Sansera Engineering Ltd (NSE: SANSERA) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
B.R. Preetham — Executive Director & Group Chief Executive Officer
Praveen Chauhan — Head – Corporate Strategy
Analysts:
Unidentified Participant
Mumuksh Mandlesha — Analyst
Kapil Singh — Analyst
Bharat Sheth — Analyst
Khush — Analyst
Shashank Kanodia — Analyst
Priyanka shankar — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Sansare Engineering Limited Q1FY26 earnings conference call. This conference may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your Touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Br Pritam, executive director and group CEO. Thank you. And over to you sir.
B.R. Preetham — Executive Director & Group Chief Executive Officer
Thank you Ma’. Am. Good morning and welcome to everyone. Thanks for joining this call. On this call I am joined by our CFO Mr. Vikas Goel, our CEO of our ADS division, Mr. Hare Krishnan, Head of Corporate Strategy, Mr. Praveen Chawan and our COO Mr. Rahul Kale and of course our Investor Relations Advisors, the SGA team. The results and the presentation are uploaded on the Stock Exchange and the company website. I hope everybody has had a chance to look at them. For quarter one of FY26, Suncera delivered a top line growth of 3% on a year on year basis while maintaining a disciplined and healthy margin structure.
Our EBITDA margins stood at 17.2% and the pack margin at 8.2%. We are facing multiple headwinds in both domestic and global markets in this quarter which slowed down our growth momentum. However, despite that our performance has been good and in line with the overall industry. These challenges are expected to be short term in nature and should be resolved in the coming quarters with our diversified portfolio in terms of segments, geographies, customers, product range, we remain well positioned to navigate this temporary disruption and continue delivering profitable growth. In line with that, our domestic business recorded a revenue growth of around 4% on a year on year basis.
The growth was primarily driven by the healthy performance across multiple segments namely pvcv, ads, agriculture and industrial applications. However, three and two wheelers delivered muted performance. The primary impact was due to a decline in two wheeler scooter sales. Whereas two wheeler motorcycles category continues to thrive and deliver positive performance. We witnessed like the industry, strong rural demand for the entry level bikes and healthy demand for the premium motorcycles which are above 200cc. Turning to the non automotive segment, the domestic business delivered positive growth primarily driven by Agriculture and other non auto segments. XEV and Tech agnostic remained resilient for the domestic market as well.
Our international business witnessed slowness in this quarter. Exports from India excluding ads declined by 20.6% due to global uncertainties. However, our Europe business grew by about 3.5%. This was primarily due to our Swedish business which grew by 80% over 80% on a year on year basis because of the low base effect of Swedish and revenues from other countries delivered a healthy growth of 11%. Sweden business delivered its highest ever quarterly sales of INR 63.7 637 million an exceptional year on year growth of 80% but on a low base. This growth was achieved due to pricing and volume improvement with a key customer.
We expect this momentum to stabilize from quarter three of FY26 and remain at similar levels thereafter. Most segments were impacted by the slowdown in the US exports particularly the passenger vehicles, XEVS and non auto categories. However, ADS and premium two wheeler motorcycles continue to demonstrate resilience. Now coming to our order book. As of June 2025 our order book stood at INR 20,243 million with more than 60% of orders coming from the international order. We added INR17.32 million worth of new orders during the quarter mainly from the ADS segment followed by the XEV and Tech Agnostic and lastly ICE orders.
The new order wins are exactly in the direction of our long term vision and a growth strategy. The recent increase in US tariff on Indian exports has created significant uncertainty of for various companies across sectors. In this uncertain environment we have a cautious near term outlook for exports. That said, we remain confident in our position as a company with strong engineering capability, diversified product portfolio and decades of experience in this industry. We are focused on continuously outperforming the Indian auto industry and delivering accelerated growth in the non auto division. ADS remains the primary growth driver for non auto business segment over the long term.
Lastly, I would like to share that our Bidadi plant at Karnataka has been awarded the Platinum rating by the Indian Green Building Council demonstrating our commitment towards sustainability and environmental responsibility. With this I would like to hand over the call to our CFO Mr. Vikas Goyal. Take further. Thank you Pritam. Good morning everyone. I will share with you brief about the consolidated financial performance of the company. During Q1 of FY26 our revenue increased by 3% on a year on year basis reaching 7663 million as against 7439 million in Q1 of the last year which is reflective of the diversification approach that the company has taken and despite difficult circumstances across the markets we are able to maintain the growth momentum.
