Sundram Fasteners Limited has received a rating reaffirmation from CRISIL Ratings Limited for its short-term financial instruments. The credit rating agency has maintained its A1+ rating for both the company's short-term debt and commercial paper, signaling continued confidence in the auto ancillary manufacturer's financial stability and creditworthiness.

Rating Details and Instruments

CRISIL Ratings Limited communicated the rating reaffirmation through official letters dated January 14, 2026. The rating agency has maintained its assessment across key short-term funding instruments used by the company for its operational and working capital requirements.

The A1+ rating represents the highest grade for short-term instruments, indicating very strong degree of safety regarding timely payment of financial obligations. This rating reflects the company's robust financial profile and strong liquidity position.

Regulatory Compliance and Disclosure

The company has fulfilled its regulatory obligations by promptly disclosing this development to both the National Stock Exchange of India Limited and BSE Limited. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material events and developments.

Sundram Fasteners trades on NSE under the symbol SUNDRMFAST and on BSE with scrip code 500403. The company's proactive communication demonstrates its commitment to maintaining transparency with investors and regulatory authorities.

Company Profile and Market Position

Sundram Fasteners Limited, incorporated in 1962, operates as a leading manufacturer in the auto ancillaries sector. The company maintains its registered and corporate office in Chennai, with comprehensive operations across the automotive components manufacturing space. The rating reaffirmation supports the company's access to short-term funding markets and reinforces its financial credibility among lenders and investors.

The communication was signed by G Anand Babu, Senior Manager-Finance & Company Secretary, ensuring proper authorization and documentation of this material disclosure to the investment community.

Sundram Fasteners , a leading auto component manufacturer, has reported its highest-ever half-year profit after tax of Rs 278.00 crores on revenue of Rs 2,723.00 crores for the first half of FY 2026. The company's strong performance was primarily driven by robust growth in the domestic market, despite moderation in exports.

Domestic Growth and Export Moderation

The company witnessed a 12% growth in its domestic segment during the quarter. However, exports moderated to Rs 338.00 crores from Rs 389.00 crores in the corresponding quarter of the previous year. The domestic business mix comprises 58% OE (Original Equipment), 12-13% aftermarket, and 26-27% exports.

Financial Highlights

The company's EBITDA stood at 18.00% for the quarter, with quarterly profit reaching a record Rs 140.00 crores. For the half-year, EBITDA margin improved to 17.70% compared to 17.20% in the corresponding period last year.

Factors Contributing to Performance

1. Currency Depreciation: The company benefited from rupee depreciation, with the USD-INR rate moving from Rs 85.40 to Rs 88.40 during the period.

2. Raw Material Prices: Softening of raw material prices, particularly in boron steel and alloy steel, led to gross margins exceeding 60%.

3. Product Mix and Cost Control: Better product mix and control over stores and tools expenses contributed to improved margins.

4. Wind Energy Segment: The wind energy segment showed 30-35% growth and now contributes 4% of domestic sales.

Segment-wise Performance

• Commercial Vehicles: Growth primarily came from light and medium commercial vehicles, while the heavy commercial vehicle segment remained muted.
• Passenger Vehicles: The company gained market share in this segment, particularly with new business acquisitions.
• Tractors: Strong performance in the tractor segment, where Sundram Fasteners has an 80-90% market share with existing customers.
• Non-Auto Segment: Currently at 37% of overall revenue, including tractors, wind energy fasteners, and aerospace fasteners.

Future Outlook

Management expects recovery in export markets within 6 months, with customers indicating preparation for ramp-up in upcoming quarters. The company is targeting a double-digit CAGR growth going forward.

Mr. R. Dilip Kumar, Chief Financial Officer of Sundram Fasteners, commented, "We are pleased with our performance in the domestic market and are optimistic about the recovery in our export markets. Our diversified presence and ongoing customer engagements position us well for future growth."

The company continues to focus on expanding its non-auto segment, particularly in wind energy fasteners and aerospace applications. With the domestic outlook remaining strong and potential export revival in Q4 and Q1 of the next fiscal year, Sundram Fasteners is poised for continued growth in the coming quarters.

Electric Vehicle (EV) Segment

While some EV programs from major customers are being deferred due to market conditions, Sundram Fasteners remains prepared for future growth in this segment. Currently, EV-related revenue contributes about 5-6% to the company's total revenue, with potential for growth as more dedicated EV platforms are developed.

As the auto component industry navigates through changing market dynamics and technological shifts, Sundram Fasteners' strong performance and strategic positioning in both traditional and emerging segments underscore its resilience and growth potential in the evolving automotive landscape.