Sundram Fasten. Q1 FY27 Results (NSE: SUNDRMFAST)
Signal: Margin pressure
The read
Sundram Fasteners delivered a robust 20% revenue growth in Q1FY27, driven by a broad-based recovery in both domestic and export markets, with exports growing 23%. However, gross margin slipped ~120bps due to higher raw material costs, limiting EBITDA margin to 16% (flat YoY). PAT grew 4% as the company absorbed input cost pressures. The trajectory remains positive with strong order momentum and diversification into non-auto sectors, but margin expansion will depend on raw material stability and pricing.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,846.07 Cr | 20.4% | 9.0% |
| EBIT | ₹232.3 Cr | 4.7% | |
| Net profit | ₹168.39 Cr | 4.3% | |
| EPS | ₹8.01 | 4.3% | |
| EBIT margin | 12.6% |
P&L walk
Revenue grew 20% YoY, but gross margin compressed 120bps due to higher raw material costs, limiting PAT growth to 4%.
Key positives
- Revenue growth of 20% YoY, accelerating from mid-single-digit trend in recent quarters.
- Export sales surged 23% YoY, signaling improving global demand.
- EBITDA margin held at 16% despite input cost pressure, indicating pricing discipline.
- Consistent EPS growth of 4% with no dilution.
Key concerns
- Gross margin contracted ~120bps due to higher raw material costs, which if sustained could pressure operating margins.
- PAT growth of 4% lagged revenue growth significantly, highlighting margin compression.
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