Sharda Motor Industries Limited — PPTs, 25-05-2025: Investor Presentation

1. Financial Highlights:

Sharda Motor Industries posted consolidated revenue of ₹2,837 Cr in FY25, up slightly from ₹2,809 Cr in FY24. EBITDA increased 10% to ₹315 Cr with margins expanding to 11.1%. Profit after tax rose 6% to ₹396 Cr, maintaining an 11.1% margin. Q4 revenue stood at ₹750 Cr and PAT at ₹84 Cr, reflecting operational consistency. The balance sheet remains healthy, with ₹1,062 Cr equity and ₹199 Cr in cash. Working capital is stable, alongside investments in fixed assets signaling capacity upgrades.

2. Strategic Initiatives & Growth Drivers:

The company is accelerating its lightweighting segment—focused on control arms and axle assemblies—using advanced materials to meet EV and CAFÉ norms. Emission control systems continue to expand, backed by R&D centers in Chennai and South Korea fostering innovation. Export growth to US and European markets is a focus, driven by a dedicated global business team and expansions such as the new lightweighting Plant-III at Chakan.

3. Business Developments:

Sharda Motor secured significant new orders from major clients in North America and India across emission control, lightweight arms, and genset parts, with production starting Q3 FY26. These orders have a combined lifetime value exceeding $80 million. The company’s patent activity remains active, with 13 filings and 3 grants in the past three years, supporting its technology leadership.

4. Market Position & Competitive Advantage:

Holding ~30% value share in PV & LCV exhaust systems and ~12.5% in control arms, Sharda Motor is a top-tier Indian automotive components supplier. Its broad manufacturing footprint (8 plants) and backward integration in tube mills and stamping bring cost and quality advantages. Strong, long-term OEM relationships (e.g., Mahindra, Hyundai) and multiple awards underscore its leadership and reliability.

5. Investor Implications:

Sharda Motor’s strategic focus on emission control and lightweighting aligns well with industry trends like electrification and tougher norms. Export growth and marquee new orders underscore positive growth potential, backed by solid execution and innovation. Investors should watch new contract ramp-ups and global market expansions as growth drivers, while remaining mindful of execution risks tied to scaling capacity and market entry.