Sundram Fasteners grows revenue 20.39%, but costs trim margin
Sequential momentum improved as revenue grew faster than expenses, lifting operating margin by 0.38 percentage points to 15.51%.
Filed 04 Aug 2026, 18:45 IST · after market close · Sundram Fasteners Ltd (SUNDRMFAST)
Key takeaways
- Consolidated revenue grew 20.39% year on year, but expenses grew faster at 21.26%, reducing operating margin by 0.60 percentage points.
- Net profit rose 14.03% year on year to Rs 168.69 cr, helped by a 1.17-percentage-point lower tax rate.
- Operating margin at 15.51% remained 2.18 percentage points above the 13.33% median for 81 reported Consumer Discretionary peers.
Price around the results
Revenue growth outpaced the previous quarter
Consolidated revenue rose 20.39% year on year and 9.02% sequentially, with operating profit growth slower at 15.85% year on year but faster at 11.76% sequentially. The sequential improvement was more efficient than the annual growth because expenses increased 8.53%, below the 9.02% revenue increase. The results were filed after market close.
Annual cost pressure limits profit conversion
Sequentially, the opposite mix lifted margin by 0.38 percentage points, while interest expense fell 14.70%. Other income contributed 3.99% of pre-tax profit, so it was not a major driver of earnings; however, the tax rate fell 1.17 percentage points year on year to 24.54%, supporting the 14.03% net-profit growth.
Margin has recovered slightly after two quarters of decline
Operating margin rose from 15.13% in Q4FY26 to 15.51% in Q1FY27, but remains below 16.11% in the year-ago quarter and 16.60% in Q2FY26. The trend therefore shows a sequential recovery after declines from Q2FY26 through Q4FY26, rather than a fresh margin low. At 15.51%, Sundram Fasteners was 2.18 percentage points above the 13.33% median among 81 Consumer Discretionary peers that had reported.
The stock usually reacts negatively to results
There was no immediate market reaction because the filing came after market close. Across the last eight results, the stock fell after six and rose after two, with a median absolute move of 0.88%; the recorded moves ranged from -3.44% to +4.11%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,846 cr | ₹1,693 cr | +9.02% | +20.39% |
| Other income | ₹9 cr | ₹27 cr | -66.54% | -55.00% |
| Expenses | ₹1,560 cr | ₹1,437 cr | +8.53% | +21.26% |
| Operating profit | ₹286 cr | ₹256 cr | +11.76% | +15.85% |
| Operating margin (%) | 15.51% | 15.13% | — | — |
| Interest | ₹9 cr | ₹10 cr | -14.70% | -3.74% |
| Depreciation | ₹63 cr | ₹60 cr | +5.31% | +7.18% |
| Profit before tax | ₹224 cr | ₹213 cr | +5.05% | +12.26% |
| Tax | ₹55 cr | ₹51 cr | +6.63% | +7.15% |
| Net profit | ₹169 cr | ₹161 cr | +4.54% | +14.03% |
| EPS (₹) | ₹8.01 | ₹7.68 | +4.30% | +13.46% |
Operating margin of 15.51% compares with a Consumer Discretionary sector median of 13.33% across 81 peers that have reported Q1FY27.
What to watch
- Whether operating margin remains above 15.13%, the Q4FY26 level.
- Whether expense growth stays below revenue growth after the current 21.26% versus 20.39% annual gap.
- Whether the tax rate remains near 24.54% after falling 1.17 percentage points year on year.