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    Sahasra Electro.

    SAHASRA
    Capital Goods·18 Nov 2025
    Management Summary

    Sahasra Electronic Solutions reported a satisfactory H1 FY26, with revenue of ₹58.16 crores and a strong PAT margin of 15.49%. The company is pivoting towards the domestic market, expanding SMT capacity, and has secured a key eSIM manufacturing contract. A strategic merger of group entities is underway to consolidate operations and enhance value, despite initial delays in the semiconductor segment.

    Highlights

    5

    • H1 FY26 Revenue of ₹58.16 crores, positioning the company well against its FY26 guidance of ₹130 crores.

    • PAT margin saw a substantial increase to 15.49% in H1 FY26, up from 9.13% in the previous full year.

    • EBITDA margin remained healthy at 12.63%, demonstrating cost control and operational efficiency.

    • Secured a final contract for eSIM manufacturing with a European client, with production slated to begin from March next calendar year, projecting ₹20-25 crores in revenue for the first year.

    • Initiated a strategic merger process for three group entities, including an unlisted company with projected FY26 revenue of ₹90-100 crores and a PCB company with projected FY26 revenue of ₹18-20 crores, aiming to enhance value and operational synergies.

    Concerns

    3

    • H1 for Sahasra Semiconductors was less exciting due to delays in eSIM approval cycles, pushing production to next calendar year.

    • Memory business experienced a slow first half due to very low prices, though management noted a recent recovery due to AI demand.

    • Acknowledged a 'difficult year' in FY24-25 primarily due to a fall in export business, though efforts to pivot to domestic markets are showing recovery.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue₹58.16 Cr
    2. 02EBITDA Margin12.6%
    3. 03PAT Margin15.5%
    4. 04Total Assets (Listed Entity)₹31 Cr
    5. 05Total Assets (Consolidated)₹143 Cr

    Order Book

    medium confidence

    Composition

    Mix2 geographys
    • Export52.5%
    • Domestic47.5%

    Share of order book by geography

    "The order book is healthy enough to maintain current momentum, supported by new SMT lines and a pivot towards the domestic market."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹15 crores

    For ISM 2.0 capex of INR 200 crores, INR 100 crores will be a government grant, and the remaining INR 100 crores will be investor contribution (INR 50 crores from promoter/internal generation and INR 50 crores from debt financing through banks).

    M&A

    Sahasra Electronics Private Limited

    merger · announced

    M&A

    PCB company

    merger · announced

    M&A

    Skilling company

    merger · announced

    Liquidity

    Liquidity disclosed

    INR 46 crores from IPO proceeds are currently available for procurement of other assets. A subsidy of INR 20-22 crores is expected from the government, which will help operations and reduce interest burden.

    Guidance & targets

    16
    CategoryTargetPriority
    Revenue
    Projected Revenue
    ₹130 crores
    		Medium
    Revenue
    Semiconductor Revenue
    ₹10 crores
    		Medium
    Revenue
    Semiconductor Revenue
    ₹50 crores
    		Medium
    Revenue
    eSIM Revenue Potential
    ₹20-25 crores
    		Medium
    Revenue
    Sahasra Electronics Pvt Ltd (merged) Revenue
    ₹90-100 crores
    		High
    Revenue
    PCB company (merged) Revenue
    ₹18-20 crores
    		High
    Profitability
    EBITDA Margin
    12.63%
    		Medium
    Profitability
    PAT Margin
    15.49%
    		Medium
    Profitability
    Sahasra Electronics Pvt Ltd (merged) PAT
    ₹8-10 crores
    		High
    Volume
    eSIM Units
    5-10 million units
    		High
    Margin
    eSIM EBITDA Margin
    16-18% initially, 20%+ with volume
    		Medium
    Margin
    EMS/SMT PAT Margin
    15-16%
    		High
    Margin
    Semiconductor EBITDA Margin
    16-18% initially, 20%+ with volume
    		Medium
    Margin
    Semiconductor PAT Margin
    8-10%
    		Medium
    Subsidy
    SPECS Subsidy Amount
    ₹20-22 crores
    		High
    Business Mix
    Export Share
    50% and above
    		High

    eSIM Production Scale-up

    next fiscal year (from March onwards)
    CurrentContract signed, assessment audit passed, production expected from March next calendar year.
    TargetStart of production and initial revenue realization.

    Why it matters

    This is a new, high-potential business segment expected to contribute significantly to future revenue and margins.

    from the next financial, sorry, from the next calendar year, let's say from March onwards, we will start to look at making eSIMs on a production scale.

