Sundram Fasteners Limited, a manufacturer of automotive and industrial fasteners and components, has reported steady progress in its ongoing manufacturing expansion and capacity utilisation programmes, alongside additional capital investments in wind energy and electric vehicle (EV) components.
In the company’s Q2 FY2025–26 earnings call held on 30 October 2025, management said that new capacity additions and product diversification would underpin growth over the next three years. The company’s Sri City facility, which serves a major European customer, is now fully operational. It also manufactures EV components for North American clients, and management expects improved volumes in the coming quarters as customer schedules recover.
“The facility is fully operational and is serving one of our largest European customers,” said R. Ganesh, Vice President (Finance and Projects). “The expansion for EV components targeted at a North American customer is also complete. Based on improving market conditions, we expect stronger numbers from the Sri City plant in the coming quarters,” he added.
The company has completed an earlier expansion of its wind energy fasteners line valued at INR 1 billion and has approved a further investment of INR 800 million to enhance production capacity. “We have already executed the INR 1 billion wind energy fastener project and taken up another INR 800 million investment, which will begin contributing to revenue from next year,” Ganesh said.
The wind energy segment contributed roughly four percent of domestic revenue during the first half of the year and grew 30–35 percent compared with the previous period. “Our investments in wind energy fasteners are yielding desired results. Revenue from this segment has grown over 30 percent year-on-year,” said S. Bharathan, Executive Vice President (Marketing).
During the quarter, the company capitalised a portion of its earlier projects under work-in-progress and maintained a stable balance sheet. “We have reduced borrowings significantly and capitalised some of our earlier projects. The balance sheet remains stable,” said R. Dilip Kumar, Chief Financial Officer. Sundram Fasteners’ product mix comprised 35–40 percent fasteners, 25–28 percent functional assemblies, and around 15 percent cold-extruded and sintered products, with the remainder from hot forging and radiator caps.
Exports for the quarter stood at INR 3.38 billion, down 13 percent year-on-year, mainly due to weaker demand for heavy-duty trucks in North America and tariff-related uncertainties. “It is not entirely due to tariffs. The decline is largely driven by softness in the heavy-duty and mid-range truck markets in America,” Bharathan said. He added that the company expects recovery within six months as customers indicate ramp-ups from the first quarter of the next fiscal year.
The company’s export exposure stood at 65 percent to North America, 20–25 percent to Europe and the UK, and the balance to Asia-Pacific and the Middle East and North Africa. “We maintain a diversified presence across regions including Mexico, the UK, Germany and France, which will stand us in good stead going forward,” Bharathan noted.
Domestic business grew faster than the industry average, led by higher share of business from key customers in commercial vehicles and tractors, and new wins in the passenger car segment. Non-automotive applications, including wind, industrial, and aerospace fasteners, represented 37 percent of revenue in the quarter.
“We continue to diversify beyond the automotive sector. The industrial, wind and aerospace segments have been major growth drivers for us this year,” Bharathan said. The company is also developing stainless steel and railway fasteners, which it expects to commercialise within 12 months.
Management said it was pursuing a double-digit compound annual growth rate over the next three years, supported by new programmes with global engine manufacturers for internal combustion and hydrogen-compatible platforms scheduled between 2029 and 2031. “Our internal estimate is to maintain a double-digit CAGR over the next three years,” said Dilip Kumar. “We are actively participating in new global ICE and hydrogen-ready engine programmes that will provide multi-year revenue visibility.”
Sundram Fasteners also plans to expand in the aftermarket segment through wider channel partnerships. “We are continuously engaging with our distributors to strengthen our aftermarket business, which currently accounts for about 12–13 percent of revenue,” said Bharathan.
EV components currently contribute five to six percent of overall revenue. “While EV penetration is still developing, we expect our share in the EV segment to eventually match that of our ICE business,” Dilip Kumar stated.
Sundram Fasteners Limited, part of the TVS Group, manufactures fasteners, powertrain components, and assemblies for automotive, industrial, and energy applications. The company operates multiple facilities in India, China, and the United Kingdom.