ICRA has reaffirmed the ratings for Sansera Engineering Limited, citing the company’s strong business and financial risk profiles. Key factors supporting the reaffirmation include a diversified product portfolio, healthy domestic-export mix, and established market position. Despite significant capex plans, ICRA expects Sansera’s financial profile to remain strong, supported by healthy revenues and accruals. However, the ratings are partially offset by dependence on the 2W segment and customer concentration.
Rating Reaffirmation Details
ICRA has reaffirmed its ratings on Sansera Engineering Limited’s (SEL) fund-based and non-fund based facilities. The long-term rating is reaffirmed at [ICRA]AA(Stable), while the short-term rating is reaffirmed at [ICRA]A1+. The ratings consider SEL’s established position as an auto-ancillary, with a presence across multiple product segments.
Key Strengths Highlighted
The reaffirmation reflects SEL’s diversified product profile, healthy domestic-export mix, and established market position. Revenue grew by 7.4% in FY2025 and 5.6% YoY in H1 FY2026, driven by growth in ADS (Aerospace, Defence & Semiconductor) segments. Operating margins remained robust at 17.2% in FY2025 and 17.3% in H1 FY2026.
Order Book and Future Outlook
SEL’s pending order book stood at over Rs. 2,000 crore as of September 30, 2025, diversified across auto ICE, xEV, and non-auto segments. The company has capex plans of over Rs. 200.0 crore in H2 FY2026 and annual capex plans of Rs. 350-400 crore in the coming years.
Key Challenges Noted
The ratings are partially offset by SEL’s reliance on the Two-wheeler (2W) segment, which accounted for 43% of revenues in H1 FY2026, and customer concentration. Additionally, 73% of revenues in H1 FY2026 came from the auto ICE segment, susceptible to electrification risks. The company mitigates this risk by expanding revenue contribution from non-automotive, auto-tech agnostic and xEV segments.
Liquidity and Outlook
ICRA expects the company’s financial risk profile to remain strong, aided by healthy revenues and accruals, despite sizeable capex plans. The ‘Stable’ outlook reflects ICRA’s expectation that SEL will sustain its credit profile, supported by its strong business position and healthy cash accruals.
Source: BSE
