects to achieve double-digit EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins by the end of the current financial year. The company anticipates a 50 basis points improvement in its EBITDA margins, signaling enhanced operational efficiency and profitability.

Robust Revenue Growth Projections

Looking ahead, Sandhar Technologies is projecting a substantial 20.00% revenue growth for the fiscal year 2026 (FY26). This optimistic outlook is supported by the company's recent acquisition of Sundaram Clayton's aluminium die-casting business, which is expected to contribute significantly to the top-line growth.

Smart Locks: A Game-Changer for Two-Wheelers

One of the key drivers of Sandhar's growth strategy is its expansion into the smart lock segment for two-wheelers. These innovative locks offer a substantial revenue boost compared to traditional locking systems:

• Revenue per smart lock is eight to ten times higher than conventional locks
• Two major clients have already adopted smart locks as standard equipment

This move into high-value products is expected to positively impact the company's overall profitability.

Business Segment Margins

Sandhar Technologies' various business segments contribute differently to its profit margins:

The company is working on improving margins across all segments to achieve its financial targets.

Financial Targets and Expansion Plans

Sandhar Technologies has set clear financial goals and expansion plans:

• Target: 15.00% return on capital employed for FY26
• Fundraising: Plans to raise approximately Rs 500.00 crore for potential acquisitions

Industry-Beating Growth Expectations

The company is optimistic about its future performance, expecting growth rates to be double the industry average. This ambitious target reflects Sandhar's confidence in its strategic initiatives and market positioning.

As Sandhar Technologies continues to innovate and expand its product portfolio, particularly in the high-margin smart lock segment, the company appears well-positioned to capitalize on the growing demand in the auto component sector. The management's focus on profitability improvement and strategic acquisitions suggests a clear roadmap for achieving its ambitious growth targets in the coming years.

Sandhar Technologies Limited , a prominent player in the automotive components industry, has recently made a strategic move in the renewable energy sector. The company has acquired a 4.51% shareholding in Clean Renewable Energy KK 1A Private Limited, marking its entry into the green energy space.

Acquisition Details

The acquisition was completed through a Share Subscription and Shareholders Agreement (SSSHA) for a total cash consideration of ₹2.72 crore. This move aligns with Sandhar Technologies' efforts to diversify its portfolio and tap into the growing renewable energy market.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Sandhar Technologies Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about this development. The company's Chief Financial Officer & Company Secretary, Yashpal Jain, confirmed the execution of the SSSHA in an official communication.

Background of the Transaction

This acquisition is not an isolated event but part of a series of strategic moves by Sandhar Technologies. The company had previously made intimations regarding this matter, indicating a well-planned approach to this investment.

Implications for Sandhar Technologies

While the 4.51% stake represents a minority holding, it signifies Sandhar Technologies' intent to explore opportunities beyond its core automotive component business. This diversification into the renewable energy sector could potentially open new avenues for growth and align the company with the global shift towards sustainable energy solutions.

Market Response

Investors and market analysts will likely be watching closely to see how this strategic investment impacts Sandhar Technologies' overall business strategy and financial performance in the coming quarters. The renewable energy sector in India has been gaining significant traction, and this move could position Sandhar Technologies to capitalize on the growing demand for clean energy solutions.

As the renewable energy landscape continues to evolve, Sandhar Technologies' entry into this sector through Clean Renewable Energy KK 1A Private Limited will be an interesting development to monitor in the context of the company's long-term growth strategy.