Sundram Fasten. Q1 FY27 Results (NSE: SUNDRMFAST)
Signal: Growth reaccelerated
The read
The inflection is top-line acceleration to +20.4% YoY revenue growth from +10.6% in Q4FY26, supported by +23% standalone export growth, but the thesis still needs margin confirmation because consolidated EBITDA margin was 16%, broadly unchanged YoY, leaving PAT growth at only +4.3%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,846.07 Cr | +20.4% | +9.0% |
| EBIT | ₹232.3 Cr | N/A | |
| Net profit | ₹168.39 Cr | +4.3% | |
| EPS | ₹8.01 | +4.3% | |
| EBIT margin | 16% |
P&L walk
Consolidated revenue of ₹1846.07 crore grew +20.4% YoY and +9.0% QoQ, but attributable PAT of ₹168.39 crore grew only +4.3% YoY as the 16% EBITDA margin remained broadly stable rather than expanding with sales.
Segments
There is no reported segment split, but the consolidated group added ₹17.42 crore of attributable PAT above standalone PAT of ₹150.97 crore, with consolidated revenue of ₹1846.07 crore versus standalone revenue of ₹1614.76 crore.
Key positives
- Consolidated revenue reached ₹1846.07 crore, +20.4% YoY and +9.0% QoQ, accelerating from +10.6% YoY in Q4FY26.
- Standalone exports rose 23% YoY to ₹465.97 crore, ahead of 16% domestic sales growth to ₹1084.31 crore, supporting geographic diversification.
- Employee costs of ₹167.24 crore grew 16.7% YoY, slower than revenue growth of 20.4%, helping hold EBITDA margin at 16%.
- Finance costs declined 3.7% YoY to ₹8.76 crore, while EPS of ₹8.01 tracked attributable PAT growth of 4.3%.
Key concerns
- Consolidated EBITDA margin remained at 16% YoY despite 20.4% revenue growth, so the current acceleration is not yet accompanied by operating margin expansion.
- Gross margin compressed 128bps YoY to 59.2% as materials consumed plus inventory movement increased to 40.9% of revenue from 39.6%.
- PAT growth of 4.3% materially lagged revenue growth of 20.4%, indicating limited conversion of incremental sales into earnings.
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