Sansera Engineering Limited

SANSERA

Sector: Automotive
Qtr Score Rank 15 / 57 (Top 75 percentile)Growth Score Rank 43 / 51 (Top 18 percentile)

Quarterly Score

↔ Trend: Stable
Sentiment stable - Recent avg: 7.73, Historical avg: 7.54

Showing the latest 12 quarterly points (newest to oldest).

Score context (latest 12 quarters)

Q4 FY2023
7.5

Management expects FY24 to be a strong year with healthy domestic business and recovery in international markets. They anticipate an export sales mix of 32.5%-33% for the full year, leading to margin improvement. Capex for FY24 is expected to be around INR250 crores (INR2.5 billion), similar to FY23, focused on non-auto and non-ICE categories.

Rationale

  • Reported best-ever annual performance in FY23 with 18% revenue growth YoY to INR23,560 million, driven by strong growth in non-automotive (50% YoY in Q4) and auto-tech agnostic/xEV products (78% YoY in Q4).
  • Successfully crossed INR900 million milestone for aerospace and defense business in FY23, with Q4 sales contributing 4.9% and showing 76% YoY growth.
Q1 FY2024
8.0

Company remains certain about growing export base by more than 50% for the full year. Expects strong recovery and performance in Aerospace and Defense in coming quarters, aiming for close to 50% growth. Targets 40% contribution from xEV, Tech Agnostic, and non-auto segments in three years, projecting closer to 28% for the current year. FY24 CAPEX estimated at INR 300 crores. Expects net debt to be in the range of Rs. 680-700 crores by year-end.

Rationale

  • Reported best-ever quarterly performance in terms of top line and EBITDA, with revenue from operations growing 24% YoY to INR 6,601 million and EBITDA margin at 17.3% vs. 17.2% in Q1 FY23.
  • Significant growth in Auto-Tech Agnostic and xEV products (up 70% YoY), now contributing 12% of sales, indicating successful pivot towards future-oriented products.
Q2 FY2024
7.5

Guidance is generally positive, with management expressing confidence in achieving FY2026 targets, supported by a growing order book and strategic initiatives. While specific quantitative guidance for the full year is not explicitly stated, the commentary points towards continued growth driven by order inflows and diversification into new segments.

Rationale

  • Revenue grew 9% YoY to Rs. 6,929 million and 5% QoQ, indicating healthy top-line growth.
  • EBITDA margin remained stable at 17%, demonstrating consistent operational profitability.
Q3 FY2024
7.5

While specific forward-looking revenue targets for FY2027/FY2028 are still being finalized with customers, management expects to continue growing at double the industry growth rate (currently estimated at 7.5-8% for the industry). The majority of the current order book (~90%) is expected to mature by FY2027.

Rationale

  • Revenue growth of 27% YoY (Q3 FY2024) and 20% YoY (9M FY2024) demonstrates strong top-line momentum across multiple segments.
  • EBITDA margins remained steady at 16.9% for Q3 FY2024, with a 1% point improvement driven by operating leverage, indicating improved operational efficiency.
Q4 FY2024
7.8

Guidance indicates continued CAPEX investment in FY25 (approx. 400 crores) to enhance new capabilities, with a return to normal range (300-350 crores) in subsequent years. Management expects the aerospace facility to be fully utilized by FY27, generating Rs. 350-400 crore revenue. The vision is to reach 40% revenue from xEV, non-auto, and tech agnostic components in the long term.

Rationale

  • Reported highest-ever annual revenue (Rs. 28,114 million) and EBITDA (approx. Rs. 4,800 million) for FY24, indicating strong top-line and operational performance.
  • EBITDA margin improved from 16.4% in FY23 to 17.1% in FY24, driven by business mix and operational efficiencies, showing positive margin trajectory.
Q2 FY2025
7.5

The company expects improved performance in Q3 and significantly improved performance in Q4, with full recovery and return to normalcy from Q4 onwards. They anticipate margin expansion and for the Swedish facility to reach double-digit EBITDA by the end of FY26, sustaining 10-12% in ongoing quarters. Aerospace and Defense sector is targeted for 40-50% CAGR growth over the next 2-3 years.

