Sundram Fasteners shines in Q1 amid export woes

Sundram Fasteners Ltd, a leading auto parts player, has reported a decline in export revenue for the quarter ended June 30, 2025, as the company navigates persistent global economic headwinds and heightened geopolitical uncertainty.

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Export sales declined to ₹379.14 crore from ₹422.65 crore in the same quarter last year, highlighting external market pressures, especially in the wake of evolving U.S. trade policies. The company also acknowledged the evolving trade environment, particularly the recent U.S. tariff decision, which is being closely monitored for its potential impact.

Despite external challenges, Sundram Fasteners delivered its strongest-ever consolidated financial performance for a single quarter. The consolidated net profit for the quarter stood at ₹147.94 crore, the highest in the company’s history.

Consolidated revenue from operations reached an all-time high of ₹1,533.39 crore, while consolidated profit before tax (PBT) rose to a record ₹199.13 crore. Earnings per share (EPS) increased to ₹7.06.

“Our export markets continue to pose challenges amidst global economic headwinds and ongoing geopolitical uncertainties. Despite these conditions, we remain confident in the competitive strength of our product portfolio and the durability of our long-term partnerships. We are closely monitoring the recent U.S. tariff decision. While the full impact is yet to unfold, I am confident in our ability to adapt and advance our presence in the U.S. market, reinforced by enduring customer relationships and our consistent commitment to quality,” said Arathi Krishna, Managing Director of the company.

She added that the company remains committed to strengthening its foundation by investing in innovation, capacity expansion, and customer engagement to ensure long-term growth in both domestic and international markets.

On a standalone basis, the company reported revenue from operations of ₹1,350.17 crore for the quarter, up from ₹1,310.33 crore in the same period last year. Domestic sales grew 8.78% year-on-year to ₹930.91 crore, helping to offset the drop in exports. Gross margins improved to 59.9% from 57.5%, driven by a favourable product mix, stable commodity prices, and stronger domestic demand.

Sundram Fasteners also recorded its highest-ever standalone EBITDA at ₹238.77 crore, up from ₹223.06 crore, with the EBITDA margin improving to 17.5%. Profit before tax on a standalone basis was ₹185.68 crore, while net profit reached ₹138.35 crore — also the highest ever. Standalone EPS for the quarter stood at ₹6.58.

The company incurred a capital expenditure of ₹71.48 crore during the June 2025 quarter, as part of its planned investments for FY26.

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