Sharda Motor Industries Ltd (SHARDAMOTR)

Automobile and Auto Components · Auto Ancillaries · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹885.25 ↓ 15.81% (1Y)

🎯 Key Takeaways

Sharda Motor Industries Ltd is in a growth phase driven by regulatory tailwinds in automotive emissions and lightweighting, with management targeting global expansion and compliance with CAFE III norms. The company has demonstrated strong top-line growth and margin improvement over the past few years, supported by strategic partnerships and new international orders.
Revenue grew 4% QoQ to ₹1,011 in Q1FY27.
⚠️ Overreliance on regulatory-driven demand in the auto ancillary space could pose execution risk if emission norms are delayed or diluted.

Market Cap

₹5,082

P/E Ratio

12.5

P/B Ratio

4.79

ROE

31.3%

ROCE

42.2%

Debt/Equity

0.00

Div Yield

2.26%

Promoter

64.3%

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📖 The Story

Sharda Motor Industries Ltd is in a growth phase driven by regulatory tailwinds in automotive emissions and lightweighting, with management targeting global expansion and compliance with CAFE III norms. The company has demonstrated strong top-line growth and margin improvement over the past few years, supported by strategic partnerships and new international orders. Despite a 15% decline in 1-year return, fundamentals remain robust with high ROE and ROCE, though recent quarterly growth has shown signs of moderation.

📰 What's Happening

In Q1 FY27, Sharda Motor reported revenue of ₹1,011.1 crores and EBITDA of ₹1,032 million INR, reflecting continued strength in emission and lightweighting segments. The company secured $12.6 million in new annual orders and holds 30% market share in emission systems and 14% in lightweighting. Management highlighted expansion in global markets and compliance with CAFE III norms as key growth drivers. The board approved unaudited Q1 FY27 results and reappointed Gurdeep Singh & Associates as cost auditors. Additionally, Ajay Relan was appointed as a whole-time director effective September 1, 2026 pending shareholder approval. Export momentum and strategic partnerships are cited as critical enablers for future growth.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	787	882	972	1,011
Operating Profit	85	90	96	88
OPM %	10.8%	10.2%	9.8%	8.8%
Net Profit	75	81	89	87
EPS	₹26.02	₹14.17	₹15.58	₹15.07

Revenue has grown consistently from ₹787 crores in September 2025 to ₹1,011.1 crores in June 2026, with YoY growth of 23.4% in FY26 reaching ₹3,396.8 crores. Operating profit margin remained stable around 8.8–10.2%, indicating disciplined cost management. Net profit rose to ₹87 crores in Q1 FY27 from ₹75 crores in September 2025, though EPS declined slightly due to share issuance. Despite strong growth in FY26, the pace of quarterly revenue expansion has moderated compared to the 30% YoY surge in Q4 FY26, suggesting a potential slowdown in momentum as the company scales.

🔮 Management Outlook & What's Next

Management has set clear regulatory and commercial targets, including achieving CAFE III CO2 emissions of 78.9 gCO/km by 2031–32 and 94.76 gCO/km by 2027–28. They emphasized expanding lightweighting and emission businesses globally, targeting 3x order growth in lightweighting by FY28. A ₹90–110 crore capex plan for FY27 is underway to support infrastructure and R&D. Management also highlighted margin discipline and ROCE focus as pillars of capital allocation, with no share buybacks or dividend increases mentioned in recent filings.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	6	6	11	11
Reserves	897	1,056	1,131	1,302
Borrowings	23	0	50	49
Total Liabilities	1,576	1,757	1,892	2,215
Fixed Assets	205	251	261	263
Investments	674	740	930	1,136
Total Assets	1,576	1,757	1,892	2,215

The balance sheet shows a strong equity base of ₹11 crores with reserves growing from ₹1,056 crores in March 2025 to ₹1,302 crores in March 2026, indicating retained earnings accumulation. Borrowings remain minimal at ₹49 crores as of March 2026, up slightly from ₹50 crores in the prior year, reflecting a conservative capital structure. Total assets have increased steadily from ₹1,757 crores to ₹2,215 crores over two years, signaling healthy asset growth funded largely through internal accruals rather than debt. This suggests a deleveraging trend despite low existing leverage, with reinvestment focused on capacity and technology expansion.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025
Operating	+271
Investing	-68
Financing	-262
Net Cash Flow	-59

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	64.3%	64.3%	64.3%	64.3%
FII	2.5%	2.2%	2.4%	1.7%
DII	11.4%	11.7%	11.5%	12.0%
Public	17.0%	16.5%	16.4%	16.6%
# Shareholders	38,932	37,537	37,220	38,665

Promoter holding remains stable at 64.31% over the past year. FII shareholding has fluctuated slightly, declining from 2.46% in Q2FY26 to 1.73% in Q1FY27, while DII increased from 11.44% to 11.99% during the same period. The number of public shareholders has grown from 37,220 to 38,665, indicating rising retail participation. No significant changes in institutional ownership trends are evident, but the modest rise in DII and stable promoter stake may signal cautious confidence among mid-tier investors.

⚖️ Peer Comparison — Auto Ancillaries

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
MOTHERSON	1.74 L Cr	39.8	13.9%	11.0%	0.39
BOSCHLTD	1.42 L Cr	60.1	21.7%	15.9%	0.00
UNOMINDA	73,376	60.9	19.3%	18.9%	0.37
SONACOMS	50,603	72.6	15.2%	11.5%	0.04
ENDURANCE	39,974	41.2	17.3%	14.2%	0.15
EXIDEIND	37,077	39.8	9.8%	6.7%	0.08
CRAFTSMAN	29,264	55.7	14.7%	14.2%	1.02
ZFCVINDIA	28,993	11.7	18.3%	13.5%	0.00
SUNDRMFAST	25,355	41.5	17.4%	14.3%	0.14
GABRIEL	25,300	66.9	32.0%	25.6%	0.06

🔗 Peer Stock Analyses

MOTHERSON BOSCHLTD UNOMINDA SONACOMS ENDURANCE

⚠️ Risk Factors

1. Overreliance on regulatory-driven demand in the auto ancillary space could pose execution risk if emission norms are delayed or diluted. 2. Margin expansion has so far been driven by volume growth and operational efficiency, but sustained pressure from raw material costs or pricing competition could erode profitability. 3. The company’s growth strategy is heavily export-dependent, exposing it to global economic slowdowns, currency volatility, and geopolitical risks. 4. Despite strong ROCE, the recent slowdown in quarterly revenue growth may indicate challenges in maintaining high teens growth rates at scale.

📋 Recent Filings

🧠 Analyst's Read

Sharda Motor Industries is positioned to benefit from long-term structural trends in automotive decarbonization and lightweighting, with solid fundamentals and improving margins. However, investors should monitor the sustainability of growth momentum and execution of global expansion plans. Key near-term catalysts include the impact of new orders on FY28 order book and management’s ability to convert FY27 capex into scalable capacity. Watch for updates on export demand and margin trajectory in upcoming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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