Sansera Engineering (SANSERA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached INR 7,278 million, with an EBITDA margin of 17.5% and PAT margin of 7.7%, despite a challenging macro environment and seasonally weak quarter.

• Nine-month FY25 revenue was INR 22,351 million, with an EBITDA margin of 17.3% and PAT up 12% YoY to INR 1,577 million.

• Order book as of December 2024 stood at INR 22 billion, with over 60% from international markets and a balanced mix across Auto-ICE, Tech Agnostic & XEV, and Non-Auto.

• Major order wins in semiconductor and aerospace, including a significant deal with a global wafer fabrication equipment leader and new prestigious customers.

• Issuance of 7,722,007 new equity shares via QIP at INR 1,554 per share, raising significant capital and increasing surplus cash.

Financial highlights

• Q3 FY25 revenue grew 2% YoY to INR 7,278 million; 9MFY25 revenue up 8% YoY to INR 22,351 million.

• Q3 FY25 EBITDA margin improved to 17.5%; 9MFY25 EBITDA margin at 17.3%.

• Q3 FY25 PAT increased 16% YoY to INR 559 million; 9MFY25 PAT up 12% YoY to INR 1,577 million.

• Gross profit margin for 9MFY25 at 41.5%, up from 40.0% YoY.

• EPS (Basic) for 9MFY25 at INR 27.80, up from INR 26.24 YoY.

Outlook and guidance

• Cautiously optimistic outlook for the year, with expectations of inventory correction due to OBD2 Phase B and positive momentum in North America.

• High teens CAGR revenue growth expected over the next three years, driven by a strong order book and diversification.

• Targeting 20% EBITDA margin and ROCE in the long term, with sequential annual margin improvement of 0.5%.

• Aerospace, Defense, and Semicon revenue expected to double to INR 300 crores in FY26 from INR 140 crores in FY25.

• Green energy share in plants targeted to rise to 60% in FY25, and 80% in Karnataka.