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Sansera Engineering Limited — Capital/Financing Update 2026
Jan 28, 2026
62659_rns_2026-01-28_86de316a-0204-4ee5-8a02-13ef3384a2a2.pdf
Capital/Financing Update
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January 28, 2026
The National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G Bandra – Kurla Complex Mumbai 400051 Scrip Symbol: SANSERA
The Department of Corporate Services BSE Limited, P.J. Towers, Dalal Street Mumbai 400001 Scrip Code: 543358
Dear Sir/ Madam
– Subject: Credit rating Intimation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Schedule III, we would like to inform you that ICRA Limited has reaffirmed the rating of our Company as per the letter received from them (copy enclosed).
Kindly take the same on your record.
Thanking you.
for Sansera Engineering Limited
Digitally signed by Rajesh Rajesh Kumar Modi Kumar Modi Date: 2026.01.28 11:43:01 +05'30'
Rajesh Kumar Modi Company Secretary and Compliance Officer
Encls: a/a
SANSERA ENGINEERING LIMITED
Reg Off: No. Plant 7, 143/A, Jigani Link Road, Bangalore-560 105, India, Tel: +91 80-27839081/82/83. Fax: +91 80-27839309 E-mail id: [email protected] Website: www.sansera.in CIN: L34103KA1981PLC004542
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January 27, 2026
Sansera Engineering Limited: Ratings reaffirmed
Summary of rating action
| Instrument* | Previous Rated Amount (Rs. crore) |
Current Rated Amount (Rs. crore) |
Rating Action | |
|---|---|---|---|---|
| Long term fund based – Term Loans | 206.90 | 206.20 | [ICRA]AA(Stable); reaffirmed | |
| Short term – Fund based – Working capital facilities |
644.50 | 739.50 | [ICRA]A1+; | reaffirmed |
| Short term – non-fund based – | ||||
| Working capital facilities | 42.40 | 42.40 | [ICRA]A1+; | reaffirmed |
| Long term/Short term – Unallocated | 102.20 | 7.90 | [ICRA]AA(Stable)/[ICRA]A1+; | |
| facilities | reaffirmed | |||
| Total | 996.00 | 996.00 |
*Instrument details are provided in Annexure-I
Rationale
The reaffirmation of the ratings of Sansera Engineering Limited (SEL) considers its strong business and financial risk profiles, as an established auto-ancillary with presence across multiple product segments such as Connecting rods, Rocker arms, Crank shaft assembly amongst others. Operating in the precision component space, and with capabilities developed over the years, the company has been able to sustain a comfortable margin profile, supporting its annual cash accruals. Additionally, its balance sheet and financial risk profile has strengthened considerably over recent years, especially post the Qualified Institutional Placement (QIP) proceeds of Rs. 1,200 crore in Q3 FY2025, which was largely utilized for prepayment/repayment of borrowings. ICRA expects the company’s financial profile to remain strong, going forward, aided by its healthy revenues and accruals, despite sizeable capex plans over the medium term.
The ratings draw comfort from SEL’s diversified product profile, healthy domestic-export mix, established market position and healthy wallet share with customers. Its revenues grew by 7.4% in FY2025 and 5.6% YoY in H1 FY2026, primarily aided by growth in ADS (Aerospace, Defence & Semiconductor) segments. Its operating margins remain healthy at 17.2% in FY2025 (PY: 17.1%) and 17.3% in H1 FY2025 (PY: 17.3%), supported by its relatively high value addition, increasing proportion of exports, operating leverage benefits and cost-optimisation measures. The revenue growth trends are expected to sustain going forward as well, supported by its established relationships with its customers and healthy order book. SEL’s pending order book position was over Rs. 2,000 crore as on September 30, 2025, fairly diversified across auto internal combustible engine (ICE), xEV (Electric Vehicles) and non-auto segments, and from both domestic and overseas markets.
The rating strengths are partially offset by SEL’s relatively high dependence on Two wheelers (2Ws) (43% of revenues in H1 FY2026) and moderate customer concentration. These expose the company to risks arising from any sustained downturns in the Indian 2W segment and underperformance of the top customers or loss of customers to competition. Nevertheless, reducing proportion of revenues from the 2W segment mitigates the risk to an extent. Also, 73% of its revenues in H1 FY2026 came from the auto ICE segment, which is susceptible to the risks arising from electrification of the automotive industry. However, the company’s focus on expanding revenue contribution from non-automotive, auto-tech agnostic and xEV segments mitigates the risk to an extent. The company has capex plans of over Rs. 200.0 crore in H2 FY2026 and annual capex plans of Rs. 350-400 crore in the coming years towards upgradation and expansion of its existing facilities. While the capex is significant, ICRA draws comfort from the anticipated healthy accruals from the business and absence of sizeable incremental debt funding, which are likely to support its capital structure and coverage metrics, going forward.