Rationale

  • Revenue grew 10% YoY to INR7,634 million, achieving the highest-ever quarterly revenue, indicating strong execution despite challenging market conditions.
  • EBITDA margins improved to 17.4% (up from ~16.1% in Q2 FY24, implied by INR1,331M EBITDA on INR7,634M revenue), driven by an evolved product mix and efficiency projects.
Q3 FY2025
7.0

Guidance indicates strong optimism for the coming year, with order books for continued and new products looking strong. The company expects high teens CAGR growth over the next 3 years. Management anticipates that 50% of the INR600 crore Aerospace/Defense/Semicon order book will be executed in FY26, with INR500 crore+ executed by FY27. International business is expected to move between 35% to 40% of revenue over the next 3-4 years.

Rationale

  • Revenue grew 2% YoY to INR7,278 million, with 9-month revenue up 8% YoY to INR22,351 million, indicating a stable but not accelerating top-line performance.
  • EBITDA margin remained strong at 17.5% for Q3 FY25 and 17.3% for 9MFY25, demonstrating consistent profitability despite a challenging environment. PAT margin improved YoY by 90 bps to 7.7% in Q3.
Q4 FY2025
7.5

Guidance for FY'26 indicates strong performance expected across segments, particularly ADS, with revenue projected to double. The outlook on the 2-wheeler side is positive due to strong rural demand. Export business is expected to be impacted in Q1 FY'26 due to global tariff uncertainties, but Sweden's business is improving. The company expects overall PV segment to grow faster in coming years, though Q1/Q2 FY'26 might see some impact from tariffs. ADS revenue is expected to be between INR280-300 crores for FY'26, doubling from FY'25.

Rationale

  • Revenue grew 7% YoY to over INR30,000 million, marking highest annual and quarterly performance.
  • ADS (Aerospace, Defense, Semiconductor) segment revenue surged 43% YoY in Q4 FY'25 and is expected to double in FY'26, with INR280-300 crores projected for FY'26.
Q1 FY2026
6.5

Guidance for ADS segment revenue of INR280-300 crores for FY '26 remains intact. Sweden business is expected to achieve over 20% growth for the full year with double-digit margins, stabilizing from Q3 FY '26. No specific overall revenue or profit guidance was explicitly provided for FY '26, but the trajectory of key segments appears stable.

Rationale

  • Revenue grew 3% YoY, indicating stable but not accelerating top-line performance amidst market headwinds.
  • EBITDA margin improved by 10 bps YoY to 17.2%, and PAT margin was healthy at 8.2% with a significant 26% YoY PAT growth, suggesting operational efficiency and margin discipline.
Q2 FY2026
7.5

H1 FY26 top line was INR 15,915 million. ADS sales guidance for FY26 is close to INR 3,000 million, with strong quarter-on-quarter growth expected. Peak annual revenue for new business stood at INR 21.5 billion as of September 2025. The company expects its ADS business to grow over the next few quarters with strong momentum. The unexecuted order backlog for the ADS segment is more than INR 39,500 million, providing significant visibility for the next four years. The new hangar, expected to be ready by mid-next year, will support projections for the next four years.

Rationale

  • Strongest-ever quarterly revenue of INR 8,252 million, up 8.1% YoY, driven by domestic market recovery and healthy non-auto segment growth.
  • Non-auto segment (ADS) grew by 56.4% YoY, with an H1 FY26 top line of INR 864 million and guidance for ~INR 3,000 million for FY26, indicating strong diversification momentum.
Q3 FY2026Latest
9.2

Management maintained its FY26 guidance for 'teens to mid-teens top line growth' and 'comfortably maintaining our current margin profile.' The ADS segment is 'on track' to meet/exceed its FY26 target, with 9-month revenue crossing INR 2,150 million. Cumulative unexecuted lifetime order book for ADS till FY '30 stands at INR 38.7 billion, providing strong long-term visibility.

Quarter summary

  • Sansera achieved its highest ever quarterly sales and EBITDA, reflecting strong operational execution and market demand across diverse segments.
  • The company is strategically expanding its manufacturing footprint with the new Pantnagar facility and an upcoming second ADS plant, alongside a new JV to enter high-precision cold and warm forging for better margins.

Rationale

  • The company reported its highest ever quarterly revenue of INR 9,077 million in Q3 FY26, representing a robust 25% YoY growth, driven by strong performance across all segments.
  • EBITDA margin expanded by 60 basis points YoY to 18.1% in Q3 FY26, even after a one-time development cost of INR 100 million, indicating operating leverage and positive product mix shift.

