Sansera Engineering delivered its highest-ever quarterly performance in Q1-FY27, with revenue growing 33 per cent YoY and EBITDA/PAT increasing 48/39 per cent YoY. According to reports from The Hindu BusinessLine, the strong performance was supported by robust execution across both automotive and non-auto businesses. The company's EBITDA margin expanded 196 basis points YoY to 19.2 per cent, aided by operating leverage, favourable product mix and higher contribution from ADS. Latest financial data shows the company's standalone net sales reached ₹885.85 crore in March 2026, representing a 27.54% YoY growth from the previous year.
The company reported consolidated net profit of ₹865.65 million for Q1-FY27, representing a 39% YoY increase from ₹622.28 million in the corresponding quarter last year. However, sequentially, the net profit declined 29% from the previous quarter. Revenue from operations rose 33% YoY to ₹10.21 billion from ₹7.66 billion in the year-ago quarter, with sequential growth of 2%. Despite commodity cost pressure, raw material to sales ratio remained flat year-on-year at 39.5%, partly offset by around 60 basis points higher other cost to sales. As reported by Informist Media, the growth in revenue from operations was slightly higher than the increase in total expenses, demonstrating effective cost management despite inflationary pressures.
Total expenses in Q1-FY27 rose 30% YoY to ₹8.99 billion, driven by significant increases across key cost categories. The cost of materials consumed increased 30% to ₹4.37 billion, while other expenses rose 36% to ₹2.88 billion. Employee benefit expenses grew 11% to ₹1.33 billion. According to Informist Media, this cost structure reflects the company's expansion and operational scale-up, with the company managing to maintain healthy margins despite inflationary pressures on input costs.
The key highlight was the sharp scaling-up of ADS (Automotive, Defence & Space) business, with revenue more than tripling YoY to ₹145.40 crore. As reported by The Hindu BusinessLine, this growth was driven by strong aerospace and semiconductor demand, significantly contributing to the overall company performance. The ADS segment's exceptional growth demonstrates the company's successful diversification strategy, with the latest financial data showing the ADS division revenue reached ₹145.40 crore, up 274% YoY and accounting for around 14% of total revenue. The company received a significant order from an existing semi OEM in Q2, taking the total ADS order book to ₹57.5 billion, which can translate into annual revenue of ₹12.5 billion.
On Wednesday, Sansera Engineering's shares ended at ₹3,878.30 apiece on the National Stock Exchange, up over 5% from Tuesday, reflecting positive market sentiment following the quarterly results announcement. Nomura has raised Sansera Engineering's target price to ₹4,278 from the previous target, retaining its 'Buy' rating. The brokerage expects ADS revenue to rise from ₹3.1 billion (10% of FY26 revenue) to ₹16.9 billion (28% of FY29F revenue), providing revenue growth visibility of around 24%/21%/21% over FY27-29F. Given strong order wins across non-auto and export segments where margins are higher, Nomura raised its PE multiple to 40x from 35x and rolled forward its valuation to September 2027 from June 2027. The company's strong financial performance and robust order book position it well for continued growth in the automotive and non-automotive sectors.