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The ‘Stable’ outlook on the long-term rating reflects ICRA’s expectation that the company will be able to sustain its credit profile and debt metrics, supported by its strong business position, healthy cash accruals and adequate liquidity, despite sizeable capex plans.
Key rating drivers and their description
Credit strengths
Well established market position; healthy wallet share with customers – SEL has established relationships with major 2W and Passenger Vehicle/Commercial Vehicle original equipment manufacturers (OEMs) in India and overseas markets. It has a healthy share of business with its major customers along with a track record of getting repeat orders periodically. The company is among the largest suppliers of connecting rods and rocker arms for the 2W and light vehicle segments, and the largest supplier of gear shifter forks for the 2W segment in India. It also enjoys single source supplier status for several components. In the international markets, SEL is among the leading suppliers of connecting rods for light vehicles and CVs. By leveraging these established relationships and proven track record of its capabilities, the company has been able to add reputed customers in the growing EV space as well.
Diversified product profile; healthy domestic-export mix – SEL has a product portfolio of more than 80 components. In the auto segment, the company manufactures connecting rods, crankshaft assembly and rocker arms among others. For the nonautomotive segment, SEL manufactures seating, lighting, cargo systems, aerostructure, door assembly, and actuation systems categories in the aerospace segment, among others. The diversified product profile mitigates product specific risks to a large extent. Further, the company derives a material portion of its revenues from exports (31% of its revenues in H1 FY2026), mitigating region specific risks to an extent and providing geographical diversification. The share of exports is likely to increase, going forward, as indicated by the current order book.
Healthy operating margins; strong order book position – SEL’s operating margins remain healthy at 17.2% in FY2025 (PY: 17.1%) and 17.3% in H1 FY2025 (PY: 17.3%), supported by its relatively high value addition, increasing proportion of exports, operating leverage benefits and cost-optimisation measures. The company’s revenue growth and margins are expected to remain healthy, going forward as well, supported by its established relationships with its customers and strong order book. SEL’s pending order book position stood at over Rs. 2,000 crore as on September 30, 2025, fairly diversified across auto ICE, xEV and non-auto segments, and from both domestic and overseas markets.
Comfortable financial risk profile – The company’s capital structure and coverage metrics have improved significantly post the recent QIP of Rs. 1,200 crore in Q3 FY2025. The company’s liquidity position is comfortable, with sizeable, unencumbered cash and bank balances of over Rs. 350.0 crore and adequate buffer in undrawn working capital lines. ICRA expects the financial risk profile and debt metrics to remain strong, going forward as well, supported by its healthy accruals, despite its sizeable capex plans over the medium term.
Credit challenges
Relatively high dependence on 2W segment; moderate customer concentration – SEL derives 43% of its revenues from the domestic 2W industry and its top five customers contributed over 50% to revenues in H1 FY2026. These expose the company to risks arising from downturns in the Indian 2W segment and to underperformance of the top customers or loss of customers to competition. However, the company’s proportion of revenues from the 2W segment has reduced, and it has increased its presence in the non-auto and xEV segments with addition of new customers, in both the domestic and export markets. The ability to improve segment and customer diversification over the medium term remains a monitorable.
Impending electrification of automotive industry may impact revenues; however, gradual improvement in xEV and nonauto segment revenues to mitigate the risk to an extent – SEL derived 87.3% of its revenues in H1 FY2026 from the automotive sector, exposing its revenues to the cyclicality in demand from the segment. In addition, 72.9% of its revenues in H1 FY2026 came from the auto-ICE segment, which is susceptible to the risks arising from electrification of the automotive industry.
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However, the company’s focus on expanding its pie of non-automotive, auto-tech agnostic and EV segment revenues and reduction in auto ICE revenue proportion, from the highs of 87.9% in FY2020, mitigates the risk to an extent. In H1 FY2026, the company derived 12.7% of its revenues from the non-automotive segment and 14.4% from the auto-tech agnostic segments, with both segments showing a steady increase in proportion over the years. As of September 30, 2025, more than 50% of the company’s order book was derived from the non-automotive, auto-tech agnostic and xEV segments.
