Sandhar Technologies: Expansion Creates Earnings Opportunity

is investing ₹341 crore across four new projects covering aluminium die casting, cabins and fabrication, sheet metal and EV-related products. The expansion is aimed at broadening its product portfolio and increasing exposure to higher-value components across two-wheelers, passenger vehicles, off-highway vehicles and EVs. The investment is already contributing to revenue, but profitability remains weak at the initial stage. The four new projects generated around ₹130 crore revenue in Q1 FY27, while EBITDA was only ₹0.88 crore and PBT remained negative at ₹7.41 crore. This explains the near-term pressure on consolidated margins as the company absorbs employee, energy and start-up costs before these facilities reach better utilisation. The opportunity is that these businesses could become meaningful earnings drivers once utilisation improves. Sandhar expects the new projects to move towards profitability over FY27–FY28, while aluminium die casting, sheet metal and EV-related products provide exposure to structural growth in India's auto-component market. However, the expansion also increases capital requirements