Sundaram Clayton Q1 FY27 Results (NSE: SUNCLAY)
Signal: Loss widened
The read
The group's third consecutive quarterly operating loss (EBIT -₹53.22 Cr) reflects input-cost headwinds (aluminium, energy, freight) overwhelming a 15.7% revenue increase, with EBITDA margin collapsing to 2.8% from 16.0% a year ago — the standalone entity ekes out a small profit but the consolidated drag comes from USA subsidiaries (revenues ₹76.69 Cr, loss ₹76.56 Cr) ramping new programmes.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹591.65 Cr | +15.7% | +14.2% |
| EBIT | ₹-32.02 Cr | N/A | |
| Net profit | ₹-59.33 Cr | N/A | |
| EPS | ₹-26.91 | N/A | |
| EBIT margin | -9.0% |
P&L walk
Revenue grew 15.7% YoY but raw material cost soared to 61.1% of revenue vs 47.1% a year ago, crushing EBITDA margin from 16.0% to 2.8% and pushing the group to a third consecutive operating loss.
Key positives
- Consolidated revenue grew 15.7% YoY to ₹591.65 Cr, driven by domestic CV/PV demand and North American truck recovery.
- Standalone revenue grew 18.6% YoY to ₹524.22 Cr, indicating strong India operations demand.
- Finance costs declined 19.7% YoY to ₹21.07 Cr, benefiting from lower debt levels.
- Company received Q-Prime Gold Award from Daimler India Commercial Vehicles for quality excellence.
Key concerns
- Consolidated EBITDA margin collapsed 1320bps YoY to 2.8%, as raw material cost surged 1420bps to 61.1% of revenue.
- Net loss widened to ₹59.33 Cr vs ₹57.76 Cr loss a year ago — third consecutive quarter of operating loss.
- Standalone EBITDA margin fell 330bps to 12.7% per press release, despite flat PAT due to prior year exceptional gain absence.
- USA subsidiaries reported ₹76.69 Cr revenue but a combined loss of ₹76.56 Cr, heavily dragging consolidated results.
- Geopolitical uncertainties and elevated input costs (aluminium, energy, freight) continue to pressure margins.
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