SUNDRMFAST Q3 FY26 earnings call.
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Revenue
₹1,541 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
screener in
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Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sundram Fasteners reported Q3 FY26 revenue of INR 1,359 crore with PAT of INR 128 crore (up from INR 120 crore YoY on comparable basis), supported by 18% domestic growth offsetting export weakness. The domestic OE and aftermarket business performed strongly across CV, car, and tractor segments. Exports declined to ~23% of revenue (vs historical 30-33%) due to 25-50% tariff impact on iron and steel products in North America. EBITDA margin stood at 17.3% for 9M, with management targeting 18% as an intermediate goal. Non-auto segment (wind energy, aerospace, railways) comprises 38% of revenue, with wind energy scaling from INR 200 crore to INR 350 crore annualized and targeting INR 500 crore. EV order ramp-up is delayed to H2 FY27. Management guided for double-digit revenue growth and INR 250 crore CapEx for FY27, with new RFQs in final stages and wallet share gains with existing OEM customers. Risks include tariff-related margin pressure, EV program postponements, and subdued export recovery trajectory.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects EBITDA margin to move towards 18% in the intermediate term, driven by export recovery, wind energy operating leverage, and aerospace ramp-up. Current 9M margin is 17.3%.
- Management indicated they would not look at growth lower than double digits for FY27. With industry growth projected at 8-10% for CVs and tractors, management targets outperformance of ~200bps.
- Approximately INR 250 crore annual CapEx planned for FY27, with ~30% being replacement CapEx and ~65-70% directly adding to revenue capacity.
- EV project programs have been postponed; currently seeing trickle in ICE segment. EV ramp expected to start in second half of FY27 per customer indications.
Risks flagged
- US tariffs of 25-50% on iron and steel products have started impacting contribution margins. Management acknowledged ~INR 9-12 crore hit in Q3 attributable to tariffs. Recovery expected gradual, quarter-over-quarter.
- EV programs with North American OEM customer have been deferred. While project completion is done and capacity is in place, volume ramp is pushed to H2 FY27. Management is exploring alternate customers for capacity utilization.
- Analyst raised concern about export decline to 23% of revenue vs historical 30-33%. North America comprises 60-62% of exports and remains under strain. Diversification to Europe (Poland, Romania, Sweden, UK) is in progress but not yet material.
- China subsidiary faces capacity-related pricing pressure despite recovery in construction equipment and CV segments. Management flagged this as an ongoing concern while acknowledging some uptick in business momentum.
Key quotes
- While it appears to be a flat number, one should see it in the context of PBT before exceptional item, where the growth has been from INR 153 crore in corresponding quarter to INR 174 crore.
- On the margins front, we have already moved from the 16% odd to 17% plus... we are directly going towards 18%. That's the broad guidance I can give you at this point.
- The wind energy business... scaled up nicely, and the operating leverage is kicking in there.
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