{"id":182327,"date":"2026-05-05T01:40:47","date_gmt":"2026-05-05T05:40:47","guid":{"rendered":"https:\/\/alphastreet.com\/india\/sundram-fasteners-limited-sundrmfast-q4-2026-earnings-call-transcript\/"},"modified":"2026-05-05T05:06:27","modified_gmt":"2026-05-05T09:06:27","slug":"sundram-fasteners-limited-sundrmfast-q4-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/sundram-fasteners-limited-sundrmfast-q4-2026-earnings-call-transcript\/","title":{"rendered":"Sundram Fasteners Limited (SUNDRMFAST) Q4 2026 Earnings Call Transcript"},"content":{"rendered":"

Sundram Fasteners Limited (NSE: SUNDRMFAST) Q4 2026 Earnings Call dated May. 05, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

R Dilip Kumar<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

S Bharathan<\/strong> \u2014 Executive Vice president – Marketing<\/em><\/p>\n

R Ganesh<\/strong> \u2014 Vice President – Finance & Projects<\/em><\/p>\n

Analysts:<\/h2>\n

Ramkrishnan Seshan<\/strong> \u2014 Analyst<\/em><\/p>\n

Sucrit Patil<\/strong> \u2014 Analyst<\/em><\/p>\n

Rushabh Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Preet Pitani<\/strong> \u2014 Analyst<\/em><\/p>\n

Lakshminarayanan<\/strong> \u2014 Analyst<\/em><\/p>\n

Sahil Sanghvi<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to Sundaram Fastener 4Q FY26 Post Results Call hosted by Evander Spa. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call re signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded.<\/p>\n

I now hand the conference over to Mr. Ramsesan from Evan De Spark. Thank you and over to you sir.<\/p>\n

Ramkrishnan Seshan<\/strong> \u2014 Analyst<\/em><\/p>\n

Thank you Ikra. Good morning everyone. Ram here from Evender Spark. Appreciate everybody logging in into this 4Q earnings call of Sundaram Pastnas from the management team. You know we are pleased to host Mr. Dilip Kumar, CFO, Mr. Bharatan Executive Vice President Marketing and Mr. Ganesh Vice President Finance and Projects. I now hand the call over to Mr. Dilip Kumar, CFO for his opening remarks post which we’ll begin the Q and A over to you Dilipji.<\/p>\n

R Dilip Kumar<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Yeah, thank you Ram and good morning and welcome to our discussion on the annual results of Sundar Fasteners for the year ended 31st March 2026. From the year end perspective we’ve recorded 7% plus growth moving from 5231 crores to 10005612 crores. The raw metal prices have been fairly stable for us though we experienced inflation in nickel aluminium especially after the West Asia conflict started. The all other costs, the conversion costs I will get into a bit of details but have been fairly stable. The depreciation has been in line with our capitalization and profit before exceptional items has grown from 668 crores to 749 which is a 12% growth and we have benefited from a bit of operating leverage.<\/p>\n

The two overseas subsidies, the UK and China, especially China has done very well despite difficult market conditions there. The construction segment has recovered and the valuation exercise was positive for us. And in the earlier years in line with the accounting standards we had made an impairment provision which we have reversed now completely, which is an exceptional term. As most of the companies did in Q3 we had made a provision under the new labor code for gratitude liability for the past service which was about 11 crores net of that.<\/p>\n

After making these adjustments, profit before tax increased from 680 to 167. The tax provisions have been in line with the effective tax rate has been in line with the earlier years and slightly lower deferred tax provision because of the gratuity liability and after the adjustments for the Actual valuation and MTM provisions for some of the investments. As you know, the stock market had a fall and some of the investments which we had made, the market capitalization became lower and the profit after tax was 550 crores which is the highest in the history of the company.<\/p>\n

And after adjustments for mtm we reported 576 crores compared to 517 crores. Now coming specifically to the quarter and as well as the annual performance, the OE segment has been very strong for us. Retail especially compared to the corresponding quarter has recorded close to 20% increase. The exports moderated despite the rupee depreciation. In dollar terms it moderated. But in Q4 I’m happy to report that we entered into the positive territory and we had growth compared to the previous corresponding quarter both in dollar terms as well as in rupee terms because rupee weakened by 4%.<\/p>\n

