Sansera Engineering Ltd (BOM:543358) Q3 2026 Earnings Call Highlights: Record Revenue and …

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Tue, February 10, 2026 at 8:01 PM GMT+9 4 min read

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**Revenue:** INR9,077 million, highest ever quarterly sales, 25% year-on-year increase.

**EBITDA:** INR1,639 million, margin at 18.1%, up from 17.5% in Q3 FY25.

**Profit After Tax (PAT):** INR694 million, 24.2% year-on-year increase, margin at 7.6%.

**Exceptional Item:** INR162 million related to revised Labor Code.

**Employee Expenses:** INR1,213 million, 9% year-on-year growth.

**Other Expenses:** INR798 million, 18% year-on-year growth.

**Finance Costs:** INR79 million, reduced due to debt reduction.

**ADS Revenue:** More than 4x year-on-year and more than 2x quarter-on-quarter growth.

**Non-Auto Business Revenue:** More than doubled during the quarter.

**Unexecuted Lifetime Order Book:** INR38.7 billion for ADS business till FY30.

**Investment in JV:** INR500 million for a 60% stake in a joint venture with Nichidai Corporation.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Sansera Engineering Ltd (BOM:543358) reported its highest ever quarterly sales of INR9,077 million and EBITDA of INR1,639 million, reflecting strong financial performance.

The company achieved a significant geographical revenue growth, with European revenues increasing by 27% year-on-year and other foreign sales more than doubling.

Sansera's ADS revenues increased more than fourfold year-on-year and more than doubled quarter-on-quarter, setting a new benchmark in non-automotive performance.

The newly inaugurated Pantnagar facility is expected to enhance production capabilities and increase content per vehicle for the ICE segment, which is currently in high demand.

The company is exploring new geographies, particularly in East Asia, and has signed a joint venture agreement with Nichidai Corporation of Japan, aligning with its diversification strategy.

Negative Points

The company recorded a one-time exceptional cost of INR162 million due to the revised labor code, impacting profitability.

Despite strong performance, the gross margin declined by 190 basis points year-on-year and 100 basis points quarter-on-quarter, attributed to a one-time development cost provision.

The order book for the diagnostic and xEV segments has remained stagnant over the last few years, potentially impacting future growth.

The aerospace and defense segment has a higher working capital requirement, approximately twice as high as the automotive business, which could affect cash flow.

The company faces challenges in capacity utilization, particularly in exports, which could dilute product margins if not addressed.

 






Story Continues  

Q & A Highlights

Q: Could you provide more details about the new plant in Pantnagar and its impact on vehicle content? A: The new Pantnagar plant is focused on the domestic two-wheeler segment, aiming to increase content per vehicle. It features high automation and is predominantly operated by women. The plant is expected to generate around INR500 crores annually when fully operational, depending on the product mix. - Bindiganavile Preetham, CEO

Q: What is the outlook for the diagnostic and xEV order book, given its current size? A: The diagnostic segment has seen a pause in new orders as we stabilize technology and execution. However, we expect significant growth in the xEV space, particularly with Japanese and North American OEMs, which should drive future order book expansion. - Bindiganavile Preetham, CEO

Q: Can you elaborate on the CapEx plans for the US plant and its potential impact? A: While the US plant is under consideration, final decisions depend on tariff outcomes and customer orders. The potential is significant, but specific CapEx figures will be determined once orders are confirmed. - Bindiganavile Preetham, CEO

Q: How is the aerospace and defense segment performing, and what are the future plans? A: The aerospace segment is expected to achieve 30%+ EBITDA margins when fully utilized. We are planning additional facilities to support future growth, with a focus on expanding order books and capabilities. - Hari Krishnan, CEO - Aerospace, Defence & Semiconductor

Q: What are the key drivers behind the recent gross margin contraction, and what is the outlook? A: The gross margin contraction was primarily due to a one-time development cost provision of INR100 million. Excluding this, margins remain stable, and we expect them to continue in this range. - Vikas Goel, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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