Sansera Eyes Growth: Key Outlook Highlights

Ashwin Thakker

— 1 min read
  • Sales Outlook: Targets INR 280-300 crores in ADS revenue for FY26, aiming for INR 1,000 crores within three years. Swedish subsidiary expected to achieve over 20% growth in FY26. Domestic auto business projected for 5-8% growth. Overall long-term revenue target of INR 5,000 crores by FY28.
  • Margin Outlook: Expects to maintain double-digit full-year EBITDA margin, with a long-term target of 20%.

Sansera Engineering achieved 3% top-line growth and 17.2% EBITDA margin in Q1 FY26 amidst market challenges. The company presented a clear forward-looking strategy, emphasizing strategic diversification and operational efficiencies. This analysis highlights Sansera's key guidance on future sales and profitability, showcasing confidence in its growth trajectory despite prevailing uncertainties.

Revenue Outlook: Growth Drivers and Targets

Sansera Engineering projects robust revenue growth, with significant emphasis on its Aerospace and Defense (ADS) division. The company targets ADS revenue of INR 280-300 crores in FY26, aiming to double its prior year's contribution. ADS is also a key long-term growth driver, with a goal of INR 1,000 crores within three years. The Swedish subsidiary is projected for over 20% growth in FY26, stabilizing from Q3. Domestically, the auto business anticipates 5-8% growth. Despite cautious near-term export outlooks due to tariffs, Sansera maintains its ambitious target of INR 5,000 crores in overall revenue by FY28, underpinned by a healthy and expanding order book.

Profitability and Strategic Resilience

Sansera is committed to sustaining and enhancing its profitability. The company expects to maintain a double-digit EBITDA margin for the full year, consistent with its Q1 FY26 performance of 17.2%. The long-term EBITDA margin target is 20%, with efforts focused on achieving 50-75 basis points year-on-year improvement once market conditions normalize. This is supported by ongoing cost optimization initiatives, improved capacity utilization, and automation in Sweden. Strategic diversification, including a shift towards non-automotive and xEV content, is also expected to bolster margins. Sansera is proactively addressing tariff impacts by expediting plans for a US facility to ensure long-term competitiveness.

Sansera Engineering is navigating current market headwinds with a clear forward-looking strategy. The company's focus on diversifying revenue through ADS and international markets, coupled with rigorous cost optimization and margin enhancement initiatives, positions it for sustainable growth. While some uncertainties remain, Sansera's long-term targets for revenue and profitability reflect a confident outlook.

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