And in terms of growth trajectory as far as exports is concerned, I think we are back to FY25 and in line with our budgets. Last year was more one off because of the tariff which again easing up a bit with customers having reimbursed major portion of the tariff. Also as you know, the reciprocal duty is down to 10%. But I must tell you that under the Trade Expansion act for critical materials such as aluminium and steel, We also benefited from rupee weakness this quarter we have taken the benefit of exchange gains in the quarter and the company reported 1529 crores including other income which again crossed 1,500 crores for the first time.<\/p>\n

And the contribution which is the difference between the revenues and the variable expenses have expanded by about 150 basis points mainly because raw metal prices have been stable. And some of the one time expenditure which we had in Q4 of last financial year were not there this year. And subcontract expenses have always been a function of product mix which has come out favorably this quarter. The power of fuel thanks to companies investments and judicious procurement from power exchange where the clearing prices were lower and the investments in Hari Power has helped us to rein in the cost and I believe we have managed the tariff well.<\/p>\n

I said we’ve got a fair share of reimbursement from the customers. The fixed costs have remained stable and the EBITDA for The quarter was 260 crores at 17% compared to 15.6% in the corresponding quarter. And after the exception items, before the exception Items we crossed PBT of 200 crores for the first time. And after the exceptions it’s 231 crores PBT after tax 180 crores for the entire year. And our subsidies have also performed reasonably well. Both the TV Upasana that again had a strong year in terms of profitability.<\/p>\n

And like I mentioned, China has done well for us which helped in the valuation of investments and reverse of impairment the UK subsidy. The markets have moderated a bit in the price sensitive interest sensitive commercial vehicles market in the uk. We expect interest rates to be cut this year and things to improve in the UK also. And overall I think my marketing colleague will explain. I think the outlook looks very strong. We have started April well and I will pause here. We are happy to take the questions. Thank you.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sukrit D. Patil from Isight Intuit Private Limited. Please go ahead.<\/p>\n

Sucrit Patil<\/strong><\/p>\n

Good morning to the team. I have two questions. The first question to Mr. Bharakanil. Just want to understand how are you going to position Sundaram partners to capture evolving demand in automotive components and global manufacturing while maintain by mitigating risks from electrification, supply chain disruptions and competitive pressures and what strategic levers will differentiate the company from its peers in the coming quarters? That’s my first question. I’ll ask my second question after. Thank you very much.<\/p>\n

S Bharathan<\/strong><\/p>\n

Good morning. See, as you are aware already Sundaram Parthanas in all its various verticals, the six verticals, the main verticals that we have are certainly leaders and the preferred choice on the as far as the IC segment is concerned and during the past five, six years we’ve also backed quite a lot of orders on the EV segment. More in the export segment where there was seemed to be some traction in the past but now that has receded a bit. There’s a pushback and the export segment. In the export segment the EVs are getting a bit postponed and the demand is also downsized.<\/p>\n

That notwithstanding, because of our leadership in the IC segment, I think we are back to near normal condition as far as the export segment is concerned. And as far as the export is concerned again our exposure is also towards the high heavy engines of the high horsepower ranges wherein those continue to be IC. And there’s not going to be any immediate threat on electrification in both segments like power generation or marine or other segments. As far as the domestic market is concerned, as you know we are leaders in the domestic segment and domestic segment is a progressive growth on the ev.<\/p>\n

Not much of a this thing. That notwithstanding they also bagged quite a few orders on the EV segment as well with major OEMs in India. So that said, I think the threat from electrification is not going to impact us and we are well placed to handle that. And as far as the strategic levers are concerned, I think we are a Deming company number one. Number two, our focus towards quality and the brand equity is keeping us in good steady and we are certainly the to go choice for all the customers first choice for all the customers in many of the product developments. That’s why our order books are full today. And also we are receiving quite a few new orders and our development teams are busy doing that.<\/p>\n

Sucrit Patil<\/strong><\/p>\n

Thank you. My second question to Mr. Dilip Kumar is with revenue growth supported by exports and domestic OEM demand, is capital allocation being priorized between capacity expansion, technology investments and shareholder return? And what structural cost efficiencies are being implemented to protect the margins amid rising raw material and energy costs? Thank you.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

