Sundram Fasteners' profit jumps 29.62% YoY as margin slips sequentially
Revenue grew +10.63% YoY and operating margin improved 0.45 percentage points, but other income contributed 12.51% of pre-tax profit.
Filed 30 Apr 2026, 20:07 IST · after market close · Sundram Fasteners Ltd (SUNDRMFAST)
Key takeaways
- Consolidated net profit rose +29.62% YoY to Rs 161.36 cr, while the tax rate was almost unchanged at 24.17%.
- Sequential operating margin narrowed 0.46 percentage points as expenses grew +10.48% against revenue growth of +9.88%.
- The stock rose 4.11% on the reaction day, an unusually positive move versus its history of seven declines in eight result reactions.
Price around the results
Revenue momentum lifted quarterly profit
Consolidated revenue grew +10.63% YoY to Rs 1693.3 cr, with operating profit rising faster at +13.98% to Rs 256.12 cr. That operating leverage helped net profit increase +29.62% to Rs 161.36 cr. The YoY profit increase was not driven by a lower tax rate, which changed by only 0.04 percentage points.
Sequential margin pressure returned
Revenue increased +9.88% QoQ, but expenses grew faster at +10.48%, narrowing operating margin by 0.46 percentage points. Interest expense also rose +33.03% QoQ, adding pressure below operating profit. Other income accounted for 12.51% of pre-tax profit, so reported earnings included a meaningful non-operating contribution.
Margin remains above the peer median but is trending down
However, margin has declined for a second consecutive quarter, from 16.60% in Q2FY26 to 15.59% in Q3FY26 and 15.13% now. It was 0.32 percentage points above the 14.81% median among 93 Consumer Discretionary peers that had reported.
The market reaction was unusual for this stock
The stock rose 4.11% on the reaction day, after opening with a 6.65% gap, while traded volume was 5.69 times the reference level. This was a notable departure from the stock's recent results pattern: it rose after one of eight results and fell after seven, with a median absolute move of 0.88%. The reaction also overlapped with a corporate action, which limits how much of the move can be assigned to the results.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,693 cr | ₹1,541 cr | +9.88% | +10.63% |
| Other income | ₹27 cr | ₹-1 cr | — | +270.38% |
| Expenses | ₹1,437 cr | ₹1,301 cr | +10.48% | +10.05% |
| Operating profit | ₹256 cr | ₹240 cr | +6.61% | +13.98% |
| Operating margin (%) | 15.13% | 15.59% | — | — |
| Interest | ₹10 cr | ₹8 cr | +33.03% | +7.76% |
| Depreciation | ₹60 cr | ₹57 cr | +3.81% | +2.68% |
| Profit before tax | ₹213 cr | ₹174 cr | +22.06% | +29.56% |
| Tax | ₹51 cr | ₹44 cr | +18.14% | +29.38% |
| Net profit | ₹161 cr | ₹131 cr | +23.36% | +29.62% |
| EPS (₹) | ₹7.68 | ₹6.21 | +23.67% | +29.73% |
Operating margin of 15.13% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.11% | +3.61% |
| Next session | +1.34% | — |
| 5 sessions | -1.53% | -0.77% |
| 15 sessions | +1.39% | — |
| 30 sessions | +1.18% | — |
Volume on the results session was 5.69× its 20-day average.
What to watch
- Whether operating margin holds above 15.13% after two consecutive sequential declines.
- Whether expenses continue to grow faster than revenue after the QoQ gap of 10.48% versus 9.88%.
- Whether other income remains a material contributor after accounting for 12.51% of pre-tax profit.