SUNDRMBRAK - Sundaram Brake
📢 Recent Corporate Announcements
Sundaram Brake Linings has appointed Mr. Hari S as its new Chief Financial Officer and Key Managerial Personnel, effective March 09, 2026. Mr. Hari S is a Fellow Chartered Accountant with over 30 years of experience in finance, taxation, and corporate management. He previously held leadership roles at NTADCL and ITI Limited, where he managed complex financial negotiations and consortium banking. This appointment aims to strengthen the company's financial governance and strategic oversight through his extensive expertise in turnaround management and restructuring.
- Mr. Hari S appointed as CFO and Key Managerial Personnel effective March 09, 2026
- Brings over 30 years of professional experience in Finance, Banking, and Project Finance
- Previously served as GM (F&A) at NTADCL and Chief Finance Manager at ITI Limited
- Expertise includes Corporate Debt Restructuring (CDR) and handling multi-bank consortium arrangements
- The Board meeting for the appointment concluded within 25 minutes on March 09, 2026
Sundaram Brake Linings Limited has announced the resignation of Mr. V. Srinivasan from the position of Chief Financial Officer. The resignation is effective from the close of business hours on February 9, 2026. The company issued this filing to correct a previous announcement which inadvertently listed the effective date as February 6, 2026. Mr. Srinivasan is departing to pursue career opportunities outside the organization, and the company is now tasked with finding a successor for this Key Managerial Personnel role.
- Mr. V. Srinivasan resigns as Chief Financial Officer effective February 9, 2026.
- The resignation is intended to allow the executive to pursue alternate career opportunities.
- The company clarified and corrected the effective date from a previous filing dated February 6, 2026.
- The outgoing CFO has committed to a smooth transition of all financial duties and responsibilities.
Sundaram Brake Linings Limited has announced that Mr. J R Vishnu Varthan has resigned from his positions as Company Secretary, Compliance Officer, and Nodal Officer. His resignation was tendered on February 6, 2026, and he will continue in his role until the close of business hours on March 18, 2026. The company is currently in the process of identifying a suitable candidate to fill this Key Managerial Personnel (KMP) vacancy. The departure is attributed to the officer pursuing career opportunities outside the organization.
- Mr. J R Vishnu Varthan to step down as Company Secretary and Compliance Officer on March 18, 2026.
- Resignation letter submitted on February 6, 2026, citing external career opportunities.
- The company has initiated the process of hiring a successor for the KMP position.
- The outgoing officer has committed to a smooth handover of all statutory and compliance-related matters.
Sundaram Brake Linings Limited has announced the resignation of Mr. J R Vishnu Varthan from his roles as Company Secretary, Compliance Officer, and Nodal Officer. The resignation was tendered on February 6, 2026, and he will be relieved from his duties effective March 18, 2026. The company stated the departure is to allow the individual to pursue career opportunities outside the organization. Management is currently in the process of identifying a suitable successor for this Key Managerial Personnel (KMP) position.
- Mr. J R Vishnu Varthan resigned as Company Secretary and Compliance Officer on February 6, 2026.
- The resignation will take effect from the close of business hours on March 18, 2026.
- The departure is for external career opportunities with no reported internal conflicts.
- The company is actively searching for a replacement to fill the KMP vacancy.
Sundaram Brake Linings reported a weak performance for Q3 FY26, posting a net loss of ₹124.32 lacs compared to a profit of ₹88.86 lacs in the same quarter last year. Revenue from operations declined 4.66% year-on-year to ₹8,418.64 lacs, though it showed a sequential improvement from Q2. Profitability was further impacted by a one-time exceptional charge of ₹33.02 lacs related to the implementation of new labour codes. For the nine-month period ending December 2025, the company has swung to a total loss of ₹489.98 lacs from a profit of ₹384.84 lacs in the previous year.
- Net Loss of ₹124.32 lacs in Q3 FY26 compared to a Net Profit of ₹88.86 lacs in Q3 FY25.
- Revenue from operations decreased 4.66% YoY to ₹8,418.64 lacs from ₹8,830.29 lacs.
- Exceptional item of ₹33.02 lacs recognized as incremental gratuity liability due to New Labour Codes.
- Nine-month performance (Apr-Dec 2025) shows a significant swing to a loss of ₹489.98 lacs.
- Earnings Per Share (EPS) for the quarter turned negative at ₹(3.16) versus ₹2.26 YoY.
Sundaram Brake Linings Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Integrated Registry Management Services, confirms that all share dematerialization requests for the quarter ended December 31, 2025, were processed within the mandatory 15-day timeframe. It further verifies that physical certificates were mutilated and cancelled, with the depository's name updated in the register of members. This is a standard procedural filing required for all listed companies in India to ensure the integrity of the dematerialization process.
- Compliance confirmed for the quarter ended December 31, 2025.
- Dematerialization requests were processed and confirmed to depositories within 15 days of receipt.
- Physical security certificates were mutilated and cancelled after due verification by the RTA.
- Integrated Registry Management Services Private Limited acted as the Registrar and Share Transfer Agent (RTA).
Sundaram Brake Linings Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is a standard procedure ahead of the declaration of the company's unaudited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the unaudited financial results for the quarter ending December 31, 2025.
- Trading restriction applies to Directors, Designated Persons, and their immediate relatives.
- Window to reopen 48 hours after the official declaration of financial results.
- Board meeting date for result approval to be intimated separately.