On the shareholder return, as a policy we’ve been distributing 30% of the profit after tax consistently. So that is the shareholder from return perspective from cost efficiency the raw metal prices have been stable and if there are increases either way or if there is a reduction we have a contractual obligation to pass it through to the customers. So we either charge them or give them a credit note. And in the aftermarket we have the ability taking competitive pressures to calibrate the prices, market prices.<\/p>\n

And in the export segment we are not under an obligation to make a pass through. So if market prices are benign we benefit from the lower raw material prices and we don’t pass it. As far as capital allocation is concerned, Sudharam has been investing not less than 300 crores year on year. Typically 25 to 30% is for replacement. The balance 70% would be driven by customer requirements across all our plants. Taking into account the current operation efficiency, we allocate capital for revenue growth purposes.<\/p>\n

Sucrit Patil<\/strong><\/p>\n

Thank you and best wishes.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

Thank you sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the lineup. Rishabh Shah from Burgledoc pms. Please go ahead.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

I am audible.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

Yeah, you are audible.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Sir. My question is on the non auto side you mentioned that you are entering into the railways and defense. So in what product category are we entering into the railway and defense and what is the roadmap that you have for the non auto side of the business and also how is it different from the business which we are doing in terms of cash flow, profitability and working capital basis.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

On the non auto side while we are strategically using wind energy fasteners and aerospace fasteners. Apart from that, we have also looked at fasteners for railway applications which we have been channelizing through our retail partners. And with the advent of high speed train and the quality requirement set out by the railway board and authorities, I think they are happy to work with the company like Sundaram fasteners. And there we see a large headroom for growth by direct participation. And this calls for us getting qualified through the standard requirement mentioned by the railway team.<\/p>\n

In terms of the standards, whatever they have set out. And in terms of order visibility while we are participating in multiple tenders and I think the customer current hit rate I would say it’s about 20% and we are confident of taking up the hit rate and the visibility where we are doing roughly about 2 to 3 crores per month and I think we see a visibility of it taking up to 100 crores. That is on the railway side. A difference I would say with all the participation through startup programs, I think it is still in the nascent stage while we are working on multiple platforms.<\/p>\n

But the aerospace partners is really taking off. And we have also invested to grow along with the customers where we supply for either General Electric or the domestic players like Hindustan Aeronautics as well as Skyroot. Those are some of the key customers with whom we are working and wind energy partners where we have had expansion and now we are in the next phase of expansion for the project to take IT up from say 30, 35 crore level to 50 crore per month level. So these are the levers which we are working on the non auto. Apart from that, our aftermarket participation for industrial application it is quite wide and large. So these are the headrooms on the non auto side which we are working.<\/p>\n

S Bharathan<\/strong><\/p>\n

Just to add to what my colleague said. See overall our non auto Exports is around 35%. In our product mix is 35% including tractors. And to add to your specific question on this defense, currently we are in the areas of pumps and machine castings. But we find a lot of scope for our other verticals as well. And we are working with the defense agencies to proceed there as well.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Okay, just a follow up on this one. So how would this be different from in terms of cash flow and let’s say profitability versus the auto business which we are doing. And also since we it is 30% of our revenue and we are planning it to take towards 50% of our revenue. So aerospace would be the major contributor or everyone would be equal contributor going ahead.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

It will be an equal participation from all the segments. And with respect to the profitability, I think it’s slightly 100 to 200 basis points above our automotive because we are working on participation in exports as well as domestic and the lead time with respect to supplies and the working capital cycle is slightly shorter when we serve the domestic market. So thereby the cash flow and the profitability are at much better pace in the non auto segments.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Okay, and since we were talking about exports, we had 30% of our revenue coming from exports. And you had mentioned in a call that we have plans to take it to 50%. So any update on that and what steps have we taken towards that journey<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

While that is an aspiration and in terms of the tariff related impact, while the exports did have a drop, but the new customer, new program addition, I think we are seeing visibility for it to come back to its original level of 30, 35% and from there on with our participation in other geographies and product range, we should see better numbers.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Okay, so next question is that you have customers with whom you have relationship of let’s say 10 to 15 years. And you mentioned that you are adding new customers. So my question is in which segment are you adding these customers and how many have we added in the last four to five years? Could you name them.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

In terms of new customers? While we are onboarding some on the non auto, especially on the consumer durable like Daikin and we are working with few others. I would say even on the existing customer we drive more on cross selling where we have been supplying through supply chain partners. We work with our OEMs and then try to get into their direct supply chain. I think those are the success stories which has helped in terms of growing the exports.<\/p>\n

