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    Sansera Engineering Limited

    SANSERA
    Automobile and Auto Components·13 Nov 2025
    Management Summary

    Sansera Engineering Limited delivered its strongest-ever quarterly performance in Q2 FY26, with revenue growing 8.1% YoY to ₹825.2 crores and EBITDA margin at 17.3%. This growth was propelled by robust domestic market recovery and a significant 56.4% YoY increase in the non-auto segment, particularly ADS. Despite facing headwinds from export slowdowns, tariffs in key international markets, and declining PV sales, the company maintained strong profitability and a net debt-free balance sheet, while also making strategic investments in MMRFIC and ADS capacity expansion.

    Highlights

    5

    • Reported strongest-ever quarterly performance with revenue of ₹825.2 crores, up 8.1% YoY.

    • EBITDA stood at ₹143.1 crores with a healthy margin of 17.3%, and PAT at ₹71.4 crores with an 8.7% margin.

    • Non-auto segment grew significantly by 56.4% YoY, primarily driven by the ADS division, which recorded a top line of ₹49.6 crores in Q2 FY26.

    • International business delivered 7.3% YoY growth, supported by Swedish operations and ADS exports.

    • Maintained a net debt-free position, reflecting strong financial health.

    Concerns

    4

    • Experienced slowdown in exports, cost pressures, and supply chain risks.

    • Tariffs are causing pressure on sales offtake in US and European markets, impacting margins.

    • PV sales declined on a year-on-year basis in Q2 FY26, and the European business (excluding Swedish subsidiary) declined by 28.5%.

    • Scooter segment showed negative growth due to lower content per vehicle compared to motorcycles and absence from some large OEM models.

    What Changed2

    vs Q3 FY26

    Guidance items15 → 6 (-9)Risks discussed3 → 5 (+2)

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹825.2 Cr+8.1%YoY
    2. 02EBITDA₹143.1 Cr
    3. 03EBITDA Margin17.3%
    4. 04PAT₹71.4 Cr
    5. 05PAT Margin8.7%

    Segment breakdown

    Non-Auto Segment
    56.4% Revenue Growth
    ADS Segment
    ₹49.6 Cr Q2 FY26 Top Line₹86.4 Cr H1 FY26 Top Line
    International Business
    7.3% Revenue Growth
    European Business (excl. Swedish subsidiary)
    -28.5% Revenue Decline
    Domestic Sales
    8.5% Revenue Growth
    PV Segment
    -22% Revenue Decline-25.8% H1 Revenue Decline
    List

    Order Book

    high confidence

    Total Value

    ₹ 3,950 crores

    as of 2025-09-30

    quantified

    Execution

    cumulative order backlog over the next five years (up to FY30)

    Composition

    ADS Segment(segment)
    ₹ 3,950 crores100.0%

    "The ADS segment has a cumulative order backlog of over ₹3,950 crores, representing the lifetime value of confirmed programs over the next five years, providing strong revenue visibility."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    M&A

    MMRFIC

    acquisition · announced · Consideration ₹NaN (cash)

    Liquidity

    Liquidity disclosed

    Company remains net debt free, implying strong liquidity.

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    ADS Annual Sales
    ₹300 crores
    		Medium
    Profitability
    ADS EBITDA Margin
    25-30%
    		Medium
    Revenue
    Full Year FY26 Revenue Growth
    at least the teens
    		Medium
    Capacity
    ADS Current Capacity Revenue Potential
    ₹600 crores
    		High
    Capacity
    ADS FY27 Revenue Target (from current capacity)
    ₹550 crores
    		High
    Timeline
    US Manufacturing Facility Readiness
    12-15 months
    		High

    US Investment Decision & Tariff Resolution

    Next 12-15 months for first line readiness
    CurrentOn hold, awaiting tariff clarity
    TargetInvestment announcement / Tariff reduction

    Why it matters

    Unlocks significant growth opportunity in a key international market and validates management's strategic expansion.

    I think we believe that will be a very big trigger point to see for the momentum on that front. So, our commitment to the customers has been that the day that we sign up a contract with them, between 12 and 15 months, the first line would be ready for mass production in the U.S.

