Sharda Motor Industries Ltd. released its Investor Presentation detailing the operational and financial performance for the quarter ended December 31, 2025 (Q3 FY26). The company reported a consolidated revenue of ₹881.6 crores, up 28% YoY, and EBITDA of ₹106.4 crores, marking a 13% YoY increase. The presentation highlights strong performance across its Emission Control and Lightweighting verticals, bolstered by new order wins and favorable market trends like ‘China+1’.
Q3 FY26 Financial Performance Highlights (Consolidated)
Sharda Motor Industries Ltd. demonstrated robust top-line and bottom-line growth for the quarter ended December 31, 2025 (Q3FY26).
Key Consolidated Results: Q3 FY26 vs Q3 FY25
- Revenue from Operations: ₹881.6 Crores (28% YoY growth).
- EBITDA: ₹106.4 Crores (13% YoY growth).
- EBITDA Margin: 12.1%, down from 13.7% in Q3FY25.
- Profit After Tax (PAT): ₹81.4 Crores (8% YoY growth).
- EPS: ₹14.2 compared to ₹13.1 in Q3FY25.
Year-to-Date Performance (9M FY26 vs 9M FY25)
- Revenue from Operations grew by 16% YoY to ₹2,425.0 Crores.
- PAT grew by 11% YoY to ₹256.0 Crores.
- EBITDA margin compressed slightly to 12.6% from 14.2%.
Operational Highlights and Business Verticals
The company detailed milestones across its core segments, emphasizing its market positioning and strategic investments.
Emission Control Vertical
- Maintains approximately ~30% value Market Share in India for PV & LCV Exhaust Systems.
- Leverages a Joint Venture with Purem (formerly Eberspächer).
- Showcases diverse product range, including systems for PV BS VI, MHCV, Tractor Stage V, and Generator Mufflers.
Lightweighting Vertical
- Holds ~12.5% value Market Share for PV & LCV Control Arms in India.
- Focusing on supplying products for all powertrains, including leading EV Launches.
- Recently enhanced portfolio via a Technical License Agreement (TLA) with Donghee Industrial Co. Ltd., adding Subframes and Torsion Beams, aiming to increase Content Per Vehicle from ₹2K-₹8K to ₹6K-₹18K.
Growth Strategy and Future Areas
Sharda Motor’s growth strategy is shaped by several key megatrends:
- Lightweighting Trend: Driven by multi-powertrains, upcoming CAFÉ norms, and safety requirements.
- China + 1: New emission norms in the EU & USA create opportunities to increase exports from India. The addressable overseas market for key emission components totals over USD 2.3 Billion.
- Emission Norms Regulation: Introduction of TREM V and BS 7 will increase content per engine, leading to market consolidation.
Key Future Growth Areas
Future focus areas include:
- Scaling up the Lightweighting Vertical: Targeting increased market share in control arms and axle assemblies.
- Growing Revenue from Exports: Focusing on Europe & USA markets for CV emission components, Tubes, Heat Shields, and Genset/Tractor systems.
- Capturing Domestic Opportunities: Capitalizing on BS 7 content increase and TREM V opening the tractor market.
- M&A in Powertrain Agnostic Products: Exploring JVs/M&A for localization and entry into adjacent exponential markets (e.g., Drones, Robotics).
New Significant Orders Update (FY25 Announcements)
The company detailed several new order wins announced during FY25, showing continued expansion:
| Vertical | Annual Value (Approx.) | Life Time Value (Approx.) | SOP Status |
|---|---|---|---|
| Suspension Control Arms (Lightweighting) | $4M | $22M | SOP Started; Ramp up from Q4 FY26 |
| Emission Components (Global Business) | $7M | $40M | Revised SOP Q2 FY27 |
| Suspension Control Arms (Lightweighting) | $4.2M | $23M | SOP started (Q4 FY26) |
| CEV Adjacencies (Emission Control) | $3.5M | $17.5M | SOP Started; Ramp up from Q4 FY26 |
Significant New Orders Received in FY26 (Partial View)
Further orders were secured in FY26 across new verticals:
- Suspension Control Arms & Links: $5M Annual Value ($25M LTV), SOP starting Q3&Q4 FY26.
- Suspension Control Arms: $8.3M Annual Value ($41.7M LTV), SOP starting Q1 FY28.
- Emission Components (Global Business): $3M Annual Value ($15M LTV), SOP starting Q3 FY27.
Corporate Citizenship
The presentation concluded by outlining the Sharda Unnati CSR Programmes, focusing on environmental sustainability (Green India Campaign), education (Sharda Educate), healthcare support (Sharda Medicare), and community health through Blood Donation Drives.
Source: BSE
