Sansera Raises FY27 Capex as ADS Backlog Hits Rs 5,870 Crore

Sansera Engineering Limited raised FY27 capital expenditure to Rs 800 crore after its ADS backlog reached Rs 5,870 crore at September 30, 2026, up from Rs 4,440 crore in June, including a large multi-year semiconductor order. Management said close to Rs 400 crore of the enlarged plan would go to ADS capacity.

Why did Sansera raise FY27 capital expenditure to Rs 800 crore?

Sansera raised its FY27 capital-expenditure forecast from about Rs 500 crore to Rs 800 crore because programmes in semiconductor, other ADS areas, energy and electric-vehicle projects are beginning faster than typical automotive programmes. Management said the outlay would be phased alongside customer validations as demand has accelerated across these sectors.

About 50% of the Rs 800 crore allocation, or close to Rs 400 crore, is intended for ADS, management said. Sansera has completed a second bay at its existing ADS plant and plans to install machinery for the current order book there, tying the higher investment to confirmed business requirements.

Sansera spent about Rs 326 crore on automotive and ADS capital expenditure in H1 FY27 and invested Rs 30 crore in the Nichidai joint venture. Its H1 operating cash flow was Rs 207.3 crore, meaning these investments exceeded operating cash flow by about Rs 148.7 crore and contributed to higher net debt.

How much did Sansera's ADS order backlog increase?

Sansera's cumulative unexecuted ADS lifetime backlog rose by Rs 1,430 crore, or about 32%, to Rs 5,870 crore at September 30, 2026, from Rs 4,440 crore in June. Management said the confirmed backlog is executable over the next five years and includes a large multi-year semiconductor order.

The five-year figure aggregates business scheduled across successive years rather than setting a ceiling on ADS revenue over that period, management clarified. New orders can add revenue in the following year and later years, while further wins would replenish the backlog; Sansera did not disclose annual conversion from the Rs 5,870 crore total.

ADS revenue was Rs 164.3 crore in Q2 FY27 and Rs 309.7 crore in H1 FY27. The broader non-automotive segment crossed Rs 200 crore in Q2 sales and accounted for 20.9% of total quarterly sales, while management said ADS represented about 15% of Sansera's business.

Which ADS activities are driving Sansera's capacity investment?

Sansera is expanding aerospace customers, semiconductor capability and defence infrastructure to support ADS growth. Management said it added a couple of aerospace customers during the quarter, while semiconductor operations still rely on one customer and discussions to add a second customer may conclude in Q3 FY27.

In semiconductor, Sansera received validation for two more highly critical parts, taking its range close to nearly all of the most critical parts needed by its existing customer, management said. New aerospace wins include avionics parts, while management described both avionics and semiconductor work as high-precision machining applications.

Sansera expects its dedicated defence facility to begin operations toward the end of Q3 FY27, although management also indicated operations could begin from Q4 FY27. The site will receive machines used in existing defence work, and prospective orders could require Rs 15 crore to Rs 20 crore of additional investment if they materialise.

Management is considering adding metal forming and sheet-metal forming within the defence vertical. That capability could allow Sansera to bid for aerospace and defence packages containing sheet-metal parts and assemblies that it has not previously been able to pursue.

What ADS capacity and targets has Sansera outlined?

Sansera said its expanded current ADS facility could support about Rs 1,500 crore of revenue, while a planned additional facility could add Rs 1,000 crore to Rs 1,500 crore depending on component configuration. Management said the defence facility could support an additional Rs 400 crore to Rs 500 crore of revenue opportunity.

The expanded bay at the current aerospace facility is expected to be fully operational by Q3 FY27, and the planned new ADS facility is expected toward the end of the next calendar year. Sansera said its current FY27 capital plan excludes potential engine-manufacturer business because that programme remains under development rather than confirmed.

Management expects to complete development of an initial engine component in Q3 FY27, but said the eventual opportunity size is not yet known. It said any investment for that programme would be considered only after it receives confirmed business.

For the longer term, management said it aims for ADS to contribute 35% to 40% of Sansera revenue toward the end of the decade, compared with about 15% currently. It plans to issue a renewed five-year vision and more detailed targets toward the end of FY27, after the strategic period set at its initial public offering concludes.

How is the higher investment affecting Sansera's finances?

Sansera's net debt increased to Rs 261.2 crore at September 30, 2026, from Rs 60.4 crore in March, as capital expenditure, the Nichidai investment and working-capital needs rose. Working capital increased by Rs 118.5 crore to Rs 854.4 crore, mainly because ADS requires inventory support and total volumes increased, management said.

Management reported net leverage of about 0.3 times annualised H1 FY27 earnings before interest, tax, depreciation and amortisation, or EBITDA. It said it would maintain discipline on working capital, cash and leverage while phasing the Rs 800 crore FY27 investment plan against customer validations.

Q2 FY27 revenue rose 32% year on year to Rs 1,091.5 crore, while EBITDA increased 48% to Rs 211.2 crore. EBITDA margin expanded by about 200 basis points to 19.4%, despite a Rs 16.7 crore provision for the Karnataka minimum-wage revision and higher freight, logistics and cutting-tool costs.

Conclusion

Sansera's Rs 800 crore FY27 capital plan follows a Rs 5,870 crore ADS backlog and broadens capacity across semiconductor, aerospace and defence. About Rs 400 crore is planned for ADS, while the non-ADS order book also increased to Rs 2,241 crore, showing that order growth extends beyond the business receiving the largest share of incremental investment.

The next disclosed milestones are new ADS stock-keeping units, or SKUs, entering production in H2 FY27, defence-facility operations toward the end of Q3 FY27 or from Q4 FY27, and management's potential addition of a second semiconductor customer in Q3 FY27. Sansera also plans to provide a renewed five-year vision and targets toward the end of FY27.