Sansera Enginee.

Sansera Engineering reported its highest-ever quarterly sales of INR9,077 million, marking a 25% YoY increase. EBITDA reached INR1,639 million, with margins improving to 18.1% from 17.5% in Q3 FY25. Profit After Tax stood at INR694 million, or INR857 million excluding a one-time^📎 exceptional charge^📎 of INR162 million related to revised Labour Code, reflecting a 53% YoY growth. Finance costs were significantly lower at INR79 million due to debt reduction over the past year.

The ADS (Aerospace, Defense, and Semiconductor) segment demonstrated exceptional growth, with revenue more than quadrupling YoY and doubling QoQ. The company is on track to achieve its FY26 ADS revenue target of over INR300 crores and expects INR550-600 crores in FY27. The cumulative unexecuted lifetime order book for ADS stands at INR38.7 billion as of December 2025, with significant ramp-up expected towards FY30, including INR1,200-1,300 crores in FY30 alone.

Sansera inaugurated a new state-of-the-art facility in Pantnagar, primarily dedicated to domestic 2-wheeler OEMs for crankshaft assemblies. This plant, with approximately 2 lakh square feet of manufacturing space, is expected to generate close to INR500 crores in annual revenue when fully utilized. The facility is designed with high automation, IoT, and data analytics, and will be predominantly operated by women employees, aiming for 100% female workforce over time. This initiative targets the significant outsourcing opportunity in the 2-wheeler segment, where over 60% of crankshaft assemblies are still manufactured in-house.

International sales showed robust growth, with Europe revenues up 27% YoY and other foreign countries more than doubling on a small base. The company anticipates a positive impact on both current exports and new opportunities from the interim U.S.-India trade deal and EU FTA, which are expected to accelerate decision-making for large orders. However, sales to a leading North American EV manufacturer were down 50% YoY and 60% from internal projections, impacting overall export performance.

Sansera signed a joint venture agreement with Nichidai Corporation of Japan, investing INR500 million for a 60% stake over two years. This JV aims to expand Sansera's capabilities in cold and warm forged precision components, particularly for driveline and steering components, where Sansera previously had limited presence. The partnership is expected to yield a better margin profile than current products and enhance Sansera's tech-agnostic offerings, leveraging Nichidai's expertise in tools, dies, and precision component manufacturing.

The company's overall capex plan for FY26 is projected to be around INR350-400 crores. For the ADS business, the current committed capex is deemed adequate for FY27 targets, with a new 80,000 sq ft facility expected to be ready by June-July 2026. Sansera is also exploring additional land for aerospace expansion and is in the final stages of commissioning special processes, primarily for aerospace, to enhance its advanced manufacturing capabilities for 4-meter components and diversify its product portfolio.

The domestic ICE segment is expected to grow at high single-digit to low double-digit rates, while the export ICE segment is projected for a healthy 20-25% growth over the next three years. Sansera maintains a long-term aspiration of achieving 20% EBITDA margins, 20% revenue growth, and 20% ROCE. The company believes its strong mass manufacturing capabilities, well-established processes, and focus on complex, high-precision components position it well to achieve these targets and expand into new segments.