Sandhar Technologies Q1 FY27: Record revenue, margin pressure, and a busy project pipeline

Sandhar Technologies Limited reported its highest ever quarterly revenue in Q1 FY27. Consolidated revenue from operations rose to 1,381.89 crore, up 26.77 percent year on year. EBITDA increased 15.23 percent to 117.33 crore, while profit after tax grew 33.14 percent to 37.28 crore.

The quarter, however, also showed visible cost pressure. Consolidated EBITDA margin moderated to 8.49 percent from 9.34 percent in the same quarter last year. The company attributed part of the pressure to specific headwinds: minimum wages impact of 5.84 crore in Haryana and Uttarakhand, an energy cost impact of 7.50 crore, and start-up losses from new projects that are yet to reach stable volumes.

The revenue mix: two-wheelers dominate, castings lead products

Sandhar’s consolidated revenue base remains strongly linked to two-wheelers. In the category mix for Q1 FY27, two-wheelers contributed 69.5 percent of revenue, up from 66.1 percent in Q1 FY26. Passenger vehicles formed 11.5 percent, while off-highway vehicles contributed 10.6 percent and others 8.4 percent.

On a product basis, aluminium die casting continued to be the largest line. In Q1 FY27, ADC formed 34.4 percent of consolidated revenue. Locking systems at 17.2 percent and sheet metal at 18.6 percent were the next two meaningful contributors, while cabins and fabrication contributed 10.2 percent.

A geographic snapshot shows a consolidated structure that is split across the listed standalone company and its subsidiaries. For Q1 FY27, standalone accounted for 48.2 percent of revenue, Indian subsidiaries 42.5 percent, and overseas subsidiaries 9.3 percent.

India: core business growth is strong, but new projects dilute near-term profitability

The presentation helps separate the operating picture by providing India performance excluding new projects. This is useful because the company has several ramp-up initiatives that are still in initial stages.

For India operations excluding new projects, revenue rose 29.3 percent year on year to 1,122.71 crore. EBITDA increased 8.6 percent to 101.89 crore and profit before tax increased 19.7 percent to 62.63 crore. The margin, however, declined, with EBITDA margin at 9.1 percent versus 10.8 percent in Q1 FY26.

The drag is more visible in the new projects bucket. Sandhar disclosed that India new projects are in initial stages and have not yet achieved volumes. For Q1 FY27, new projects reported investment of 341 crore, revenue of 130 crore, EBITDA of 0.88 crore, and PBT of minus 7.41 crore.

This also explains why consolidated profitability needs to be read alongside execution updates. A record revenue quarter can still carry a margin penalty when multiple plants or business lines are in ramp-up mode.

New facilities and expansion timelines: Hosur ADC and Chennai sheet metal

Two expansion updates stand out in the Q1 FY27 deck.

First is the aluminium die casting capacity addition at Avigna Industrial Park, Hosur, Tamil Nadu. The company described it as one of the largest casting business facilities in Sandhar. Phase I is expected to start by the end of Aug 2026, with target completion by March 2027.

Second is the sheet metal expansion at Oragadam, Chennai. Phase I has started, and Phase II is expected to start by March 2027.

Sandhar also provided expected turnaround timelines for specific new projects in India:

• SCL acquired business at Hosur (ADC HPDC and LPDC): Q4 FY27
• Sanaswadi project in Pune (cabins and fabrication): Q3 FY27
• Chennai Oragadam sheet metal project: FY28
• EV powertrain business in Haryana: FY28

Beyond capacity, the company also highlighted a focus on automation and robotization of manufacturing processes. The deck does not quantify cost savings or productivity targets from automation, but positions it as an execution priority.

Overseas operations: revenue softer, EBITDA improved, borrowings up

The overseas subsidiaries showed a mixed picture in Q1 FY27. In euro terms, revenue declined 7.5 percent to 11.71 million euro. EBITDA improved materially to 1.32 million euro from 0.52 million euro, and EBT loss narrowed to minus 0.37 million euro from minus 1.26 million euro.

In rupee terms, the deck shows overseas revenue at 128.77 crore in Q1 FY27 compared with 122.94 crore in Q1 FY26. However, the overseas subsidiaries still reported an EBT loss of about 4.08 crore.

One disclosure to track is leverage at overseas subsidiaries. Outstanding borrowings increased to 49.15 million euro (about 530.58 crore) from 42.57 million euro. The deck also shows gross block including CWIP rising to 80.49 million euro.

What stands out from Q1 FY27

Q1 FY27 was a high growth quarter for Sandhar on the top line, supported by scale and a broad product portfolio across castings, locking systems, sheet metal, and cabins. The product mix is transparent, and the company provides useful breakdowns by category, geography, and product.

At the same time, profitability is being shaped by three near-term factors that the company has explicitly called out: minimum wage revisions, energy cost impact, and start-up losses from new projects.

The key monitorables going forward are execution milestones. The Hosur ADC Phase I commissioning expected by end-Aug 2026 and the Chennai sheet metal ramp-up schedule are important markers. The company has also laid out turnaround timelines for individual new projects, which creates a clear framework for investors to track whether start-up losses reduce over the coming quarters.