Sundram Fasteners Q2 FY27 Concall Transcript Released: Strong Revenue Growth & Export Performance Highlighted
Sundram Fasteners reported a 30% revenue growth in Q2 FY27, with exports up 57%. Despite RM cost pressures, PBT increased to ₹160 crore. The company expects margin expansion in H2 FY27 due to higher export share. Investments in non-auto segments like wind and aerospace are progressing.
The announcement provides a detailed update on the company's financial performance, including revenue growth, profitability, and segment-wise performance. It also discusses raw material cost management and future outlook, which are critical factors for investors and significantly impact the company's valuation and stock performance.
The company reported strong revenue growth, particularly in exports, and a PBT increase. Management expressed optimism about the outlook and future margin expansion, indicating a positive financial performance and future prospects.
Sundram Fasteners Limited has released the transcript of its Analysts/Investors Meet held on October 29, 2026. The company reported a strong performance in Q2 FY27, with revenues growing by approximately 30%, driven by the OE segment. The export segment showed a stellar performance, recording a 57% growth compared to the corresponding quarter, with 47% of this growth attributed to volume and dollar terms, and 10% to rupee depreciation.
Despite an increase in raw material costs (steel and aluminum) and indirect materials like stores and tools due to geopolitical factors, the company has managed to recover RM inflation from customers through pass-through arrangements, particularly in the domestic market. Price increases were also implemented in the aftermarket, and the export market's impact was offset by rupee depreciation. The steep increase in RM prices had an impact of approximately 3% on the contribution level compared to the previous year, which was partially offset by operating leverage and improved asset utilization leading to lower depreciation charges relative to revenues.
The company reported a Profit Before Tax (PBT) of ₹160 crore for the quarter, compared to ₹140 crore in the previous year. For the half-year ended September 30, 2026, revenues stood at ₹3,254 crore, a 25% growth from ₹2,605 crore in the previous year, with a strong 40% growth in exports. EBITDA for the half-year was 15.9%, and for Q2 it was 15.7%. The management expressed optimism about the outlook, noting strong customer schedules and a positive trend in exports, which have increased to 30% of total revenues and contribute higher margins.
Discussions during the call also covered the pass-through mechanism for raw material costs, which is largely immediate in the OE segment with a lag of about one month in some cases. The company is seeing growth across segments in the domestic market, particularly in cars and M&HCV. Investments in wind energy are ongoing, with the third phase expected to cross ₹500 crore in annual revenue. Aerospace business is projected to grow to ₹100 crore plus this year, with further investments planned. While the tractor segment is showing some softening, overall domestic demand is expected to see a 3% to 5% growth in H2 FY27. The company recorded an exchange gain of approximately ₹7 crore for the quarter. The outlook for the full year remains promising with expected margin expansion in the second half, driven by a higher share of exports.
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Sundram Fasteners Limited filed this with the NSE as a statutory disclosure, categorised under concall scheduled. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Sundram Fasteners Limited. Read the original for the full detail.