    How to verify

    capital_allocation.capex.revision

    Risks & concerns

    5
    RiskSeverity

    Export Slowdown and Tariff Impact

    Slowdown in exports, cost pressures, and supply chain risks, with tariffs impacting sales offtake and margins in US and European markets. — Management acknowledged

    medium

    PV Segment Decline

    PV sales declined 22% YoY in Q2 FY26 and 25.8% in H1, primarily in ICE customers, due to program delays. — Management acknowledged

    medium

    Scooter Segment Negative Growth

    Scooter segment showing negative growth due to lower content per vehicle compared to motorcycles and absence from some large OEM models. — Management acknowledged

    low

    ADS Production Delays

    Missing FAI samples on time can lead to 6-12 month delays in mass production for specific programs, impacting revenue execution. — Management acknowledged

    medium

    Unforeseen External Incidents

    Past incidents like the Boeing issue (four years ago) can significantly set back the aerospace business. — Management acknowledged

    medium

    Q&A highlights

    8

    “what it really means is, rather than telling you what is the value of the business which we have booked and not started production as yet versus now telling you that as on date if I were to take all the available orders in hand and estimate the lifetime value of all the programs confirmed with a clear cutoff period of four years, it is almost Rs.4,000 crores.”

    Clarifies the distinction between peak annual revenue potential and cumulative lifetime order value for the ADS segment, providing better visibility into the segment's long-term potential.

    asked by Mukesh Saraf

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Amidst Headwinds

    Sansera Engineering reported its strongest-ever quarterly performance in Q2 FY26, with revenues reaching ₹825.2 crores, an 8.1% year-on-year increase. EBITDA stood at ₹143.1 crores, translating to a healthy margin of 17.3%, while PAT was ₹71.4 crores with an 8.7% margin. This growth was achieved despite challenges such as slowdown in exports, cost pressures, and supply chain risks, demonstrating resilience and effective business mix management.

    02

    Robust Growth in Non-Auto and ADS Segments

    The non-auto segment exhibited significant growth, expanding by 56.4% year-on-year in Q2 FY26, primarily driven by the Aerospace & Defense (ADS) division. The ADS segment recorded a top line of ₹49.6 crores for the quarter, contributing to a half-year top line of nearly ₹86.4 crores. Management anticipates strong quarter-on-quarter growth for ADS, with an annual sales guidance of ₹300 crores and EBITDA margins expected to be in the 25-30% range.

    03

    Strategic International Expansion and US Market Outlook

    International business delivered 7.3% year-on-year growth, bolstered by a recovery in Swedish operations and strong ADS performance. While the European business (excluding Sweden) declined by 28.5%, the company is actively pursuing outsourcing opportunities from European OEMs. Plans for a US manufacturing facility are on hold pending clarity on tariffs, but management expects a resolution soon, with the first production line ready within 12-15 months of contract signing, focusing on regional content.

    04

    Investment in MMRFIC and Capacity Expansion

    Sansera approved a further investment of ₹30 crores in MMRFIC, aiming to increase its stake beyond 50% by the end of the financial year. This strategic move targets exciting programs in defense and space. Additionally, to support the growing ADS order book, the board approved a new 70,000 sq ft hangar, expected to be ready by mid-next year, which will expand existing capacity by two-thirds.

    05

    Domestic Market Dynamics and EV Strategy

    Domestic sales grew 8.5% year-on-year, driven by healthy recovery in the entry-level motorcycle and PV segments. However, PV sales declined 22% year-on-year in Q2 FY26, and the scooter segment showed negative growth due to lower content per vehicle compared to motorcycles. In the domestic EV passenger vehicle segment, Sansera currently supplies only to Toyota and Maruti, with plans to focus on specific new product lines rather than broad market penetration.

    06

    Order Book and Future Outlook

    The cumulative order backlog for the ADS segment stands at over ₹3,950 crores, executable over the next five years (up to FY30), providing significant revenue visibility. For the full fiscal year 2026, management anticipates overall revenue growth to reach 'at least the teens,' indicating a stronger performance in the second half of the year, supported by ADS, Swedish operations, and expected recovery in auto ICE exports.

    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.