Sundram Fasteners (SUNDRMFAST) Q3 25/26 earnings summary

Executive summary

• Standalone revenue for the quarter ended December 31, 2025, was Rs 1,359.86 crores, up from Rs 1,256.58 crores year-over-year, with domestic sales growing 18% and export sales declining due to tariff pressures.

• Standalone profit after tax for the quarter was Rs 121.88 crores, compared to Rs 120.36 crores in the prior year; nine-month PAT stood at Rs 400.50 crores, up from Rs 382.64 crores YoY.

• Consolidated total revenue for the nine months ended December 31, 2025, was Rs 4,648.32 crores, with profit after tax at Rs 431.49 crores.

• EBITDA margin for nine months was 17.3%, trending towards 18%, with stable raw material costs and improved gross margins at the RMC stage above 60%.

• One-time labour code provision of Rs 11.02 crores impacted quarterly profit.

Financial highlights

• Domestic revenue grew 18% YoY in Q3; export sales for the quarter were Rs 308.41 crores, down from Rs 362.79 crores YoY, now comprising 23-25% of revenue.

• Standalone EBITDA margin for FY 2024-25 was 16.5%; nine-month margin at 17.3%.

• Borrowings reduced due to better working capital and lower inventory.

• Standalone earnings per share for the quarter was Rs 5.80, up from Rs 5.73 YoY.

• CapEx of Rs 217.92 crores incurred in the nine months ended December 31, 2025.

Outlook and guidance

• Targeting double-digit revenue growth for FY27, with a minimum of 10% and potential to outperform industry growth by 2%.

• Margin guidance is to reach 18% EBITDA, with potential to cross this as exports recover and high-margin businesses expand.

• CapEx planned at Rs 250 crores for FY27, with 30% for replacement and the rest for growth; FY26 CapEx to close at Rs 350 crores.

• EV business expected to see meaningful ramp-up in the second half of FY27.

• The company continues to monitor regulatory developments regarding the new Labour Codes.