Sundaram Finance Holdings PAT Surges to ₹1,583.84 Cr in Q1FY26 on Axles India Consolidation Boost

Mumbai, 6 August 2025: Sundaram Finance Holdings Limited (NSE: SUNDARMHLD) reported a robust year-on-year (YoY) rise in consolidated Profit After Tax (PAT) to ₹1,583.84 crore in Q1FY26, compared to ₹1,103.35 crore in Q1FY25. The remarkable growth was mainly driven by the full consolidation of Axles India, which significantly amplified income from associates and boosted fair value gains.

Q1FY26 PAT Jumps 43.5% YoY to ₹1,583.84 Cr After Axles India Integration

The company’s total consolidated income rose sharply to ₹18,101.58 lakh in Q1FY26 from ₹4,427.81 lakh in the same quarter last year. Expenses also increased to ₹13,995.97 lakh, owing to the expanded consolidation structure post-Axles India acquisition.

The PAT, including share from associates and fair value gains, surged 43.5% YoY to ₹15,838.42 lakh, while on a sequential basis, it grew 48% QoQ from ₹10,712.46 lakh in Q4FY25. The share of profit from associate firms increased to ₹9,616.66 lakh from ₹8,576.04 lakh last year, while fair value gain on earlier stake stood at ₹4,098.73 lakh—a fresh addition this quarter.

Standalone PAT Slips 19% YoY to ₹11,836.32 Cr Despite OCI Gains of ₹63,619.96 Cr

On a standalone basis, the company reported PAT of ₹11,836.32 lakh in Q1FY26, a decline of 19% YoY from ₹14,607.83 lakh in Q1FY25. Total standalone income dropped to ₹13,440.45 lakh, down from ₹15,659 lakh YoY. Despite lower profitability, the company saw a massive rise in Other Comprehensive Income (OCI) at ₹63,619.96 lakh, which supported a Total Comprehensive Income of ₹75,456.28 lakh.

EPS Climbs to ₹7.08 in Q1FY26 from ₹4.97 YoY, Driven by Associate Earnings

The earnings per share (EPS) rose to ₹7.08 in Q1FY26 from ₹4.97 in Q1FY25, reflecting the strength in associate company earnings. This also marks a 46.9% increase QoQ from ₹4.82 in Q4FY25, indicating a consistent performance improvement post-integration.

Strategic Acquisition: Axles India Stake Raised to 89.42%, Financials Consolidated from May 2025

During Q1FY26, Sundaram Finance Holdings increased its stake in Axles India from 38.81% to 62.98%, including direct and indirect holdings. This raised its effective control to 89.42%, prompting full consolidation of Axles India’s financials from May 2, 2025.

Additionally, the company reclassified OCI gains of ₹2,531.6 crore related to Axles India and recorded a ₹301.43 crore gain from the sale of 5.56 lakh shares in TVS Holdings, both of which were transferred to Retained Earnings.

Manufacturing Segment Leads with ₹13,414.26 Lakh Revenue in Q1FY26, Generates ₹1,542.20 Lakh Profit

In segment-wise results:

• Manufacturing posted the highest revenue at ₹13,414.26 lakh and a profit of ₹1,542.20 lakh.
• Investments contributed ₹2,473.62 lakh in revenue and ₹1,993.84 lakh profit.
• Support Services (Overseas) delivered revenue of ₹1,386.15 lakh and profit of ₹629.96 lakh.
• Other segments posted a minor loss of ₹35.91 lakh on ₹605.09 lakh in revenue.

Assets Cross ₹6,36,000 Lakh Mark; Liabilities Stand at ₹62,077.66 Lakh in Q1FY26

Total assets stood at a healthy ₹6,36,027.82 lakh, reflecting the expanding operational base. Total liabilities were reported at ₹62,077.66 lakh, of which ₹61,986.21 lakh were segment liabilities and ₹91.45 lakh corporate liabilities.

Sundaram Finance Holdings Share Price Falls 2.30% to ₹460 After Profit Surge Announcement

Despite a strong earnings report, shares of Sundaram Finance declined by 2.30% to ₹460 as of 3:30 PM IST on August 6, 2025, down ₹10.85 from the previous close. The stock opened at ₹471.95, touched a high of ₹4

75.50, and hit a low of ₹451.10. Investor profit booking, post an impressive financial release and prior rally, could be a contributing factor. The market capitalisation stands at ₹10,200 crore, with a P/E ratio of 24.56 and a dividend yield of 1.28%.

Strong Metrics with High ROE, Revenue Growth and Institutional Interest Show Robust Fundamentals

Sundaram Finance Holdings reported a YoY net profit growth of 42.4%, despite a negative TTM (Trailing Twelve Months) net profit growth of -19.9%. The company maintained a high Operating Profit Margin (OPM) of 26.2%, while Return on Equity (ROE) stood at 7.4% and Return on Assets (RoA) at 7.1%, both above industry medians. Institutional holding increased to 6.59%, and the stock outperformed the Nifty50 by 30.8% over the last quarter.

Sundaram Finance Holdings Limited, headquartered in Chennai, is an investment holding company engaged in automotive component businesses and business process outsourcing (BPO) services. Part of the TVS Group, the company is listed on the National Stock Exchange (NSE) under the symbol SUNDARMHLD. It holds strategic stakes in manufacturing and support service ventures across India and overseas.

REF: https://nsearchives.nseindia.com/corporate/SUNDARMHLD_06082025130803_SFHLOUTCOMEBM.pdf

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