SANSERA Q4 FY26 Results Analysis: PAT Surges 107%, EBITDA Margin Hits New High

SANSERA's Q4 FY26 numbers came in strong, with revenue of Rs. 998.74 Cr (+27.77% YoY) and PAT growth of +107.81% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

SANSERA delivered strong Q4 with 27.77% revenue growth and 107.81% PAT growth, achieving 19.75% EBITDA margin - the highest quarterly level within 25 bps of its 20% target. The margin expansion of 344 bps YoY demonstrates operating leverage as expenses grew slower than revenue. ADS segment (4.4x YoY growth) is emerging as a new growth driver targeting Rs.500-600 Cr by FY27. While FY26 revenue met guidance (15.95% vs 'high-teen' target), the Q4 momentum and margin trajectory suggest execution is ahead of management's conservative FY27 margin outlook.

Key Investment Insights

Key Positives

• Revenue grew 27.77% YoY to Rs.998.74 Cr in Q4, with FY26 growing 15.95% to Rs.3,497.92 Cr
• EBITDA margin expanded to 19.75% in Q4 (344 bps YoY), the highest quarterly level and within 25 bps of 20% target
• PAT grew 107.81% YoY to Rs.123.06 Cr in Q4; FY26 PAT grew 50.71% to Rs.326.86 Cr
• Operating leverage of 510 bps as expenses grew 22.72% while revenue grew 27.77%
• ADS segment growing 4.4x YoY, targeting Rs.500-600 Cr by FY27
• Finance costs declined 46.10% YoY reflecting debt reduction; interest coverage improved to 16.76x
• International business surged 59.9% YoY with strong Sweden and USA performance

Risk Factors

• Material costs grew 32.85% YoY vs revenue 27.77%, indicating commodity pressure on gross margins
• Working capital investment of Rs.3,280.70 Mn absorbed cash; CFO grew only 2.8% despite 48% PAT growth
• Capex of Rs.512.57 Cr exceeded guidance of Rs.375-400 Cr, indicating aggressive investment phase
• Trade receivables up 38% YoY - monitoring required for collection efficiency
• Current borrowings increased 182% to Rs.361.95 Cr for working capital financing