Sansera Engineering Limited Q2 profit rises 52% on margin gain

Sansera Engineering Limited reported Q2 FY27 profit after tax of Rs 108.6 crore, up 52% year on year, as revenue rose 32% to Rs 1,091.5 crore and EBITDA margin expanded to 19.4% from 17.3%. Management said it maintained profitability despite inflationary input costs, geopolitical uncertainty and wage-related cost pressure.

How did Sansera's Q2 FY27 profit and revenue change?

Sansera's Q2 FY27 profit after tax rose Rs 37.2 crore year on year to Rs 108.6 crore, while its profit margin increased to 10.0% from 8.6%. Revenue increased by Rs 266.3 crore from Rs 825.2 crore in Q2 FY26 to the company’s highest quarterly level of Rs 1,091.5 crore in Q2 FY27. Reported profit growth of 52% therefore exceeded the 32% rise in revenue.

EBITDA, or earnings before interest, tax, depreciation and amortisation, rose 48% to Rs 211.2 crore from Rs 143.1 crore. Its margin grew by 2.1 percentage points, or 210 basis points, to 19.4%; one basis point equals one-hundredth of a percentage point. Management described this as the highest quarterly EBITDA while noting inflation in input costs, geopolitical uncertainties and wage-related cost pressures during the period.

The first-half figures showed a similar margin change. H1FY27 revenue rose 33% to Rs 2,112.7 crore from Rs 1,591.5 crore in H1FY26, while EBITDA increased 48% to Rs 407.3 crore and the margin rose to 19.3% from 17.3%. H1FY27 profit after tax grew 46% to Rs 196 crore, with its margin increasing to 9.3% from 8.4%.

Which Sansera businesses drove Q2 FY27 sales growth?

Sansera said its Auto internal-combustion-engine business, Auto-Tech Agnostic and xEV businesses, and Non-Automotive business all recorded their highest-ever quarterly sales in Q2 FY27. Auto ICE sales rose 18.2% year on year, while Auto-Tech Agnostic and xEV, or electric-vehicle, sales combined grew 27.0%. Non-Automotive revenue crossed Rs 200 crore for the first time, reaching Rs 213.5 crore and rising 107.7% on the quarterly-performance page.

The Advanced Defence Systems, or ADS, business was the principal Non-Automotive growth driver. ADS sales rose 206.5% year on year to Rs 164.3 crore in Q2 FY27, and management said ADS represented 14.9% of overall revenue during the quarter. The presentation also cited 8.5% growth in Off-Road and 26.1% growth in Agriculture, giving further detail on Non-Automotive activity.

Auto ICE remained the biggest sales base, accounting for 65.7% of Q2 FY27 sales. Motorcycles represented 32.0% of sales, passenger vehicles 17.3% and scooters 5.9%. Passenger-vehicle growth of 42.4% outpaced 14.2% growth in two-wheelers, while the xEV business grew 36.0% and Auto-Tech Agnostic grew 21.9%.

How did Sansera's international business affect the quarter?

Sansera's international business grew 56.2% year on year in Q2 FY27, faster than the India business, which increased 20.6%. International sales consequently accounted for 35.5% of the quarterly mix, compared with 29.8% in Q2 FY26. India’s share declined to 64.5% from 70.2%, reflecting faster overseas sales rather than a reported decline in domestic revenue.

Other foreign countries produced the fastest international growth, with sales up 128.9%, primarily due to the semiconductor business, according to the presentation. United States sales increased 77.8%, supported by Aerospace and Passenger Vehicles, while Europe rose 23.7%. Excluding Sweden operations, Europe grew 49.8%, indicating that the Sweden business changed the reported regional growth rate.

The geographical mix also changed in the United States and other foreign markets. The United States represented 11.9% of Q2 FY27 sales, up from 8.8% a year earlier, and other foreign countries rose to 8.2% from 4.7%. Europe was 15.4% of sales, against 16.3% in Q2 FY26, while exports from India increased to 30.1% of sales from 22.2%.

What order visibility and spending plans has Sansera disclosed?

Sansera reported Rs 2,241 crore of peak annual revenue from new business excluding ADS as of September 2026, up from Rs 1,640 crore in September 2025. This order book is based on letters of intent or purchase orders for programmes that started production after 1 April 2026 or had not yet started. The company expects it to reach peak annual revenue over the next three years.

Auto ICE made up Rs 1,550 crore of the September 2026 new-business order book, compared with Rs 1,020 crore a year earlier. Non-Automotive was Rs 340 crore and Auto-Tech Agnostic plus xEV was Rs 350 crore. Domestic programmes accounted for 49% of the order book and global programmes 51%, compared with a 43% domestic and 57% global mix in September 2025.

ADS is excluded because its orders are presented as cumulative backlog rather than peak annual revenue. The ADS unexecuted backlog stood at about Rs 5,869.7 crore in September 2026 after Rs 1,715.6 crore of new orders and Rs 309.7 crore of executed orders from the March 2026 backlog of Rs 4,463.8 crore. Sansera said the backlog is executable in about five years and gave FY27 ADS revenue guidance of Rs 550 crore to Rs 600 crore.

Management said it plans about Rs 800 crore of capital expenditure in FY27 to expand manufacturing capacity and pursue emerging-technology opportunities. It also said domestic automotive volumes were at record levels and exports had returned to healthy growth, while identifying supplier consolidation and outsourcing by original equipment manufacturers as factors supporting the Auto ICE business.

Conclusion

Sansera’s Q2 FY27 results show profit growth outpacing revenue growth: profit after tax increased 52% to Rs 108.6 crore against 32% revenue growth to Rs 1,091.5 crore. The 210-basis-point EBITDA-margin rise to 19.4% occurred alongside reported input-cost, geopolitical and wage pressures, while 56.2% growth in international business and 206.5% ADS sales growth broadened the revenue mix.

The next disclosed milestones are execution of the approximately Rs 5,869.7 crore ADS backlog over about five years, delivery against FY27 ADS revenue guidance of Rs 550 crore to Rs 600 crore, and deployment of about Rs 800 crore of FY27 capital expenditure. Investors can also track whether the Rs 2,241 crore new-business order book reaches its stated peak annual revenue over the next three years.