Our EBITDA for the quarter stood at INR13.21 million with a margin at a margin of 17.2% which is a growth of 10 basis points on a year, on year basis and sequentially about 90 basis points. We remain committed to cost optimization in this environment when the macro environment is very volatile and beyond our control. So we remain focused in terms of managing our profitability in a manner which is more sustainable. The the depreciation and amortization expenses to that INR 476 million. The gross finance cost for the quarter stood at INR 104 million on a net basis which this was because we also booked some interest income during the quarter net basis we had A interest cost about 36 million which is significantly lower than the previous year.
And this has also resulted in a healthy pat margin profile at 8.2%. In absolute terms the profit after tax was rupees 630 million with a year on year growth of 26%. Our operating cash flow net of tax continues to be healthy and stood at INR 962 million which is 13% of the operating revenue. With that we would like to conclude this briefing and open the house for question answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Mumuksh Mandlesha from Anandrati Institutional Equities. Please go ahead.
Mumuksh Mandlesha
Yeah. Thank you sir for the opportunity and congrats on the healthy margin performance. Sir, firstly can you update on this new orders of 170 crore which mainly came from. Just understand what kind of orders are being added.
B.R. Preetham
No, actually out of this about 25% has come from ads. 10% from XEV, 9% from Tex Agnostic, 30% from PVCV and 15% from the two wheeler segment. So in the ads primarily we would have both. In terms of our order inflows it is equally between aerospace and semiconductors. We are. You know what we are seeing here is very high value added products now getting added to the product portfolio unlike the earlier times. Now because of our track record and also that our focus on high Value added components. We have actually added a lot of capability in terms of taking our product sizes up to 4 meters on Phi axis along with very, very intricate special capability on machining.
So these are resulting in high value added components today compared to what we were getting earlier where the number of parts were more per order and the value for each part was lower. Today we are getting much bigger components, much intricate where the order sizes have become much bigger, larger but then the number of components have come down. So this is true in both the cases, both in terms of aerospace as well as semiconductors. Thank you.
Mumuksh Mandlesha
Yeah, I just also want to understand incrementally this quarter can you share what kind of new orders wind has happened?
B.R. Preetham
I didn’t get the question again.
Mumuksh Mandlesha
I mean in Q1 around Q1 versus Q4 there’s an increase in the order book and I just want to understand what are new orders won this quarter? Sir?
B.R. Preetham
Yeah, I mean I gave you the breakup of the segment. We have received orders from, you know our largest order was from our semicon customer. Then from also we have got one new customer added which is from US based tractor manufacturer. Then we have from our regular, you know Collins Aerospace who have been our customer for a long time. We have received orders from them as well of course from the largest, we have got further orders from our largest XEV manufacturer based out of North America. So it’s been a mix of both XCV and technology agnostic components in auto segment plus the ads.
Of course there are some of the defense orders we have received even from the company in Israel. So it’s been a mix of all this. These are amounting to about 173 crores as we have declared 1731 million peak annual revenue. This is the addition to the first quarter of business.
Mumuksh Mandlesha
And sir for this year a target of EDS reaching 2,3 crore of revenue in FY26 the mix Intex.
B.R. Preetham
Well this is Hari here. As things stand today, yes we look like we will reach what we have indicated. Basically we do not see any kind of slowdown in the ADS segment. In fact the ADS segment the pressure to accelerate the delivery and finish our FAIs are significantly high. So we are working on matching both the FAA development programs as well as bringing them onto the thing. So currently as it stands today our order book and our certainty on from the customers has not changed, has not changed anything. So we expect that as we have indicated we would want to you know double our revenue from the past year and try and reach about 280 to 300 crores.
This is what I have indicated in the previous con call and we are on path to reach that there is no change in none of these have currently whatever is the development that you are seeing they don’t seem to have any impact on ADS business as of now.
Mumuksh Mandlesha
And so in this Q1/4 scooters and tractors have seen a decline and assuming many this would be for domestic market. Any reason why we have seen a decline while last one year has been imperative for both of the segments.
B.R. Preetham
I think it is the overall market trend. So. And both these segments, scooters as well as electric is not a very big segment for us. Of course scooters constitute about 6 to 7% of our overall revenues. So we see that it’s not, it’s I think a temporary phenomena. I don’t see this as a thing. It could be one off in this quarter. So we expect that the two wheeler market to be resilient and doing well in the coming quarters in domestic.
