Sharda Motor Industries Limited Q2 FY26 Concall Decoded: ₹787 crore topline, margins went on a brake test, tech dreams shifting gears

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1. Opening Hook

Auto ancillaries finally got festive tailwinds, GST relief, and OEM smile emojis—so naturally, margins decided to sulk. Sharda Motor showed up with double-digit revenue growth, talked global tech, waved lightweighting dreams, and quietly slipped in an EBITDA degrowth.

Q2 FY26 was that quarter where topline behaved, gross profit nodded politely, but EBITDA pretended it didn’t hear the good news. Catalysts got expensive, costs went sightseeing, and management politely reminded everyone to “look at gross profit, not emotions.”

There were shiny new orders, a Korean tech handshake, and patents filed—basically everything except margin expansion. Lightweighting is the new buzzword, exports are the new hope, and FY28 is where all SOPs magically start working.

Read on. The strategy sounds bold, the execution is… loading.

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2. At a Glance

• Revenue ₹787.2 cr (+11%) – Industry grew, Sharda tagged along obediently.
• Gross Profit ₹194.9 cr (+4%) – Growth matched industry, excitement did not.
• EBITDA ₹101 cr (-4%) – Costs won, margins lost.
• EBITDA Margin 12.8% – Catalyst math ruined the percentage party.
• PAT ₹74.7 cr – Stable, calm, no drama.
• Capacity Utilisation ~80% – Machines busy, margins still thinking.

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3. Management’s Key Commentary

“Gross profit is the right indicator of performance.”
(Please ignore EBITDA for emotional stability.) 😏

“Catalyst prices increased due to noble metal inflation.”
(Platinum had other plans.)

“Lightweighting contributes ~10% of revenues currently.”
(Small today, PowerPoint hero tomorrow.)

“We signed a technology license with Donghee of Korea.”
(Imported brains, local execution.)

“Two new lightweighting orders worth $70 million lifetime value.”
(FY28 is where dreams start earning.)

“Export margins are very good, but working capital is heavy.”
(Profit comes with luggage.)

“We are open to M&A but mindful of ROCE.”
(Interested, cautious, non-committal.)

“TREM5 timeline may change.”
(Regulators playing suspense thriller.)

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4. Numbers Decoded

Source table

Metric	Q2 FY26	YoY	What It Actually Means
Revenue	₹787.2 cr	+11%	Volume + catalyst