SAN ENGINEERING AND LOCOMOTIVE COMPANY LIMITED

Company: SAN Engineering and Locomotive Company Limited
CIN: U74210KA1973PLC002424
ISIN: INE031H01012
Face Value: ₹10
Incorporated: 3 October 1973
Registered Office: Whitefield Road, Bengaluru, Karnataka
Status: Active Unlisted Public Company
Industry: Railway Equipment / Industrial Engineering / Power Transmission

Official Website: SAN Engineering & Locomotive Company Limited
Official Investor / Annual Reports Page: SAN Engineering Investor Details

Executive Summary

SAN Engineering and Locomotive Company Limited, commonly known as SAN Engineering, is a Bengaluru-based engineering company with roots going back to 1969 and the present corporate entity incorporated in 1973.

The company started as a locomotive manufacturer and has evolved into a diversified engineering business covering:

Diesel-hydraulic locomotives
Diesel-electric locomotives
Power packs
Gearboxes
Turbo reversing transmissions
Cardan shafts
Gears
Railway components
Industrial transmission solutions

The company states that its products are used across railway, industrial and other heavy-engineering applications. Its website highlights diesel-hydraulic shunting locomotives powered by Cummins or Caterpillar engines, with hydrodynamic transmissions engineered by Voith and manufactured by SAN in India.

The FY2026 financial picture is mixed.

FY2026 consolidated numbers

Revenue from operations: ₹295.59 Cr
Total income: ₹298.82 Cr
EBITDA: approximately ₹33.19 Cr
PBT: ₹26.73 Cr
PAT: ₹19.93 Cr
EPS: ₹44.80
Operating cash flow: ₹28.45 Cr
Net worth: approximately ₹303.95 Cr
Total assets: ₹361.54 Cr
Cash & cash equivalents: ₹10.98 Cr
Investments: ₹17.45 Cr

FY2026 revenue grew around 11.4%, but PAT fell sharply because FY2025 benefited from a ₹25.05 Cr exceptional gain on sale of property, plant and equipment and FY2026 did not have that benefit.

At an indicative unlisted price of around ₹850/share, the company has an implied market capitalisation of approximately ₹378 Cr. The FY2026 P/E based on reported EPS of ₹44.80 is approximately 19x, while P/B is approximately 1.25x using the reported book value of about ₹680/share.

The key investment question is therefore not simply whether SAN is a profitable engineering company. It is whether future growth in locomotives, railway equipment, power packs and transmission products can restore margins and ROCE after the FY2026 earnings decline.

Company Overview

SAN Engineering has a long operating history in Indian engineering.

The company describes itself as a manufacturer of:

locomotives, power packs, gearboxes, cardan shafts and technologically advanced rail products.

Its official website states that the company has developed products using experienced engineering teams and has built capabilities across design, manufacturing and customer support.

Company website: Visit SAN Engineering’s official website

History

SAN began as a locomotive manufacturing business in 1969.

Over time, it diversified from locomotives into:

Power packs
Gearboxes
Transmission systems
Cardan shafts
Gears
Railway equipment
Industrial machinery components

The company’s evolution from a locomotive manufacturer into a multi-product engineering business is an important part of the investment thesis.

Current unlisted-market sources also describe SAN as a multi-product, multi-market engineering company with capabilities in locomotives, transmissions, gearboxes and power packs.

Business Model

SAN operates primarily as a B2B engineering manufacturer.

The company designs, manufactures and supplies specialised mechanical and railway equipment rather than selling standard consumer products.

Its business can broadly be divided into four areas.

1. Locomotives

SAN manufactures:

Diesel-hydraulic shunting locomotives
Diesel-electric locomotives
Industrial locomotives

The company focuses particularly on shunting locomotives, which are used for moving wagons and material within industrial facilities, ports, steel plants and other locations.

2. Power Packs

SAN manufactures power-pack solutions for applications including:

Railway vehicles
Overhead equipment cars
Self-propelled vehicles
Cranes
Specialised industrial applications

3. Gearboxes & Transmissions

This is an important diversification area.

The company’s gearbox products have applications across:

Steel
Cement
Sugar
Power plants
Industrial machinery
Defence-related equipment
Material handling

The company also manufactures turbo reversing transmissions and heavy-duty cardan shafts.

4. Railway Components

SAN also manufactures components and systems for railway vehicles.

This provides exposure to the broader railway-equipment ecosystem rather than only locomotive sales.

Product Portfolio

Diesel-Hydraulic Locomotives

SAN’s website highlights locomotives powered by Cummins or Caterpillar engines combined with hydrodynamic transmissions engineered by Voith and manufactured by SAN in India.