Mumuksh Mandlesha
Got it sir. And so lastly sir, for the Sweden has seen a very good margin this quarter. Just want to understand what kind of margins we should see for the full year and also growth has been very strong. So what kind of a growth number we can expect for this year from the earlier guidance of 15 to 20% growth we had talked about sir.
B.R. Preetham
Yeah, so we are growth that we see in Q1 is basically because of a lower base in last year. But overall if you look at full year we should be achieving 20% plus growth in Sweden business on a full year basis. The margin profile will also be substantially better than what we had last year. And this is basically on back of course of factors including the volume increases, better capacity utilization and some automation that we are currently in the process of implementing which will start reflecting through the second half of this year. So overall we should have a double digit margin on a full year basis which we also achieved during the Q1.
So we expect to maintain that as we move forward.
Mumuksh Mandlesha
Got it sir. Thank you so much for the opportunity.
B.R. Preetham
Thank you.
operator
Thank you. A reminder to the participant. Anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Kapil Singh from Nomura. Please go ahead.
Kapil Singh
Good morning sir. Congratulations on a good performance in a tough quarter. My first question was on margins. We have seen a pretty strong improvement in gross margins, the raw material to sales and this was a quarter where you had a lot of headwinds like rupee had appreciated a bit and steel price and also export Mix was down and possibly some tariff impact as well. So could you just explain the dynamics here of how you were able to achieve this improvement and what was the impact of each of the elements that might have affected the margins?
B.R. Preetham
Hi Kapil. Thank you. I just will take the first half of the question and Vikas will take it over. Currently, Kapil, we don’t have any impact on our business. Currently we have been able to pass on all the impact of the tariff to the customer. So we haven’t had any negative impact onto the very minor if it is there because all our customers have actually committed that the tariff would be passed on. Most of them, I would say, not all. So most of them have committed all major customers and few of them have said that.
We will compute and come back to you, but we do not expect any major impact on our business because of tariff currently. I mean on a long term and midterm one needs to see how things will change. But currently it does not have any impact. Of course, our Swedish business has been benefited with higher capacity utilization and also the price correction which we have received from from our Swedish customer. Because there have been a lot pending activities which has been recognized and there has been a price correction that has come. So with this, both this impact, the Swedish business have contributed positively.
In fact, our other subsidiary, Fitwell Tools also has done well and their growth has also been very strong. So these are some of the factors and operationally we have taken a lot of initiatives in trying to optimize our capacity utilization, trying to optimize our manpower utilization. So these are some of the impacts that you would see. But I will leave it to Vikas to add to how he has seen the improvement in gross margin. Yeah, pretty much on similar lines, but I’ll just give it a little more elaboration. So Sweden we had 80% growth year on year.
If you were comparing against last year in the revenue. And on top of that we had a 4% improvement in the gross margin. So that volume growth plus the higher margin directly adds into the overall consolidated results. On top of that, Fitwell had a 21% growth year on year and maintaining their gross margin. So that also helped. In addition to this, we have been working on certain initiatives in terms of raw material yield improvements and certain other initiatives which have started showing during last year itself. And when you compare against the Q1 of last year it shows a marked improvement and on top of that the increased mix of ads in the overall scheme of things.
So these are some of the factors and then Minor update here. Pritam mentioned about the tariff. We have booked some tariff costs during the quarter while the customers have agreed to reimburse it. We are still awaiting the final receipt of money when we will reverse it from the cost. So currently it’s a small cost but it still sits in our P and L.
Kapil Singh
Sure sir, I mean just was observing that this is the best gross margin we have delivered on a quarterly basis. So congratulations for that. On the tariff sir, if you could just give you know what is the current situation because you know we’ve had an increase in tariffs recently. So is the export further affected or is it both in terms of revenues and order inflows? Is uncertainty affecting performance further compared to the first quarter?
B.R. Preetham
Very, very initial phase customers have not indicated any kind of change in the schedule as of now compared to what it was Kapil. But I think you know if this continues to stay like this we don’t expect this to be continuing to stay like this. I’m sure all the sites and the government are working towards resolving this and that is what is the hope that before the end of the quarter everything seems to be seems to get sorted out. I mean at least from our discussions with all our major customers. We just came back we and my colleague Hare Krishnan we were on 8, 10 days trip to us to meet all the customers and also take their inputs and views on how things are looking and what is their expectation.
