Sundram Fasten. Q2 FY27 Results (NSE: SUNDRMFAST)
Signal: Steady quarter
The read
The main inflection is top-line acceleration to 19.8% YoY from 6.9% in Q3FY26 and 10.6% in Q4FY26, but sequential revenue declined 7.0% and operating margin fell 100bps to 16%; gross-margin expansion of 444bps from lower raw-material intensity is the positive offset, while weaker H1 operating cash flow of ₹164.85 Cr versus ₹397.27 Cr warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,846.07 Cr | +19.8% | -7.0% |
| EBIT | ₹230.55 Cr | +3.1% | |
| Net profit | ₹168.69 Cr | +10.4% | |
| EPS | ₹8.2 | +14.2% | |
| EBIT margin | 16% |
P&L walk
Revenue increased 19.8% YoY to ₹1,846.07 Cr but declined 7.0% QoQ; gross margin expanded to 56.4% as raw-material cost fell to 47.4% of revenue, while PAT rose 10.4% to ₹168.69 Cr.
Segments
The group reports only one segment; standalone revenue grew 31.5% YoY to ₹1,760.77 Cr versus consolidated growth of 19.8% to ₹1,846.07 Cr, showing that subsidiaries diluted the consolidated growth rate.
Key positives
- Consolidated revenue reached ₹1,846.07 Cr, up 19.8% YoY, a clear acceleration from 6.9% YoY in Q3FY26 and 10.6% in Q4FY26.
- Gross margin expanded 444bps YoY to 56.4% as raw-material cost declined to 47.4% of revenue from 50.6%.
- Standalone revenue grew 31.5% YoY to ₹1,760.77 Cr, materially faster than consolidated revenue growth of 19.8%.
- PPE plus CWIP increased to ₹2,647.98 Cr from ₹2,501.61 Cr, while depreciation rose 9.0% YoY, producing a clean depreciation-to-capex cross-check.
Key concerns
- Consolidated revenue declined 7.0% QoQ and operating margin fell 100bps sequentially to 16%, interrupting the recent growth and margin recovery arc.
- H1 operating cash flow fell 58.5% YoY to ₹164.85 Cr despite H1 consolidated PAT of ₹341.32 Cr, indicating weaker cash conversion.
- Standalone finance cost rose 55.3% YoY to ₹10.56 Cr, substantially faster than standalone revenue growth of 31.5%.
Research and educational content only. Not investment advice.