Future Growth Prospects

Growth score: 7.8Visibility: 80%Updated: 18 Feb 2026, 03:30 am

Catalysts (next 12-24 months)

Total triggers: 5Visible per view: 1 / 2 / 3Slides: 5

Swipe or use arrows to browse all triggers.

capacityQ3 FY26 onwardsImpact: revenueQty: 500 ₹ Cr

New Pantnagar facility for 2W ICE crankshaft assemblies

• next 3 years · concall:Q3FY26 · newly inaugurated Pantnagar facility... primarily producing crankshaft assemblies... can actually generate close to about INR500 crores per annum.

mnanext couple of yearsImpact: marginQty: 500 ₹ Mn

Nichidai JV for high-precision forged & machined parts

• next 2 years · concall:Q3FY26 · Sansera will be investing INR500 million towards this JV for a stake of 60% over a couple of years.

Show evidence (2)

• unspecified · concall:Q3FY26 · margin profile of the products what we are targeting in the JV will be better, will be better than what we currently have as a margin profile.

capacityJune-July 2026Impact: revenueQty: 5000 ₹ Mn

Strong ADS business growth with new facility ramp-up

• FY27E · concall:Q3FY26 · For the FY '27 revenues, what we are targeting... between INR5,000 crores to INR6,000 crores is our expectation and guidance.

Show evidence (2)

• mid-2026 · concall:Q3FY26 · construction of the new facility adjacent to the current one is underway. We expect that to be ready by June, July of this year.

regulatoryQ4 FY26 / Q1 FY27Impact: revenue

US & Europe trade deals reducing tariffs

• next 12-24 months · concall:Q3FY26 · interim U.S.-India trade deal and EU FTA, we expect a positive impact on both current exports and new opportunities.

Show evidence (2)

• Q4 FY26 / Q1 FY27 · concall:Q3FY26 · expect a significantly stronger uplift in margins and exports to these regions in the latter half of fourth quarter or first quarter FY '27?

orderbooknext financial year itselfImpact: revenueQty: 70 ₹ Cr

New orders in Semicon/Defense, including large aerospace OEM

• FY27E onwards · concall:Q3FY26 · very good first big order from them amounting to about INR70 crores per annum, which we will be executing it starting from next financial year itself.

Show evidence (2)

• next few quarters · concall:Q3FY26 · semiconductor division... discussions are... progressing well with other players... conversion... will happen pretty soon.

Variant perception

Non-consensus view
Consensus

Management is highly optimistic about diversified growth across non-auto and exports, driven by strategic capex and new partnerships. The market might be underappreciating the speed and margin uplift from these new ventures and US/EU trade deals.

Upside
  • Faster than expected US/EU tariff resolution could unlock significant export opportunities in FY27, boosting revenue & margins. (concall:Q3FY26)
Show more (1)
  • New Pantnagar plant (INR 500 Cr/annum) and ADS new facility (INR 6,000 Mn potential) could ramp up faster than current market expectations. (concall:Q3FY26)
Downside
  • Prolonged 'intended pause' in tech-agnostic orders could delay diversification benefits beyond FY26-FY27. (concall:Q3FY26)
Show more (1)
  • Continued weakness in PV segment, especially international, could offset gains from other growing segments. (concall:Q1FY26)
base case75% conf
Growth: 15

Quick takeaway

Mid-teens top line growth with ADS and domestic auto demand.

Risk watch: Global uncertainties and policy shifts could impact exports.

Show details (2 drivers, 2 risks)

Drivers

  • Mid-teens top line growth with ADS and domestic auto demand.
  • New Pantnagar facility and Nichidai JV contributing to revenue growth.

Risks

  • Global uncertainties and policy shifts could impact exports.
  • Raw material price fluctuations if not fully passed through.
upside case85% conf

Quick takeaway

ADS revenue targets for FY27 (INR 5,000-6,000 Mn) achieved, new facility operational.

Risk watch: Slower-than-expected resolution of trade deal uncertainties.

Show details (2 drivers, 2 risks)

Drivers

  • ADS revenue targets for FY27 (INR 5,000-6,000 Mn) achieved, new facility operational.
  • US/Europe tariff reduction leading to faster export order conversions and higher margins.