So they don’t seem to be really worried at the moment because when we were there it was at 25%. 50% came later after we reached back India. So they don’t seem to be overly worried about you know, tariff situation on India. They seems to be in fact the more concern what we understood was on RSV RVC which is residual value content which is currently I think is at 65% on the USMCA region which means that all the value addition that they expect on a vehicle level to achieve 65% from the USMCA region that seems to be more focused because they expect that to go up and there are indications that it might be kind of looking at between 75 and 80% over the time.
So that is where they are more focused on tariff is a smaller issue and they think that it is a short term.
Kapil Singh
Okay, thank you sir. One small query from the presentation on slide 4. We have mentioned that we expect the Swedish subsidiary to stabilize from 3 qfy 26. So is there a further ramp up in revenues expected from 1Q levels? If you could give some color as to what’s happening there?
B.R. Preetham
Yeah, actually basically Q2 is always slightly a muted quarter there in because of the summer holidays that would come for a month’s time. So we would see a good amount of, you know, stabilization in Q3. That is why the Q comment on stabilization happening on Q3 and by the end of Q2 we would also expect our automation to be fully in place. Which means there is further cost optimization that can happen. So with the addition of new programs, we expect a reasonably stable performance from our Swedish entity. So that is what is the indication from the third quarter.
The volume stabilization and the margin stabilization will happen. Of course you will see a healthy growth year on year because the products have been added and the base of last year was also low. So we continue with overall, I think full year basis. We expect between 2025 present growth from the Swedish subsidiary.
Kapil Singh
Okay. What I was just trying to understand is the revenue and margin fully ramped up in 1Q or you know, from 3Q onward there is hope for further improvement.
B.R. Preetham
I think, I think we are at the run rate volumes as of now 10 to 11%. Yeah.
Kapil Singh
Okay, thank you. Thanks and I’ll come back in the queue.
B.R. Preetham
Thank you.
operator
Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors Private Limited. Please go ahead.
Bharat Sheth
Hi, thanks for the opportunity and good result in challenging time. You spoke about value addition at 70 75% in USA and I understand that we had bought a land parcel also in USA for value added product. So can you give some more color on that? What is the status and how do we plan to really ramp up when this type of problem arises?
B.R. Preetham
No, we haven’t bought anything in usa. We were looking at Brownfield project to start while we had. Because of the tariff uncertainty we had not while we had almost finalized and we were on the verge of due diligence for a particular site in North Carolina near Valley. But we had put it on hold because of the tariff uncertainty because none of the customers were committal on the newer programs because of these things. But now as I said that we were in the last couple of weeks we were in visit to our customer and what we understand there is that of course to defend the existing orders on a long term plus also to look at addition of the orders one needs to.
I mean we need to have definitely There is no two ways on having a facility in US but in order to achieve the US MCI norms or RSV of RVC of 65% and above, we need to decide on how much of Missioning that we need to shift. So. So it’s a fine balance today because the cost. We have already started our discussions with some of our customers as to what would be the differential cost if we have to move the component from India to US and would that offset the tariff at 10% and 25% and at 50%? Of course there is no discussion on that. It would definitely be more than offsetting it. But then it is going to be a strategic decision for every customer because this RVC is going to be on a vehicular level and they need to decide on, you know, the cost of the product that they are going to buy from outside vis a vis the content, what is going to be the content.
I am sure every customer so at the time would evaluate that and then take a decision. But of course for any new future programs we need to be having a facility. So we would be accelerating that process. And you know, we have already on the process of identifying and we have already in our discussions with couple of them to finalize. So we would appropriate at the appropriate time. We will come back and give more information about it.
Bharat Sheth
And second part on last year we started a large part aluminum casting. So what stage we are and how do we see over the next in FY26 and 27 a business from that and what level business development as well as customer additions are happening?
B.R. Preetham
No, you mean aluminum forging. Because not. We are not into aluminium casting. We are into my bed aluminum forging. Aluminum forging. We are, you know, while all this day the thing now we are on the process of as I had told that now we have taken almost six press lines, we have poured and the business is on stable basis now because we have developed more than 100110 components for various customers across the premium two wheeler segment. While having said that we have added 2,500 and 4,010 process into our new Ford shop in Bidadi which would also be catering. And we are looking at some very, very intricate new components to be developed. There is some development that is going on for a passenger vehicle customer.
And we are also in discussion to look at various other opportunities that are there in both suspension and driveline parts on the aluminium front. Of course all these things would not happen overnight. It would take some time because we’ll have to demonstrate our capability and our engineering ability to develop these components. So we are on that process. We are quite confident that for the facilities that we have set up and know how that we have now gathered over the last three years our foray into the passenger vehicle will not be that difficult is what we think.
