Sharda Motor reports Q2 FY26 growth, eyes lightweighting and exports

Sharda Motor Industries Limited (SMIL) reported an 11% year-on-year revenue growth to INR787.2 crores for Q2 FY26, with H1 FY26 revenues reaching INR1,543.5 crores, also up 11%. Gross profit for Q2 FY26 stood at INR194.9 crores, a 4% increase, while EBITDA was INR101 crores, a 4% degrowth, with a margin of 12.8%. Profit after tax (PAT) for Q2 FY26 was INR74.7 crores, and H1 FY26 PAT rose to INR174.6 crores from INR155.5 crores in the prior year period.

The company is strategically focusing on scaling its lightweighting vertical, aiming for market share gains and customer acquisition in control arms and links. This strategy is bolstered by a technology license agreement with Donghee Industrial Company Limited, Republic of Korea, which will transfer chassis and suspension technologies, including control arms and subframes. SMIL secured two new lightweighting orders worth $14 million annually and a lifetime value of $70 million, with SOP expected in Q1 FY28.

Export growth remains a key driver, with a new order valued at $4.8 million annually and a lifetime value of $24 million, anticipated to begin SOP in Q4 FY27. The company is exploring M&A opportunities in powertrain-agnostic components and targets global opportunities across CV emission components, tractor and genset emission systems, heat shields, and temperature control pipes, representing a serviceable addressable market of approximately $2 billion.