Sundaram Clayton Q2 FY27 Results (NSE: SUNCLAY)
Signal: Loss narrowed
The read
The key inflection is a parent-level recovery masked by subsidiaries: standalone PAT rose to ₹39.48 Cr, +95.5% YoY, but consolidated revenue growth of 41.0% came with a 610bps gross-margin compression and ₹90.50 Cr of subsidiary losses; this is not yet a clean group earnings recovery.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹697.72 Cr | +41.0% | +17.9% |
| EBIT | ₹-14.19 Cr | +56.3% | |
| Net profit | ₹-50.77 Cr | +14.4% | |
| EPS | ₹-23.03 | +14.4% | |
| EBIT margin | 4.9% |
P&L walk
Revenue accelerated to ₹697.72 Cr, +41.0% YoY and +17.9% QoQ, but gross margin compressed to 46.2% from 52.3% YoY as raw-material cost rose to 57.5% of revenue; the resulting ₹34.60 Cr EBITDA was insufficient to offset ₹48.79 Cr depreciation, ₹22.93 Cr finance cost and ₹90.50 Cr of subsidiary losses.
Segments
The business is reported as a single automotive-components segment, but subsidiaries are dragging the group: five subsidiaries contributed ₹90.50 Cr of quarterly net loss, turning standalone profit of ₹39.48 Cr into consolidated attributable loss of ₹50.77 Cr.
Key positives
- Consolidated revenue reached ₹697.72 Cr, +41.0% YoY and +17.9% QoQ, reversing the recent Q2FY26 revenue base of ₹494.75 Cr.
- Standalone PAT rose to ₹39.48 Cr from ₹20.19 Cr YoY, while standalone EPS increased to ₹17.91 from ₹9.16.
- Consolidated finance cost declined 13.8% YoY to ₹22.93 Cr and standalone finance cost declined 16.7% to ₹16.57 Cr.
- Derived consolidated EBITDA increased to ₹34.60 Cr from ₹18.68 Cr YoY, with EBITDA margin improving to 4.9% from 3.8%.
Key concerns
- Gross margin compressed 610bps YoY to 46.2% as raw-material cost rose to 57.5% of revenue from 50.7%; the filing does not disclose the mitigation or cause.
- Consolidated attributable loss remained ₹50.77 Cr despite 41.0% revenue growth because five subsidiaries reported ₹90.50 Cr of quarterly net loss.
- Consolidated borrowings increased to ₹1,544.64 Cr from ₹1,296.01 Cr at March 2026, while cash and bank balances declined to ₹47.97 Cr from ₹54.12 Cr.
- Standalone gross margin also contracted 760bps YoY to 41.9%, indicating input-cost pressure at the parent level despite the standalone PAT recovery.
Research and educational content only. Not investment advice.