S Bharathan<\/strong><\/p>\n

See as far as the areas what you’re asking is concerned, in our fasteners, machined castings, gears as well as sintered parts, we are engaging with new customers in different geographies. Not only North America where currently we have quite a good base, but we are also looking at European customers and we have seen some business come to fruition and we are expecting some to come in the near future as well.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Okay, my last question is how often do our parts get replaced in a vehicle? Because I wanted to understand whole aftermarket segment as it is a higher margin and higher ratios, higher profitability ratio for aftermarket segment. So how often do these parts get replaced in the vehicle?<\/p>\n

S Bharathan<\/strong><\/p>\n

It depends on the functionality of the part. Whereas if you take for example the pumps that we supply to the market, water pumps and oil pumps, oil pump is almost a fit and forget part. Whereas the water pumps get replaced maybe once in two, two and a half years in a truck and once in four years in a car and once in two years in a tractor. So depending on the usage and the ruggedness of the atmosphere. So it affects the replacement. That’s how pumps get replaced. Similarly, fasteners also have a periodicity of somewhere around two to three years depending on the function if it is an engine fastener or a chassis fastener. So depending on that there are various cycles on which they get replaced.<\/p>\n

Rushabh Shah<\/strong><\/p>\n

Okay, thank you so much. I’ll get back in the queue.<\/p>\n

S Bharathan<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of PR B from Ingred amc. Please go ahead.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Thank you. Thank you for the opportunity sir and congratulations for good set of numbers. So I would like to know about this. I would like to know about the segment mix and segment wise growth which we have achieved in FY26 and also what kind of growth we aspire in coming two years and what would be the growth driver for the city and if there is any order book for the city. Thank you.<\/p>\n

R Ganesh<\/strong><\/p>\n

I think I will address the revenue mix. I think we are leaders in partner. So fasteners continue to be in the range of 40 to 42% of our overall revenue. Followed by pumps and assemblies, cast and machined assemblies which is in the range of 25 to 27 and followed by cold extruded and sintermetal components of around 15% and hot posted and machined components constitute 12% and balance from other business segments like radiator caps and others. So this is on the segment wise mix of revenue which we have witnessed in 25, 26 and with respect to growth while for the current year in our CFO mentioned that we are at 7%. I think our aim is to have a double digit growth in the coming two years. So that is what we are working on.<\/p>\n

Preet Pitani<\/strong><\/p>\n

What would be segment wise or industry wise order book which we have if you can mention about non auto.<\/p>\n

R Ganesh<\/strong><\/p>\n

While we have growth coming in from both automotive driven by the various segments in which we participate and the drive on non auto. I think the fair share of the mix would be in the same range with absolute amount growing in each of the segments.<\/p>\n

S Bharathan<\/strong><\/p>\n

If you look at the. Somewhere around 13 to 20% growth between these segments, 13% in the OE, 15 in the retail and 20 in the export amounting to about 15% growth overall. That’s how we look at these segments.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Thank you sir. And if you could break up industry wise growth for FY26, like what kind of growth we had in passenger vehicle, what kind of we had in commercial, non auto, aero, wind and infra industrial, etc.<\/p>\n

R Ganesh<\/strong><\/p>\n

I think in each of the segments we surpassed the industry. Add some number.<\/p>\n

S Bharathan<\/strong><\/p>\n

Yeah.<\/p>\n

R Ganesh<\/strong><\/p>\n

Sorry. Please share your email id. We’ll give you the information.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Sure I will. And another would be on the. Hello.<\/p>\n

R Ganesh<\/strong><\/p>\n

Yeah, please go ahead.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Yeah, another would be on the same industry wise growth drivers which we have. Like what kind of new products which we are having in passenger segment. What kind of new segments we are having in commercial segment and outlook on wind and shop. You mentioned in two calls back that we have an order book how it is, how it is ramping up.<\/p>\n