Sizeable capex plans over the medium term – The company has capex plans of over Rs. 200.0 crore in H2 FY2026 and annual capex plans of Rs.350.0-400.0 crore in the next two years, towards upgradation and expansion of existing facilities. The capex is largely expected to be funded through internal accruals. While the capex is significant, ICRA draws comfort from the anticipated healthy accruals from the business and absence of sizeable incremental debt funding, which are likely to support its capital structure and coverage metrics, going forward.
Environmental and social risks
Environmental considerations – SEL, being an auto component supplier, remains exposed to climate transition risks because its automotive OEM customers’ products are used across different fuel power trains. Accordingly, the company’s prospects remain linked to the ability of its customers to meet strict emission requirements. The company also remains exposed to tightening environmental regulations regarding waste and pollution norms, which can increase the operating costs and new capacity instalment costs.
Social considerations – SEL, like most automotive component suppliers, has high dependence on human capital. Attracting and nurturing skilled manpower are critical as it seeks to keep pace with innovation and technological changes. Maintaining healthy relationships with employees and a safe work environment remain essential for disruption-free operations. On the product front, vehicle recalls by OEMs because of defective auto parts could create additional cost burden and liabilities. The company is also exposed to changing consumer preferences, including but not restricted to increasing awareness of the potential environmental damage from emissions, shift towards EVs, usage of sustainable materials and societal trends like a preference for ride sharing.
Liquidity position: Strong
SEL’s liquidity position is adequate, characterised by healthy anticipated cash flows from operations of over Rs. 450.0 crore, unencumbered cash and bank balances of over Rs. 350.0 crore as on September 2025 and the availability of significant buffer in working capital facilities. Against these sources of cash, the company has scheduled repayment of Rs. 43.7 crore, Rs. 58.2 crore and Rs. 38.9 crore for its existing term loans in H2 FY2026, FY2027 and FY2028 respectively. The company has a capex plan of over Rs. 350.0-400.0 crore p.a. in the next two to three years towards upgradation and expansion of existing facilities, to be funded largely by internal accruals. Overall, ICRA expects SEL to meet its medium-term commitments through internal sources of cash and yet be left with sufficient cash surplus.
Rating sensitivities
Positive factors – ICRA may upgrade SEL’s ratings if the company demonstrates sustained and significant improvement in its scale of operations and profitability, along with business diversification, while maintaining strong debt protection metrics.
Negative factors – Pressure on SEL’s ratings could arise from sustained weak performance, resulting in a sharp deterioration in earnings, or sizeable debt-funded capex, dividend payout or a stretch in the working capital, leading to significant weakening of liquidity or coverage metrics. Specific metrics that could trigger ratings downgrade could include Total debt/OPBITDA > 1.5 times on a sustained basis.
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Analytical approach
| Analytical Approach | Comments |
|---|---|
| Applicable rating methodologies | Corporate Credit Rating Methodology Auto Components |
| Parent/Group support | Not Applicable |
| Consolidation/Standalone | For arriving at the ratings, ICRA has considered the consolidated financials of SEL. As on December 31, 2025, the company had three subsidiaries (enlisted in Annexure-II). |
About the company
SEL is a tier-I supplier and manufactures precision engine forged components including connecting rods, crankshaft assembly and rocker arms among other products for the automotive (2Ws, PVs and CVs) and non-automotive sectors (aerospace, defence, agriculture etc.). About 72.9% of revenues was derived from auto ICE segment, while 14.4% and 12.7% came from auto tech agnostic and xEV segment and non-automotive segment, respectively in H1 FY2026. Further, it derived 70% of its revenues from the domestic market (no revenues from replacement segment), and 43% was from 2Ws in H1 FY2026. SEL has 17 manufacturing plants, including 16 facilities spread across India and one in Sweden. The promoters own 30.2% stake in the company (as of December 31, 2025), while public and institutional investors hold 14.1% and 55.7% respectively.