Bharat Sheth
What kind of revenue in 27 do we expect from this and what some color on the either gross margin or EBITDA side?
B.R. Preetham
I think. See we had already said that, you know, aluminium is going to be as aluminium for the FY27. You know, if you really look at our order book and the way that we should target about 500 crores coming out of overall aluminium portfolio now it also depends on how well the premium motorcycle segment does in India. Because we are present in most of the premium motorcycle segment. We are also looking at more opportunities to expand aluminum forgings in the export markets as well. So we are working towards achieving sustained the business order book of 500 crore plus over the time.
Bharat Sheth
Okay, and last question on the connecting road, what we understand that again a lot of, I mean the kind of challenge EV is facing. So a lot of player are also rethinking ongoing or developing a new platform for ICE engine. So how are we seeing and global level our capacity that we have and how do we want to leverage that part?
B.R. Preetham
So as you know, we have been one of the leading players at least outside the OEM because a lot of European and North American OEMs traditionally used to make the components in their own shops. But those trends have changed and people are looking at increasingly outsourcing this component. Of course, because there was last three years, as you are rightly said, that all these programs were on hold because a lot of focus was on EV. And we see a lot of renewed interest in the revamping of the existing platforms and also introducing newer platforms. We are working with multiple customers.
We are largely, we are present with all the major OEMs, I would say all the three major OEMs in US and also the European OEMs. So we are present with all the major OEMs and we are, you know, in discussions with various programs. Of course there has been a slight, you know, pullback from the customers on the speed at which it was going because of the tariff issue. They didn’t want it. There was lack of clarity on how do you allocate the project, whether to go towards Asia or look at Mexico and Canada and U.S.
and all these, because this was cost against regional content. So I am sure over some time this will all get sorted out and we expect a lot of new platforms to be introduced by FY28. So that is where we are working with multiple customers, both in auto as well as in non auto. Like stationary engines, you know, stationary engines. Industrial. So all these are industrial applications and tractors. All these are platforms within which we are trying to work along with the passenger vehicle.
Bharat Sheth
Okay, thank you. And all the.
B.R. Preetham
Thank you.
operator
Thank you. Next question is from the line of Kushner from Lectum pms. Please go ahead.
Khush
Yeah, hi sir. Thank you for the opportunity. So there’s two questions from my side. Number one, so considering the geopolitical situation right now and our order book, what kind of growth are we seeing for the company in the next three years? If you could elaborate maybe you know, segment wise that we are in. And my second question was more on the ADS segment. So like we mentioned that we have, we might double our revenues in FY26 to around 280, 300 crores. So if you could elaborate a bit in terms of what kind of overall addressable opportunity that we see in this segment for the next three years, five years, what is the vision for the segment? So, you know, some direction, maybe this segment becomes as big as the company level revenues that we are today.
So some direction on that side.
B.R. Preetham
Yeah, you know, geopolitical situation is very volatile and I’m, I am not in a position to give you any kind of numbers at least till the time the, till the time the situation gets better. Because you know, there could be a lot of realignment of the supply chain that could happen because of various, once the tariff gets settled down, depending upon where we are going to land so on the tariff there could be a. Lot of. Also in North America, as I explained that regional value content is also one of the key elements. So we may have to really look at how to be more aggressive in North American market. What do we need to do? That is the direction in which we are working. We have also appointed a sales agent for representing us in Korea who’s been in the industry. So we were not present there and we wanted to explore that opportunity and we have recently signed up a representation there. We think that having a person in Korea would have good impact on the customers with whom we work.
And so for us, the East Asian market is something that we are going to focus more on. We are also looking at some more opportunities in Japan and around Asia to strengthen this opportunity. While I would say that we will take some more months before we could firm up our business plan. We have a long term rolling plan which we are already working on. But short term, how this impact will change that? It’s very difficult to say that we would be cautiously optimistic looking at this. But ads, of course, as I have said that that’s something that we are very bullish upon.
It is currently resilient to all this current development because most of the semiconductor business that we have contracted the end market or the final destination we understand is not the US So there is some amount of resilience there. And I also understand from our aerospace customer that they have been exempted. So we are looking at not a big tariff impact on those businesses. So we are quite hopeful that we should be able to reach our targeted revenue of 280 to 300 crores this year. And then we are also looking at a very strong order book.
