• Cost pass-through: Rising commodity and manpower costs are triggering industry-wide price renegotiations, with management expecting all input cost increases to be passed on to OEMs following a typical three-month lag.
• Margin expansion guidance: Sandhar achieved a 4.1% PAT margin and ₹513 crore EBITDA, maintaining its guidance of 25 to 50 basis points of annual margin improvement across both EBITDA and PAT.
• Revenue growth outlook: Management conservatively guided for 15%+ revenue growth in FY27 without factoring in price-renegotiation gains, supported by high demand across auto segments, doubled smart lock volumes, and higher-value PV product launches.
• Capex and asset turns: A ₹342 crore investment made last year generated ₹468 crore in revenue with negative EBITDA, and is projected to mature to typical three-times asset turns and turn EBITDA-positive this year.
• Debt profile management: Out of approximately ₹900 crore in gross debt, ₹550 crore is working capital and ₹350 crore is term loans, with ₹109 crore of term debt scheduled for repayment this year to sustain a downward term-debt trajectory.