Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or planned new fundraising through debt or equity in the transcript provided. The company highlights a strong balance sheet which gives flexibility to deploy capital where there is strategic fit, customer, and technology relevance. Capex guidance for FY27 is around INR 90 to 110 crore for expansion, especially for lightweighting and emission-related investments, funded internally. The company plans to remain disciplined on valuation and ROCE potential in case of any M&A activities but does not indicate need for external fundraising. No details on any

Any current/future capex/capital investment/strategic investment?

FY27 capex guidance is around INR 90 crores to INR 110 crores. Increased capex planned to augment R&D capabilities in lightweighting and readiness for new emission norms. Additional investments planned for new facilities to expand footprint as per customer needs, over and above yearly capex range. Further capex for growing lightweighting and powertrain agnostic component business linked to customer schedules and order visibility. Emission capacity augmentation requires limited, straightforward, and not very sizable capex. Overall, Sharda remains disciplined with capex, linked to strategic fit,

Future growth expectations in sales/revenue/volumes?

FY26 revenue grew 20% YoY to INR 3,396.8 crores; Q4 FY26 revenue grew 30% YoY to INR 971.8 crores. Growth driven by broad-based demand across passenger vehicles (PV), commercial vehicles (CV), off-highway, and exports. Lightweighting vertical expected to triple by FY28 compared to FY25 levels, becoming a major growth engine (currently ~10% of gross sales). Exports, especially CV emission components, agri genset exhaust systems, expected to scale with new orders and SOPs in FY27/FY28. Emission business margins and volumes to improve with continued order ramp-up and capacity augmentation. Capex

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth drivers include strong ramp-up of lightweighting suspension orders, CV adjacency impact, and export orders, notably from North American engine manufacturers. Lightweighting vertical, currently ~10% of sales, is expected to grow ~3x by FY28, becoming a major growth engine. Export margins are expected to be broadly in line with domestic business but will require higher working capital. EBITDA margins grew 12% YoY in Q4 FY26; gross profit growth of 8% YoY aligns with industry trends. Capex guidance for FY27 is INR 90-110 crore, focusing on R&D, lightweighting, emission readiness, a

Current/ Expected Orderbook/ Pending Orders?

FY27 and FY28 orders indicate a nearly 3x increase in lightweighting vertical revenue compared to FY25 levels. The company has sizable export orders, including new contracts with the largest CV engine maker globally, top 3 agri tractor company, and two additional customers. SOPs (Start of Production) for new orders are ongoing or planned primarily in FY26 and FY27, with some orders ramping up gradually as per customer schedules. Emission component export orders do not contain catalyst elements currently. Capex plans of INR 90-110 crores for FY27 to support R&D and new facility expansions align

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Sharda Motor Industries LtdQ1 FY26Auto Components

Sharda Motor Industries Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹849P/E: 15.3Market Cap: ₹5.0K CrSector: Auto Components

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→FY26 revenue grew 20% YoY to INR 3,396.8 crores; Q4 FY26 revenue grew 30% YoY to INR 971.8 crores.
→Growth driven by broad-based demand across passenger vehicles (PV), commercial vehicles (CV), off-highway, and exports.
→Lightweighting vertical expected to triple by FY28 compared to FY25 levels, becoming a major growth engine (currently ~10% of gross sales).
→Exports, especially CV emission components, agri genset exhaust systems, expected to scale with new orders and SOPs in FY27/FY28.
→Emission business margins and volumes to improve with continued order ramp-up and capacity augmentation.
→Capex guided at INR 90-110 crores for FY27 focusing on R&D, scaling lightweighting and powertrain agnostic components.
→Customer-led SOP schedules and market growth forecast by SIAM indicate steady demand in FY27.
→M&A and new technology partnerships to support long-term expansion but remain discipline-driven.

Margin guidance

Category 3

→Revenue growth drivers include strong ramp-up of lightweighting suspension orders, CV adjacency impact, and export orders, notably from North American engine manufacturers.
→Lightweighting vertical, currently ~10% of sales, is expected to grow ~3x by FY28, becoming a major growth engine.
→Export margins are expected to be broadly in line with domestic business but will require higher working capital.
→EBITDA margins grew 12% YoY in Q4 FY26; gross profit growth of 8% YoY aligns with industry trends.
→Capex guidance for FY27 is INR 90-110 crore, focusing on R&D, lightweighting, emission readiness, and capacity expansion linked to customer schedules.
→SOPs and new orders, especially in export and lightweighting segments, will contribute to steady earnings growth.
→Margin improvement is expected in growing verticals like lightweighting and emissions due to better product mix and scale.

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Fundraise plans

→There is no explicit mention of any current or planned new fundraising through debt or equity in the transcript provided.
→The company highlights a strong balance sheet which gives flexibility to deploy capital where there is strategic fit, customer, and technology relevance.
→Capex guidance for FY27 is around INR 90 to 110 crore for expansion, especially for lightweighting and emission-related investments, funded internally.
→The company plans to remain disciplined on valuation and ROCE potential in case of any M&A activities but does not indicate need for external fundraising.
→No details on any debt issuance or equity raise were shared during the call or in the document.

Order book

Yes

→FY27 and FY28 orders indicate a nearly 3x increase in lightweighting vertical revenue compared to FY25 levels.
→The company has sizable export orders, including new contracts with the largest CV engine maker globally, top 3 agri tractor company, and two additional customers.
→SOPs (Start of Production) for new orders are ongoing or planned primarily in FY26 and FY27, with some orders ramping up gradually as per customer schedules.
→Emission component export orders do not contain catalyst elements currently.
→Capex plans of INR 90-110 crores for FY27 to support R&D and new facility expansions aligned with customer requirements; additional capex expected for lightweighting and powertrain agnostic components.
→No specific quantitative order backlog value disclosed; revenue projections are based on customer guidance and may vary with demand.

Capex plans

Yes

→FY27 capex guidance is around INR 90 crores to INR 110 crores.
→Increased capex planned to augment R&D capabilities in lightweighting and readiness for new emission norms.
→Additional investments planned for new facilities to expand footprint as per customer needs, over and above yearly capex range.
→Further capex for growing lightweighting and powertrain agnostic component business linked to customer schedules and order visibility.
→Emission capacity augmentation requires limited, straightforward, and not very sizable capex.
→Overall, Sharda remains disciplined with capex, linked to strategic fit, customer and technology relevance, with flexibility due to a strong balance sheet.
→Focus on building R&D in people, testing, simulation, validation, and product development especially in emission, lightweighting, suspension, and global business products.
→Also evaluating M&A and technology partnerships in powertrain agnostic products, lightweighting, and structural components/processes.

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