Sansera Engineering Q1 FY27: Record Revenue, Mix Shift Toward Non-Auto, and a Bigger ADS Backlog

Sansera Engineering opened FY27 with its strongest quarterly performance on record. Consolidated revenue for Q1 FY27 came in at INR 10,213 million, a 33% year-on-year increase, crossing the INR 10,000 million milestone for the first time. Profitability moved in the right direction too. EBITDA rose to INR 1,961 million with margin expanding to 19.2% from 17.2% in Q1 FY26. PAT was INR 874 million, up 39% year-on-year, with a modest improvement in margin to 8.6%.

The quarter also included two important adjustments investors should keep in mind. First, there was an exceptional item of INR 169 million related to a settlement of a litigation matter before the U.S. District Court, which management stated is expected to be substantially covered by insurance. Second, the company highlighted that excluding the post-tax impact of exceptional cost (INR 127 million), normalized PAT would have been INR 1,000 million.

Growth was broad-based, but Non-Auto led the mix change

The headline growth was not limited to one pocket of the business. Management described double-digit growth across segments, with Auto ICE delivering 20.8% year-on-year growth on a high base, Auto Tech-Agnostic and xEV growing 22.2% year-on-year, and the Non-Auto segment reaching its highest-ever quarterly sales.

Where the quarter becomes more structurally interesting is the revenue mix. In Q1 FY27, Non-Auto contributed 20.8% of sales, a level the company described as aligned with its longer-term product mix direction. Auto ICE still remained the largest component at 65% of sales, but management highlighted that its contribution has moderated as Non-Auto scaled faster.

Within Non-Auto, ADS continued to be the key driver. ADS revenue in Q1 FY27 was INR 1,454 million. The company noted that ADS revenue includes product sales, scrap sales and tooling income, because all three are integral to the operations.

Order visibility: two different lenses, one clear intent

Sansera now separates the way it discusses order visibility.

For the core business outside ADS, it presents order book as peak annual revenues for new business, excluding ADS. As of June 2026, this was INR 18,493 million. The company clarified that these peak annual revenues are expected to be reached in the next three years and are based on LOIs and POs for which production has started beyond 1-Apr-2026 or is yet to start.

For ADS, the company presents cumulative unexecuted order backlog, which management described as structurally different from the rest of the order book. As of June 2026, ADS unexecuted backlog was INR 44,368 million, executable in about five years.

The earnings call added a meaningful update. Management stated that in Q2, after the quarter end, ADS backlog moved to around INR 57.5 billion due to a significant semiconductor equipment order from an existing customer. The company framed this as an important milestone because it could increase annual business from that customer to roughly $75 million.

Capex and capability build-out: ADS and auto expansion running in parallel

Sansera’s capex intensity remains high, and management repeatedly positioned it as capacity being created ahead of demand. Capex was INR 1,342 million in Q1 FY27, following INR 5,097 million in FY26 and INR 5,911 million in FY25.

The company also disclosed targeted incremental asset turns: 1.25 to 1.3x for automotive investments and 2.0 to 2.2x for ADS. During the call, management reiterated that ADS asset turns are comfortably between 2.0 and 2.25.

On the ADS side, management outlined three near-term projects: a surface treatment facility adjacent to the ADS plant with NADCAP validation in progress, an 80,000 sq ft hangar to support aerospace and semiconductor execution, and relocation of defence activities into a dedicated facility for focused execution. Management also discussed a potential build-to-suit site adding around 100,000 sq ft within close proximity of the existing campus.

On the automotive side, management described capacity additions in Pantnagar and Manesar, including forging and machining for crankshafts and connecting rods, and augmentation of machining capacity at Bengaluru Plant 2 with a focus on Auto Tech-Agnostic and xEV components.

A strategic piece within the auto roadmap is the Nichidai Sansera JV. The company disclosed a 60:40 JV in Bengaluru, with Sansera committing an investment of INR 500 million in one or more tranches. The JV is intended to manufacture precision forged and machined aluminium and steel parts for differential assemblies, compressors, driveline and other advanced automotive components for India and overseas.

Margins: stable, but influenced by mix and forex

Management attributed margin expansion in Q1 FY27 to operating leverage, disciplined cost absorption and a more favorable product mix. It also noted that forex movements provided a cushion during the quarter.

At the same time, the call highlighted cost pressures that may not have fully played out in reported numbers. The CFO noted inflation in aluminum and some consumables, while steel inflation pass-through discussions were still in progress. Management also said it was engaging with customers for compensation related to higher tool and labor costs, particularly impacting northern plants, but these had not yet translated into the P&L in Q1.

The company also clarified that EBITDA margin includes a provision of INR 126 million related to U.S. import duty tariff incurred in the prior year, which remains recoverable but was provided for based on a recovery risk assessment.

Takeaways: execution strength and a clearer diversification trajectory

Q1 FY27 reinforced the two-track story Sansera wants investors to underwrite. The first is continued scale in the base Auto ICE business, supported by OEM demand and outsourcing opportunities. The second is a deliberate shift in mix through ADS, Non-Auto, and tech-agnostic and xEV components.

The company’s near-term outlook remains framed around high-teens growth for FY27, with management indicating the possibility of high-teens to 20% if current trends sustain. The more important medium-term variable is ADS execution. Backlog is growing, but management emphasized that timelines depend on machine lead times, commissioning and customer validation.

For investors, the quarter offered a clean message. Sansera is growing, margins are holding up, and the company is putting down capacity for the next leg, while being explicit about asset turn expectations and return thresholds. The next few quarters will test how smoothly that capacity translates into revenue, especially in ADS.