Three engineering companies are moving beyond their legacy automotive businesses into higher-margin sectors like aerospace and defence, laying the foundation for stronger growth. According to reports from The Financial Express, for decades, India's auto component industry followed a simple playbook: Win orders. Add capacity. Ship parts. Repeat. When global demand for vehicles increased, suppliers prospered. When the cycle turned, earnings came under pressure. The business remained tied to the growth of a single industry. However, a subtle shift is underway where some auto component manufacturers are quietly moving beyond their legacy business into industries such as aerospace, defence, industrial automation, and energy.
NRB Bearings, India's largest independent bearing manufacturer with over six decades of engineering legacy, acquired Bengaluru-based Mahant Tool Room for ₹27.5 crores in January 2026. As reported by The Financial Express, Mahant produces high-precision, mission-critical components for aircraft engines and fuel systems for Hindustan Aeronautics Limited. The acquisition came with an existing order book of over ₹25 crores, which doubled to ₹50 crores within months. NRB effectively bypassed the lengthy three-to-four-year qualification cycle by acquiring an established manufacturing capability, customer relationships, and approved products.
Sansera Engineering demonstrates what the next stage of diversification looks like, having spent years building relationships with customers around the world. According to The Financial Express, the company is a tier-1 supplier to Boeing and a tier-2 supplier to Airbus. The company's Aerospace, Defence and Semiconductor (ADS) segment was the fastest-growing segment, posting 155% year-on-year growth to ₹315 crore in FY26. Auto ICE contributed 70% of revenue in FY26, and management intends to reduce this to ~60% over time by increasing presence in auto tech-agnostic, EV, and non-auto businesses.
Craftsman Automation is betting on India's manufacturing and industrial capex cycle rather than aerospace, as reported by The Financial Express. The company's aluminium business is expected to be an even bigger growth driver, with management aiming to build it into a $1 billion business within the next two to three years. Management expects the stationary engines business to generate almost $100 million in revenue by FY29-30, driven by fast expansion of AI-led data centres requiring large backup power systems.
All three companies have attracted significant institutional ownership despite operating in a cyclical sector. According to The Financial Express, Sansera Engineering commands the highest valuation at 66 times earnings, almost double both its five-year median and the industry's average. Craftsman Automation is trading at 63 times earnings, well above its historical 5-year median PE of 37 times. NRB Bearings trades at 29 times earnings, close to the industry's average but above its own five-year median of 20. The presence of long-term institutional investors provides additional confidence that the diversification strategies are backed by rigorous due diligence.
