Chennai: Sundram Fasteners Ltd (SFL) will invest ₹400 crore this fiscal to expand manufacturing capacity across automotive and industrial segments. The auto components major reported double-digit growth in revenue and net profit for the quarter ended June 30, 2026.The proposed capital expenditure is aimed at supporting rising customer demand across internal combustion engine (ICE), plug-in hybrid electric vehicle (PHEV) and electric vehicle (EV) segments, while also diversifying the company’s business into high-growth industrial sectors.Of the total outlay, around Rs 250 crore will be deployed in the fasteners division to expand capabilities for the wind energy, space and aerospace sectors. Another Rs 100 crore will be invested in the cast and machined assemblies business to enhance the production of high-value precision-engineered assemblies.The company said the investments would strengthen its technological capabilities, expand into adjacent product categories and create diversified revenue streams spanning the automotive, industrial, renewable energy and emerging mobility sectors.While US automakers are increasingly focusing on hybrid vehicles, European manufacturers continue to accelerate the shift towards battery electric vehicles. With an established presence in both markets and longstanding customer relationships, the company expects to tap opportunities across hybrid and EV platforms.“We have entered the new financial year on a strong footing, buoyed by improving business conditions across key markets and the enduring confidence of our customers,” said Arathi Krishna, managing director, Sundram Fasteners Ltd.For the June quarter, the company reported standalone revenue of Rs 1,615 crore, up 20% from Rs 1,350 crore a year earlier. Standalone net profit rose to Rs 150.97 crore from Rs 138.35 crore.Domestic sales increased 16% to Rs 1,084.31 crore, while exports grew 23% to Rs 465.97 crore, reflecting an improvement in overseas demand.On a consolidated basis, revenue from operations rose 20% to Rs 1,846 crore (Rs 1,533 crore in the year-ago period). Consolidated net profit increased 14% to Rs 169 crore from ₹148 crore.“Despite a dynamic global environment, we are encouraged by the steady recovery in export demand and the continued resilience of domestic markets. Our continued investments in technology, manufacturing excellence and customer partnerships have enabled us to respond with agility to evolving market requirements,” said Krishna.She added that the company was making steady progress in expanding its presence in aerospace, wind energy, railways and defence, which would further strengthen the resilience and diversity of its business.SFL is also accelerating its digital manufacturing initiatives by deploying Industry 4.0 technologies, including artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT) and robotics across its production facilities. The company said these initiatives have improved productivity, quality, process stability and operational resilience while laying the foundation for Industry 5.0 manufacturing.
