Sansera Engineering reported its highest-ever quarterly sales of INR9,077 million and an EBITDA of INR1,639 million for Q3 FY26 (period ending December 2025). The company achieved an 18.1% EBITDA margin, driven by strong international revenue growth, particularly from Europe (+27% YoY). Management expressed confidence in sustained top-line growth for the full year and detailed strategic investments in the new Pantnagar facility and a Joint Venture in Japan.
Q3 FY26 Performance Highlights
Sansera Engineering announced its financial results for the third quarter of FY26, reporting its highest-ever quarterly sales of INR9,077 million, marking a 25% increase year-on-year. EBITDA for the quarter stood at INR1,639 million, reflecting an 18.1% margin (up from 17.5% in Q3 FY25). PAT after an exceptional item related to the revised Labour Code was INR694 million (7.6% margin); excluding this, PAT growth reached 53% YoY.
Geographical and Segment Performance
The company saw significant international momentum. Revenues from Europe grew by 27% year-on-year, leading to the best-ever international sales performance. Segment-wise, the ADS (non-automotive) revenue more than quadrupled (4x) year-on-year, setting a new benchmark. Management remains confident in closing the year with teens to mid-teens top-line growth.
Strategic Capacity Expansion and New Facilities
The management highlighted connectivity from the newly inaugurated Pantnagar facility, dedicated to serving domestic 2-wheeler OEMs by primarily producing crankshaft assemblies. This plant, starting with 2 manufacturing sheds (2 lakh sq. ft.), is intended to utilize high automation and IoT, initially employing predominantly women employees (currently at 60%). The intent is for this facility to eventually generate close to INR500 crores per annum.
Tech-Agnostic and xEV Outlook
The existing order book for tech-agnostic and xEV components stands at approximately INR430 crores. The company has paused taking new tech-agnostic orders to stabilize technology, but expects expansion in the xEV space, working with leading Japanese OEMs on Gen 4 and Gen 5 programs. Furthermore, Sansera has entered a Joint Venture with Nichidai Corporation of Japan, investing INR500 million for a 60% stake to gain expertise in cold and warm forging, aiming for margin profiles better than the current business.
Outlook and Margin Trajectory
Management expressed optimism for the coming quarters, expecting better export off-take as capacity utilization improves. While gross margin declined slightly due to one-time development cost provisions (approx. INR100 million) and revenue adjustments, the trajectory is expected to stabilize. The long-term objective remains achieving 20% EBITDA margin, 20% growth, and 20% ROCE.
Q&A Insights
During the Q&A, management noted that the ADS division currently carries a working capital cycle of about 170-180 days, compared to 80 days for automotive. They confirmed a cumulative unexecuted order book for ADS of INR3,800 crores until FY ’30. For the ICE segment, domestic growth is expected to be high single-digit to low double-digit, while export growth is targeted at a healthy 20-25% over the next three years.
Source: BSE