    How to verify

    guidance_and_targets[metric='eSIM Revenue Potential']

    Risks & concerns

    4
    RiskSeverity

    Delays in eSIM approval and production

    H1 for Sahasra Semiconductors was less exciting due to delays in the approval cycle of eSIMs, pushing production to March next calendar year. — Management acknowledged

    medium

    Low prices in memory business

    The memory business in the first half was slow due to very low prices, though recent growth in AI demand is improving the situation. — Management acknowledged

    medium

    Global market uncertainty and US tariffs impacting exports

    Uncertainty in the global market and US tariffs have affected export business in recent quarters, though positive trade deal signs are emerging. — Management acknowledged

    medium

    Lower initial margins in semiconductor business due to industry maturity

    The semiconductor industry in India is less mature, leading to lower initial EBITDA (16-18%) and PAT (8-10%) margins compared to EMS. — Management acknowledged

    low

    Q&A highlights

    8

    “it is considered as a part of the profit in the listed company and considered as a interest and therefore booked as a book loss. And that has been negated in the consolidated statement that has been provided. And, in fact, this also answers the previous question that was there that INR4.27 crores that he was mentioning, the earlier investor who -- Mr. Paras Chheda who raised that question of sundry balance write-off, that was actually on account of the interest paid to the parent company.”

    Clarified a perceived ₹4.27 crores write-off as an inter-company interest payment, resolving a potential concern about asset impairment.

    asked by Paras Chheda

    2 min read6 chapters

    Detailed Narrative

    01

    H1 FY26 Performance Overview

    Sahasra Electronic Solutions reported a satisfactory first half for FY26, with a turnover of ₹58.16 crores. The company is on track to meet its projected revenue guidance of ₹130 crores for the full fiscal year, with expectations for a stronger second half. Profitability saw a significant uplift, with PAT margin improving to 15.49% from 9.13% in the previous full year, while the EBITDA margin was maintained at a healthy 12.63%.

    02

    Strategic Pivot to Domestic Market and Capacity Expansion

    Following a challenging FY24-25 due to a decline in export business, Sahasra is actively pivoting towards the domestic market. The export share, which was 85-90% previously, is now 50-55%, with domestic contributing 45-50%. To support this, the company invested ₹15 crores in two new high-speed SMT lines and peripheral equipment at its Bhiwadi unit, complementing existing high-capability lines. The full building at Bhiwadi is nearing completion and is expected to be fully operational in the next couple of months.

    03

    Semiconductor Business Developments

    The semiconductor subsidiary, Sahasra Semiconductors, faced delays in H1 FY26 due to eSIM approval cycles. However, a final contract for eSIM manufacturing with a European client was signed in October, and an assessment audit was passed in November. Production is slated to begin from March next calendar year, targeting 5-10 million units and ₹20-25 crores in revenue for the first year, with an initial EBITDA margin of 16-18%. The memory business, slow in H1 due to low prices, is seeing recovery driven by AI demand.

    04

    Government Subsidies and Future Capex Plans

    The company has applied for a SPECS subsidy of ₹20-22 crores, with IFCI completing its due diligence. Disbursement is expected 6-8 weeks after November-end, which will aid operations and reduce interest burden. Looking ahead, Sahasra is planning a ₹200 crores capex under the upcoming India Semiconductor Mission Scheme 2.0. This capex will be funded by a 50% government grant (₹100 crores) and 50% investor contribution (₹50 crores from internal accruals and ₹50 crores from debt).

    05

    Strategic Mergers for Value Creation

    Sahasra has initiated a merger process for three group entities to enhance shareholder value and operational synergies. This includes an unlisted company, Sahasra Electronics Private Limited, projected to achieve ₹90-100 crores in revenue and ₹8-10 crores PAT in FY26. A PCB manufacturing company, critical for EMS inputs, with projected FY26 revenue of ₹18-20 crores, is also part of the merger. Additionally, a skilling company will be merged to ensure a steady supply of skilled manpower for EMS and semiconductor packaging.

    06

    Market Diversification and Margin Outlook

    The company is actively diversifying into new market segments such as EV accessories, metering for exports, GPS tracking, personal grooming products, and industrial solutions. Management aims to maintain EMS/SMT PAT margins at 15-16%. For the semiconductor business, initial EBITDA margins are projected at 16-18% (potentially 20%+ with volume) and PAT margins at 8-10%, acknowledging the nascent stage of the Indian semiconductor industry.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.