Sansera Charts Robust Growth and Margin Resilience

Ashwin Thakker

— 2 min read

Sansera Engineering announced a 3% year-on-year top-line growth in Q1 FY26, achieving an EBITDA margin of 17.2%. Despite prevailing market headwinds, the company articulated a forward-looking strategy focused on diversified growth drivers and sustained profitability. The earnings call highlighted Sansera's robust order book, strategic segment expansion, and commitment to operational efficiency amidst global uncertainties.

Key Facts on Outlook:

  • FY26 ADS revenue target: INR280-300 crores, aiming for INR1,000 crores in 3 years.
  • Sweden subsidiary: Anticipates 20%+ revenue growth for FY26.
  • Aluminum forging: Projects INR500 crores in revenue from this portfolio.
  • Overall domestic business: Expected growth between 5-8%.
  • Full-year EBITDA margin: Projected to remain double-digit, with a mid-to-long term target of 20%.

Diversified Growth & Segment Targets

Sansera Engineering outlined a clear growth strategy focused on diversification. The Aerospace & Defense (ADS) segment is a key long-term driver, with a revenue target of INR280-300 crores for FY26, aiming to double prior year figures. Management expects ADS to achieve INR1,000 crores by FY27-28.

"ADS remains the primary growth driver for non-auto business segment over the long term."

Domestically, Sansera forecasts 5-8% overall growth for FY26, anticipating a resilient 2-wheeler market. The company also targets INR500 crores from its aluminum forging portfolio. Internationally, the Swedish subsidiary is projected for over 20% growth in FY26, with stabilization expected from Q3. These efforts span high-value segments and global markets for expansion.

Margin Outlook and Strategic Adaptations

Sansera Engineering is committed to maintaining a healthy margin profile, targeting a double-digit EBITDA margin for the full year. Its mid-to-long term goal is 20% EBITDA margin, with management anticipating 50-75 basis points year-on-year improvement as market conditions normalize, supported by cost optimization efforts. Regarding recent US tariffs on Indian exports, Sansera indicated customers largely agreed to pass on these costs, viewing it as a temporary disruption. A more significant strategic focus is on increasing Regional Value Content (RVC) requirements for the USMCA region, potentially necessitating a shift of production to the US. Sansera is actively seeking a suitable US facility. These adaptations, combined with diversification into non-automotive and xEV segments, are crucial for sustained profitability.

In conclusion, Sansera Engineering's Q1 FY26 call reflected a company strategically navigating headwinds. Its forward-looking guidance centers on robust growth in ADS and Sweden, disciplined margin management, and proactive adaptation to global trade dynamics like tariffs and RVC. By focusing on high-value segments and expanding its global footprint, Sansera aims for sustained profitability and a stronger market position in the coming years.

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