Sandhar Technologies anticipates strong growth, margin recovery by fiscal 2026

Sandhar Technologies Limited reported a consolidated revenue growth of 29% in Q2 FY26, with operational EBITDA up 19% and operational PAT increasing by 15%. The Indian business specifically saw revenue from operations grow by 33%, with operational EBITDA up 24% and PAT up 28%. Despite these gains, overall EBITDA margins were impacted by new projects, including the acquisition of Sundaram-Clayton and new plants in Pune and South India, which resulted in a negative impact of INR11.21 crores on profitability.

The company's five joint ventures performed satisfactorily, registering a revenue growth of 68.57% (calculated at 50% partnership) and are now all PAT positive. Sandhar expects to achieve INR15 crores in EV-related business for FY26 and anticipates improved profitability in its overseas business, which is undergoing consolidation and expense control, with margins expected to return to 12.5%-13%.

Sandhar aims for a return on capital employed (ROCE) of 18% pre-tax. They project full production for key new projects by April 2026, including Pune die casting and cabins/fabrication. The company plans to maintain capital expenditure around INR300 crores for the current year, primarily for new projects and facility upgrades, while targeting a double-digit EBITDA margin by March 2026.