Sansera Enginee.

Sansera Engineering reported its highest-ever quarterly revenue of INR9,987 million in Q4 FY26, marking a 28% year-on-year growth. This was primarily driven by strong performance in the ADS and Sweden businesses. EBITDA grew by 52% year-on-year to INR1,929 million, with the EBITDA margin expanding significantly to 19.3% from 16.3% in Q4 FY25. Profit after tax saw a robust 108% growth, reaching INR1,231 million, with the PAT margin improving to 12.3% from 7.6%.

For the full fiscal year 2026, Sansera achieved record revenues of INR34,979 million, a 16% increase over FY25. EBITDA grew 23% to INR6,321 million, with margins improving to 18.1% from 17.1% in the previous year. The company successfully accelerated its non-auto diversification, expanded its manufacturing footprint with a new facility at Pantnagar, and entered a strategic joint venture with Nichidai Corporation, Japan. ADS revenue from product sales reached INR3,155 million, representing an exceptional 155% growth.

Sansera is aggressively pursuing its diversification strategy, aiming for non-auto, technology-agnostic, and xEV components to constitute 40% of its business, with Auto ICE restricted to 60%. As of Q4 FY26, the non-auto and xEV segments already accounted for 32% of the total business. The company has secured a cumulative unexecuted lifetime order backlog of INR44.6 billion over 5 years, with ADS alone having a current order backlog of INR4,500 crores. Management expressed confidence in achieving INR8,000-10,000 crores in overall company revenue by the end of the decade.

In FY26, Sansera incurred a capex of INR5,097 million, with a similar investment planned for FY27, to expand ICE capabilities and establish new ADS facilities. The company is acquiring 10 acres of land near the international airport for an aerospace park, anticipating accelerated growth in ADS. The joint venture with Nichidai Corporation, focused on precision forged and machined components, is progressing, with INR50 crores capex allocated this year and production expected to commence in Q3 FY27.

Despite a challenging macro environment marked by global tariff uncertainties, export slowdowns, and inflationary pressures on raw materials and logistics, Sansera sees strong opportunities. Domestic automotive OEMs are undertaking large-scale capex, creating demand for precision engineering. The pace of EV adoption, particularly in the 2-wheeler segment, continues to accelerate, and global aerospace order books remain high. The company is also seeing strong momentum in the semiconductor space, with significant interest from multiple customers.

The company reported a healthy cash position of INR3,972 million, providing ample flexibility for future expansion without significant dependence on leverage. FY26 capex was INR5,097 million, with a similar amount planned for FY27, directed towards both ICE capacity expansion and new ADS facilities. Operating cash flow net of tax stood at INR3,871 million, representing 11% of operating revenues and 61% of EBITDA. The increase in finance costs was attributed to additional working capital borrowings to support business growth.

Sansera acknowledges significant pressure on the availability of skilled and semi-skilled labor across geographies, identifying it as a critical challenge for execution efficiency in FY27. To address this, the company is increasing automation, expanding its workforce diversity (e.g., 100% women employed at Pantnagar Plant 2), and implementing skill-based incentive systems. Management emphasized the importance of deskilling operations and maximizing automation to mitigate labor-related risks.