Sansera engineering has received credit rating reaffirmation from ICRA Limited, with the rating agency maintaining its positive assessment of the company's financial and business risk profiles. The reaffirmation covers facilities worth Rs. 996.00 crore across various instruments.

Rating Details and Facility Breakdown

ICRA has reaffirmed multiple credit facilities for Sansera Engineering, reflecting confidence in the company's creditworthiness:

Strong Financial Performance and Business Profile

The rating reaffirmation considers Sansera Engineering's established position as an auto-ancillary with presence across multiple product segments including connecting rods, rocker arms, and crankshaft assembly. The company has demonstrated resilience with revenue growth of 7.4% in FY2025 and 5.6% year-on-year in H1 FY2026, primarily driven by growth in ADS (Aerospace, Defence & Semiconductor) segments.

Operating margins remained healthy at 17.2% in FY2025 compared to 17.1% in the previous year, and 17.3% in H1 FY2025. The company's financial profile has strengthened considerably following the Qualified Institutional Placement (QIP) proceeds of Rs. 1,200 crore in Q3 FY2025, which was largely utilized for prepayment and repayment of borrowings.

Key Financial Metrics and Order Book Position

Sansera Engineering's financial indicators demonstrate strong performance across key parameters:

The company maintains a robust order book position of over Rs. 2,000 crore as of September 30, 2025, diversified across auto internal combustible engine (ICE), electric vehicles (xEV), and non-auto segments from both domestic and overseas markets.

Business Diversification and Market Position

Sansera Engineering has established a diversified business model with a product portfolio of more than 80 components. The company derives 31% of its revenues from exports in H1 FY2026, providing geographical diversification and mitigating region-specific risks. In H1 FY2026, the company derived 12.7% of revenues from non-automotive segments and 14.4% from auto-tech agnostic segments, showing steady increase in proportion over the years.

The company operates 17 manufacturing plants, including 16 facilities across India and one in Sweden. It maintains established relationships with major two-wheeler and passenger vehicle/commercial vehicle original equipment manufacturers in India and overseas markets, with healthy wallet share and repeat order track record.

Investment Plans and Future Outlook

Sansera Engineering has outlined significant capital expenditure plans with over Rs. 200.0 crore planned for H2 FY2026 and annual capex plans of Rs. 350-400 crore in the coming years towards upgradation and expansion of existing facilities. The capex is expected to be funded largely through internal accruals, with ICRA drawing comfort from anticipated healthy accruals and absence of sizeable incremental debt funding.

ICRA expects the company's financial profile to remain strong going forward, supported by healthy revenues and accruals despite sizeable capex plans over the medium term. The 'Stable' outlook reflects expectations that the company will sustain its credit profile and debt metrics through strong business position, healthy cash accruals, and adequate liquidity.

Sansera Engineering , a leading auto component manufacturer, has reported its strongest-ever quarterly performance, showcasing robust growth across key financial metrics. The company's impressive results highlight its resilience and strategic positioning in both the automotive and non-automotive sectors.

Financial Highlights

Key Performance Drivers

The company's exceptional performance can be attributed to several factors:

1. Healthy Domestic Market Recovery: The automotive sector in India has shown signs of revival, contributing to Sansera's strong revenue growth.

2. Non-Auto Segment Expansion: A remarkable 56.4% growth in the non-automotive segment demonstrates the company's successful diversification strategy.

3. ADS Division Success: The Aerospace and Defence Systems (ADS) division delivered a topline of ₹496.00 million, indicating the company's growing presence in this high-potential sector.

Strategic Developments

Sansera Engineering's board has approved two significant strategic moves:

1. Facility Expansion: The company plans to expand its facilities, although specific details about the expansion were not provided.

2. Investment in MMRFIC: An investment of ₹30.00 crores in MMRFIC has been approved, with the aim of increasing Sansera's stake beyond 50%. This move suggests a strategic consolidation of the company's interests.

Future Outlook

The ADS division's unexecuted order backlog exceeding ₹39,500.00 million indicates a strong pipeline for future growth. This substantial backlog, coupled with the planned facility expansion and increased stake in MMRFIC, positions Sansera Engineering for continued growth in both its core automotive business and emerging sectors.

While the company's performance is impressive, it's important to note that future results may vary depending on market conditions and successful execution of strategic initiatives.

Investors and industry observers will likely keep a close watch on Sansera Engineering's ability to maintain this growth trajectory and capitalize on opportunities in both the automotive and non-automotive segments.