Sundaram Clayton returns to profit after 5 years as asset sale boosts FY26 results

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Shares of Sundaram Clayton were in focus after the company released its audited FY26 financial results, reporting a turnaround in net profit following a large one-time gain from asset monetisation.

The company, which manufactures aluminium die-cast components for the automotive sector, reported consolidated revenue from operations of INR 2,025.61 crore (USD 211.60 million) for FY26, compared with INR 2,259.30 crore (USD 236.01 million) in the previous year.

Sundaram Clayton said the year-on-year comparison was affected by the transfer of its Hosur two-wheeler casting business at the end of FY25.

Despite the profit turnaround, the core business remained loss-making before exceptional items. Consolidated loss before exceptional items widened to INR 185.46 crore (USD 19.34 million) from INR 157.82 crore (USD 16.49 million) a year earlier.

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The company’s reported profit was largely driven by an exceptional gain of INR 513.49 crore (USD 53.50 million) from asset sales recorded during the fourth quarter. After accounting for an exceptional expense linked to employee benefit liabilities, net exceptional income stood at INR 505.82 crore (USD 52.84 million).

This helped push profit before tax to INR 328.03 crore (USD 34.27 million), while consolidated net profit attributable to owners came in at INR 252.38 crore (USD 26.36 million), compared with a loss of INR 10.65 crore (USD 1.11 million) in FY25.

On the standalone side, the company reported stronger operating performance. EBITDA for FY26 rose to INR 330.3 crore (USD 34.51 million) with margins improving to 18.3 per cent from 14 per cent in the previous year.

However, the company’s US operations continued to weigh heavily on consolidated performance. Five subsidiaries linked to Sundaram Holding USA generated revenue of INR 276.19 crore (USD 28.85 million) but posted a combined loss of INR 300.34 crore (USD 31.37 million) during the year.

The US business accounted for a major share of the company’s fixed asset base, with total assets of INR 1,422.70 crore (USD 148.61 million) as of March 2026.

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Sundaram Clayton also invested an additional INR 54.31 crore (USD 5.67 million) into its US subsidiary during the quarter, signalling continued long-term commitment to North American manufacturing despite weaker heavy truck demand and ongoing geopolitical uncertainty.

Consolidated borrowings declined to INR 1,295.01 crore (USD 135.28 million) from INR 1,488.89 crore (USD 155.54 million) after the asset sale proceeds were partly used to reduce debt.

The company’s market capitalisation stood at INR 3,246.96 crore (USD 339.19 million), while the stock was trading at INR 1,492.4 (USD 15.59) per share against a 52-week high of INR 2,538 (USD 26.51).

Sundaram Clayton also declared an interim dividend of INR 4.5 (USD 0.047) per share during the year.

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