01 — At a Glance
The Component King Everyone Forgot About
- 52-Week High / Low₹601 / ₹342
- Q3 FY26 Revenue₹1,185 Cr
- Q3 FY26 PAT₹34.9 Cr
- EPS (Q3)₹5.56
- Annualised EPS (Q3 Avg)₹22.24
- Book Value / Share₹204
- Price to Book2.34x
- Revenue Growth (YoY)+21.7%
- Profit Growth (YoY)+16.6%
- Operating Margin9.05%
Flash Summary: Sandhar just reported Q3 revenue of ₹1,185 crore, up 21.7% YoY. PAT came in at ₹34.9 crore, growing 16.6% YoY. The stock is at ₹477, returned -14.7% in 3 months, yet trades at a reasonable 16.2x P/E. The company is in the middle of integrating the Sundaram Clayton acquisition (₹163 crore deal), firing up new facilities in Pune and Chennai, and trying to stop the hemorrhaging in Europe. Management says the turnaround from overseas and new projects is coming “from April 2026.” Let’s see if that actually happens.
02 — Introduction
The Auto-Ancillary That Supplies Everyone Except Itself
You know Sandhar Technologies because you’ve been inside the car or bike it supplies components for. The thing is, you’ll never actually see the Sandhar logo on anything. That’s the entire business model of auto-ancillaries — build the invisible bits that nobody cares about until they break.
Sandhar makes locking systems (door locks, boot locks, fuel door locks), aluminum die casting components, vision systems (mirrors and camera modules), cabin fabrication, sheet metal parts, and assemblies. They supply to everyone from Hero MotoCorp (nearly a quarter of their revenue) and TVS, to TATA, Mahindra, JCB, and even Caterpillar. In the two-wheeler space, they own nearly 67% of their revenue base. If India has made a crore two-wheelers in the last decade, Sandhar’s locks probably opened and closed a lot of them.
The company has 25 manufacturing plants across India, strategically clustered near automotive hubs in Haryana (6 units), Karnataka (5), Tamil Nadu (5), Maharashtra (4), and scattered across other states. They also have overseas subsidiaries in Romania, Spain, Poland, and Mexico. Promoter Jayant Davar holds 50.56% of the company as of December 2025. He’s been running this thing for 35 years, and if the family business was an IPL team, it would’ve won at least one championship by now.
From the Feb 2026 Concall: Management says India operations delivered 24% revenue growth and 21.1% ROCE in existing business. New projects (Pune facility, Chennai facility, Sundaram acquisition) will “turn around starting April 2026.” Overseas is expected to move from ₹25.81 crore losses (9M) to breakeven by FY27. Translation: a lot of moving parts, and execution risk is absolutely real.
03 — Business Model: Bolts, Locks, and More Bolts
They Make 99 Paise Per Rupee. The Profit is in the Other One Paise.
Sandhar is a classic auto-ancillary with a diversified product portfolio. Revenue is split across locking systems (18%), aluminum die casting domestic (22%), sheet metal (17%), cabins & fabrication (11%), ADC exports (10%), and the rest from assemblies, vision systems, and others. By vehicle segment, 2-wheelers dominate at 67%, followed by passenger vehicles (14%) and off-highway vehicles (12%).
The business model is simple: buy raw materials, manufacture components at scale, sell to OEMs at negotiated prices, repeat. Margin expansion comes from scale efficiencies, new product launches, and value-add engineering. The challenge? You’re at the mercy of your customers. Hero and TVS together account for 52% of FY25 revenue. If Hero sneezes, Sandhar catches a cold. If TVS has a supply chain crisis, Sandhar’s working capital moves like a seesaw.
The company has been expanding aggressively. In May 2025, they acquired Sundaram Clayton’s aluminum die casting business (the high-pressure and low-pressure ADC assets at Hosur) for ₹163 crore. The acquired business does ₹400-450 crore annual revenue potential, but integration is a nightmare right now — they’re relocating the entire Hosur facility to a new plant and expect to complete by end-April 2026. Management guided FY27 EBITDA margin for Sundaram at 7-7.5%, scaling to 9-9.5% by FY27-28. That’s aggressive. Hope is not a strategy, but it might work here.
2-Wheeler Revenue67%of total
Top 2 Customers52%Hero + TVS
Manufacturing Plants25+across India
Promoter Hold70.4%locked & loaded
Fun fact from the concall: Management confirmed that smart locks (electronic locking systems) adoption has slowed down because of high prices. Three years ago, they expected way higher volumes. Now? “Less than 2% to 3% of the market.” The lesson: just because you can make something doesn’t mean customers will buy it at your preferred price. Welcome to the auto industry, where margins disappear faster than free snacks at an office party.
04 — Financials Overview
Q3 FY26: Growth is Real. Profitability is Shy.
Result type: Quarterly Results | Q3 FY26 EPS: ₹5.56 | Q2 FY26 EPS: ₹12.19 | Q1 FY26 EPS: ₹4.65 | Avg Q1-Q3 EPS: (₹4.65+₹12.19+₹5.56)/3 = ₹7.47 | Annualised EPS: ₹29.88
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,185 | 974 | 1,270 | +21.7% | -6.7% |
| Operating Profit | 108 | 95 | 118 | +13.7% | -8.5% |
| Operating Margin % | 9.1% | 9.8% | 9.3% | -70 bps | -20 bps |
| PAT | 34.9 | 29.9 | 73.0 | +16.6% | -52.2% |
| EPS (₹) | 5.56 | 4.98 | 12.19 | +11.6% | -54.3% |
What’s Happening: Q3 revenue is ₹1,185 crore, up 21.7% YoY from ₹974 crore. That’s solid growth. But the sequentially, it dropped 6.7% from Q2’s ₹1,270 crore — that’s because Q2 was boosted by the Sundaram acquisition (acquired late May 2025, so full Q2 impact). Operating profit is ₹108 crore, up 13.7% YoY but the margin compressed from 9.8% to 9.1% — basically, growth is coming from volume, not pricing power. PAT at ₹34.9 crore is up 16.6% YoY but down 52% QoQ because Q2 had exceptional gains (management said ₹34 crore land sale profit from Peenya, Bangalore). Strip that out, and Q3 is the normalized quarter. Management warned: “Q3 has fewer working days due to OEM shutdowns in late Dec. Q4 will be the better one.” They’re basically setting expectations for a bounce-back in Q4. Let’s hope.
EPS Reality Check: TTM annualised EPS sits at ₹29.88. CMP is ₹477. That puts the P/E at 15.98x (let’s call it 16x). Industry P/E median for auto components is 24.5x. Sandhar is trading at a 35% discount to the sector median. That could mean it’s undervalued. Or it could mean the market is pricing in execution risk. (Spoiler: both.)
💬 Management keeps promising Q4 and FY27 turnarounds. How many times have you heard that and been disappointed? Share your auto-ancillary war stories in the comments.
05 — Valuation Discussion: Fair Value Range
What Is This Component Maker Actually Worth?
