Sandhar Technologies Eyes 20% Revenue Growth In FY26, Bets Big On Two-Wheeler Smart Locks
The company is targeting a 50-basis-point improvement in margins in FY26.
Sandhar Technologies, a leading automotive components manufacturer, is on a trajectory to achieve double-digit Ebitda margins by the end of the current financial year, according to its Chairman, Managing Director (MD) and CEO Jayant Davar.
“At the closure of this particular year, we will have a 50 basis points improvement in margin, which will be in double digits for sure and a safe double digit in that sense,” he said during a conversation with NDTV Profit.
He attributed the past pressure on margins to substantial capital investments, noting, "It's time for us to fertilise and take benefits from what we've done."
Davar expressed confidence that Sandhra Technologies will register a 2x growth rate compared to the industry average. The company is projecting a 20% growth in revenue in FY26, aided by its acquisition of Sundaram Clayton’s aluminium die-casting business.
“We are hopeful that with the GST thing kicking in and the market picking up further, we should be able to beat even that number as we go forward,” he said. He was hopeful of a positive outcome on the proposed reforms at the upcoming meeting of the Goods and Services Tax (GST) Council, scheduled on Sept. 3 and 4.
The company is also eyeing a sizable growth after its foray into smart locks for the two-wheeler market.
“If you look at the potential market, it is massive. The smart lock category is about eight to ten times higher in terms of revenue per lock. We have just begun that journey. Two of our big clients have just onboarded these products as standard equipment. We are the first ones off the block in the mass market of two-wheelers,” the top executive said.
For Sandhar Technologies, the locking systems business offers margins between 14% to 16%. However, the overall company margin is moderated by newer, more commoditised segments like the casting and sheet metal businesses.
Davar expressed confidence that as these recently expanded units stabilise, their profitability will improve significantly.
The company is also targeting a 15% return on capital employed (RoCE) for FY26, with ambitions to achieve a 15% post-tax RoCE in the coming years.
The automotive components manufacturer also plans to raise approximately Rs 500 crore, which is earmarked for potential inorganic growth. “There were some very interesting targets being considered to make sure that we do not miss out on those particular opportunities,” the CEO said.
