SEDEMAC Q2 Profit Rises 30% YoY To ₹39 Cr, Revenue Jumps 40%

SEDEMAC Mechatronics, an auto components manufacturer, saw its net profit rise 30% year-over-year to ₹39.2 Cr in the second quarter (Q2) of fiscal year 2026-27. Revenue from operations climbed 40% to ₹400.6 Cr, up from ₹286.5 Cr in Q2 FY26. The mobility segment drove the growth, with revenue surging 53% to ₹366.4 Cr from ₹240 Cr a year earlier.

However, industrial segment revenue fell 26% to ₹34.3 Cr, down from ₹46.5 Cr in Q2 FY26. EBITDA for the quarter reached approximately ₹76.2 Cr, up from ₹62.3 Cr in the same period last year, translating to an EBITDA margin of about 19% compared to 21.7% in Q2 FY26. Total expenses rose 45% YoY to ₹350.7 Cr, driven by a 56% increase in material costs and a modest rise in employee benefits.

The company's cash flow from operations turned negative in H1 FY27, with a cash flow of ₹20.4 Cr compared to ₹120.7 Cr in the same period last year. SEDEMAC attributed its growth to the expansion of electric two-wheeler motor control units and integrated starter generator electronic control units for export three-wheelers. The company also secured orders for ISG ECUs and magneto kits from European OEMs, with production set to begin in H1 FY28.

However, the company warned of risks related to semiconductor supplies, commodity price hikes, and weather-related impacts on demand.