Sandhar technologies has announced the withdrawal of credit ratings by ICRA Limited for its long-term fund-based facilities totaling Rs. 735.00 crore. The company informed stock exchanges on March 11, 2026, that the withdrawal was made at its own request under Regulation 30 of SEBI listing requirements.

Credit Rating Withdrawal Details

ICRA's Rating Committee has withdrawn ratings for two categories of financial instruments. The withdrawal covers long-term fund-based term loans of Rs. 150.00 crore that carried an [ICRA]AA-(Stable) rating. Additionally, long-term and short-term fund-based working capital facilities worth Rs. 585.00 crore, which held [ICRA]AA-(Stable)/[ICRA]A1+ ratings, have also been withdrawn.

Company's Position on Ratings

Sandhar Technologies has emphasized that while ICRA ratings have been withdrawn, the company maintains valid credit ratings from India Ratings & Research. The withdrawal was processed in accordance with ICRA's policy on rating withdrawal, as confirmed by ICRA's Vice President and Co-Group Head for Corporate Ratings, Anupama Reddy.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about the rating withdrawal. Yashpal Jain, Chief Financial Officer and Company Secretary, signed the regulatory filing that included copies of ICRA's withdrawal letter for exchange records.

ICRA's Communication

ICRA Limited has expressed willingness to participate in rating any future borrowing programs of Sandhar Technologies. The rating agency processed the withdrawal request through its formal Rating Committee procedures, maintaining standard protocols for such corporate actions.

Sandhar Technologies Limited held its Q3 FY26 earnings conference call on February 16, 2026, showcasing robust performance amid favorable market conditions in the Indian automotive sector. Executive Chairman and CEO Jayant Davar highlighted the company's strong quarterly results and positive industry outlook during the investor interaction.

Strong Financial Performance Across Operations

The company reported impressive growth metrics across its business segments during the quarter. Revenue from operations grew by 24% in Q3, while the 9-month period registered 26% growth, reflecting strong underlying demand.

The existing business segment demonstrated particularly strong performance with revenue growth of 14.5% and significant margin expansion. EBITDA margins improved from 10.5% to 11.9%, while the annualized Return on Capital Employed (ROCE) increased substantially from 16.3% to 21.1%.

Automotive Industry Momentum Drives Growth

Management emphasized the favorable industry environment, citing record-breaking Q3 sales across all major vehicle segments. The passenger vehicle segment achieved its highest-ever Q3 sales of 12.76 lakhs, while 2-wheelers posted record Q3 numbers of 5.7 million units. Commercial vehicles and 3-wheelers also registered their best-ever Q3 performance at 2.90 lakhs and 2.15 lakh units respectively.

"2025 has been a landmark year for the Indian auto industry," noted Davar, explaining that while the year began subdued, momentum picked up significantly in the third quarter. This industry strength translated directly into increased demand for Sandhar's automotive components.

Joint Ventures and New Business Initiatives

The company's five joint ventures performed satisfactorily, generating combined revenue of INR61.69 crores and total EBITDA of INR7.40 crores for Q3. For the 9-month period, joint venture EBITDA reached INR21 crores.

New projects showed dramatic improvement, with revenue increasing from INR2.74 crores to INR305 crores in the 9-month period. The EBITDA for new projects moved from negative territory into positive, indicating successful ramp-up of recently acquired and established operations.

Overseas Operations Restructuring Shows Promise

While overseas subsidiaries faced challenges with slight revenue decline, the company implemented comprehensive operational and financial restructuring measures. Losses were reduced to INR8 crores in Q3 FY26 compared to INR11 crores in Q3 FY25.

CFO Yashpal Jain explained that the company has taken effective measures to improve operational efficiency and expand the customer base. "Starting Q4 of the current financial year and Q1 of the next financial year, this would be turning to positive," Jain stated, expressing confidence in the turnaround strategy.

EV Business and Future Outlook

The company's electric vehicle segment began commercial invoicing of battery chargers and motor controllers, generating revenue of 12.18% which represents multiple times the previous year's performance. Management expects significant improvement in EV business performance in the coming full year as operations become fully operational.

Looking ahead, management expressed optimism about the immediate quarter and the next financial year. The company expects the current quarter to be particularly strong for the auto component industry, with positive momentum continuing into the first quarter of the next financial year. The combination of improved existing operations, turnaround in overseas business, and ramp-up of new projects positions Sandhar Technologies for sustained growth in the coming periods.