Sundram Fasteners Limited said it will complete capital expenditure of around INR 3.5 billion in FY26 and continue annual investments of about INR 2.5 billion to support capacity expansion, productivity upgrades, and diversification beyond automotive manufacturing.
Capital expenditure in the first nine months of FY26 stood at INR 2.17 billion, with the full-year outlay expected to reach INR 3.5 billion. Around 25–30 percent of annual capital expenditure is replacement spending, while the balance is directed toward revenue-generating capacity linked to customer programmes.
“As far as capital expenditure is concerned, we will probably finish the year FY26 with around INR 3.5 billion, and I expect our capex to be around INR 2.5 billion next year,” said R. Dilip Kumar, Chief Financial Officer of Sundram Fasteners.
The manufacturer reported that overall capacity utilisation across businesses is around 60 percent, with new lines being added once utilisation reaches 70–75 percent. Management said growth capex typically begins contributing to revenue within six to nine months after installation, depending on equipment commissioning and customer ramp-up.
A key driver of manufacturing expansion is the wind energy fasteners business, which has scaled annualised revenue from about INR 2.0 billion to INR 3.5 billion. The company is executing a further expansion to take the segment close to INR 5.0 billion on an annualised basis, supported by capacity additions and operating leverage.
“With the further expansion of the wind energy business, we are looking to take it up to close to INR 5.0 billion on an annualised basis,” management said during the call.
Sundram Fasteners is also seeing traction in aerospace manufacturing, where monthly revenues have risen to around INR 50 million from INR 25–30 million earlier, reflecting growth of 50–60 percent. Aerospace remains a small part of the portfolio, with annual revenue below INR 1.0 billion, but management highlighted it as a higher-margin segment.
The company said capacity for a major electric vehicle (EV), plug-in hybrid, and internal combustion engine powertrain project for North America has already been installed. However, EV volumes are expected to ramp up only gradually from the second half of FY27, with interim utilisation coming from internal combustion engine programmes and alternative customers.
On exports, Sundram Fasteners said tariff pressures in North America have reduced export contribution to around 23–25 percent of total revenue. The company is diversifying geographically, with Europe’s share of exports rising to about 25 percent from around 20 percent earlier, supported by new requests for quotation.
For the December quarter, revenue stood at INR 13.59 billion, with domestic sales growing 18 percent year on year, driven by passenger vehicles, commercial vehicles, and tractors. Non-automotive segments, including wind energy, aerospace, railways, and aftermarket, now account for about 38 percent of total revenue.
Sundram Fasteners Limited is a manufacturer of automotive and industrial fasteners and precision components, supplying original equipment manufacturers and aftermarket customers in India and overseas.