Like last time I said that in three years time we are looking at about reaching 1000 crore. And we are already about with including our current business that we are executing and the new order book, we are around 750 crores. Close to about 750 crores. So there is not much of a gap that we need to fill to achieve that thousand in terms of the order book. So we are working on building more resilience into our business model in order to overcome such uncertainty. If things go as per customer projections, the ads, as Brigham said, should hit the peak revenue of the orders booked by FY2728.
Yes. And then further growth is definitely the traction looking very good. The new order wins are looking very nice. So everything finally depends, as Pritam said, on where the tariffs really settle down after this storm. And then we will be able to give little more clarity.
Khush
Right sir, thank you so much for the detailed answer. If one last question I can squeeze in. So on the Mr. MMR fic side, so how much stake do we have as on date and do we intend to increase it and then consolidate? Because I think and the second question related to that is are the product segment different than our current ADS system or is it a bit overlapping?
B.R. Preetham
Mmrfic we are currently around if we are fully between, you know, depending on their this year performance, we should be between 33 and 35% for whatever money we have already invested. But you are as you are aware that we have the right to go up to 51%. And as and when the company needs the further revenue to their growth, they have been awarded with some very very exciting projects both from the government and the space projects. So they are working. I mean they have been quite busy in working on these projects, developing technologies for the thing and also productionizing this technology.
So we are really excited about our prospects in mmrfig. We know that there is a long Runway there. We need to be patient on that but the technology that they are working on is totally different to what we are doing in ads. See in our ads we are very focused on our mechanical machining, high precision machining. Whereas the MMRFIC is totally a segment which is unrelated to what we are doing in Sancera that they are working on radar technology. So radar technology for both defense and non defense applications. So that way there is no overlapping of any of this except that in some of their, you know mounting structural path they could use our, you know, our capabilities on missioning some of their chassis and other other parts.
But other than that there’s no overlapping in what we are doing and what they are doing.
Khush
Right sir. So any numbers if you can provide for MMR. If I see in Q1 how was their performance, their EBITDA margins, etc.
B.R. Preetham
See I think for MMRFIC the overall because they work on a lot of projects and project revenues are all, you know, it’s all six months, nine months revenue. I don’t see it is off for you to discuss on quarterly numbers on an overall basis, on a yearly basis this year we look at them anywhere between 35 and 40 crores of revenue as what has been projected and they would have a very healthy EBITDA margins. Of course we see a lot of acceleration in you know, government intent in productionizing these technologies because these are all technologies which have been which are being imported and there’s a long lead time of development and testing.
So we see that there is a lot of acceleration that is happening in adopting this technology into the field. So which gives us more confidence on you know, productionizing these technologies much faster so than what we had anticipated earlier.
Khush
And lastly the order book that we’re expecting to close maybe MMR fic that would give some clarity.
B.R. Preetham
I don’t have immediately the order book details of MMR fic. We will get back to you through our you know, SGA because these are both long term and short term. So defining this order book is slightly more trickier than what we have. So we would come back to you on the order book details on MMRFIC later.
Khush
Thank you so much for the detailed answers. Thanks.
operator
Thank you. Before we take the next question, I would like to remind the participants. Anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Shashank Kanodia from ICICI Securities. Please go ahead.
Shashank Kanodia
Yeah, good morning sir. So just wanted to check. So with all the turbulence in the domestic and export market. So will it be Difficult for us to clock double digit revenue growth this year or do we feel confident of clocking mid teens kind of a revenue growth which has been our endeavor always.
B.R. Preetham
I would really like to answer this question more confidently than what I am today because there’s so much of uncertainty that every day things are different. Looking at it largely depends on how this tariff would settle down. I can only talk about certainties where we have domestic business. Of course we are looking at between 5 and 8% growth for or towards mostly towards 8 to 10% in the two wheeler sector industry wide and about 0 to 3% on passenger vehicle Monsoon being good. So the other things also should improve. We think that our Swedish subsidiary is doing well, our ads is doing extremely well.
And with all these things we definitely hope that we will be positive growth. But what is the extent of positive, whether it will be double digit, whether it will be mid teams, high teams, One needs to be. I don’t have that answer currently. I would also be cautiously wait and watch approach because we need to calibrate our business models as the things progress. So we are working on towards that. So I am today I don’t have clear cut answer for your question.
