Auto components manufacturer Sundaram-Clayton Ltd (SCL) reported a marginal increase in standalone net profit for the first quarter of FY2026-27, as higher raw material, energy and logistics costs offset the benefits of robust revenue growth.
The Chennai-based manufacturer of engineered aluminium die-cast components for the automotive sector posted a standalone net profit of ₹17.04 crore for the quarter ended June 2026, compared with ₹17.01 crore in the corresponding quarter of the previous fiscal.
Revenue from operations rose 19% to ₹524.2 crore during the quarter from ₹442.1 crore a year earlier, driven by improved business momentum and higher production volumes.
Margins under pressure
Despite strong topline growth, the company’s operating profitability came under pressure.
EBITDA declined to ₹66.5 crore, with the EBITDA margin contracting to 12.7%, compared with ₹70.6 crore and a margin of 16% in the year-ago quarter.
The company attributed the decline in margins to higher input costs, particularly increases in aluminium prices, fuel costs and logistics expenses.
Geopolitical risks remain
Sundaram- Clayton said ongoing geopolitical developments in the West Asia continue to create uncertainty across global commodity and logistics markets.
According to the company, rising aluminium prices, higher energy costs and elevated freight rates are exerting pressure on manufacturing costs and operating margins.
The company said it is closely monitoring the evolving situation while proactively strengthening its supply chain to ensure operational continuity and minimise disruptions.
Production across its manufacturing facilities continues to ramp up in line with customer requirements, positioning the company to benefit from the anticipated recovery in North America’s commercial truck market.
Recognition for quality and sustainability
During the quarter, Sundaram Clayton received the Q-Prime Gold Award from Daimler India Commercial Vehicles (DICV) in recognition of its sustained quality performance and supplier excellence.
The company also strengthened its sustainability credentials by securing the Platinum Rating under the Indian Green Building Council (IGBC)’s TKP Green Building certification and the CII Silver Award for excellence in Environmental, Health and Safety (EHS) practices.
US operations gather pace
The company said its US operations continue to accelerate the ramp-up of new product programmes across key customer platforms while deepening strategic customer partnerships.
Production at its US facility is expected to support consistent manufacturing performance and reliable customer deliveries as new programmes gather momentum.