Synopsis: With a market of more than Rs 5400 Crore the company saw its stock surged 11 percent after the company reported a 28 percent YoY revenue growth in Q3FY26 and announced a new manufacturing plant with a capacity of 1,50,000 sets per annum, reinforcing its expansion strategy.
An auto components manufacturer serving leading passenger vehicle makers such as Tata Motors, Mahindra & Mahindra, and Hyundai has come into the spotlight after its shares surged following the announcement of strong Q3FY26 results and expansion plans, drawing investor attention amid steady growth and improving operational performance.
With a market cap of Rs 5,407 Cr, Sharda Motor Industries Ltd saw its stock hit an intraday high of Rs 971 which is 11 percent higher than the previous close of Rs 876. The company stock has given a compounded return of 39 percent in the last three years.
Q3FY26 Result
In the latest quarterly result the company has seen its revenue from operations increase by 28 percent YoY, from Rs 690 Cr in Q3FY25 to Rs 882 Cr in Q3FY26, while the QoQ increased by 12 percent from Rs 787 Cr. The net profits grew by 7 percent on YoY and QoQ basis, by going from Rs 75 Cr in Q3FY25 and Q2FY26 to Rs 80 Cr in Q3FY26.
In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 16 percent YoY, from Rs 2086 Cr in 9MFY25 to Rs 2425 Cr in 9MFY26. The net profits for the same period grew by 11 percent going from Rs 230 Cr to Rs 256 Cr.
The company has a 3 year sales CAGR of 8 percent, while the TTM is at 14 percent. The company’s 3 year profit CAGR is at 22 percent, while the TTM number is at 2 percent. The company also has a ROCE of 35 percent and a ROE of 26 percent.
Revenue Mix
When breaking down the revenue from operation number we get to see that 55 percent of this number comes from the passenger vehicles segment where the company serves marquee clients such as Tata Motors, Mahindra & Mahindra and Hyundai. 40 percent of the mix comes from commercial vehicles, leaving only 5 percent from other segments.
New Manufacturing Unit
Sharda Motor Industries Ltd is setting up a new manufacturing unit with a proposed capacity of 1,50,000 sets per annum, expandable with limited capex. The commercial production of this unit is expected by July 2026. This project involves an investment of Rs. 20 crore, which is to be funded through internal accruals.
Business Overview
Sharda Motor Industries Ltd is a leading Indian auto-ancillary company engaged in designing and manufacturing exhaust systems, emission control solutions, suspension systems, seat frames, and pressed metal components. With strong R&D capabilities and multiple manufacturing plants, the company focuses on innovation, quality, and compliance with evolving emission norms.
Sharda Motor serves as a Tier-1 supplier to major OEMs across passenger vehicles, commercial vehicles, and farm equipment. Its key clients include Tata Motors, Mahindra & Mahindra, Hyundai, Ashok Leyland, Force Motors, Escorts, JCB, Cummins, TAFE, Sonalika, Isuzu, Nissan, Kubota, and other global automotive manufacturers.
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