Costs outpaced revenue growth, sending Sundram margin down to 14.94%
Sales rose +30.47% YoY, but higher expenses, interest and tax kept net profit growth to +13.01%.
Filed 28 Oct 2026, 19:28 IST · after market close · Sundram Fasteners Ltd (SUNDRMFAST)
Key takeaways
- Consolidated revenue grew +30.47% YoY, but expenses rose +33.07%, cutting operating margin by 1.66 percentage points to 14.94%.
- Net profit increased +13.01% YoY to Rs 172.63 cr as the tax rate rose 0.81 percentage points and other income contributed 4.97% of PBT.
- Revenue grew +7.50% QoQ, but the 0.57-point margin decline reversed the improvement seen in Q1FY27.
Price around the results
Revenue grew sharply, but costs grew faster
In consolidated results, revenue increased +30.47% YoY and +7.50% QoQ, but expenses rose faster at +33.07% YoY and +8.22% QoQ. That cost differential reduced operating margin by 1.66 percentage points YoY and 0.57 percentage points QoQ. Operating profit therefore grew only +17.41% YoY despite the much faster revenue increase.
Margin remains above peers but below last year
Sundram Fasteners' 14.94% operating margin was 1.92 percentage points above the 13.02% median for 84 Consumer Discretionary peers that had reported the quarter. However, margin remains below Q2FY26's 16.60%. It fell from 16.60% in Q2FY26 to 15.59% in Q3FY26 and 15.13% in Q4FY26, recovered to 15.51% in Q1FY27, and then declined again this quarter.
Higher interest and tax limited profit conversion
Sequentially, interest expense increased +35.27% and the tax rate rose 0.58 percentage points, helping keep net profit growth to +2.34% despite the 7.50% revenue increase. Other income accounted for 4.97% of pre-tax profit, so the quarter's earnings were mainly generated by operations rather than non-operating income. Year on year, the tax rate was also higher by 0.81 percentage points.
Results came after the market close
The company filed these consolidated results after market close on 28 October 2026. Across the previous eight results, the stock fell after five and rose after three, with a median absolute move of 1.70%, providing the recent reaction context for the next trading session.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,985 cr | ₹1,846 cr | +7.50% | +30.47% |
| Other income | ₹11 cr | ₹9 cr | +28.51% | -44.39% |
| Expenses | ₹1,688 cr | ₹1,560 cr | +8.22% | +33.07% |
| Operating profit | ₹296 cr | ₹286 cr | +3.55% | +17.41% |
| Operating margin (%) | 14.94% | 15.51% | — | — |
| Interest | ₹12 cr | ₹9 cr | +35.27% | +7.14% |
| Depreciation | ₹65 cr | ₹63 cr | +4.15% | +8.76% |
| Profit before tax | ₹231 cr | ₹224 cr | +3.14% | +14.25% |
| Tax | ₹58 cr | ₹55 cr | +5.60% | +18.08% |
| Net profit | ₹173 cr | ₹169 cr | +2.34% | +13.01% |
| EPS (₹) | ₹8.20 | ₹8.01 | +2.37% | +14.21% |
Operating margin of 14.94% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.94% | -1.99% |
Volume on the results session was 3.09× its 20-day average.
What to watch
- Whether operating margin recovers from 14.94% after the 1.66-point YoY decline.
- Whether expenses continue to grow faster than revenue after +33.07% versus +30.47% YoY.
- Whether interest growth moderates from +35.27% QoQ.