Sansera Engineering Ltd

Key board decisions

• Fatheraj Singhvi redesignated as Executive Vice Chairman; Aug 24, 2026 to Aug 5, 2029, subject to AGM approval.
• Bindiganavile Raghunath Preetham redesignated as MD; Aug 24, 2026 to Sep 7, 2028, subject to AGM approval.

Financial Performance

• Q1 FY27 revenue ₹10,213 mn, up 33% YoY.
• EBITDA ₹1,961 mn; margin 19.2% (vs 17.2% YoY).
• PAT ₹874 mn; margin 8.6%.
• Post-tax impact of exceptional item ₹127 mn; adjusted PAT ₹1,000 mn.
• Exceptional charge ₹169 mn for U.S. litigation settlement; EBITDA excludes it.
• U.S. import duty provision ₹126 mn; recoverable; cost recognized.
• Other income ₹134 mn; up ~15% YoY; driven by forex gains.
• Non-auto segment ₹1,998 mn; 129.9% YoY; 20.8% of total.

Segment and Orders

• ADS revenue ₹1,454 mn; includes product, scrap, tooling.
• Auto ICE ₹6,275 mn; +20.8% YoY; strongest quarter across PV/CV/scooters.
• Auto Tech-Agnostic & xEV ₹1,316 mn; +22.2% YoY.
• Non-auto segment 20.8% of total with ₹1,998 mn revenue.
• ADS cumulative unexecuted lifetime order book five-year: ₹44.4 bn.
• ADS backlog risen to ₹57.5 bn; executable in next five years.
• Peak annual revenue for new business ex-ADS: ₹18.5 bn.

Capex and Capacity Expansion

• Surface treatment facility inaugurated; NADCAP validation in progress.
• Defense to dedicated facility; 80,000 sq ft hangar; 100,000 sq ft build-to-suit nearby.
• Pantnagar & Manesar expansions; 7–9 month lead times; projections to 5-year horizon.
• Total capacity envisaged to generate ~₹3,500 cr by FY31.
• ADS & auto capex will come on stream from Q3 FY27; execution in coming years.

Guidance and Outlook

• FY27 revenue growth guidance: high-teens to 20%.
• ADS and non-ADS mix to drive majority of growth; overall high-teens to 20%.
• Margin trajectory: ~19% overall; ADS EBITDA target 25–30%.
• No immediate fundraise; balance sheet currently strong; leverage used if needed.

Q&A Takeaways

• New semicon ADS order could yield ~₹1,250 cr over five years; ~₹75 mn annual run-rate.
• Current ADS backlog ~₹57.5 bn; total executable by FY31; near-term conversions ongoing.
• Defense expansion tied to care into sheet metal; revenues expected from calendar year 2027; peak by 2029.
• Margins: 19% target; ADS margin 25–30%; long-term growth supported by capacity ramp.

Earnings call audio

• Audio recording of Q1FY27 unaudited results call available on the Sansera website.

Business Overview

• Core business: precision engineered automotive components; segments include Auto ICE, Auto Tech-Agnostic & xEV, and Non-Auto.
• Strategic pivot towards high-growth emerging segments, including ADS and semiconductor-related opportunities.
• JV with Nichidai Corporation to co-manufacture advanced components; Bengaluru-based private company.
• Capex plan targets expanding Auto ICE, Auto Tech-agnostic, xEV, ADS, and defence facilities.

Key Operational Highlights

• Q1FY27 revenue INR 10,213 mn; YoY growth 33%; EBITDA 19.2% and PAT 8.6%.
• Non-Auto and ADS deliver record quarterly sales; Non-Auto 20.8% contribution.
• Auto-Tech Agnostic and xEV record highest quarterly sales; xEV growth ~2x pace.
• Order book (new business excluding ADS) INR 18,493 mn; ADS backlog INR 44,368 mn.
• Exports growth: India 17.4% YoY; USA nearly doubled; Europe +32.1% YoY.
• Capex plan includes Pantnagar Plant 6 expansion and Bengaluru Plant 2 capacity.
• Nichidai JV: Sansera to invest INR 500 mn; 8,000 equity shares issued.
• New Hangar (80k sq ft) and New Defence Plant (45k sq ft) in Bengaluru ADS.
• Order book moved to mass production; closing order book INR 19.2k mn.

Financial Performance

• Revenue from operations: Q1 10,213 mn; FY26 34,979 mn; YoY growth 33%.
• Gross margin 42.5%; EBITDA margin 19.2%; EBIT margin 14.4%; PAT margin 8.6%.
• PAT (Q1) INR 874 mn; FY26 PAT INR 3,261 mn.
• Q1FY27 exceptional item: INR 169 mn settlement; largely insured.
• FY26: gratuity and leave liability increases due to labour-law changes.

Capital Structure & Liquidity

• 60:40 Nichidai-Sansera JV; Sansera to invest INR 500 mn.
• JV board: 3 Nichidai nominees and 4 Sansera nominees.
• Q1FY27 finance cost INR 120 mn.

