Sansera Enginee. Q4 FY26 Earnings Analysis

- Domestic ICE segment expected to grow at high single-digit to low double-digit rate over next 2-3 years. - Export ICE segment projected to see healthy 20-25% growth in next 3 years, driven by order wins and industry opportunities. - Consolidated ICE segment growth anticipated beyond 15% considering both domestic and export markets. - ADS (Aerospace & Defense) business has an unexecuted order book of ~INR3,800 crores till FY '30, with a steep revenue ramp expected post FY '28; FY '27 ADS revenue target is INR550-600 crores. - Overall company targets: 20% EBITDA margin, 20% growth, and 20% ROCE as core objectives. - Q3 revenue increased 25% YoY, highest ever for the company, reflecting strong growth momentum. - Caps on growth due to capacity utilization, but new capacity additions underway (e.g., new ADS plant) to support volume ramp-up. - Exports expected to improve with tariff clarity and increasing order flow in North America, Europe, and other regions.

- Sansera Engineering aims for 20% EBITDA margin, 20% growth, and 20% ROCE as core objectives. - FY '27 margins expected to improve beyond current year but may not reach 20% EBITDA margin immediately. - ICE segment projected to grow high single-digit to low double-digit domestically, with export growth at 20-25% over next 3 years. - Consolidated ICE segment growth anticipated beyond 15% considering domestic and export markets. - ADS business revenues expected to rise significantly, with current order book of ~INR3,800 crores till FY '30 and capex planned to support growth. - Sweden operations targeted for ~20% growth next year with EBITDA margins around 10-12%. - Overall, FY '26 expected to close with mid-teens to high-teens top-line growth and improving margin profile. - Capex of INR375-400 crores planned for this and next year to support expansion and revenue growth.

- FY '26 capex planned between INR 375-400 crores, including building new facilities such as a forge shop in Pantnagar and a building in Bangalore. - Similar capex expected for FY '27, supporting growth aspirations of at least 10% above market growth. - ADS segment capex: Additional INR 300-325 crores planned phased until FY '28 to support ramp-up from current ~INR 600 crores revenue to INR 1,200-1,300 crores by FY '30. - New ADS facility construction underway, 80,000 sq ft manufacturing space expected ready by June-July 2026. - Potential new 10-15 acres land acquisition near Devanahalli Airport (Aeropark/STTR) for future ADS expansion. - U.S. plant capex currently undetermined; investment decisions depend on order confirmation and tariff clarity (possible 0% or 18% tariff). - Continuous monitoring of tariff/RVC norms to optimize future capital deployment in U.S. and other geographies.

- No explicit mention of any current or planned fundraising through debt or equity in the provided pages. - The company has highlighted capex plans funded through internal accruals, with capex guidance of INR 375-400 crores for the current year and a similar range for next year. - Finance costs have reduced significantly due to debt reduction over the last year, indicating a focus on deleveraging rather than raising new debt. - Discussion about a potential U.S. plant's capex is contingent on order confirmations and tariff outcomes; no firm capex or fundraising commitment is stated yet. - Management's emphasis is on organic growth, capex funded internally, and operational improvements, with no mention of equity issuance or new debt raises at this time.

- Aerospace & Defense Segment: Current unexecuted order book of INR 3,800 crores till FY '30. - Expected execution: Approximately INR 1,200-1,300 crores in FY '30. - Capex for differential INR 650-700 crores revenue expected to be INR 300-325 crores, phased till FY '28. - Additional land (10-15 acres) being eyed for expansion near Devanahalli Airport due to anticipated order book growth. - New order wins expected in next 1 year, execution before FY '30. - Tech-agnostic/xEV order book stable around INR 430 crores, with a strategic pause to stabilize technology. - Other segments: Strong traction in international passenger vehicle orders (US and Europe) expected post-tariff clarity. - JV with Nichidai focused on cold and warm forging, targeting higher-margin components with significant future potential. - Domestic commercial vehicle orders limited; presence mainly with Daimler, Volvo Eicher, and Cummins.