Shashank Kanodia
Thank you. So but on the order book side you always maintain a thing that, you know, we heat up three quarter book in three years kind of time frame. Right. So given the fact that we are at roughly, you know, 3,000 crores of revenues last year and with 2,000 crores of order book now, so are we like 5,000 crores of revenue look likely in effect on T8. Is this a fair consumption to work upon?
B.R. Preetham
Yes, yes. That is the assumption with which we work and generally that it follows the same path. But then you know, one needs to be also cautious here that if there is some realignment of supply chain that would happen in the future, if this tariff impact is going to continue or you know, worsen, then we will be looking at realigning our business model. So it could have a impact on the overall pricing. Suppose if we are supplying a component from India to say North America at X rupees and if a larger portion of that value addition needs to be shifted to the North America, of course the X will become you know, 1.25, 1.3x depending upon how much of this thing.
So that will have definitely an impact on maybe having a positive impact on revenue. But then again it also depends on how fast we can adopt that. And depending on that the share of businesses will also be decided by the customer. So it’s a Very fluid situation. But we think that most of it would be we should be able to defend our existing order book and also look at strengthening the order book in the future. So overall what you see, what you said in the three years, adding this to the thing is a very big, very good possibility.
Shashank Kanodia
And then lastly on the margins front, so we always need an endeavor to reach 20% kind of a thing. Right. So but we think the market has been weak for last two years. So we have been hovering in the 17% kind of a bracket. Right. So do you want to put a timeline to add to when can we reach 20% EBITDA margin profile and is it like 1500 basis points possible every year? Improvement is something that we should look at delivering from the company.
B.R. Preetham
Yeah, actually this 20% is a mid to long term target that we are working on. Of course the change in product portfolio to more of 20% coming from non automotive, 20% from XEV and that too. And also stabilization of our MMRFIP would definitely aid the path towards 20%. I would say that, you know, while we were fortunate to maintain our margins at this, we were. Unfortunately there are so many headwinds that have been not expected. Otherwise we would have definitely taken steps to achieve that 50 to 75 basis points year on year. Now these are the initiatives that is helping us to manage the margins at the current difficult times.
I would only say that once the things get normalized, you would see the impact on a positive side of all these initiatives.
Shashank Kanodia
Right. I said lastly one small clarification. I think last month there were news at a very. Karnataka government has kind of pulled out of land from farmers for the new aerospace and defense park near Bengaluru. So our venture, our land acquisition is separate from this, Right? So these are two separate things or are we also impacted from that point?
B.R. Preetham
No, no, we were not in that portion of the land where we have got the land on the opposite side near the Haroholi industrial area, which is a 55 acre parcel of land where already the industrial development has started and taking place and we are on the final stages. We have already secured the lease come sale agreement from the government of Karnataka and we are in the process of registering that land. So this has got nothing to do with that, you know.
Shashank Kanodia
Thank you so much. And we show the best.
B.R. Preetham
Thank you.
operator
Thank you. The next question is from the line of Eyesight Center Private Limited. Please go ahead.
Unidentified Participant
Morning to the Sancera team and I have a specific question for Mr. Praveen. Is Mr. Praveen Chauhan online?
B.R. Preetham
He is online.
Unidentified Participant
Yes, sir. For you are saying. You are saying something. Yeah. Good morning sir. My name is Sukrut Patel. My question to you is as Sancera looks to grow beyond its core auto business, especially with the traction you’re seeing in high tech, agnostic and X EV segments, how are you thinking about expanding into newer verticals or areas that could structurally diversify the revenue mix, improve the margin growth? And if some of these bets say in aerospace or the premium EV components face a slower ramp up or there are some issues going ahead, what kind of fallback or alternative growth plans are you building to keep the momentum intact? Thank you very much.
Praveen Chauhan
Thank you. It’s basically a question on a long term strategy. If you look at our historical last five years, we have been diversifying into a model wherein our dependence on ice would be 60% and dependence on other technology, agnostic, non auto and emerging technologies would be around 40%. We have very aggressively diversified into various areas. You would have seen that we have gone into aluminum forging, we have gone into semiconductor. We have expanded our bases into aerospace of various segments of aerospace. We are also looking at aggressively into non segments like industrial application, agricultural applications.
We were already into off roading and so on and so forth. We continue to strive to look at opportunity. But as of now, if you see, we have lot of things in our hands and we strongly believe that these areas will continue to expand and has given a wider spectrum of addressing the market to us will continue to be a very interesting area. We have already gone into to the extent that we have had a similar kind of business from EV sector looking at two wheelers and maybe now looking at passenger cars also. So right now we see that we have enough on our hand.