S Bharathan<\/strong><\/p>\n

Let me, let me answer you. See last year I think we had about a 7% growth in the 25. The industry growth was 7% in the 2526 for the commercial vehicle segment and 5 to 7% somewhere around 6% on the passenger vehicle segment and 22% of the tractor. This was the broad growth of the industry. And as Ganesh, Mr. Ganesh said, we surpassed the industry growth in all these segments last year. And this year, while due to various geopolitical constraints, the market analysts and others have pegged the growth of the commercial vehicle segment and the Pasigla vehicle segment at 4 to 6% and the tractor segment has flat to 2%.<\/p>\n

We are looking at a growth of at least 3 to 4 percentage points more than the industry segments. We will be outperforming the industry by minimum 2 to 3% in all these segments. Percentage points, I mean not 2% percentage points. So that’s how we look at the industry. And we are looking at 8% growth in the commercial vehicle segment and 10% in the passenger vehicle segment and probably 6 to 7% in the tractor segment. That’s how we look at the industry this year going forward.<\/p>\n

Preet Pitani<\/strong><\/p>\n

And what would be the growth driver?<\/p>\n

S Bharathan<\/strong><\/p>\n

Basically demand is one growth driver, then the new customers that we acquire is the second and the third is our. For the past three, four years in the passenger car segment there has been lull on the small car side where our participation was traditionally higher. And that has come back to after the last year’s GST correction and the income tax release that was given last year. The small class segment has also come back with a bank. So in all these we are benefiting and of course we are also having increased share. For example, with this geopolitical problems coming before, many small players are not able to sustain and supply to our customers. So wherein we see some scope of share increases also there have been instances of share increase already but we are progressing on that as well.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Thank you sir, it was very helpful. And on the last side, if you could mention how has our raw material basket has changed with respect to Q3, Q3 of FY26 and was there any impact in our numbers in quarter four and what kind of impact we see in next two quarters due to raw material inflation?<\/p>\n

R Ganesh<\/strong><\/p>\n

I think in the opening remark itself it was covered stating that in terms of raw material we have been more or less stable and we have not seen any significant inflation. And that is the outlook we have for the coming quarter as well. And wherever there are increases, say either in aluminium, nickel or copper, it is always had, it is indexed and we have a pass through mechanism.<\/p>\n

Preet Pitani<\/strong><\/p>\n

Thank you sir. I’ll unpacking the queue.<\/p>\n

R Ganesh<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. Next question is from the lineup. Lakshmi Narayanan from Simga Investments. Please go ahead.<\/p>\n

Lakshminarayanan<\/strong><\/p>\n

Yeah, thank you. Hope I’m audible.<\/p>\n

Operator<\/strong><\/p>\n

I’m sorry sir, can you please use your handset? We are not able to hear you sir. We have lost the connection for the current participants. So we will take the next question which is from Sahil Sanghvi from Munak Net Worth Capital. Please go ahead.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Good morning and congratulations for a really good set of improved numbers this quarter. Am I audible, sir?<\/p>\n

R Ganesh<\/strong><\/p>\n

Yeah.<\/p>\n

Operator<\/strong><\/p>\n

You’re audible sir.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Yes. Yes. So my first question is if you can give some understanding of how the export markets are looking. Major reasons for your better performance in the export market. I understand you have mentioned in the press release that classic trucks saw good demand. But how sustained momentum is this and what do you see for the next 2, 3\/4 depending on the kind of production schedules you’ve received? If you can also break it down according to the CV and passenger vehicle orders, that will be helpful.<\/p>\n

S Bharathan<\/strong><\/p>\n

Yeah. See, export market last year was a bit of a big problem for us because initially it started with the tariff issues and then the geopolitical crisis. And as far as the North American market is concerned, where the classic tricks, the bellwether of the economy were not doing well, there was a lot of anxiety and lack of clarity on the EPA 27 norms also that had to kick in on January 27. So on account of all this the decisions are getting. The decision to buy fleet was getting postponed and the demand was really low.<\/p>\n

But with the clarity emerging on the classic drugs first the date is finalized. It is going to be enforced from from 1st of January 27. Though there are some issues that the industry is negotiating with the Environment Protection Agency on the warranty aspects it is to kick in. And with also a lot of turbulence getting settled on the tariff side, the situation is now slowly limping back to normal. And with this EPA declaration we also see some mild pre buy having started. So the Class 8 segment is looking up now while the demand is considerably higher.<\/p>\n

