Sedemac's 19.10% margin beats the sector median by 4.56 points
Standalone profit was mainly operating in nature, while management pointed to further E2W MCU and export three-wheeler ECU ramp-up.
Filed 28 Jul 2026, 22:44 IST · after market close · Sedemac Mechatronics Ltd (SEDEMAC)
Key takeaways
- Sedemac's standalone operating margin of 19.10% was 4.56 percentage points above the Consumer Discretionary peer median.
- Other income of Rs 0.86 cr was small against Rs 41.34 cr of standalone profit before tax, so reported profit was mainly operating in nature.
- Management said ISG-equipped two- and three-wheeler production in India reached 8.4 million in FY26, up from 5.1 million in FY23.
Price around the results
Standalone margin led the quarter
Sedemac reported Rs 309.77 cr of standalone revenue and Rs 33.31 cr of net profit in Q1FY27. Its 19.10% operating margin was 4.56 percentage points above the 14.54% median for the 26 Consumer Discretionary peers that had reported. This places the company above the sector midpoint on operating profitability.
Profit quality was largely operating
Other income contributed Rs 0.86 cr against standalone profit before tax of Rs 41.34 cr, so it did not materially drive the quarter's earnings. The 19.42% tax rate was applied to operating earnings after interest and depreciation, with no comparison available to assess whether tax effects helped or hurt the result.
ISG adoption supports the product story
Management said more than 80% of ISG volume growth in FY26 came from Sedemac. The company also said three of India's top four two-wheeler OEMs now use its sensorless ISG, while it expects further ramp-up of E2W MCUs and ISG ECUs for export three-wheelers. Management identified a third launch for Q4FY27 and said SLC technology is key to its wet magneto offering.
Results were filed after market close
The standalone results were filed at 22:44 IST on 28 July 2026, after the market close. There is therefore no post-results stock reaction to assess against Sedemac's past results history.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹310 cr |
| Other income | ₹1 cr |
| Expenses | ₹251 cr |
| Operating profit | ₹59 cr |
| Operating margin (%) | 19.10% |
| Interest | ₹2 cr |
| Depreciation | ₹16 cr |
| Profit before tax | ₹41 cr |
| Tax | ₹8 cr |
| Net profit | ₹33 cr |
| EPS (₹) | ₹7.54 |
Operating margin of 19.10% compares with a Consumer Discretionary sector median of 14.54% across 26 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- More than 80% of ISG volume growth in FY26 was attributable to SEDEMAC.
- The number of two- and three-wheelers produced with ISG in India rose to 8.4 million in FY26 from 5.1 million in FY23.
Guidance & outlook
- A third launch is expected in Q4FY27.
- SEDEMAC expects further ramp-up of its E2W MCUs.
- SEDEMAC expects ramp-up of ISG ECUs for export three-wheelers.
New initiatives
- SEDEMAC identifies SLC technology as key for its wet magneto offering.
Competition
- Three of India's top four two-wheeler OEMs now use SEDEMAC's sensorless ISG.
Problems & risks
- The risk survey identifies shrinkage in the Indian two- and three-wheeler market.
What to watch
- Whether standalone operating margin holds above 19.10%.
- Whether the third launch cited by management is reported in Q4FY27.
- Whether ISG-equipped two- and three-wheeler production builds from 8.4 million in FY26.