Sahasra Electronic Solutions Limited FY26: Growth Returns, Semiconductor Ambition Rises

Sahasra Electronic Solutions Limited reported a strong FY26 on consolidated numbers, supported by growth in EMS and a sharp ramp-up in semiconductor revenues. Consolidated revenue from operations rose to INR 138.8 crore, up 45% year on year. EBITDA increased to INR 18.2 crore, while the EBITDA margin expanded to 13.1% from 7.9% in FY25. PAT came in at INR 12.1 crore versus a loss of INR 2.3 crore in FY25.

The operational narrative in management commentary focused on two themes: scaling manufacturing capacity and using semiconductor packaging and memory solutions as a higher-value growth engine. The company also highlighted an expanding customer base, a higher order book, and progress in balancing domestic and export exposure.

FY26 performance in numbers

The company’s consolidated order book increased to INR 68.5 crore in FY26 from INR 42.2 crore in FY25. Active customers rose to 140 from 94, while the top 5 customer concentration increased to 55.6% from 37.9%.

Segment mix: EMS remains core, semiconductor scales up

FY26 revenue mix showed that EMS remains the anchor. EMS revenue increased to INR 91.6 crore from INR 60.5 crore, a 51% year-on-year increase. Semiconductor revenue rose to INR 15.7 crore from INR 9.2 crore, up 71% year on year, with an even sharper growth in H2 FY26.

Memory solutions revenue more than doubled to INR 26.3 crore from INR 12.5 crore. In contrast, computer and IT accessories declined sharply to INR 5.2 crore from INR 13.6 crore. On the earnings call, management attributed weakness in IT hardware to the cancellation of a European brand engagement, noting that the brand exited the market.

Management stated that demand for NAND flash memory packaging improved with the memory cycle linked to AI-related demand, and exports were a large contributor in that business update. The company also said it is developing additional packages such as 48TQFP, 68QFN and UDP, which it expects to add to mix and revenue contribution in coming quarters.

Capacity, utilization, and the merger roadmap

The investor presentation outlined three operating units and a clear utilization gap between Noida and Bhiwadi. Noida EMS unit showed FY26 utilization of 78.7%, while the Bhiwadi EMS unit showed 22.5%. The semiconductor unit showed 6.1% utilization in FY26, indicating that revenue growth in semiconductors is expected to come with higher utilization rather than immediate large capex.

On the concall, management said two additional SMT lines were installed and operationalised in April-May 2026, taking the total to eight SMT lines across Noida and Bhiwadi.

The company is also pursuing a group consolidation plan. The presentation described a proposed merger of SEPL, ITPL, and SSSDPL into the listed entity. Management said the merger application has been filed with NSE and the process will go through SEBI and NCLT. It also stated that the merger is expected to be in place by the end of the financial year or earlier, although timelines are uncertain.

Guidance: FY27 scale-up with semiconductor breakeven target

Management provided explicit targets for FY27. It stated a goal of consolidated revenue of INR 300 crore by FY2027 post merger, and on the concall it reiterated a merged-entity target range of INR 275 crore to INR 300 crore. Management also said it is targeting about 15% PBT margin.

For the semiconductor business, management said INR 50 crore revenue is expected to result in no cash loss, indicating a cash breakeven point. It also stated a target for semiconductor EBITDA breakeven by FY2027 end.

Separately, the investor presentation stated planned investments of INR 200 crore in semiconductor expansion and INR 50 crore in R and D, and said the company is applying to ISM 2.0 and the Rajasthan Semiconductor Policy 2026.

The key investor question: profitability vs cash flow

A key area of attention is operating cash flow. Standalone operating cash flow was negative INR 13.7 crore in FY26, and consolidated operating cash flow was negative INR 10.1 crore. Management attributed the cash flow pressure to working capital build, including higher inventory to manage supply chain uncertainty and longer credit terms given to customers during scaling.

The company also reported higher customer concentration, with top 5 customers contributing 55.6% of consolidated revenue in FY26.

Takeaways

Sahasra delivered a strong FY26 on growth and margin expansion, with clear traction in EMS and meaningful improvement in semiconductor contribution. Management’s FY27 guidance is ambitious and numeric, centered on a post-merger revenue scale-up and semiconductor breakeven. At the same time, working capital intensity, cash flow conversion, and customer concentration remain important monitoring points as the company scales.