Sansera Targets Growth and Margin Stability

Ashwin Thakker

— 2 min read
  • Sales/Revenue Outlook: 3% year-on-year top-line growth in Q1 FY'26. Domestic business grew ~4%. Sweden business targets 20%+ full-year growth, stabilizing from Q3 FY'26. ADS segment aims for INR 280-300 crores revenue in FY'26, targeting INR 1,000 crores in 3 years. Overall revenue growth outlook remains cautious due to global uncertainties, with domestic segments projected at 0-10%. The order book stood at INR 20,243 million as of June 2025, adding INR 1,732 million in new Q1 orders.
  • Margin Outlook: Q1 FY'26 EBITDA margin at 17.2% and PAT margin at 8.2%. Expects to maintain double-digit full-year margins. Long-term EBITDA margin target is 20%, aiming for annual improvement once market normalizes.

Despite global headwinds, Sansera Engineering delivered a resilient Q1 FY'26, showcasing strategic focus on diversification and margin discipline. Their latest earnings call illuminated key aspects of their forward-looking guidance amidst a challenging macro environment. This analysis explores Sansera's strategic pivots for sustained growth, margin stability, and key segmental outlooks, emphasizing a factual overview of their path forward.

Growth Trajectories and Key Segments

Sansera Engineering projects continued growth. The Swedish subsidiary anticipates over 20% full-year growth for FY'26, stabilizing by Q3. The Advanced Driver-Assistance Systems (ADS) segment is a key driver, targeted to double its revenue to INR 280-300 crores in FY'26, aiming for INR 1,000 crores in three years. Sansera’s robust order book, at INR 20,243 million, saw INR 1,732 million in new Q1 orders from ADS and xEV. Despite domestic segments projecting 0-10% growth, a cautious near-term export outlook persists due to US tariff uncertainties, tempering overall double-digit growth expectations.

Margin Discipline and Strategic Initiatives

Sansera sustained healthy margins in Q1 FY'26 (EBITDA 17.2%, PAT 8.2%), aiming for double-digit full-year margins. The long-term EBITDA target is 20%, driven by ongoing cost optimization efforts, including automation in Sweden and raw material yield improvements. Strategic acceleration of a US facility, despite tariff uncertainties, aims to meet USMCA regional content norms. Diversification into aluminum forging (targeting INR 500 crores) and the MMRFIC segment (projected INR 35-40 crores yearly) are key. Sansera seeks a 40% revenue mix from non-auto and emerging technologies for sustainable profitability.

Sansera Engineering's Q1 FY'26 earnings call highlighted a resilient performance amidst global challenges. The company is strategically focused on high-growth segments like ADS and Sweden, alongside rigorous margin management and diversification into new areas like aluminum forging and MMRFIC. Despite cautious near-term export outlooks due to tariffs, Sansera remains well-positioned for sustainable, profitable growth through its diversified portfolio and operational efficiencies.

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