Sandhar Technologies Q3 Earnings Decline on Weak Overseas Performance

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AuthorAkshat Lakshkar|Published at:
Sandhar Technologies Q3 Earnings Decline on Weak Overseas Performance
Overview

Sandhar Technologies reported mixed Q3 FY26 results, with consolidated revenue up 21.7% YoY to ₹1,185 Cr, but EBITDA dipped 15.9% YoY and margins contracted to 9.36%. Sequentially, revenue and EBITDA saw significant declines. Standalone revenue marginally fell YoY, with notable QoQ drops. The overseas business and new projects are under pressure, reporting losses and impacting overall profitability.

📉 The Financial Deep Dive

Sandhar Technologies Limited's unaudited financial results for the quarter and nine months ended December 31, 2025 (Q3 FY26 & 9M FY26) reveal a performance marked by robust year-on-year (YoY) growth in the nine-month period, contrasted with significant sequential (QoQ) weakness in the latest quarter, particularly concerning for its overseas operations.

Consolidated Performance:
For the nine months ended December 31, 2025 (9M FY26), consolidated revenue surged by 23.5% YoY to ₹3,545.10 Cr. EBITDA climbed 26.7% YoY to ₹368.13 Cr, with margins improving slightly to 10.4% (from 10.1% in 9M FY25). Profit Before Tax (PBT) saw a substantial 42.4% YoY jump to ₹173.71 Cr, and Net Profit grew 36.16% YoY to ₹134.84 Cr.

However, the third quarter (Q3 FY26) presented a different picture. Consolidated revenue increased 21.67% YoY to ₹1,184.64 Cr, but EBITDA growth lagged at 15.90% YoY to ₹110.92 Cr, resulting in margin compression to 9.36% (from 9.83% YoY). The sequential (QoQ) performance was notably weaker, with revenue declining 6.75% from Q2 FY26 (to ₹1,184.64 Cr) and EBITDA dropping 28.61% (to ₹110.92 Cr from ₹155.38 Cr), alongside a substantial margin contraction to 9.36% from 12.23% in Q2 FY26.

Standalone Performance:
On a standalone basis, 9M FY26 revenue grew 5.37% YoY to ₹2,270.18 Cr. EBITDA increased 18.89% YoY to ₹260.83 Cr, with margins improving to 11.49% (from 10.18% YoY). Net Profit rose 37.39% YoY to ₹132.75 Cr.

Standalone Q3 FY26 saw a marginal YoY revenue decline of 0.37% to ₹737.04 Cr. EBITDA decreased 5.13% YoY to ₹74.42 Cr, with margins contracting to 10.10% (from 10.60% YoY). The sequential performance was severely hit, with revenue falling 8.45% QoQ and EBITDA plummeting 38.27% QoQ, leading to a sharp margin drop to 10.10% from 14.97% in Q2 FY26.

🚩 Risks & Outlook

The company's overseas business segment is a key area of concern, reporting only 2.0% YoY revenue growth for 9M FY26, a 22.8% decline in EBITDA, and turning significantly negative at the PBT level with ₹(25.81) Cr loss. Furthermore, new projects in their initial stages, despite substantial investment growth, incurred an EBT loss of ₹(24.98) Cr in 9M FY26 and are noted to contribute negative margins.

Standalone Q3 FY26 performance showed a YoY decline in revenue, EBITDA, and Net Profit, compounded by severe sequential contractions. The increase in outstanding borrowings for overseas operations by 39.79% YoY to ₹488.18 Cr warrants close monitoring, although the consolidated Debt-to-Equity ratio remained at a manageable 0.74 as of December 31, 2025.

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