Risks

  • Slower-than-expected resolution of trade deal uncertainties.
  • Delays in new facility commissioning or order ramp-up.
downside case60% conf

Quick takeaway

Domestic auto segment growth moderates due to macro headwinds.

Risk watch: Persistent geopolitical turbulence impacting global supply chains.

Show details (2 drivers, 2 risks)

Drivers

  • Domestic auto segment growth moderates due to macro headwinds.
  • ADS growth falls short of guidance due to execution challenges or customer delays.

Risks

  • Persistent geopolitical turbulence impacting global supply chains.
  • Intensified competition in existing and emerging segments.

Story of the Stock - Top Strategies

Latest Fiscal Years: FY26, FY25, FY24Top strategies (ranks 1-3) per year
Curated from latest transcripts
Fiscal YearFY26
#1Impact: HIGH

ADS Segment Growth and Investment

ADS segment is a strategic priority, targeting INR 3,000-3,200 Mn sales in FY26 and INR 5,000-5,500 Mn in FY27, with INR 2,500 Mn capex planned.

Targeting FY26 and FY27 for revenue growth, with capex planned over the next few years.
Show more

The company is heavily investing in and prioritizing the ADS segment, expecting significant revenue growth and capacity expansion to meet order backlogs.

Impact: 3000 Mn

Evidence

ADS segment is a strategic priority for Sansera.
Targeting annual sales of INR 3,000 to 3,200 million in FY26 and INR 5,000 - 5,500 million in FY27.
Planned capex of INR 2,500 Mn over the next few years towards building, machinery, etc. for ADS.
Unexecuted order backlog of INR 39,533 million committed to this business.
#2Impact: HIGH

Diversification into Non-Auto and Emerging Segments

Diversifying into Non-Auto, Tech-Agnostic, and EV segments, aiming for 40% revenue contribution from emerging segments by FY25.

Aiming for 40% revenue from emerging segments by FY25, with ongoing expansion into new areas.
Show more

Sansera is actively diversifying its revenue mix into high-growth emerging segments like Aerospace, Defense, Semiconductor (ADS), and EV components to reduce reliance on traditional auto segments.

Impact: 40 %

Evidence

Sansera is committed towards diversifying its revenue mix further in emerging segments to 40% while growing the overall business.
Aggressively diversified into various areas: aluminum forging, semiconductor, aerospace, non-auto segments like industrial application, agricultural applications.
Visible growth in xEV, Tech Agnostic & Non-Auto products, encompassing strong order book.
ADS segment is a key growth driver for non-auto business over the long term.
#3Impact: HIGH

Strengthening Core ICE Business and Global Expansion

Maintaining strong growth in Auto ICE, particularly in 2W-Motorcycles and CV segments, while expanding global presence in Japan and Korea.

Q2FY26 India Business grew 8.5% YoY; expanding horizons and engaging with prospective customers in Japan and Korea.
Show more

The company continues to focus on its core Auto ICE business, aiming for robust growth, and is strategically expanding its international footprint to tap new markets.

Impact: 8.5 %

Evidence

India Business delivered a growth of 8.5% YoY in Q2FY26.
2-Wheeler continues to deliver a decent growth of 7.1% YoY, led by a 12.4% YoY increase in motorcycles.
CV segment achieved a strong growth of 18.3% YoY largely owing to the Sweden business.
Constantly expanding our horizons and engaging with prospective customers in newer geographies, particularly Japan and Korea.
Fiscal YearFY25
#1Impact: HIGH

Diversification into Non-Auto, Tech-Agnostic, and xEV Segments

Emerging businesses (Non-Auto and Auto-Tech Agnostic & xEV) grew by 34% in FY24 and 27% in Q4FY24, contributing 28% to revenue.

Show more

Sansera is focusing on diversifying its revenue streams into high-growth areas like Non-Auto and Tech-Agnostic & xEV segments. This strategy is expected to contribute significantly to overall revenue.

Impact: 28 %

Evidence

In Q1 FY25, our emerging businesses (Auto Tech-Agnostic & xEV and Non-Auto segments) have delivered a record-breaking quarterly revenue of Rs. 1,971 Mn, a YoY growth of 34%.
revenue contribution of 28% from these businesses, we are on track towards our vision of a 40% contribution over the long-term horizon.
The success in Auto Tech-Agnostic & xEV is even more meaningful, with revenue contribution reaching the 16% mark during the quarter.
#2Impact: HIGH

Strengthening Balance Sheet and Capacity Expansion

Completed QIP of Rs. 12,000 million, reducing debt and strengthening the balance sheet for growth.

