Sansera Engineering Ltd Q4 FY26 Earnings Call: ADS Backlog Reaches Rs. 44.6 Bn, Margin Expands 306 bps

Sansera Engineering Ltd held its Q4 FY26 earnings call on May 20, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarterly Revenue and Margin Expansion

• Q4 FY 2025-2026 revenue from operations of Rs.9,987 Mn— highest ever quarterly, growing 28% YoY, driven by strong ADS and Sweden businesses (Segment 3)
• Q4 FY 2025-2026 EBITDA of Rs.1,929 Mn— up 52% YoY, margin expanding 306 bps to 19.3% vs 16.3% in Q4 FY 2024-2025, aided by positive product mix shift toward higher ADS revenue (Segment 3)
• Q4 FY 2025-2026 PAT of Rs.1,231 Mn— up 108% YoY, PAT margin improving to 12.3% from 7.6% in Q4 FY 2024-2025; other income jumped 170% YoY to Rs.266 Mn (Segment 3)
• Full FY 2025-2026 revenue from operations of Rs.24,979 Mn— up 16% YoY; EBITDA of Rs.6,321 Mn (margin 18.1% vs 17.1% in FY 2024-2025); PAT of Rs.3,269 Mn (margin 9.3% vs 7.2%) (Segment 3)
• FY 2025-2026 operating cash flow of Rs.3,871 Mn— representing 11% of operating revenues and 61% of EBITDA; ROCE improved to 18.0% (vs 16.2% in FY 2024-2025) and ROE to 11.1% (vs 10.5%) (Segment 3)
• CAPEX incurred in FY 2025-2026 of Rs.5,097 Mn— management expects a similar level of investment in FY 2026-2027; cash position of Rs.3,972 Mn as of March 2026 (Segment 2)
• Global uncertainty led to soft order booking from international customers in Q4 FY 2025-2026(Segment 2)

Auto ICE, xEV, and Non-Auto All Hit Quarterly Records

• Core auto ICE Q4 FY 2025-2026 record revenue of Rs.6,426 Mn— YoY growth of 21.6%, driven by passenger vehicles (broad-based across OEMs) and commercial vehicles led by the Swedish subsidiary (Segment 2)
• Auto tech-agnostic / xEV segment Q4 FY 2025-2026 record of Rs.1,217 Mn— YoY growth of 19.8% (Segment 2)
• Non-auto Q4 FY 2025-2026 revenue of Rs.1,736 Mn— YoY growth of 70.5%, with ADS more than doubling YoY (Segment 2)
• ADS full FY 2025-2026 product sales of Rs.3,155 Mn— growth of 155% YoY; including scrap sales, ADS revenue reached Rs.3,498 Mn (Segment 2)
• Q4 FY 2025-2026 two-wheeler revenue from Bajaj grew 29% YoYand from TVS grew 13.3% YoY, outperforming market growth rates of 28% and 20% respectively cited by the analyst (Segment 7)
• PV business saw strong Q4 FY 2025-2026 growth on a low base in FY 2024-2025— stalled programs in Europe and North America resumed; management expects continued momentum into FY 2026-2027 with line expansions for Maruti Suzuki and Tata Motors, and potential addition of 2 new OEM customers (Segment 9)

ADS Backlog of Rs.44.6 Bn; Semiconductor and Aerospace Lead Growth

• ADS segment revenue guidance for FY 2026-2027 retained at Rs.550-600 Cr— margin target of 25-30% as the facility reaches full utilization; a new building adds revenue in H2 FY 2026-2027 (Segment 5)
• ADS 5-year cumulative unexecuted order backlog of Rs.44.6 Bn as of March 2026— peak annual revenue from the new business pipeline stood at Rs.19.2 Bn after the annual reset (Segments 2, 5)
• Additional Rs.250 Cr capex planned to clear the Rs.4,500 Cr backlog— visible to 2031; Board approved acquisition of 10 acres near the international airport for ADS space expansion (Segment 5)
• Aerospace grew 63.3% in FY 2025-2026— semiconductor outperformed from near-zero base; defense also grew significantly; all three verticals met expectations (Segment 5)
• Win of fully machined engine blisk order (~600 mm diameter)— cold-chamber stainless steel and hot-chamber Inconel from a large engine manufacturer; delivery targeted within two months, expected to open further complex rotating-section opportunities (Segment 6)
• Semiconductor customer locking in machining capacity amid AI/data-center driven volume surge— engaging with a second large player; machine lead times of 7-9 months remain a constraint but strong supplier relationships (DMG Mori Seiki, Makino) provide priority deliveries (Segment 6)
• Energy-storage program for a major global OEM expected to generate Rs.80-100 Cr annual revenue in FY 2026-2027— mass production starting in FY 2026-2027; additional programs and customers being explored (Segment 6)

Rs.10,000 Cr Long-Term Target; Mix Shift Toward Non-Auto Underway

• Long-term target of Rs.10,000 Cr by end of the decade— management reiterated a "path to Rs.10,000 crores by the end of the decade"; near-term revenue target of Rs.8,000-9,000 Cr over the next few years; order book visibility at ~Rs.8,000-8,200 Cr (Segment 4)
• Revenue mix target shifted to 60% Auto ICE / 40% non-auto— from the previous 80/20 mix; non-auto mix reached 30% in FY 2025-2026 (Q4: 32%) (Segment 4)
• Nidec joint venture facility installation targeted for September 2026— capex contribution of ~Rs.50 Cr in FY 2026-2027, included in group capex plan; customer RFQs already generated; Nidec is technology provider with no capital contribution (Segment 8)
• MMR FYC stake expected to reach 45-50% by end of FY 2025-2026— upon conversion of CCPS; management describes the investment as a "long haul" strategic bet aligned with the Make in India program involving multiple government agencies (Segment 10)
• 120 million forging components produced in FY 2025-2026(~1 crore per month) — management sees need for 30-40% capacity increase in forging over FY 2027-2028 and beyond, with capex planned accordingly (Segment 6)
• Content per vehicle target of Rs.5,000–Rs.10,000 in MHCVs— currently only supplies Daimler and Volvo Eicher domestically; no immediate plans to penetrate other MHCV OEMs (Segment 7)

H1 FY27 Strength Expected; Labour and Inflation Key Headwinds

• FY 2026-2027 H1 expected to be relatively stronger than H2— due to a favourable base effect (Segment 2)
• US non-auto export growth in Q4 FY 2025-2026 was organic(no one-time inventory refilling) — management expects sustainable momentum driven by 10% tariff rates; order conversions may take 1-2 more quarters; US plant discussions restarted with positive momentum (Segment 5)
• Two-wheeler outsourcing opportunities (crankshafts) expected to convert in FY 2026-2027— new capacity at Pantnagar and Manesar, plus expansion at Pune facility; both existing and new OEM relationships targeted (Segment 8)
• Connecting rod opportunity with Ford, Stellantis, and GM potentially 2-3 million per customer per year— across a couple of programs (period unspecified), far larger than the analyst estimate of 1 lakh per month (Segment 7)
• Labour availability and attrition identified as a key execution challenge for FY 2026-2027— company automating, de-skilling operations, and increasing women workforce; Pantnagar plant at 65-70% women, targeting 100% (Segment 9)
• Inflationary pressures across steel, aluminium, energy, tooling, consumables, and freight— cited as ongoing risks for FY 2026-2027 and beyond (Segment 2)
• New production lines being set up at ~20% manning and ~80% automation— due to prior manpower crunch; in-house machine building order book booked for ~one year; company evaluating a strategic partner for automation (Segment 8)