Sundram Fasteners, the TVS-group maker of high-precision fasteners, powertrain and metal formed components, heads into its Q2 FY 2026-2027 print with domestic auto demand running hot but steel input costs spiking through August-September. The print will speak to whether the guided Q2 margin expansion from indirect-material negotiations landed against a four-year-high HRC steel price, and whether the North American Class 8 export recovery converted into shipped revenue.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,846.07 Cr (consolidated, +20.39% YoY) |
| Previous quarter PAT | Rs. 168.69 Cr (consolidated, +14.03% YoY) |
| Previous quarter EBITDA margin | 16.1% (company-reported) |
| Market cap | Rs. 21,536.06 Cr |
| CMP | Rs. 1,024.9 |
The Board meets on Wednesday, October 28, 2026, to approve unaudited standalone and consolidated results for Q2 and the half-year ended September 30, 2026, and to consider declaration of an Interim Dividend for the FY ending March 31, 2027. The trading window for Designated Persons is closed September 30 to October 30, 2026 (until 48 hours after results declaration) under SEBI insider trading rules.
The quarter's key swing is the margin path: management guided a Q2-specific EBITDA expansion from indirect-material negotiations on the way from 16.1% in Q1 FY27 toward "closer to 16.5" for FY27, but HRC steel hit a four-year high in early September at Rs. 62,000/t, up 25% YoY and about 6% above June, with coking coal up 22% to $283/t versus the $232 August average. Mitigants include the alloying-metal spike largely unwinding (LME aluminium at $3,041.50/t and nickel at $16,234/t by October 21) and a weaker rupee through July-September (~94.5 in June to ~95.9 by mid-September) that lifts export realizations on roughly a quarter of revenue. On demand, SIAM wholesales ran well above the industry assumptions guidance was built on — PV +30.7% and CV +28.7% in Q2 FY27 — while North American Class 8 orders ran +42-75% YoY through July-August before a September deceleration on EPA-2027 emissions uncertainty. Exports face a soft base of Rs. 338 Cr in standalone Q2 FY26 against the 15-20% FY2026-27 export growth target, and the 10% Section 301 tariff plus 50% steel/aluminium and 25% auto-component sectoral duties remained the operating backdrop with no in-window relief. The upcoming call is also expected to cover capex run-rate against the Rs. 400 Cr FY27 guidance and the interim dividend against the stated 30% PAT payout policy.
EBITDA margin vs the guided Q2 expansion: Q1 FY27 printed 16.1% with guidance to finish closer to 16.5 for FY27.
Export growth vs the 15-20% FY2026-27 target
Capex execution vs Rs. 400 Cr FY27 guidance: The FY27 capex guidance was raised from ~Rs. 250 Cr guided at Q3 FY26.
Non-auto verticals: railway, aerospace and EV ramp
Interim dividend and subsidiary trajectory
At the Q1 FY27 call, management pointed to a Rs. 400 Cr capex press release when asked whether the earlier ~Rs. 250 Cr guidance stood, noting it is roughly in line with the last three years' balance-sheet levels, with about 30% for replacement. The split is ~Rs. 250 Cr for the Fasteners Division (wind energy, space, aerospace) and ~Rs. 100 Cr for Cast & Machined Assemblies.
Management has guided to Rs. 200-250 Cr of EV revenue from General Motors this year, up from less than Rs. 50 Cr last year, with potential to reach Rs. 750 Cr at its peak, and Rs. 200-250 Cr from Stellantis across ICE, PHEV and EV platforms. EV projections from both customers were downsized 50%, with the EV pick-up delayed until the second half of the next year.
The CFO stated the company targets growth at nominal GDP or 2x GDP (12-13%), and "we will not look at anything lower than two-digit growth" for FY27. Management aims to outperform industry growth by 2-3 percentage points in key segments, benchmarked to industry projections of 8% in commercial vehicles, 10% in passenger vehicles and 6-7% in tractors.
The 18% FY27 margin guidance was reaffirmed at the Q3 FY26 call, with the CFO confirming "Margin, definitely, yes". Q1 FY27 came in at 16.1% with management expecting to "finish closer to 16.5", and the path to 18% is contingent on export business recovery, high-margin aerospace growth and 30% wind energy growth with operating leverage.
Standalone exports rose from Rs. 338 Cr in Q2 FY26 to Rs. 465.97 Cr in Q1 FY27 (+23% YoY), and management characterized last year's 8% export degrowth as a one-off tariff event that is easing, with the reciprocal duty down to 10%. North American Class 8 truck order levels were 20-25% higher YoY with backlogs at a 38-month high, though exports remain at 23% of revenue versus 30-33% earlier.