Staff Writer
Chennai: Sundaram Clayton Limited (SCL) reported a strong improvement in operating profitability for the third quarter of FY 2025–26, with EBITDA margin rising to 19.7 percent at Rs. 88.7 crore, compared with 14.7 percent and Rs. 73.7 crore in the corresponding quarter last year. The improved margin performance comes even as standalone revenue declined to Rs. 450.8 crore in Q3 FY26 from Rs. 500.1 crore in Q3 FY25.
The company said the year-on-year decline in revenue is largely attributable to the sale of its two-wheeler casting business at Hosur in the fourth quarter of FY 2024–25. The divested business had contributed Rs. 99.6 crore to revenue in the comparable quarter of the previous year.
For the nine-month period ended December 2025, Sundaram Clayton reported EBITDA of Rs. 238.4 crore, translating into a margin of 17.6 percent, as against Rs. 207.3 crore and a margin of 13.0 percent in the same period last year. Standalone revenue for the nine months stood at Rs. 1,357.8 crore, compared with Rs. 1,595.8 crore in the corresponding period of the previous year. The earlier period included Rs. 307.8 crore from the two-wheeler casting business that was subsequently divested.
Commenting on market conditions, the company noted that the Indian automobile industry delivered a strong performance during the quarter, led by robust demand in the commercial vehicle and passenger vehicle segments. Q3 FY26 witnessed one of the strongest festive-season performances in recent years, supported by improved consumer sentiment, replacement demand and stable financing conditions.
On the export front, Sundaram Clayton said the North American truck market experienced a decline in demand during the quarter. Market conditions were impacted by geopolitical uncertainties, a softer freight environment and cautious capital spending by fleet operators.
In India, the company successfully completed the final phase of its plant consolidation programme during the quarter, integrating its Mahindra World City facility into the Oragadam plant. The consolidation is expected to enhance operational efficiency and streamline manufacturing operations. Sundaram Clayton also highlighted continued customer appreciation for its state-of-the-art mega die-casting smart factory at Thervoy Kandigai Plant near Chennai, citing its advanced manufacturing capabilities, digitalisation initiatives and focus on sustainability.
During the quarter, the company received multiple recognitions from customers for quality excellence and sustainable manufacturing practices. As part of its sustainability roadmap, Sundaram Clayton completed the installation of a solar rooftop system at the Thervoy Kandigai Plant. These initiatives were further recognised with the company receiving the Silver Award at the India Green Manufacturing Challenge 2025.
In the United States, Sundaram Clayton said it continues to strengthen its position as a strategic partner to key customers. With an increasing emphasis on local manufacturing in the US, the company believes it is well positioned to capitalise on long-term domestic growth opportunities. It added that it continues to engage closely with customers and ramp up new product introductions to support future growth.
