Q3 2026 Sansera Engineering Ltd Earnings Call Transcript
Key Points
- Sansera Engineering Ltd (BOM:543358) reported its highest ever quarterly sales of INR9,077 million and EBITDA of INR1,639 million, reflecting strong financial performance.
- The company achieved a significant geographical revenue growth, with European revenues increasing by 27% year-on-year and other foreign sales more than doubling.
- Sansera's ADS revenues increased more than fourfold year-on-year and more than doubled quarter-on-quarter, setting a new benchmark in non-automotive performance.
- The newly inaugurated Pantnagar facility is expected to enhance production capabilities and increase content per vehicle for the ICE segment, which is currently in high demand.
- The company is exploring new geographies, particularly in East Asia, and has signed a joint venture agreement with Nichidai Corporation of Japan, aligning with its diversification strategy.
- The company recorded a one-time exceptional cost of INR162 million due to the revised labor code, impacting profitability.
- Despite strong performance, the gross margin declined by 190 basis points year-on-year and 100 basis points quarter-on-quarter, attributed to a one-time development cost provision.
- The order book for the diagnostic and xEV segments has remained stagnant over the last few years, potentially impacting future growth.
- The aerospace and defense segment has a higher working capital requirement, approximately twice as high as the automotive business, which could affect cash flow.
- The company faces challenges in capacity utilization, particularly in exports, which could dilute product margins if not addressed.
(audio in progress) COO, Rahul Kale; and our Investor Relations advisor is here. The results and the presentations were uploaded on the Stock Exchange and the company websites. I hope everybody has had a chance to look at them.
I'm delighted to connect with you all from our newly inaugurated Pantnagar facility, a state-of-the-art plant dedicated to serving domestic two-wheeler OEMs. We will be primarily producing plant assemblies in this plant, which would help in increasing our content per vehicle for the ICE segment, which is having a very good current demand in this segment.
In the quarter gone by, Sansera reported its highest ever quarterly figures for sales of INR9,077 million, as well as EBITDA of INR1,639 million.
Back after exceptional item of INR162 million pertaining to the revised Labour Code loss, stood at INR694 million. The performance reflects an improvement in EBITDA margins at 18.1%, whereas the PAT margin remained healthy at 7.6%.
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