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Sundaram Brake Linings Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤6th Feb 26

Summary : Sundaram Brake Linings reported Q3 and 9-month losses, with auditors providing an unmodified review.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: 4,056.97 lacs (Qtr), 12,618.68 lacs (9 months).
  2. Employee benefits expenses: 1,273.82 lacs (Qtr), 4,115.41 lacs (9 months).
  3. Total Expenses: 8,536.89 lacs (Qtr), 26,105.45 lacs (9 months).
  4. Revenue from Operations: 8,418.64 lacs (Qtr), 25,422.02 lacs (9 months).
  5. Other Income: 32.25 lacs (Qtr), 236.12 lacs (9 months).
  6. Paid up Equity Share Capital: 393.46 lacs.
  7. Reserves (excluding Revaluation Reserve): 9,541.80 lacs (previous year).
  8. Unaudited Standalone financial results.

Corporate Overview

  1. Registered Office: Padi, Chennai - 600 050, India.
  2. Reported significant financial losses for the period.
  3. Increased gratuity liability due to new Labour Codes.
  4. Manufacturer of TVS brake linings and clutch facings.
  5. Operations primarily in friction materials segment.
  6. Formal and factual reporting of financial results and compliance.
  7. Solely operates in the friction materials segment.

Risk Factors

  1. New Labour Codes increase gratuity liability.
  2. Company reported significant losses this period.
  3. Revenue from operations declined year-on-year.
  4. Total expenses increased, impacting profitability.

Key Drivers

  1. Board approved unaudited financial results.
  2. Auditors issued unmodified review opinion.

Auditor’s Report

  1. Unmodified Opinion on the Limited Review Report.

Board Commentary

  1. Incremental gratuity liability due to new Labour Codes.
  2. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  3. Impact of new Labour Codes on employee benefit liabilities.

Corporate Governance

  1. Audit Committee reviewed and recommended results.
  2. Board of Directors approved the financial results.

Management Discussion & Analysis

Performance Drivers

  1. Decline in revenue from operations.
  2. Increase in total expenses, particularly materials and employee benefits.
  3. Impact of new Labour Codes on employee benefit expenses.

Critical Risks

  1. Increased gratuity liability from new Labour Codes.
  2. Sustained financial losses impacting profitability.