Browse
Log in / Register
Share
April 5, 2025 – Auto component suppliers often promise to reduce dependence on a single vehicle segment, but few put real money behind the shift. Sandhar Technologies, an Indian manufacturer built around two-wheeler parts, is doing just that. The company has earmarked roughly $41 million (₹341 crore) for four new projects in aluminum die casting, sheet metal fabrication, cabins, and EV powertrains. While its core business keeps churning out record revenue, these newer initiatives are still in a loss-making infancy. The bet: that by 2027–2028, Sandhar will look like a very different company.
Sandhar’s primary business is making components for two-wheelers, three-wheelers, passenger vehicles, and off-highway vehicles. It operates 34 plants in India, four overseas, and six joint-venture units. Two-wheelers remain the dominant customer group, accounting for nearly 70% of consolidated revenue in the latest quarter (April–June 2026, the first quarter of the company’s fiscal year 2027). That share has actually increased from 66% a year ago, highlighting how the legacy business continues to outpace newer segments.
The company reported its highest-ever quarterly revenue in that period: about $165 million (₹1,382 crore), up 27% year-over-year. EBITDA rose 15% to $14 million (₹117 crore), though the margin slipped to 8.5% from 9.3% due to higher minimum wage costs in two Indian states and rising energy bills. Net profit grew 33% to $4.5 million (₹37 crore), with earnings per share of $0.75 (₹6.19).
Sandhar’s real story lies in where it is spending money. The four new projects represent a combined investment of $41 million (₹341 crore). They generated $15.6 million (₹130 crore) in quarterly revenue but posted a combined pretax loss of $0.89 million (₹7.4 crore). The company expects these projects to reach break‑even or profitability between the fourth quarter of FY27 (ending March 2027) and FY28.
The largest outlay is a new aluminum die‑casting facility in Hosur, Tamil Nadu, including both high‑pressure and low‑pressure casting. Phase 1 is scheduled to go live by end‑August 2026, with full completion by March 2027. The company says it will be one of the group’s largest casting hubs, capable of serving both traditional engine components and EV battery housings.
In sheet metal, the first phase at Oragadam (Chennai) is already operational; a second phase is targeted for March 2027, with full turnaround expected by the end of FY28. Separately, a dedicated EV powertrain and solutions unit in Haryana is aiming for profitability by FY28, while a cabins and fabrication project in Sanaswadi (Pune) is projected to turn profitable by the third quarter of FY27 (October–December 2026).
From a US investor’s perspective, Sandhar’s heavy reliance on two‑wheelers might look risky. After all, the Indian two‑wheeler market is cyclical and subject to local economic conditions. But the company’s strategy is not to reduce that share overnight. Instead, it is using the reliable cash flow from its core business to fund higher‑value product lines that can eventually serve both two‑wheelers and electric vehicles.
Aluminum die casting already accounts for 34% of product revenue, making it Sandhar’s single largest category, ahead of sheet metal (19%) and locking systems (17%). This is where the diversification argument gains traction: the same casting capabilities that supply engine parts for petrol two‑wheelers can also produce battery enclosures and structural components for EVs. The new Hosur plant is explicitly designed to serve both markets.
The shift mirrors what several US auto suppliers have done in recent years. For example, American Axle & Manufacturing invested heavily in aluminum casting to support both traditional drivelines and EV platforms. Similarly, Dana Incorporated expanded its electrification