Q1 FY25
Show more

The company completed a QIP of Rs. 12,000 million to reduce debt, strengthen its balance sheet, and fund growth strategies including capacity expansion.

Impact: 12000 Mn

Evidence

we have successfully completed our QIP of Rs. 12,000 million recently
This fund raise is in line with our growth strategy of overall business and capacity expansion while reducing some portion of the debt and strengthening the balance sheet.
Going forward, Sansera is prepared to accelerate its growth plans with a robust balance sheet and additions to the senior leadership team
#3Impact: HIGH

Focus on Technological Leadership and Innovation

Investing in advanced technologies and developing lightweight, high-efficiency components for EVs.

Show more

Sansera is focusing on leveraging its engineering capabilities to develop advanced components for the EV space, aiming to meet the evolving needs of new-age EV players.

Evidence

Sansera endeavors to be ahead of the curve in the EV space with a clear emphasis and focus on development of a new mobility world
Strong R&D and design capabilities to meet the requirements of both traditional OEMs and new-age players in the EV space
Completed setting up a dedicated facility for hybrid and electric components within our existing Plant at Bengaluru
Fiscal YearFY24
#1Impact: HIGH

Leveraging growth in emerging segments (xEV, Tech-Agnostic, Non-Auto)

Targeting 60% sales contribution from non-auto, xEV, and tech-agnostic segments by FY26

Targets set for FY26
Show more

Sansera is focusing on growing its newer segments like Auto-Tech Agnostic & xEV, and Non-Auto, which are showing strong growth. This strategic shift is expected to drive future growth and resilience.

Impact: 60 %

Evidence

“Based on recent trends that are emerging, we have realigned our vision and raised our long term sales contribution targets from xEV and tech agnostic products from 15% to 20%. Over long term, we are targeting 60% sales contribution from auto ice, while 20% each coming from non-auto and xEV & tech agnostic portfolio”
“Our Auto-ICE segment is benefiting from the premiumization play in the auto industry with higher content per vehicle. In fact, we saw our highest ever quarterly revenues in the 2W-Motorcycles segment primarily on account of premiumization.”
“The non-automotive segment grew by 27% in the quarter, contributing 11.7% of the total sales.”
“Our focus is shifting towards non-auto, xEV, and tech-agnostic segments to achieve a balanced revenue stream alongside our core Auto-ICE business.”
#2Impact: HIGH

Strengthening global market share in Auto-ICE

Continued growth in Auto-ICE segment driven by premiumization and strong customer relationships.

Ongoing
Show more

Sansera aims to consolidate and enhance its global market share in the Auto-ICE segment by leveraging its existing capabilities and strong customer relationships.

Evidence

“Our Auto-ICE segment delivered a healthy ~20% growth on a far bigger base. The growth registered by our newer segment illustrates Sansera's adaptability to newer requirements and our futuristic product range. Meanwhile, Auto-ICE growth is a clear reflection of our prowess in core product categories.”
“We witnessed broad-based growth across our business segments — Auto ICE, Auto-Tech Agnostic & xEV, and Non-Auto which registered 25–36% YoY growth in the quarter.”
“Consolidate and strengthen global market share in existing portfolio”
#3Impact: HIGH

Strategic Investment in MMRFIC Technology Pvt Ltd

Investment of INR 200 Mln for ~21% stake, providing access to advanced radar technology and R&D capabilities.

Date - March 2023
Show more

Sansera made a strategic investment in MMRFIC, a company focused on designing and developing next-generation Radars, to gain access to high-technology capabilities and R&D expertise in defense and aerospace.

Impact: 200 Mln

Evidence

“On the strategic front, we have invested in MMRFIC, which reinforces our diversification plan. It enables us to enter the high-tech arena and have access to a competent R&D and engineering staff capable of addressing our priority market segment, defence and aerospace.”
“Deal Size: INR 200 Mln ~21% stake based on projected FY24 EBITDA”
“Sansera has right to invest and increase stake up to 51% at a predefined valuation formula”

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