Sharda Motor Industries LimitedAutomobilesSHARDAMOTR
Q1 FY27 concall · earnings callSharda Motor Industries Limited
The company reported revenue growth of 34% and is progressing on its strategic priorities of lightweighting, exports, and emission adjacencies, despite a one-time impact on gross profit.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹1,011.1 Cr | 34% | |
| Gross Profit | ₹203.9 Cr | 8% | |
| EBITDA | ₹103.2 Cr | 5% | |
| EBITDA Margin | 10.2% | — | |
| Profit Before Tax (before exceptional items) | ₹115 Cr | — | |
| Profit After Tax | ₹86.5 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹689.99 Cr+0.1% YoY-3% QoQ | ₹75.44 Cr-0.7% YoY-4.2% QoQ | ₹25.63+0.3% YoY-6.4% QoQ |
| Q2 FY25 | ₹711.29 Cr-6.7% YoY+3.8% QoQ | ₹78.71 Cr-1.7% YoY+2.4% QoQ | ₹27.39+1.7% YoY+5.8% QoQ |
| Q1 FY25 | ₹685.43 Cr+4.8% YoY-2.6% QoQ | ₹76.83 Cr+39.1% YoY-13% QoQ | ₹25.90+39.5% YoY-12.8% QoQ |
| Q4 FY24 | ₹703.39 Cr+2.2% YoY+2.1% QoQ | ₹88.30 Cr+42.3% YoY+16.2% QoQ | ₹29.70+42.2% YoY+16.2% QoQ |
| Q3 FY24 | ₹689.12 Cr+0.5% YoY-9.6% QoQ | ₹75.97 Cr+63.8% YoY-5.2% QoQ | ₹25.55+63.8% YoY-5.2% QoQ |
TL;DR
- Consolidated revenue grew 34% year-on-year to INR 1,011.1 crores.
- Gross profit grew 8% year-on-year to INR 203.9 crores, impacted by a supplier fire at a key customer and premium raw material procurement.
- EBITDA grew 5% to INR 103.2 crores with a margin of 10.2%.
- Progress made on lightweighting orders, export SOPs, and temperature-controlled tube business ramp-up.
- Management confident in long-term opportunity, balancing growth with disciplined execution.
Said on the call
“Our strategy is therefore not dependent on any single powertrain technology. Instead, it is to build capabilities that enable us to participate across this multi-powertrain landscape, while simultaneously creating a powertrain agnostic product portfolio.”
From the Q&A
| Topic | What management said |
|---|---|
| Export Order Book and Ramp-up | Management declined to quantify revenue from new export orders for FY27/FY28, stating it depends on customer schedules, but confirmed SOPs are on track for Q3/Q4 FY27 and ramp-ups typically take a year or a couple of years to reach peak volumes. |
| Gross Profit and Raw Material Impact | Clarified that steel and catalyst substrate prices are largely passed through with no significant lag, so there is no major under-recovery; the 8% gross profit growth already includes a one-time impact from premium raw material procurement due to geopolitical issues. |
| Growth vs. Industry | Stated that after adjusting for the addressable market (8-10% growth) and a production impact from a supplier fire, the company's 8% gross profit growth is in line with the industry; future growth will come from announced order ramp-ups, RFQ conversions, and organic industry growth. |
| Donghee Technology Collaboration | Reported progress: jointly showcased products to key OEMs, generating RFQ opportunities; the aim is to build a leadership position in a broader lightweighting portfolio estimated at INR 8,000-9,000 crores in 5 years, targeting a mid-to-high-teen market share. |
| Emission Standards (BS6.3, BS7, CAFE III) | Explained that BS6.3/WLTP may not require full redesign but focuses on catalyst efficiency; BS7 (not yet notified) could increase content in hot/aftertreatment systems; CAFE III promotes multiple technologies (CNG, hybrid, flex fuel) which require engineered emission systems, benefiting both emission and lightweighting portfolios. |
| Export Pipeline for Emission Components | Stated the export strategy focuses on CV emission components, temperature-controlled tubes, genset components, and small agri/genset exhaust systems; opportunities will come from organic growth, regulatory transitions, and China Plus One strategies, not just one trigger. |
| Expansion into Premium 2-Wheelers | Confirmed the company is exploring the domestic premium 2-wheeler emission market, leveraging its engineered emission system capabilities, as it aligns with customer requirements and long-term visibility. |
| Purem Joint Venture | A new program in the JV started in Q4 FY26 and will ramp up during FY27; the JV provides technology access for the CV segment above 4 liters, and the company is evaluating options to participate more deeply in this lucrative segment. |
Guidance
- The key contributors to FY27 growth include the full year benefits of previously announced lightweighting orders, ramp-up of additional lightweighting programs, the temperature-controlled tube adjacencies, SOPs of North American export orders and the supportive outlook for domestic OEM volumes.
- The exact quarterly trajectory will remain linked to customer production schedule, SOP and the program ramp-up.
Source
Summary written from the transcript filed by Sharda Motor Industries Limited for the call held on 11 Aug 2026; published 18 Aug 2026, 21:15 IST.
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