Sandhar H1 revenue reaches ₹3,000 crore as reported profit falls

Sandhar Technologies Limited delivered its highest half-year revenue of ₹2,999.57 crore in H1 FY27, up 27% year on year, but reported profit after tax (PAT) fell 8% to ₹93.31 crore because H1 FY26 contained ₹47.77 crore of non-recurring income and the current period included a ₹13.01 crore minimum-wage cost impact.

What drove Sandhar's H1 FY27 revenue growth?

Sandhar's H1 FY27 revenue growth was led by a 27% increase in consolidated revenue from operations to ₹2,999.57 crore, compared with ₹2,360.46 crore in H1 FY26. The company described this as its highest revenue in any half-year, while total income rose to ₹3,018.18 crore from ₹2,369.41 crore as other income increased to ₹18.61 crore from ₹8.95 crore.

The second quarter provided the larger part of the half-year increase. Q2 FY27 revenue reached ₹1,617.68 crore, 27% above ₹1,270.37 crore in Q2 FY26 and above ₹1,381.89 crore in Q1 FY27. Sandhar also called the Q2 revenue figure its highest for any quarter, with quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) rising to ₹143.40 crore from ₹121.37 crore.

Sandhar's India business accounted for ₹2,741.35 crore of H1 FY27 revenue, up 29% from ₹2,120.16 crore in H1 FY26. Within the portfolio, sheet metal and allied revenue was ₹861 crore and grew 31%, while castings, machining and tooling generated ₹765 crore and grew 38%; automotive revenue was ₹686 crore, up 27%. These figures show that the reported consolidated gain extended across multiple operating categories.

Why did Sandhar's reported H1 profit fall despite higher revenue?

Sandhar's reported PAT declined because the previous H1 included gains that did not recur, even as profit before tax (PBT) before joint-venture profit and non-recurring income rose 52% to ₹122.97 crore. Reported PBT was ₹125.45 crore in H1 FY27, below ₹131.99 crore a year earlier, because H1 FY26 included ₹47.77 crore of non-recurring income and H1 FY27 had none.

The prior-period non-recurring income comprised a ₹34.01 crore profit on the sale of land at the Peenya plant and ₹13.76 crore from disinvestment of an equity stake in joint ventures. In contrast, joint-venture profit was lower in H1 FY27 at ₹2.48 crore, compared with ₹3.27 crore in H1 FY26. The comparison therefore separates a 52% increase in underlying pre-tax earnings from an 8% decline in reported PAT.

Management also disclosed that H1 FY27 net profit included a ₹13.01 crore impact from higher minimum wages. Employee benefit expense rose to ₹389.24 crore from ₹303.60 crore, while material cost increased to ₹1,967.78 crore from ₹1,490.48 crore alongside higher sales. Consolidated EBITDA increased ₹51.29 crore, but the EBITDA margin edged down to 8.64% from 8.84%, limiting the conversion of revenue growth into operating profitability.

Which Sandhar businesses affected operating profitability?

Sandhar's running business lifted H1 FY27 PBT by 55.2% to ₹148.06 crore, while its new business recorded a PBT loss of ₹29.05 crore. Running-business revenue grew 26.3% to ₹2,687.86 crore and its EBITDA margin improved to 9.7% from 9.6%. New-business revenue increased faster, by 34.5% to ₹311.71 crore, but its EBITDA moved to a loss of ₹2.42 crore from a ₹5.06 crore profit.

The contrast between the two categories explains why growth in the established business did not fully reach consolidated profit. New business reported an EBITDA margin of negative 0.8% in H1 FY27, versus positive 2.2% in H1 FY26, and a PBT margin of negative 8.0%, versus negative 6.2%. It employed ₹424.97 crore of capital and reported negative 3.72% return on capital employed, not annualised, compared with ₹1,471.17 crore of capital employed in the running business.

Standalone figures require a separate reading because Sandhar restructured its sheet-metal fabrication and die-casting businesses into wholly owned subsidiaries through a slump sale during the year ended March 31, 2026. The transferred businesses had accounted for ₹390 crore of standalone H1 FY26 revenue. On Sandhar's adjusted and restated basis excluding that transferred business from the comparison, standalone H1 revenue rose 28%, EBITDA rose 34% and PBT before non-recurring income rose 50%.

What should investors watch in Sandhar's new projects?

Sandhar has identified five projects that were in initial stages as of September 2026, and their turnaround schedules range from Q3 FY27 to FY28. The Sanaswadi cabins and fabrication project in Pune is scheduled for Q3 FY27, and the acquired casting business at Hosur is expected to turn around in Q4 FY27. The Chennai sheet-metal project, Haryana electric-vehicle powertrain project and Romania seat-belt spool project are each scheduled for FY28.

These projects had ₹540 crore of investment, ₹312 crore of revenue, negative ₹2.42 crore of EBITDA and negative ₹25.09 crore of PBT in the disclosed project overview. Their performance is therefore relevant to the H1 FY27 new-business loss of ₹29.05 crore. The presentation does not provide a group-wide profit target for the projects, but it does disclose their expected turnaround points, creating specific future periods for assessing their progress.

Conclusion

Sandhar's H1 FY27 result combines record revenue of ₹2,999.57 crore with a reported PAT decline to ₹93.31 crore. The central distinction is between underlying pre-tax profit, which rose to ₹122.97 crore before joint-venture profit and non-recurring income, and reported earnings, which faced the absence of ₹47.77 crore of prior-year gains, a lower ₹2.48 crore joint-venture contribution and a ₹13.01 crore wage-cost impact.

The next reported periods should show whether the running business can preserve its 9.7% H1 EBITDA margin while the new-business portfolio moves from its ₹29.05 crore H1 PBT loss toward the disclosed turnaround dates. Sandhar has scheduled the Sanaswadi project for Q3 FY27, the Hosur project for Q4 FY27, and three further projects for FY28, making those milestones the stated measures to watch next.