Sansera Engineering , a leading auto component manufacturer, has reported a modest 3% year-on-year revenue growth to INR 7,663.00 million in the first quarter. Despite facing headwinds in both domestic and global markets, the company managed to maintain a healthy margin structure, with EBITDA margins improving to 17.2% and profit after tax (PAT) growing by 26% to INR 630.00 million.

Domestic Performance

The company's domestic business recorded a revenue growth of approximately 4% year-on-year. This growth was primarily driven by healthy performance across multiple segments, including passenger vehicles, commercial vehicles, aerospace and defense systems (ADS), agriculture, and industrial applications. However, the two-wheeler and three-wheeler segments showed muted performance, with a decline in scooter sales particularly impacting the results.

International Operations

Sansera's international operations faced challenges during the quarter. Exports from India, excluding the ADS segment, declined by 20.6% due to global uncertainties. However, the company's European business grew by about 3.5%, with the Swedish subsidiary achieving an impressive 80% growth, albeit on a low base. The Swedish operations delivered their highest ever quarterly sales of INR 637.00 million.

Order Book and New Wins

Sansera's order book stood at INR 20,243.00 million, with more than 60% of orders coming from international markets. The company added INR 1,732.00 million worth of new orders during the quarter, mainly from the ADS segment, followed by electric vehicle (xEV) and technology-agnostic components, and internal combustion engine (ICE) orders.

Segment-wise Performance

Aerospace and Defense Systems (ADS)

The ADS segment continues to show resilience and strong growth potential. The company is targeting revenue of INR 2,800.00-3,000.00 million from this segment, which would represent a doubling of revenue from the previous year.

Aluminum Forging

Sansera has made significant progress in its aluminum forging business, with over 100 components developed for various customers across the premium two-wheeler segment. The company is also exploring opportunities in passenger vehicles, focusing on suspension and driveline parts.

Electric Vehicles and Tech-Agnostic Components

The company is making strides in the xEV and tech-agnostic segments, which remain resilient in the domestic market. Sansera is targeting 20% revenue each from non-auto and electric vehicle segments in the medium term.

Outlook and Challenges

While expressing caution about the near-term export outlook due to US tariff increases on Indian exports and geopolitical factors, Sansera's management remains confident in the company's strong engineering capabilities and diversified product portfolio. The company is focused on continuously outperforming the Indian auto industry and delivering accelerated growth in the non-auto division.

B.R. Preetham, Executive Director and Group CEO of Sansera Engineering, commented, "Despite facing multiple headwinds in both domestic and global markets this quarter, our performance has been good and in line with the overall industry. These challenges are expected to be short-term in nature and should be resolved in the coming quarters."

As Sansera Engineering navigates through the current market uncertainties, its diversified portfolio across segments, geographies, and customers positions it well to maintain growth momentum and capitalize on emerging opportunities in the automotive and non-automotive sectors.

Sansera Engineering , a prominent player in the aerospace and defense sector, has clinched a significant international contract worth Rs 160.00 crore from Airbus Defence and Space. The deal involves the supply of Airborne Intensive Care Transport Modules, marking a notable achievement for the Indian engineering firm in the global aerospace market.

Contract Details

The long-term contract underscores Sansera Engineering's capabilities in manufacturing high-precision components for critical applications. Key points of the agreement include:

Strategic Importance

This contract is of strategic importance for Sansera Engineering for several reasons:

1. International Recognition: Winning a contract from a global aerospace giant like Airbus Defence and Space enhances Sansera's reputation in the international market.

2. Revenue Boost: The Rs 160.00 crore deal is expected to contribute significantly to the company's revenue stream over the contract period.

3. Technological Advancement: Manufacturing Airborne Intensive Care Transport Modules requires advanced engineering capabilities, showcasing Sansera's technological prowess.

4. Long-term Partnership: The nature of the contract suggests a long-term engagement with Airbus, potentially opening doors for future collaborations.

Industry Impact

The contract highlights the growing capabilities of Indian engineering firms in the global aerospace and defense sector. It also underscores the increasing trend of international aerospace companies partnering with Indian manufacturers for critical components and systems.

Looking Ahead

As Sansera Engineering gears up for the first shipment before the end of 2026, the company is likely to focus on ramping up its production capabilities and ensuring stringent quality control to meet Airbus' exacting standards. The successful execution of this contract could pave the way for more international opportunities in the highly competitive aerospace market.

Investors and industry observers will be keenly watching Sansera Engineering's performance in fulfilling this prestigious contract, which could be a significant driver for the company's growth in the coming years.