Sansera Engineering Ltd Q1 FY27 Earnings Analysis

- Sansera Engineering targets overall company revenue growth to INR8,000-9,000 crores in the next 2-4 years. - ADS (non-auto and tech-agnostic segment) expected to grow strongly, aiming for INR1,300-1,400 crores revenue. - Non-auto and xEV segments are expected to make up around 40% of business; currently about 30-32%. - Strong order book visibility close to INR8,000-8,200 crores for execution in next 2-3 years. - Growth driven by diversified verticals: automotive ICE, xEV, aerospace, semiconductor, and defense sectors. - New plant expansions (Pantnagar, Manesar, Pune) and automation initiatives to support capacity increase and cost efficiency. - Increased penetration into 2-wheeler export/domestic, passenger vehicle, and ADS components with new OEM partnerships. - Long-term confidence in strategic investments (e.g., MMRFIC) supporting future tech-intensive product growth.

- FY '26 saw record revenues of INR34,979 million with 16% YoY growth and EBITDA margin improvement to 18.1%. - PAT grew 51% YoY with improved margin from 7.2% to 9.3%. - Q4 FY '26 revenue hit a record INR9,987 million, with EBITDA margin increasing to 19.3%; PAT grew 108% YoY to INR1,231 million. - ADS segment revenue grew 155% in FY '26 to INR3,155 million, showing strong growth momentum. - Operating cash flow robust at INR3,871 million (11% of revenue, 61% of EBITDA). - Return ratios improved: ROCE 18.0%, ROE 11.1% in FY '26. - Capex of ~INR5,097 million in FY '26 and FY '27 to support growth. - Expect 40% revenue from non-auto, tech-agnostic, and xEV segments by near term, up from 32% at FY '26 end. - Strong order book (~INR8,000-8,200 crores) and capacity expansions to drive higher revenues towards INR8,000-9,000 crores in 2-3 years. - Margin expansion anticipated due to product mix shift and operational efficiencies.

- FY '26 capex of INR 5,097 million incurred; similar level expected in FY '27. - Capex focused on expanding ICE capabilities due to peak utilization of existing facilities. - New ADS facilities being set up to support growing demand backed by a strong order book. - Additional capacity investments in forging and machining at Plant 6 and Plant 12. - INR 50 crore investment planned for the Nichidai JV in FY '27, including procurement of a forging press. - Further INR 250 crore capex planned in ADS segment to clear current order backlog of INR 4,500 crore. - Board-approved acquisition of 10 acres near international airport for ADS expansion due to anticipated space constraints. - Work ongoing to identify strategic automation partners to enhance manufacturing automation capabilities.

- There is no explicit mention of planned fundraising through debt or equity in the provided excerpts. - The company reported a healthy cash position of INR 3,972 million as of FY '26. - Capex for FY '26 was INR 5,097 million, with a similar level expected in FY '27, funded through internal cash and operational cash flows. - The company has working capital borrowings which increased finance costs by 17% in Q4 FY '26, but no new debt raising plans were stated. - The balance sheet provides ample flexibility for expansion without significant dependence on leverage. - The Board approved acquisition of 10 acres of land for ADS growth, but funding details for this are not explicitly mentioned. - Overall, expansion and capex appear to be funded through internal accruals and current cash reserves, with no new fundraising announced.

- Current order book visibility is approximately INR 8,000 to INR 8,200 crores for execution. - Expected to fulfill this order book over the next couple of years, targeting around INR 10,000 crores in turnover by end of the decade (subject to macro conditions). - ADS segment alone shows a confirmed order backlog of INR 4,500 crores. - Additional capex of INR 250 crores planned to clear current backlog. - Board has approved purchase of 10 acres near aerospace park for future expansion due to strong order momentum. - Long-term growth opportunity in the ADS business and semiconductor verticals underpins increasing order intake. - Business confident of increasing order flow, with new customers in semiconductor and aerospace sectors progressing well. - Long-haul strategic investments like MMRFIC also expected to contribute to future order growth.