Key financial indicators
| Sansera Engineering Limited (Consolidated) | FY2025 (Audited) |
H1 FY2026 (Provisional) |
|---|---|---|
| Operating income | 3,013.1 | 1,591.5 |
| PAT | 215.8 | 136.4 |
| OPBDIT/OI | 17.2% | 17.3% |
| PAT/OI | 7.2% | 8.6% |
| Total outside liabilities/Tangible net worth (times) | 0.3 | 0.4 |
| Total debt/OPBDIT (times) | 0.8 | 0.8* |
| Interest coverage (times) | 7.2 | 14.8 |
Amount in Rs. crore; Source: Company, ICRA Research; Financial ratios in this document are ICRA adjusted figures and may not be directly comparable with results reported by the company in some instances; PAT: Profit after tax; OPBDIT: Operating profit before depreciation, interest, taxes and amortisation; total debt includes lease liabilities * Annualised
Status of non-cooperation with previous CRA: Not applicable
Any other information: None
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Rating history for past three years
| Current ratings (FY2026) Chronology of rating history for the past 3 years |
Current ratings (FY2026) Chronology of rating history for the past 3 years |
|
|---|---|---|
| Type Amount rated (Rs. crore) |
Date & rating in FY2026 Date & rating in FY2025 Date & rating in FY2024 Date & rating in FY2023 |
|
| January 27, 2026 January 28, 2025 February 28, 2024 February 23, 2023 |
||
| 1 Fund Based – Term Loan |
Long term 206.20 |
[ICRA]AA (Stable) [ICRA]AA (Stable) [ICRA]AA- (Stable) [ICRA]AA- (Stable) |
| 2 Fund Based – Working Capital Facilities |
Short term 739.50 |
[ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ |
| 3 Non-fund Based – Working Capital Facilities |
Short term 42.40 |
[ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ |
| 4 Non Convertible Debenture (NCD) Programme |
Long term - |
[ICRA]AA (Stable); Withdrawn [ICRA]AA- (Stable) [ICRA]AA- (Stable) |
| 5 Unallocated Limits |
Long term/ Short term 7.90 |
[ICRA]AA (Stable)/ [ICRA]A1+ [ICRA]AA (Stable)/ [ICRA]A1+ [ICRA]AA- (Stable)/ [ICRA]A1+ [ICRA]AA- (Stable)/ [ICRA]A1+ |
Complexity level of the rated instruments
| Instrument | Complexity Indicator |
|---|---|
| Long-term Fund-based Limits –Term Loans | Simple |
| Short-term Fund-based Limits –Working Capital | Simple |
| Short-term Non-fund Based Limits | Simple |
| Long-term/ Short-term Unallocated Limits | Not Applicable |
The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural, transactional or legal aspects. Details on the complexity levels of the instruments are available on ICRA’s website: Click Here
Annexure I: Instrument details
| ISIN | Instrument Name | Date of Issuance | Coupon Rate | Maturity | Amount Rated (Rs. crore) |
Current Rating and Outlook |
|---|---|---|---|---|---|---|
| NA | Term Loans | FY2016-FY2025 | - | FY2022-FY2031 | 206.20 | [ICRA]AA(Stable) |
| NA | Fund Based – Working Capital Facilities |
NA | NA | NA | 739.50 | [ICRA]A1+ |
| NA | Non-fund Based Working Capital Facilities |
NA | NA | NA | 42.40 | [ICRA]A1+ |
| NA | Unallocated Limits | NA | NA | NA | 7.90 | [ICRA]AA(Stable)/ [ICRA]A1+ |
Source: Company
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Annexure II: List of entities considered for consolidated analysis
| Company Name | Ownership % | Consolidation Approach |
|---|---|---|
| Sansera Engineering Limited | 100.00% (rated entity) |
Full consolidation |
| Sansera Engineering Private Limited, Mauritius | 100.00% | Full Consolidation |
| Sansera Sweden AB | 100.00% | Full Consolidation |
| Fitwel Tools and Forgings Private Limited | 70.00% | Full Consolidation |
Source: Company
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ANALYST CONTACTS
Jitin Makkar
+91 124 4545 368 [email protected]
K. Srikumar +91 44 4596 4318 [email protected]
Sruthi Thomas +91 80 4332 6430 [email protected]
Nilesh Kumar Jain +91 44 4596 4312 [email protected]
RELATIONSHIP CONTACT
L. Shivakumar
+91 22 6114 3406 [email protected]
MEDIA AND PUBLIC RELATIONS CONTACT
Ms. Naznin Prodhani
Tel: +91 124 4545 860 [email protected]
HELPLINE FOR BUSINESS QUERIES
+91-9354738909 (open Monday to Friday, from 9:30 am to 6 pm)
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