We have been expanding quite well. Our visibility over the orders and the business over the next three to five years is quite strong. But we do not stop here. We continue to look at inorganic groups, we continue to look at newer emerging areas. We continue to get areas which our customers indicate that these are potentially large scope areas which as of now is difficult to reveal. But we can only assure you that we continue on a path of high growth, high diversification, while continue to remain strong in our legacy parts, particularly correcting rot. That’s what we can say as of now.
B.R. Preetham
Just to add to what Praveen said, Pritam here. See, resilience is something that we have been working on to build resilience against technology obsolescence, resilience against geopolitical situation. So in continuation of that we are looking at, you know, Looking at some very critical aluminium and steel forged components which are currently being used imported into India. While these components may require some kind of technologies, we are working on definitely getting into those products and you would hear from us in the near future as to how we are trying to get this. This would be more diversification into technology agnostic, non engine, non transmission kind of components which are very, very precision in terms of both forging and machining both in aluminum and steel.
So this is something that you know we are working on and you will hear more of this in the coming quarters from our side.
Unidentified Participant
Thank you. Just to close the loop, if you had to call out one non auto segment or area which you are most confident about in the near term what would that be?
B.R. Preetham
You mean one segment where we we would put our bets on, Is that what you’re asking?
Unidentified Participant
Yes, definitely.
B.R. Preetham
As I have said that we have been see because we have invested over a decade in our capability building in aerospace and defense and and that has aided us to look at I mean get more orders from the semicon as well. So ADS is our prime mover. We have already said that. And to in order to capture not only the, you know, semicolon market in both US based customers, we are also looking at opportunity to work with Japanese customers and how do we get into those because that is also a big market. So ADS is our prime mover, our focus.
Our resources are definitely more skewed towards ADS now.
Unidentified Participant
Thank you very much for the guidance and I wish you best of luck for all your future ventures.
B.R. Preetham
Thank you.
operator
Thank you. The next question is is from the line of Prashankar from Mir Asset Capital Market. Please go ahead.
Priyanka shankar
Yeah hi, thank you for the question. Sir, I have a question on the plant reincarnation and the peak revenue potential from the plant. If you can help on that. And in CV vertical we have seen a good growth during the Q1 by around 43% and Y just want to understand what could be the growth for the year or year and what could be the reverse of that.
B.R. Preetham
I would ask my colleague Praveen to take this. Praveen, would you give a flavor of Sweden.
Praveen Chauhan
On the Sweden side We have been saying for the last couple of years that there is a change in the product portfolio. We are adding couple of new emerging high volume businesses. So last year had been the development phase. This year we have already started on that and it’s already visible that we are Talking about around 20% growth on the top line. On the operational side we had been. We have invested, we are in the process of investing. Over the next two to three months time we’ll stabilize and conclude those investment part of it to reap the benefits of this growth.
Now this year is a good growth and we see a similar kind of a momentum going on at least for another one year after that. How this entire global thing would stabilize and how our customer would look at global markets would be something not very easy to see. But then we are hopeful that our capacity utilization would be pretty good. So that’s how Sweden and that will certainly impact our margins. Margin decides around.
B.R. Preetham
I think our expected revenues from Sweden done would be around 225 crores for the whole year.
Praveen Chauhan
That’s right, yeah.
B.R. Preetham
On a fixed currency basis we haven’t taken any currency. Approximately 25%.
Priyanka shankar
What is our growth assumption and what are the lever we are gooding at this 46% growth?
B.R. Preetham
CV is primarily driven by CV have a couple of customers in India now we have ibco, cnh. We also have Daimler in India. But then primarily TV business is driven by the Sweden business. So you would only look at TV business as because of you are seeing that growth because of the contribution from Sweden.
Priyanka shankar
Thank you.
B.R. Preetham
Thank you.
operator
Thank you ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to the management for closing comments.
B.R. Preetham
Thank you very much for all your participation. While we are you know, part of cautiously optimistic about the future quarters growth prospects, we are definitely building more resilience into our business model to defend and improve our margin profile as well as look at more new opportunities beyond the geographies that we are working on. EDS definitely as we have reiterated is a very important portion in that aspect and we are putting all our resources and energy into it. So with this I would like to conclude this. You know this investor call and any further questions you may have you could reach us directly or through our IR from sga.
And thank you very much for your patience and the cooperation. Thank you very much. Thank you.
operator
Thank you on behalf of Pancera Engineering Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.