Sansera Engineering reports strong Q3 FY25 results despite market challenges

Sansera Engineering Limited, a leading manufacturer of precision-engineered components, has reported solid financial results for the third quarter (Q3) and the nine months ending December 31, 2024. Despite facing macroeconomic pressures, the company demonstrated resilience through diversified revenue streams, strong growth in emerging segments, and strategic investments in sustainability.

Sansera’s performance reflects its ability to navigate a dynamic global landscape, driven by evolving demand in the automotive and non-automotive sectors. The company’s focus on advanced technologies, coupled with robust operational strategies, has positioned it to capitalise on growth opportunities while maintaining financial stability.

How Did Sansera Engineering Limited Perform Financially in Q3 FY25?

Sansera Engineering Limited reported consolidated revenue from operations of ₹7,278 million for Q3 FY25, marking a 2% year-on-year (YoY) growth compared to ₹7,126 million in the same period last year. For the nine-month period ending December 31, 2024, the company achieved revenue of ₹22,351 million, reflecting an impressive 8% YoY growth from ₹20,656 million in the previous year.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 5% YoY to ₹1,271 million in Q3 FY25, with the EBITDA margin expanding to 17.5%, up from 16.9% in Q3 FY24. This growth indicates strong operational efficiency despite challenging market conditions.

Sansera’s profit after tax (PAT) also saw a notable increase, rising 16% YoY to ₹559 million in Q3 FY25, compared to ₹484 million in the previous year. The PAT margin improved to 7.7%, highlighting the company’s effective cost management strategies and its ability to maintain profitability even amid sectoral slowdowns.

What Are the Key Growth Drivers Behind Sansera’s Strong Performance?

Sansera Engineering Limited’s growth is underpinned by its diversified portfolio and strategic focus on high-growth sectors. The company’s auto internal combustion engine (Auto-ICE) segment, which traditionally accounts for a significant portion of its revenue, experienced a marginal 0.2% decline YoY. This was largely due to a slowdown in the passenger vehicle (PV) segment. However, the impact was offset by strong growth in the two-wheeler (2W) business, showcasing the resilience of its diversified automotive portfolio.

Conversely, the auto tech-agnostic and electric vehicle (xEV) segment emerged as a key growth driver, with revenue increasing by 9.5% YoY. This surge was fueled by robust order execution and rising demand for electric vehicle components, aligning with global trends toward sustainable mobility.

In the non-automotive segment, which includes aerospace, off-road, and agriculture sectors, Sansera reported a 6.6% YoY decline. This was attributed to subdued performance in the off-road and aerospace businesses. However, the company remains optimistic about long-term growth in this segment, supported by strategic partnerships and new customer acquisitions.

How Is Sansera Expanding Its Global Footprint and Strengthening Its Market Position?

Sansera Engineering Limited’s growth strategy is not limited to domestic markets. The company’s geographical revenue mix highlights its expanding global footprint. In Q3 FY25, India accounted for 69.5% of total revenue, while Europe contributed 17.7%, followed by the USA at 7.8% and other international markets at 5%. This diversified revenue base reduces dependency on any single market, mitigating risks associated with regional economic fluctuations.

One of the notable highlights of the quarter was the recovery of Sansera’s Swedish subsidiary, which is on track to regain growth momentum. Additionally, the company secured new contracts in the aerospace and semiconductor sectors, including a Letter of Intent (LOI) for the supply of semiconductor equipment parts to a global leader in wafer-fabrication equipment manufacturing. This strategic move is expected to unlock new opportunities in high-growth, technology-driven industries.

What Is Sansera’s Vision for Sustainable Growth and Technological Innovation?

Sansera Engineering Limited’s commitment to sustainability and technological advancement is central to its long-term strategy. The company invested ₹3,623 million in capital expenditure during the nine-month period, focusing on capacity expansion, technology upgrades, and green initiatives.

A key area of focus is the company’s transition to green energy. Sansera aims to increase the share of renewable energy in its operations to 60% in FY25, up from 50% in FY24. In Karnataka, which serves as the company’s major manufacturing hub, the green energy share is expected to rise from 70% to 80% in the same period. This shift aligns with global sustainability goals and positions Sansera as an environmentally responsible manufacturer.

What Is the CEO’s Outlook on Sansera’s Future Growth?

Commenting on the company’s performance, B R Preetham, Executive Director and CEO of Sansera Engineering Limited, expressed optimism about future growth prospects. He highlighted the increasing number of requests for quotations (RFQs) from both existing and new customers, reflecting heightened interest in India as a key market for precision-engineered components.

Preetham emphasised the company’s robust order book, which stood at ₹22 billion as of December 31, 2024. The order book composition—45% from Auto-ICE, 25% from tech-agnostic & xEV, and 30% from non-automotive sectors—aligns with Sansera’s long-term strategic vision of diversification and technological leadership.

“We see tremendous potential in our emerging segments, particularly in electric vehicles and non-automotive sectors like aerospace and semiconductors. Our strengthened balance sheet and deep engineering capabilities will enable us to seize new opportunities and continue being the preferred partner for global giants,” said Preetham.

What Lies Ahead for Sansera Engineering Limited?

Sansera Engineering Limited is well-positioned to sustain its growth momentum through strategic investments, operational efficiency, and market diversification. The company’s focus on advanced manufacturing technologies, green energy adoption, and global expansion underscores its commitment to long-term value creation for stakeholders.

As global industries continue to evolve, Sansera’s ability to adapt to changing market dynamics, invest in innovation, and maintain strong financial performance will be key to its future success. The company’s track record of resilience, coupled with a forward-looking growth strategy, positions it as a leader in the precision engineering space.