Strategic Priorities & Outlook

• FY27 guidance: high-teens topline growth; margin improvement focus.
• Diversify revenue mix to 40% emerging segments; sustain execution across diversified portfolio.
• Capex and capacity build-out ahead of demand to support growth.
• JV with Nichidai expands high-value tech-agnostic components; broaden addressable market.
• Defence/ADS growth supported by partnerships (ISRO/DRDO/JV) and mmWave radar tech.

Risks & Mitigation

• Geopolitical challenges and cost inflation pose macro risks.
• Competition, talent retention, and policy changes could affect earnings.
• Diversified product mix and OEM relationships mitigate concentration risk.

Governance & Leadership

• Chairman & MD: S Sekhar Vasan; Executive Director & Group CEO: B R Preetham.
• CFO: Vikas Goel; Company Secretary: Rajesh Modi.
• JV board: 3 Nichidai and 4 Sansera nominees.
• Key leaders: Rahul Kale (Automotive CEO); Amit Gautam (CTO); P R Suresh (Chief Risk Officer).

Financial highlights

• Revenue from operations: INR 10,213 Mn, up 33% YoY.
• EBITDA: INR 1,961 Mn; margin 19.2%.
• PAT: INR 874 Mn; margin 8.6%.
• Normalised PAT: INR 1,000 Mn; 59% YoY growth.
• Exceptional item: INR 169 Mn settlement; largely insured.

Backlog and sales mix

• New business order book (excl. ADS): INR 18,493 Mn.
• ADS backlog: INR 44,368 Mn.
• Non-Auto segment: highest-ever quarterly sales; ADS growth >3x YoY.
• Auto Tech & xEV: highest-ever quarterly sales; xEV growth ~2x tech-agnostic.

Geographic and segment growth

• India revenue up 17.4% YoY; International up 71.4% YoY.
• Exports to USA nearly doubled; Europe up 32.1% YoY.
• Sweden operations up 11.6% YoY.

Management and governance

• Appointment of Hari Krishnan as ED & CEO - ADS; five-year term from Aug 12, 2026.
• Samir Inamdar re-appointed Independent Director; May 23, 2027 to May 22, 2032.
• Nichidai JV: 8,000 equity shares allotted; Sansera 60%, Nichidai 40%.

Outlook

• FY27 expected high-teens topline growth; margin improvement focus.
• Capacity expansion ahead of demand.

Financial results

• Unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026 approved with unmodified Limited Review Report.

Director appointments

• Hari Krishnan appointed Additional Director, Executive Director & CEO-ADS, tenure from 12 Aug 2026, subject to shareholders' approval.
• Samir Purushottam Inamdar re-appointed Independent Director, from May 23, 2027 to May 22, 2032, subject to AGM approval.

Shareholder meeting and dividend

• 44th AGM convened for Sept 24, 2026 at 11:00 a.m. via VC/OAVM.
• Final dividend of Rs 4 per equity share for FY ended 31 March 2026, subject to AGM approval.

Regulatory and material items

• Labour Codes impact: gratuity and leave liabilities increased by Rs 162.36 million; company monitoring.
• Settlement with US customer: pay USD 2.0 million; settled July 28, 2026; balance expensed as exceptional item.

Meeting Details

• Date and time: 17 August 2026, 10:30 AM onwards.
• Type: Group meeting; Mode: Physical; Organised by Goldman Sachs at Bangalore plant.

Participants

• Key participants: Company officials / management representatives.

Purpose

• Purpose: Discuss publicly available information; no UPSI.

Additional Notes

• Recording or transcript availability not specified.

Settlement with Metaldyne

• Paid USD 2,000,000 on July 28, 2026 under Confidential Release for full and final settlement with Metaldyne.
• There are no further material financial implications.

Retirements

• Muthuswami Lakshminarayan retiring from the Board w.e.f. July 27, 2026 (close of business) after completing second five-year term.
• Ashok Revathy retiring from the Board w.e.f. July 27, 2026 (close of business) after completing second five-year term.

Committee reconstitution

• Audit Committee — effective from July 28, 2026: Chair: Deepak Keshav Ghaisas; Members: Radhika Rajan, Samir Purushottam Inamdar.
• Nomination and Remuneration Committee — effective July 28, 2026: Chair: Samir Purushottam Inamdar; Members: Venkatram Mamillapalle, Deepak Ghaisas.
• Stakeholders Relationship Committee — effective from July 28, 2026: Chair: Radhika Rajan; Members: Subramonia Sekhar Vasan, Venkatram Mamillapalle.
• Risk Management Committee — effective July 28, 2026: Chair: Samir Purushottam Inamdar; Members: Radhika Rajan, Bindiganavile Raghunath Preetham.
• Corporate Social Responsibility Committee — effective 28 July 2026: Chair: Subramonia Sekhar Vasan; Members: Fatheraj Singhvi, Deepak Ghaisas.
• ESG Committee — effective 28 July 2026: Chair: Venkatram Mamillapalle; Members: Fatheraj Singhvi, Samir Purushottam Inamdar.