Q1 2026 Sharda Motor Industries Ltd Earnings Call Transcript
Key Points
- Sharda Motor Industries Ltd (BOM:535602) reported a year-on-year revenue growth with consolidated revenues reaching INR756.2 crores in Q1 FY26.
- The company's gross profit for the quarter was INR189.5 crores, reflecting a 5% growth over Q1 FY25, outperforming the industry.
- EBITDA for Q1 FY26 stood at INR98.4 crores, showing a 3% growth compared to the same quarter last year, with an EBITDA margin of 13%.
- Profit before tax increased to INR130.1 crores, aided by an exceptional gain from the sale of idle industrial land.
- The company has strengthened its leadership team and innovation pipeline, filing a total of 15 patents to date, up from 13 previously.
- The company does not provide segment-wise revenue breakdown on a quarterly basis, limiting transparency.
- There was a discrepancy in the depreciation figures, with a decrease noted compared to the March quarter, raising questions about asset sales.
- Despite a 10% increase in revenue, gross margin growth was only 5%, indicating potential issues with product mix or cost management.
- The geopolitical tensions and recent tariff changes pose uncertainties for the company's export business, particularly in the U.S. market.
- The company is sitting on a large cash surplus of INR800 crores, with no fixed timeline for acquisitions, which may concern investors looking for immediate returns.
Ladies and gentlemen, good day, and welcome to Sharda Motor Industries Limited Q1 FY26 conference call hosted by Equirus Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mihir Vora from Equirus Securities. Thank you, and over to you, sir.
Yeah. Thank you. Hi, good afternoon, everyone. On behalf of Equirus Securities, I welcome you all to the Q1 FY26 Post Results Conference for Sharda Motors. From the management side, we have with us Mr. Aashim Relan, CEO and Mr. GD Takkar, Group CFO.
Without further ado, I will now hand over the call to management for opening remarks.
Thank you very much, Mihir. Thanks a lot. Good afternoon, everyone. I extend a warm welcome to all the participants on today's call. I'm joined by our Group CEO, Mr. Aashim Relan and Deputy Managing Director, Mr. Ashwani Maheshwari. I trust you have had the
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