In fact, if you take the first quarter that is Jan. From March first quarter of the North American industry Jan from March, the Class 8 truck preliminary orders were almost double that of the year ago period. While the retail segment has still not picked up because there’s always going to be a lag between the traffic and so this year the Class 8 trucks are expected to perform at least 10 to 15% better than the last year. So that is one thing and we just helping us increase our demand. And as far as our other major customers are concerned, for example a major customer like Cummins has indicated good growth in all the segments.<\/p>\n

We participate in the high horsepower segment, the mid range segment as well as the heavy duty segments. In all these segments in the high horsepower because of the data center requirements continuing to be good, they are projecting about a 25% growth. And the heavy duty segment also we are looking at upwards of 15% growth. And on the mid range segment where the initial guidance was flat, now they are looking at at least 2 to 3% growth quarter over quarter. So that’s how the basically the truck segment and the power segment power generation segment is looking at and coming back to the other customers like General Motors and Stellantis.<\/p>\n

Yes, the EV platforms had a definite setback. So they have downsized their EV projections by 50% while Stellantis has also postponed the program. General Motors is continuing with the program at a downsized level. But the IC segment is springing back to normalcy. And with all their pipeline inventories are also getting exhausted. We are seeing near normal rebound of the demand with General Motors and Stellantis as well. So overall we hope this year exports to be much better than the last year. And that’s why we are looking at a growth of about 15 to 20% this year.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

That’s very elaborate. Thank you so much. My second question would be as a follow up to this one that how do we see our EV orders, which are roughly about 4,000 crores now, ramping up? I mean, do we see it starting in FY27 and how do you see the ramp up happening? Orders from us?<\/p>\n

R Ganesh<\/strong><\/p>\n

No. With respect to the US EV orders, while there has been a slight uptick, it has not reached its potential, whatever we have envisaged. But with respect to specific, on either Stellantis or General Motors, with respect to the ICE and pacv, we are seeing an uptick. I think the full ramp up would happen by 27. But definitely we are seeing better numbers compared to what it was in 2526. And that is one of the reason for us to have a confident or positive number with respect to export growth in 2627.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Secondly, sir, if we had to look quarter on quarter, there is a dip in the gross margins which is also kind of transpiring in the EBITDA margins. So apart from the nickel and aluminum cost inflation that you reported, anything else has affected our gross margins?<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

Nothing specific. Because if you’re looking at gross margin of Let us say Q3 or Q2, like I said, after the West Asia conflict broke out, there has been an inflation in the RM and materials to some extent. And so it has got slightly compressed. But I think if you see the overall year and it’s been quite okay.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

And lastly, on the railways, I just wanted to confirm the numbers that were given by you. I mean given by one of the speakers. I think we said that there is roughly a 2 to 3 crore kind of monthly run rate that we’re working, I mean working with in revenues. And this has a potential to ramp up to roughly 100 crores monthly. Is that correct?<\/p>\n

R Ganesh<\/strong><\/p>\n

That is 100 crores per annum. So from a 2 to 3 crore level, the run rate would be at say 8 to 10 crores. That is what we are envisaging.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

And this, this can happen this year itself.<\/p>\n

R Ganesh<\/strong><\/p>\n

No, on an annualized basis we are looking at this number. But I think by Q3, Q4 we should be able to look at this.<\/p>\n

Sahil Sanghvi<\/strong><\/p>\n

Okay. Okay. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Lakshmi Narayanan from Tunga Investment. Please go ahead.<\/p>\n

Lakshminarayanan<\/strong><\/p>\n

Hope I’m audible.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

Yes, sir. Yes, sir.<\/p>\n

Lakshminarayanan<\/strong><\/p>\n

Yeah. Hi. I’m just trying to reconcile, you know, longer period growth. If I Look at from March 23 to March 26, I think we have grown around like 11% or 12%. And the green, the currency has depreciated by around 14% while steel prices have actually gone up by around 18, 19%. And automotive industry as well as industrial growth has actually also has actually gone up on a point to point basis. Right now I just want to understand how to explain this divergence between our growth which I think would be around 11 or 12 in these periods 23 to 26.<\/p>\n

And also provide some color on the internal benchmark You use to measure success. And is the management how the last three years performance had looked? I mean when the management looks at it, how the last three years performance has actually met our exceeded management expectation given the context that we have grown at X percent while currency has depreciated and the metal prices have increased and also the industry and the GDP has actually increased. Right. So I just want to understand how the management thinks about it.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

