Sansera Engineering Q2 Profit Jumps 52% as Revenue Hits Record

Revenue: Rs 1,091.5 crore (32% YoY) | PAT: Rs 108.6 crore (52% YoY)

Reader Takeaway: Strong diversification into non-auto sectors and xEV drives growth, though heavy capex requires careful long-term monitoring.

What just happened

Sansera Engineering has delivered a strong performance for the second quarter of FY27. The company clocked its highest-ever quarterly revenue of Rs 1,091.5 crore, supported by double-digit growth across its core automotive and newer non-automotive segments. Net profit surged 52% to Rs 108.6 crore, while EBITDA margins improved significantly to 19.4% from 17.3% in the same period last year.

Why this matters

Investors are watching how successfully Sansera transitions from its traditional internal combustion engine (ICE) business. The strategy is clearly working: revenue from the ADS (Aerospace, Defence, and Semiconductor) segment grew by 207% YoY. Simultaneously, the company is capturing momentum in the electric and hybrid vehicle space, with Tech Agnostic and xEV revenues growing by 27%.

The backstory

At the time of its IPO, Sansera committed to diversifying its revenue streams. The current filing confirms that the contribution of Auto ICE components has moderated to 65.7% of total sales, indicating that newer segments are becoming meaningful contributors to the top line. During H1 FY27, the firm navigated a Rs 16.9 crore litigation settlement, which was largely cushioned by insurance.

What changes now

The company is aggressively scaling its operations with an Rs 800 crore capital expenditure plan for FY27. A key milestone is the new joint venture with Japan’s Nichidai Corporation, which is expected to begin commercial production in the second half of this fiscal year, focusing on precision forged components.

Risks to watch

Investors should track the execution of the Rs 5,869.7 crore ADS backlog, which is spread over a five-year horizon. Additionally, the high capital intensity of the current expansion requires the company to maintain high asset utilization to ensure return on capital remains healthy.

What to track next

Watch for updates on the Nichidai JV production ramp-up and the pace at which the current ADS backlog is converted into realized revenue over the coming quarters.