Sandhar’s ₹540 crore projects target turnarounds by FY-28

Sandhar Technologies Limited has ₹540 crore invested in five initial-stage projects that generated ₹312 crore of revenue and a ₹25.09 crore profit before tax (PBT) loss in YTD Sept’26; Sandhar targets turnarounds at Pune in Q3 FY-27, Hosur in Q4 FY-27, and Chennai, Haryana and Romania in FY-28.

What are Sandhar’s five early-stage projects?

Sandhar’s five early-stage projects are the acquired SCL casting business in Hosur, Sanaswadi cabins and fabrication in Pune, sheet-metal parts in Oragadam, an electric-vehicle powertrain business in Haryana, and seat-belt spools in Romania. The YTD Sept’26 project overview identifies all five as being in their initial stages.

The Hosur project is operated by Sandhar Acast Pvt Ltd and makes aluminium die casting through high-pressure die casting and low-pressure die casting. The Pune fabrication operation is under Sandhar Technologies Ltd, while the Chennai sheet-metal project is operated by Sandhar Engineering Pvt Ltd; the Haryana EV business and Romania spool operation are held by Sandhar Auto Electric Solutions Pvt Ltd and Sandhar Technologies Ro SRL, respectively.

Romania is the only overseas project in the five-project group, while the other four are in India. Overseas subsidiaries represented 8.6% of consolidated revenue in H1 FY 27, compared with 42.8% for Indian subsidiaries and 48.6% for the standalone business.

How much are Sandhar’s five projects losing?

Sandhar reported ₹540 crore of investment, ₹312 crore of revenue, a ₹2.42 crore earnings before interest, tax, depreciation and amortisation (EBITDA) loss, and a ₹25.09 crore PBT loss across the five projects in YTD Sept’26. The aggregate figures show that the projects had started generating revenue but remained loss-making at both EBITDA and PBT levels.

The five-project PBT loss of ₹25.09 crore was close to the ₹29.05 crore PBT loss reported by the wider New Business segment in H1 FY 27. New Business revenue increased 34.5% year on year to ₹311.71 crore from ₹231.73 crore, but EBITDA changed from a ₹5.06 crore profit to a ₹2.42 crore loss.

The project investment and New Business capital-employed figures are separately disclosed measures and are not directly interchangeable. New Business reported negative 3.72% return on capital employed, not annualised, on ₹424.97 crore of capital employed, versus 11.87% for the running business on ₹1,471.17 crore.

The running business recorded a contrasting H1 FY 27 performance, with revenue up 26.3% to ₹2,687.86 crore and EBITDA up 28.8% to ₹263.15 crore. Its EBITDA margin was 9.7%, compared with negative 0.8% for New Business, while running-business PBT rose 55.2% to ₹148.06 crore.

When does Sandhar expect each project to turn around?

Sandhar targets a Q3 FY-27 turnaround at the Pune Sanaswadi cabins and fabrication project and a Q4 FY-27 turnaround for the acquired Hosur casting business. Chennai sheet metal, Haryana EV powertrain and Romania seat-belt spools are each assigned an FY-28 turnaround timeline.

The disclosed sequence places two targets in FY-27 and three in FY-28. Sandhar does not define whether a turnaround means positive EBITDA, PBT, cash generation or another measure, and the presentation does not provide site-level revenue, margin or investment targets for these dates.

The targets follow a weaker interim margin comparison for New Business: its EBITDA margin moved to negative 0.8% in H1 FY 27 from positive 2.2% in H1 FY 26. Its PBT margin moved to negative 8.0% from negative 6.2%, while the running business PBT margin increased to 5.5% from 4.5%.

Consolidated PBT, including the running and New Business segments, increased 51.9% to ₹122.97 crore in H1 FY 27 from ₹80.95 crore in H1 FY 26. Reported profit after tax declined 8.0% to ₹93.31 crore because H1 FY 26 included ₹47.77 crore of non-recurring income, while H1 FY 27 reported none.

What milestones are scheduled at Sandhar’s Hosur and Chennai sites?

Sandhar has started trial runs at its Hosur aluminium die-casting facility in Avigna Industrial Park and targets relocation in Mar’27 followed by mass production in Apr’27. The facility had received 2,000 kilovolt-amperes of power, with the remaining 2,000 kilovolt-amperes expected by Jan’27.

The Hosur operation is described as one of Sandhar’s largest casting facilities and has a Q4 FY-27 turnaround target. The presentation does not disclose capacity, production volumes, customer programmes or sales targets for the site despite the planned Apr’27 start of mass production.

At Oragadam, Chennai, Phase I of the sheet-metal fabricated-parts project has started and Phase II is expected to start by Mar’27. Its FY-28 turnaround target is later than the planned Phase II start, unlike the Pune and Hosur targets in Q3 FY-27 and Q4 FY-27.

The related product categories had differing H1 FY 27 revenue shares. Aluminium die casting accounted for 33.4% of consolidated revenue, up from 32.4% in H1 FY 26, and sheet metal represented 18.9%, up from 18.1%; cabins and fabrication represented 9.8%, down from 11.2%.

Conclusion

The five-project programme combines ₹540 crore of investment with ₹312 crore of YTD Sept’26 revenue, but it recorded a ₹2.42 crore EBITDA loss and a ₹25.09 crore PBT loss. The losses sit within a New Business segment that grew revenue 34.5% in H1 FY 27, while the established running business generated ₹148.06 crore of PBT.

The next disclosed milestones are the Pune Q3 FY-27 turnaround target, the remaining 2,000 kilovolt-amperes of Hosur power by Jan’27, Hosur relocation in Mar’27 and mass production in Apr’27, and Chennai Phase II by Mar’27. Sandhar’s FY-28 targets for Chennai, Haryana and Romania remain the subsequent measure of progress because no project-level profitability definition or financial goal has been disclosed.