Sandhar Technologies Ltd

Business Overview

• Sandhar is an auto components supplier across 2W/3W/4W and related EV powertrain segments.
• Operations span Indian manufacturing and overseas subsidiaries; automation focus underpins growth.

Key Operational Highlights

• Q1 FY27 consolidated revenue rose 26.8% YoY to ₹1,381.9 crore.
• ADC HPDC/LPDC plant at Avigna Park, Hosur, Phase I targeted Aug‑2026.
• Chennai Oragadam Sheet Metal Phase I started; Phase II by March‑2027.
• New wheel rim product introduced; emphasis on automation across manufacturing.
• New India projects include SCL Hosur acquisition, Sanaswadi cabins, Chennai sheet metal, EV powertrain.
• Overseas subsidiaries generated ₹128.8 crore revenue; borrowings ₹530.6 crore.

Financial Performance

• Consolidated revenue ₹1,381.89 cr; YoY growth 26.77%.
• EBITDA ₹117.33 cr; margin 8.49%.
• PAT ₹37.28 cr; PAT margin 2.70%.
• New India projects yield ₹7.41 cr PBT loss; energy cost impact ₹7.50 cr; wage ₹5.84 cr.
• India operations revenue ₹1,122.71 cr; EBITDA ₹101.89 cr; EBITDA margin 9.08%.
• Standalone revenue ₹665.96 cr; PAT ₹30.61 cr.

Capital Structure & Liquidity

• Overseas borrowings ₹530.58 cr; STL equity held ₹30.29 cr.
• Investment in New India projects ₹341 cr.

Strategic Priorities & Outlook

• Automation and robotization focus across manufacturing.
• Phase I Avigna Hosur HPDC/LPDC start Aug 2026; completion by March 2027.
• Sheet Metal Chennai Oragadam Phase I started; Phase II by Mar 2027.
• EV powertrain business in Haryana; timelines FY28.
• New wheel rim development.

Risks & Mitigation

• Ramp-up risk with new Indian projects; volumes yet to stabilize.
• PBT losses from new projects; energy and wage cost pressures.

Governance & Leadership

• No material governance changes disclosed in this update.

Business overview

• Diversified auto components supplier; core exposure to aluminum die casting, sheet metal, and EV powertrain.
• Strategic emphasis on automation and capacity expansion in India.

Operational highlights

• ADC plant at Avigna Park Hosur to start Phase I by Aug-2026.
• Chennai Oragadam sheet metal phase I started.
• HPDC castings capacity expanded to 1250T.
• Automation and robotization focus across manufacturing.
• New India projects: investment ₹341 cr; revenue ₹130 cr; PBT loss ₹7.41 cr.
• Aluminum Die Casting: Avigna Hosur Phase I; start Aug-2026; completion Mar-2027.
• Sheet Metal: Chennai Oragadam Phase I started; Phase II by Mar-2027.

Financial performance

• Consolidated revenue ₹1,381.89 cr, up 26.77% YoY.
• Consolidated EBITDA ₹117.33 cr; margin 8.49%.
• PAT ₹37.28 cr; PAT margin 2.70%; EPS ₹6.19.
• Standalone revenue ₹665.96 cr; EBITDA ₹63.76 cr; PAT ₹30.61 cr.
• India operations revenue ₹1,122.71 cr; EBITDA ₹101.89 cr; PBT ₹62.63 cr.
• New India projects: PBT loss ₹7.41 cr; revenue ₹130 cr; EBITDA ₹0.88 cr.
• Overseas subsidiaries: Revenue €11.71 mn; INR ₹128.77 cr; EBITDA €1.32 mn; INR ₹14.56 cr.
• EPS consolidated ₹6.19; YoY growth 33.08%.
• Cost headwinds: minimum wages ₹5.84 cr; energy ₹7.50 cr.

Capital structure & liquidity

• Overseas borrowings ₹530.58 cr; up 23.9% YoY.
• Equity held by STL ₹30.29 cr; up 49.3% YoY.
• Gross block including CWIP ₹801.61 cr; up 15.7% YoY.

Strategy & outlook

• Automation/robotization drive to enhance efficiency and scale.
• New India projects: SCL Hosur turnaround by Q4 FY27.
• Sanaswadi project targeted by Q3 FY27; Chennai by FY28.
• EV powertrain business to roll out by FY28.
• Investment planned ₹341 cr across India projects.

Risks & mitigation

• PBT losses from ramping up new India projects due to volumes.
• Wage and energy cost headwinds: ₹5.84 cr and ₹7.50 cr respectively.

Gazal Kalra appointment

• Type: Appointment of Gazal Kalra as Additional Director and Non-Executive Independent Director.
• Effective date: August 11, 2026; five-year term, subject to member approval.
• Reason: Recommendation of Nomination and Remuneration Committee.
• Brief profile: Co-founder of Nuuk; prior roles at Rivigo, McKinsey, World Bank.
• Disclosure: Not related to any other directors.
• Board impact: Adds Independent Director; subject to AGM approval.

Cost Auditor re-appointment

• Type: Re-appointment of Cost Auditor.
• Name: M/s Satija & Co.; Designation: Cost Auditor.
• Term: FY 2026-27.
• Reason: Recommendation of Audit Committee.
• Brief profile: Sole proprietorship firm led by Deepika Singhal, with cost accounting expertise.

Scrutinizer appointment for AGM

• Type: Appointment of Scrutinizer.
• Name: M/s K.K. Sachdeva & Associates; Designation: Company Secretaries.
• Reason: Scrutinize remote e-voting and AGM-related work.
• Brief profile: Company Secretaries firm with governance expertise.

Event participation

• Sandhar to participate in EMKAY Confluence 2026 investor conference in Mumbai, Aug 12–14, 2026.
• Senior management will attend; meetings with investor funds planned.
• No unpublished price-sensitive information will be disclosed during interactions.

Resolution overview

• Item 1 (Special): Enhance Section 186 limits for loans, investments, guarantees, and securities up to INR 1,500 crore.
• Purpose: seek Members' approval to increase the overall permissible Section 186 limits.
• Board approved the proposal on 21 May 2026; postal ballot initiated for approval.
• Current limit: 60% of paid-up capital, reserves, or 100% of free reserves and securities premium.
• Proposed cap: INR 1,500 crores or the higher limit under the Act.

Target and deal terms

• Target: Clean Renewable Energy HR 1B Private Limited, renewable energy sector, India.
• Turnover for FY2025-26: Nil.
• Not a related party transaction; no promoter/group interest.
• Acquisition purpose: enable solar power and reduce energy costs; supports sustainability aims.
• No regulatory approvals required.
• Completion timeline: within two months from execution of SSSHA.
• Consideration: cash; price INR 162.52 Lakhs.
• Equity acquired: minimum 26% in SPV/target.
• Background: incorporated 9 June 2025; turnover 2025-26 NIL; presence in India.