Financial Performance
Revenue Growth by Segment
Revenue from operations for FY2024-25 was INR 352.21 Cr, representing a marginal decline of 0.04% from INR 352.36 Cr in FY2023-24. Domestic OEM revenues are heavily driven by the Commercial Vehicle (CV) segment, while exports contributed 41% of total revenue in 9M FY2025. The company reported an operating income of INR 256.8 Cr for 9M FY2025.
Geographic Revenue Split
Domestic sales account for approximately 59% of revenue, while exports contribute 41% as of 9M FY2025. Within exports, the United States is a critical market, accounting for approximately 25% of total company revenue in 9M FY2025, up from 19% in 9M FY2024.
Profitability Margins
Operating Profit Margin declined from 4.19% in FY2023-24 to 2.86% in FY2024-25. Net Profit Margin also saw a significant reduction, falling from 3.25% to 1.73% over the same period, primarily driven by decreased profits and higher operational costs.
EBITDA Margin
Operating Profit Margin stood at 2.86% for FY2024-25, a YoY decrease of 133 basis points from 4.19%. Profitability was impacted by a loss before tax of INR 3.61 Cr for the half-year ended September 30, 2025, compared to a profit of INR 3.39 Cr in the previous year's corresponding period.
Capital Expenditure
The company has planned a capital expenditure of INR 20.0 Cr for FY2026, which is intended to be funded partly through debt. Maintenance capex for FY2027 is expected to be minimal and funded through internal accruals.
Credit Rating & Borrowing
ICRA reaffirmed the long-term rating at [ICRA]BBB+ (Stable) and short-term rating at [ICRA]A2. The company faces moderate coverage metrics with an interest coverage ratio of 2.52x in FY2024-25 (down from 4.43x) and a Total Debt/OPBDITA of 3.7x as of December 31, 2024.
Operational Drivers
Raw Materials
Asbestos-free friction materials (including brake linings, disc pads, and clutch facings) and rivets. Cost of materials consumed was INR 177.59 Cr in FY2024-25, representing 50.4% of total revenue.
Capacity Expansion
Current capacity is not specified in units; however, the company is scaling up new product lines introduced in FY2024 with a planned INR 20 Cr investment in FY2026 to support growth.
Raw Material Costs
Raw material costs stood at INR 177.59 Cr in FY2024-25, a decrease of 4% from INR 184.99 Cr in FY2023-24. Procurement strategies involve managing a moderate scale of operations while navigating global supply chain fluctuations.
Manufacturing Efficiency
Manufacturing efficiency is reflected in the Inventory Turnover Ratio, which improved slightly from 7.30 times in FY2023-24 to 7.40 times in FY2024-25.
Strategic Growth
Expected Growth Rate
3-5%
Growth Strategy
Growth is targeted through the scale-up of new product lines introduced in FY2024, diversification into the non-CV segment to reduce cyclicality, and revenue improvement measures. The company is also focusing on the domestic replacement market through established pan-India distributors.
Products & Services
Asbestos-free brake linings, disc pads, clutch facings, tractor linings, friction material for industrial applications, and rivets.
Brand Portfolio
TVS Brake Linings (marketed under the TVS brand heritage).
New Products/Services
New product lines were introduced in FY2024 with a planned scale-up in FY2025-26; specific revenue contribution percentages for these new lines were not disclosed.
Market Expansion
The company is pursuing material segment diversification into non-CV applications and expanding its presence in the domestic aftermarket to mitigate the 3-5% muted growth expected in the CV segment.
Strategic Alliances
Part of the T S Krishna Group (erstwhile TVS Group), providing strong financial flexibility and lender relationships.
External Factors
Industry Trends
The friction material industry is shifting toward asbestos-free products. The domestic CV segment is expected to grow at a modest 3-5% in FY2026, while the export outlook remains weak due to global trade barriers.
Competitive Landscape
Key competitors include Rane Brake Lining Limited, Masu Brakes Private Limited, and Hindustan Composites Limited, along with unorganized players in the replacement market.
Competitive Moat
Moat is based on the safety-critical nature of products, long lead times for product validation in the auto industry, and the 'TVS' group brand heritage. These factors provide moderate sustainability against unorganized competition.
Macro Economic Sensitivity
Highly sensitive to CV industry cyclicality, which is strongly correlated to GDP growth, industrial output, and infrastructure investments.
Consumer Behavior
Shift toward higher safety standards and regulatory compliance (emission norms and scrappage policies) is driving demand for high-quality friction materials.
Geopolitical Risks
Significant risk from US trade policy; the August 2025 tariff escalation to 60-70% total burden places SBLL at a disadvantage compared to Southeast Asian competitors.
Regulatory & Governance
Industry Regulations
Operations are impacted by automotive emission norms, the national scrappage policy, and stringent safety standards for friction materials.
Taxation Policy Impact
The company follows Ind AS; specific tax rate impacts were not detailed beyond standard corporate tax applications.
Risk Analysis
Key Uncertainties
The primary uncertainty is the impact of US import tariffs on export volumes and margins, with a potential downward rating trigger if accruals do not improve. CV industry cyclicality remains a 100% inherent risk to domestic OEM revenue.
Geographic Concentration Risk
High concentration in the US market, which accounts for 25% of total revenue.
Technology Obsolescence Risk
Risk is mitigated by the company's focus on asbestos-free technology and new product line introductions.
Credit & Counterparty Risk
Trade receivables stood at INR 14.71 Cr for the half-year ended September 2025. Liquidity is supported by INR 54 Cr in unutilized working capital lines.