SEDEMAC Reports 30% Profit Growth Amid Higher Operating Costs
Automotive component manufacturer SEDEMAC saw Q2 FY27 revenue reach ₹400.6 Cr, though margin pressure persists due to rising material costs.
SEDEMAC reported a 30% increase in net profit to ₹39.2 Cr for the second quarter of the 2026-27 fiscal year, compared to ₹30.1 Cr in the same quarter last year. Revenue from operations climbed 40% to ₹400.6 Cr, driven primarily by the company's mobility segment, which saw a 53% revenue jump to ₹366.4 Cr.
Despite the top-line growth, the company experienced margin pressure as total expenses rose 45% to ₹350.7 Cr. The cost of materials consumed increased by 56%, contributing to an EBITDA margin decline from 21.7% to approximately 19%. Additionally, the company's operating cash flow turned negative at ₹20.4 Cr for the first half of the fiscal year, largely due to a significant increase in trade receivables and inventories.
Looking ahead, SEDEMAC has identified semiconductor supply constraints and commodity price volatility as key risks. While the company is expanding its product footprint with new electronic control unit launches and European OEM orders, it expects EBITDA margins to remain stable through the second half of the year as it navigates ongoing inflationary pressures.