Sansera Engineering Q3 FY26 Profit Jumps 40% to ₹63.5 Cr

Introduction to Q3 FY26 Performance

Sansera Engineering Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The announcement came after a Board of Directors meeting on February 9, 2026. The company reported robust growth in both standalone and consolidated profits, supported by a strong top-line performance. A key strategic development announced post the reporting period is the formation of a joint venture in Japan, aimed at producing advanced automotive components.

Standalone Financial Results

On a standalone basis, Sansera Engineering demonstrated significant financial strength in Q3 FY26. The company's Total Income grew to ₹8,089.74 million, a substantial increase from ₹6,505.80 million recorded in the same quarter of the previous fiscal year. This growth translated directly to the bottom line, with Profit After Tax (PAT) surging by over 40% to ₹635.04 million, compared to ₹450.89 million in Q3 FY25. Consequently, the Diluted Earnings Per Share (EPS) improved to ₹10.20 from ₹7.40 in the corresponding period last year.

Consolidated Financial Performance

The consolidated results for the group also reflected a positive growth trajectory. Total Income on a consolidated basis rose to ₹9,172.37 million from ₹7,338.86 million in the prior-year quarter. The Consolidated Profit After Tax for the quarter stood at ₹694.22 million, an improvement over the ₹559.17 million reported in Q3 FY25. The Total Comprehensive Income for the group was recorded at ₹702.89 million for the quarter, underscoring a healthy operational performance across the company and its subsidiaries.

Financial Performance Summary

To provide a clear comparison, the key financial metrics for the third quarter are summarized below:

Strategic Expansion: Joint Venture in Japan

In a significant move to expand its global footprint, Sansera Engineering announced the establishment of a strategic joint venture in Japan. This venture will focus on the development and manufacturing of advanced automotive components. This initiative aligns with the management's previously stated goal of exploring new geographies, particularly Japan and Korea, to engage with prospective customers and tap into new markets. The move is expected to strengthen the company's position as a key supplier in the global automotive industry.

Dividend Payout and Auditor's Report

During the quarter, the company completed the payment of the final dividend of ₹3.25 per equity share for the financial year ended March 31, 2025. This resulted in a total cash outflow of ₹201.81 million. The financial results for the quarter were subjected to a limited review by the company's statutory auditors. Deloitte Haskins & Sells issued an unmodified review report, providing assurance on the accuracy and compliance of the financial statements.

Update on QIP Fund Utilization

Sansera Engineering also provided an update on the utilization of funds raised through its Qualified Institutional Placement (QIP). According to a monitoring report by ICRA for Q3 2026, there has been no deviation in the use of the proceeds from the stated objectives. As of December 31, 2025, the company held unutilized QIP funds amounting to ₹260.706 crore. These funds are temporarily placed in fixed deposits with various banks, ensuring capital preservation while awaiting deployment for planned expenditures such as debt repayment, land acquisition, and capital expenditure for facility expansion.

Broader Business Outlook

Recent performance data from the preceding quarter (Q2 FY26) provides additional context to the company's growth momentum. The company maintains a strong unexecuted order backlog of ₹39,533 million, indicating healthy revenue visibility. Growth has been robust across geographies, with exports to the USA growing by 14.9% YoY and the Sweden business expanding by 79.1% YoY in Q2. The ADS (Aerospace and Defence) division also delivered exceptional growth, highlighting the company's successful diversification efforts.

Management Commentary

Reflecting on the recent performance, Mr. B R Preetham, Executive Director & CEO, had noted the company's achievement of crossing the ₹8,000 million sales mark in a quarter. He emphasized the focus on engineering innovation and operational efficiency as key drivers for maintaining robust profitability, with EBITDA margins at 17.3% and PAT margins at 8.7% in Q2. The strategic push into new markets like Japan is a direct execution of this forward-looking strategy.

Conclusion

Sansera Engineering's Q3 FY26 results highlight a period of strong financial execution, marked by significant profit growth and expanding revenues. The strategic announcement of a joint venture in Japan signals a clear intent to strengthen its global market position. With a clean auditor's report, prudent management of QIP funds, and a healthy order book, the company appears well-positioned to continue its growth trajectory in the coming quarters.