The management looks at it as the minimum growth that we should target is let us say at least a nominal GDP and plus 2%. That is one way of looking at it. For 2x of GDP roughly around 12 to 13% is what the how the business plans are formulated, capital allocations are made and all discussions revolve around that kind of scenario. The actual market there may be challenges and somebody may scale back EV program or the tariff having disrupted last year. And these things can have an impact on the growth in general.<\/p>\n

But coming specifically to the RM or material prices, like I said, they have been fairly stable for us and we’ve been able to get a better price advantage or we have maximized L0 procurement and also got reasonable volume discounts based on our procurement and special discounts. So we have been able to keep the prices lower. Though there is a threat of some inflation creeping in in the RM prices as far as exports are concerned.<\/p>\n

Like I said in my opening remarks for the quarter, it has entered into the positive territory both in dollar terms and if I analyze that it looks quite strong and going back to FY25 levels. But overall for the entire year, notwithstanding the rupee depreciation, we had about 8% degrowth. But that I would think is more of one off for the reasons which we all know and taking a lot of confidence from Q4 and the way we have started the month of April, this year looks to be quite strong.<\/p>\n

Lakshminarayanan<\/strong><\/p>\n

Got it. I think it’s looking at slightly longer because last year has been the Paris etc. So that’s why I used 23 as a baseline and then looked at three years and wherever both have seen the divergence from even the metal inflation and even the currency depreciation as though we are beneficiary of both in terms of top line as well as I think that’s where I am thinking of as to, you know, from the eyes of management, has the last three years been better for your budgets or it was under underwhelming to your budgets or your your own business plans when you actually did it in 23? And look at the next three years, I think from your point of view, what are the benchmarks and how do you think you have actually performed? That’s my question.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

No, I answered that question by telling you that we target as far as growth is concerned and whether it is nominal GDP or 2x of GDP is why is that 12 to 13% is the overall growth we would like to have. And especially this year that growth has come in OE as well as in retail. It has not happened in export. But if you take a three year time frame and where we had made a lot of investments and you’re banking on certain customers and products, it has not taken off in the manner which we would have desired.<\/p>\n

But I think these are cycles and like I said, last year was though it started on a pessimistic note, the month of April itself with the reciprocal duty and ended with the conflict. But after the GST2 rationalization and markets have boomed and we are seeing that momentum continue in the current year also.<\/p>\n

Lakshminarayanan<\/strong><\/p>\n

Thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. As there are no further questions from the participants, I would like to hand the conference over to the management for closing comments.<\/p>\n

R Dilip Kumar<\/strong><\/p>\n

Nothing specific. I think most of it was covered in the opening remarks and the questions were deep and many of them were insightful. And we maintain that the outlook looks quite strong from a domestic market perspective. And there’s also a strong traction in the export market as well. Thank you.<\/p>\n

S Bharathan<\/strong><\/p>\n

Thank you.<\/p>\n

R Ganesh<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much on behalf of Avendis Park. That concludes this conference. Thank you all for joining us today. And you may now disconnect your line.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sundram Fasteners Limited (NSE: SUNDRMFAST) Q4 2026 Earnings Call dated May. 05, 2026 Corporate Participants: R Dilip Kumar \u2014 Chief Financial Officer S Bharathan \u2014 Executive Vice president – Marketing R Ganesh \u2014 Vice President – Finance & Projects Analysts: Ramkrishnan Seshan \u2014 Analyst Sucrit Patil \u2014 Analyst Rushabh Shah \u2014 Analyst Preet Pitani \u2014 […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-182327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":178327,"url":"https:\/\/alphastreet.com\/india\/sundram-fasteners-q3-fy2026-revenue-growth-and-strategic-resilience-amid-global-headwinds\/","url_meta":{"origin":182327,"position":0},"title":"Sundram Fasteners Q3 FY2026: Revenue Growth and Strategic Resilience Amid Global Headwinds","author":"Staff Correspondent","date":"January 29, 2026","format":false,"excerpt":"Sundram Fasteners Limited (NSE: SUNDRMFAST), a leading Indian auto-components manufacturer and a key entity within the TVS Group, reported its third quarter results for the financial year 2025-26, revealing a nuanced blend of robust domestic demand, margin pressures, and the evolving footprint of its global operations. 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