Sansera Engineering Ltd Q1 FY27 Earnings Call: Order Book Surges to Rs.5,700 Crores, Guides High-Teens Revenue Growth

Sansera Engineering Ltd held its Q1 FY27 earnings call on August 12, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Revenue and Margin Expansion in Q1 FY 2026-2027

• Rs.10,213 million revenue — highest-ever quarterly, up 33% YoY, with EBITDA margin of 19.2% and PAT margin of 8.6%.
• Rs.1,961 million EBITDA — up 48% YoY, margin expanding ~200 bps from 17.2% in Q1 FY 2025-2026.
• Rs.874 million PAT — up 39% YoY; adjusted PAT of Rs.1,000 million excluding a Rs.127 million post-tax exceptional charge (US district court litigation settlement).
• Non-auto segment record Rs.1,998 million — up 129.9% YoY, contributing 20.8% of total sales; ADS business drove this at Rs.1,454 million (more than 3x YoY).
• Auto ICE segment Rs.6,275 million — up 20.8% YoY on a high base, with record quarterly performance across passenger vehicles, commercial vehicles, and scooters.
• EV/XCV segment Rs.1,316 million — up 22.2% YoY, highest-ever quarterly, reflecting accelerated EV adoption especially in two-wheelers.

ADS Order Book Surges to Rs.5,700 Crores; Broad-Based Momentum

• ADS order book Rs.5,700 crores — executable by FY 2030-2031, driven by a Rs.1,250 crore order from an existing semicon equipment manufacturer (annual engagement with that customer now ~$75 million).
• Cumulative executed lifetime ADS order book Rs.44.4 billion — at Q1 FY 2026-2027 end; additional orders in early Q2 FY 2026-2027 pushed backlog to ~Rs.57.5 billion (executable over 5 years).
• Normal-course Q1 order wins: Rs.88 crore in PV/CV and Rs.75 crore in two-wheelers — reported by B.R. Preetham.
• Peak annual revenue from new business (ex-ADS) Rs.18.5 billion — as of June 2026.
• Export momentum strong — across PV, premium two-wheelers, and off-road segments; energy segment deliveries to a North American customer commenced, with sustained revenue expected from Q3 FY 2026-2027.
• US manufacturing facility for connecting rods remains on hold — due to tariff uncertainty; customers are increasing sourcing from Sansera India as a stopgap, boosting premium product exports.

Defense Entry, Blisk Progress, and Value-Chain Ascent

• New defense facility planned for FY 2026-2027 — Hari Krishnan (CEO, ADS Division) outlined strategy moving beyond precision machining into sheet metal fabrication; management expects "significant headway" in facility creation and order wins during the current fiscal year (capex undisclosed).
• "Very big order" valued at 200 million (currency/unit unspecified) from a SEM OEM in ADS — revenues expected to begin in calendar year 2027 and peak in calendar year 2029.
• Turbine blisk order progressing — first samples expected within one month (by mid-Q2 FY 2026-2027); new 4-meter component special process facility commissioned with NADCAP and customer approvals expected in Q2 FY 2026-2027, which should cut lead times and be margin accretive.
• Targeting more complex aerospace parts — door assemblies, fuselage structural parts, and seating elements, indicating a move up the value chain.
• ADS division run rate currently Rs.600 crores — executable order book of Rs.5,700 crores must be executed by FY 2030-2031; management targets ADS segment revenue of Rs.1,300 crores by 2030 (period unspecified).
• Management does not expect ADS revenue to reach Rs.1,500 crores in FY 2027-2028 — ramp will be gradual; revenue guidance for FY 2027-2028 will be provided towards end of FY 2026-2027.

Margin Expansion, Cost Pressures, and Capacity Build-Out

• Adjusted Q1 EBITDA margin 20.4% — elevated by ~40% international revenue mix and currency tailwinds; management reiterated FY 2026-2027 margin guidance of "inching towards 19%" but aspires to sustain the 20%+ level.
• Material cost increased modestly in Q1 — driven by aluminium and consumables inflation; steel inflation limited. Pricing pass-throughs are under negotiation with customers and have not yet been booked.
• Domestic ADS/ADAS and export businesses deliver 25-30% EBITDA margins — management expects further improvement toward the high-20s as capacity utilisation rises.
• Capex program ramping — surface treatment facility (NADCAP validation underway), dedicated defense facility, new 80,000 sq ft hangar for aero & SEM business, and additional forging/machining at Pantnagar, Manesar, and Bangalore plants — all coming on stream from Q3 FY 2026-2027 onwards.
• Backward integration via Sansera-Nichi-Dai JV — surface treatment and cold/warm forging expected to improve speed, quality, and reduce external dependency.
• No updated capex guidance for FY 2026-2027 provided — Rs.129 million cost impact from US import duty tariff (incurred in FY 2025-2026) is included in the reported 19.2% EBITDA margin; the amount remains recoverable.

High-Teens Growth Trajectory and Long-Term Vision Intact

• FY 2026-2027 top-line growth guided to high-teens to 20% — driven by 75-80% growth in the ADS/ADAS business; non-ADS business expected to grow mid-teens.
• Stronger performance expected in upcoming quarters of FY 2026-2027 — versus Q1, driven by efforts in both auto and ADS segments; company invites investors to visit new hangar and fully operational special process facility ready by October 2026.
• Revenue target of Rs.8,000-9,000 crores by FY 2031 reaffirmed — management stated "the company's overall revenue vision of Rs.8,000–Rs.9,000 crores by FY2031 is intact"; future wins will add to the existing Rs.5,700 crore backlog.
• Management has not given a multi-year CAGR commitment — citing capacity planning cycles of 18-24 months; revenue guidance for FY 2027-2028 will be provided towards the end of FY 2026-2027.
• Key risks noted by management — aerospace: a catastrophic event similar to Boeing's six years ago (though risk seen as low given strong Boeing and Airbus order backlogs); semiconductor: AI demand slowdown could impact the segment, currently expected to sustain demand at least through FY 2029-FY 2030.
• Balance sheet remains strong — no immediate fund raising required; low leverage; organic capex can be funded from cash flows; management remains open to inorganic non-auto opportunities.

Auto ICE Remains Strong; EV Adoption Accelerating

• Auto ICE segment Rs.6,275 million — up 20.8% YoY, record quarterly performance across passenger vehicles, commercial vehicles, and scooters.
• EV/XCV segment Rs.1,316 million — up 22.2% YoY, highest-ever quarterly, driven by accelerated EV adoption especially in two-wheelers.
• Motorcycle business grew ~12.5% in Q1 FY 2026-2027 — versus industry volume growth of 17-18%; management attributed the gap to revenue vs. volume comparison and claims market share gains with TVS, Yamaha, and Suzuki during the quarter.
• Passenger vehicle segment — management reports ~75% wallet share with Maruti for the components they supply; expects strong momentum from Maruti over FY 2026-2027 and FY 2027-2028.
• Domestic two-wheeler and PV demand robust — for at least the next 1-1.5 quarters; supply chain constraints emerging due to capacity tightness.
• Beyond ADS, exploring new segments — including aerospace, SEM, power (transmission & storage), and humanoids; automotive business continues to grow at healthy double digits on a large base.