Sundram Fasteners revenue grows nearly 30% in Q2, supported by OEM business
Key Facts
Sundram Fasteners recorded year-on-year revenue growth of about 30% in the second quarter of fiscal 2027, driven by activity in the original equipment manufacturer (OEM) segment, the chief financial officer said on the results call. Exports grew 57% from the year-earlier quarter, returning to about 30% of total revenue after their share fell to about 25% in the previous year due to the impact of tariffs. Official financial results showed consolidated revenue from operations of 1,984.50 crore rupees in the quarter, compared with 1,846.07 crore rupees in the first quarter of the same fiscal year. On a standalone basis, revenue was 1,760.77 crore rupees in the quarter ended September 30, 2026, against 1,338.37 crore rupees a year earlier. The figures reflect growth in the company's business, while the comparison bases differ between the call and the official results.
The CFO said about 10% of export growth benefited from the dollar's exchange rate against the rupee, while the rest came from volume and the dollar. This indicates that export performance did not rely on the currency effect alone, according to management's breakdown of the increase. Exports returned to nearly 30% of sales after falling to about 25% in the previous year because of tariffs. The recovery increased the weight of external demand in the revenue mix during the quarter. Management also attributed revenue growth to activity in the OEM segment, without linking it to a strategic expansion in international markets.
Consolidated profit before tax was 230.55 crore rupees, up 14.25% from 201.80 crore rupees in the second quarter of fiscal 2026. Consolidated net profit also rose 13% to 172.63 crore rupees from 152.75 crore rupees in the year-earlier period. On the results call, the CFO cited another profit-before-tax figure, at 160 crore rupees against 140 crore rupees in the comparable quarter. Those are figures from the call, while the reported consolidated profit before tax is 230.55 crore rupees; the measurement basis therefore differs between the two disclosures. The gap between revenue growth and consolidated profit-before-tax growth stands out as cost pressures cited by management persist.
The CFO said higher prices for raw materials, including steel and aluminium, and cost pressures from indirect materials affected contribution during the quarter. He estimated the impact of the decline in contribution at about 3% compared with the year-earlier quarter. He added that lower fixed costs and improved asset utilisation, along with operating leverage, offset some of the pressure. EBITDA margin was about 15.7% in the second quarter and 15.9% in the first half of fiscal 2027, according to the call. The indicators show that revenue growth coincided with material costs continuing to weigh on operating margins.
In the first six months of fiscal 2027, revenue rose to 3,254 crore rupees from 2,605 crore rupees in the year-earlier period, an annual increase of 25%, according to the CFO. First-half performance provides broader context for second-quarter growth, with exports and the OEM segment remaining among the drivers identified by management. The board announced an interim dividend of 4.05 rupees per share for fiscal 2026–2027. The company set November 6, 2026, as the record date for the dividend. The CFO said markets and customer schedules were strong and that the company was optimistic about export prospects.
The company said its statutory auditors conducted a limited review of the consolidated results for the quarter and first half ended September 30, 2026, and issued an unmodified review report. The official disclosure therefore covers the quarter and first half, as well as the interim dividend and its record date. For the coming period, management's outlook is based on strong markets and customer schedules and its optimism about export prospects, as stated on the results call. Management did not specify a subsequent date or target growth figures in the cited statement.