India's aerospace and defence supply chain is expanding as global aircraft manufacturers face large order backlogs. The Indian aerospace and defence market was valued at $27.1 billion in 2024 and is projected to reach $54 billion, or about Rs 5 lakh crore, by 2033.
Sansera Engineering is seeking to increase its share in this space as domestic manufacturing expands and global supply chains shift. The development also aligns with India's target to reach Rs 50,000 crore in defence exports by FY29.
Precision Pivot
Sansera Engineering operates across three segments: Auto-ICE, Tech-Agnostic & xEV, and Non-Automotive. Auto-ICE remains the largest contributor, accounting for about 74% of revenue.
The company supplies precision-engineered components for the automotive sector. It manufactures forged and machined parts used in critical assemblies. For two-wheelers, Sansera produces connecting rods, crankshafts, rocker arms and gear-shifter forks. For passenger vehicles, it manufactures connecting rods and rocker arms.
Tech-Agnostic Portfolio
The Tech-Agnostic & xEV segment contributes about 15% of revenue. The segment focuses on components that support electric and hybrid vehicle platforms.
Unlike engine-dependent parts, these components sit outside the engine and transmission. The company uses aluminium forging to produce components used in suspension, driveline, braking and chassis systems. Products include steering components, foot levers, footrests and mirror housings.
ADS Expansion
The Non-Automotive segment includes the ADS business. This segment is currently the fastest-growing part of the company.
Sansera works with global and Indian Tier-1 suppliers that participate in large aerospace assemblies. Tier-1 suppliers form a key part of the aerospace supply chain.
The company manufactures structural aerospace components such as actuation gimbals, door beams, actuator housings, door fittings, engine casings and bottom panel liners. Sansera supplied parts for the first set of doors for the A220 aircraft and production is increasing to meet customer requirements.
Sansera also handles precision machining and structural assembly for the Airborne Intensive Care Transport Module, or ICTM — a medical evacuation system installed on aircraft. Its aerospace client base includes global Tier-1 suppliers and international aerospace companies.
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Global Supply Chains
Some of the company's components are supplied into programmes that ultimately feed into Boeing aircraft production. Boeing faced regulatory inspections that affected output earlier, but Sansera said demand has stabilised.
The company is also seeing increased sourcing from India by aircraft manufacturers. It has added new clients in the aerospace division to diversify its customer base.
Capacity Upgrade
Sansera has expanded its manufacturing capability over the past year. Earlier, the company handled parts measuring about 1.5 to 2 metres. With five-axis machining it can now manufacture components up to four metres long.
The company is also nearing completion of an in-house surface treatment facility dedicated to aerospace manufacturing.
Airbus Contract
Sansera secured a long-term ICTM contract with Airbus worth about Rs 160 crore for light and medium transport aircraft. The company became the first Indian supplier selected by Airbus for this programme.
Sansera also received the “Make in India — Mission Airbus” award for its role in the aerospace supply chain.
Revenue Growth
The ADS segment reported a 13% year-on-year rise in revenue to Rs 123.5 crore in FY25. Management is targeting revenue of Rs 300–320 crore in FY26 and Rs 500–600 crore by FY27.
During Q3 FY26, ADS revenue increased 4.4 times from a year earlier. In the nine months to FY26, ADS revenue crossed Rs 215 crore, putting the company on track to exceed its Rs 300 crore annual target.
Order Book
The aerospace division has a strong pipeline supported by capacity expansion. As of December 2025, the cumulative unexecuted lifetime order backlog for the ADS segment stood at Rs 3,800 crore, executable through FY30.
The ADS segment now represents about 24% of the company's peak annual revenue order book for new business. Aircraft manufacturers continue to book orders faster than deliveries, creating a backlog across the aerospace supply chain.
Margin Outlook
Management expects Ebitda margins in the aerospace segment to exceed 30% once the first aerospace facility reaches full utilisation. For comparison, Sansera reported overall Ebitda margins of 18.1% in Q3 FY26 and 17.1% in FY25.
A higher contribution from ADS in the revenue mix may support overall profitability.
Capacity Expansion
Sansera plans capital expenditure of Rs 250 crore over the next few years for the ADS segment. The current aerospace plant is expected to reach its maximum revenue capacity of about Rs 600 crore next year.
The company is constructing a new facility next to the existing plant. The facility is expected to be ready by June–July 2026 and operational by August–September 2026.
Sansera is also evaluating the acquisition of additional land for future aerospace and defence expansion.
Valuation
At Rs 2,120 per share, Sansera trades at a price-to-earnings multiple of 48 times. The company reported return on capital employed of 15.2% and return on equity of 10.5%.
Sansera trades below some auto-component peers. Bharat Forge trades at 76 times earnings and Uno Minda at 56 times, while Bosch trades at 41 times.
If the aerospace segment scales as projected, the rising contribution from higher-margin aerospace revenue may influence future valuation multiples.
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