Diesel-Electric Locomotives

The company also offers diesel-electric solutions for industrial and railway applications.

Power Packs

Power packs are designed for specialised railway and industrial equipment.

Gearboxes

SAN manufactures gearboxes for a variety of industrial applications.

Historical company information indicates applications ranging from:

Battle tanks
Steel mills
Sugar plants
Cement plants
Conveyors
Power plants

This diversification makes the gearbox business particularly relevant because it reduces dependence on locomotive sales.

Cardan Shafts

Heavy-duty cardan shafts are used for transmitting mechanical power in industrial applications.

Manufacturing Capabilities

SAN operates manufacturing facilities equipped with high-precision CNC machining capabilities.

Current company information describes two manufacturing plants, supported by:

CNC horizontal machining centres
CNC vertical machining centres
Gear manufacturing
Precision machining
Testing capabilities

The company also states that it has more than 500 employees, including more than 200 sales and service engineers, a 40-member R&D/product-development team, and qualified engineering personnel on the shop floor.

Company people / engineering information: SAN Engineering – Our People

Technology & Engineering

SAN’s competitive positioning is based significantly on engineering capability.

The company says it focuses on:

Product development
Engineering design
R&D
Strategic technology partnerships
Customer-specific solutions
Product reliability
Lifecycle support

Its locomotive products combine engines from global manufacturers with transmission technology and SAN’s own manufacturing capabilities.

This combination can create entry barriers compared with simple fabrication businesses.

Industry Opportunity

Indian Railway Modernisation

India’s railway ecosystem is undergoing significant modernisation and expansion.

Demand exists across:

Locomotives
Railway components
Maintenance equipment
Shunting systems
Power packs
Transmission systems

SAN is positioned more toward specialised railway and industrial equipment rather than being a direct play on passenger-train manufacturing.

Industrial Automation

Large industrial facilities increasingly require specialised internal logistics and material movement.

Industrial locomotives can be used within:

Steel plants
Ports
Cement plants
Mining facilities
Manufacturing plants

This provides a second demand pool beyond Indian Railways.

Defence & Heavy Engineering

SAN’s gearbox and transmission capabilities potentially provide opportunities in defence and heavy engineering.

The company’s products have historically been used across specialised industrial and defence-related applications.

Replacement Market

A significant advantage of industrial equipment is that customers eventually require:

Replacement
Maintenance
Spare parts
Overhauling
Upgrades

This can provide recurring revenue beyond new equipment sales.

Financial Performance

Consolidated Financials

₹ Crore	FY23	FY24	FY25	FY26
Revenue	200.40	226.00	265.34	295.59
Total Income	—	—	268.97	298.82
EBITDA*	~30	~40	~44.90	~33.19
PBT	25.22	~37	63.29	26.73
PAT	18.70	~28	49.86	19.93
EPS	42.70	62.92	112.04	44.80

*Approximate EBITDA calculated using PBT + finance cost + depreciation where required.

FY2026 revenue increased from ₹265.34 Cr to ₹295.59 Cr, an increase of approximately 11.4%. However, PAT fell from ₹49.86 Cr to ₹19.93 Cr.

Why Did PAT Fall So Much?

This is one of the most important points in the report.

FY2025 included:

₹25.05 Cr exceptional gain from sale of property, plant and equipment.

FY2026 did not have this gain.

Therefore, comparing FY2026 PAT directly with FY2025 without adjusting for the exceptional gain can give an exaggerated impression of operating deterioration.

A more useful metric is:

FY2025 PBT before exceptional item

Approximately:

₹38.24 Cr

FY2026 PBT

₹26.73 Cr

This still represents a decline, but the underlying decline is much smaller than the headline PAT decline.

Therefore:

FY2026 was weaker operationally, but the 60%+ PAT decline is partly due to the absence of the FY2025 property-sale gain.

EBITDA Margin

Approximate EBITDA:

FY25

~₹44.9 Cr

Revenue:

₹265.34 Cr

EBITDA margin:

~16.9%

FY26

~₹33.2 Cr

Revenue:

₹295.59 Cr

EBITDA margin:

~11.2%

This indicates genuine operating-margin pressure.

Third-party financial databases report FY26 EBITDA around ₹30.7 Cr and operating margin around 10.39%, depending on their EBITDA methodology.

Therefore, the key issue for FY27 is margin recovery.

Balance Sheet

FY26 consolidated balance sheet:

Particulars	FY26
Total Assets	₹361.54 Cr
Equity Share Capital	₹4.45 Cr
Other Equity	₹299.50 Cr
Total Equity	~₹303.95 Cr
PPE	₹74.88 Cr
CWIP	₹0.42 Cr
Inventory	₹73.82 Cr
Trade Receivables	₹147.64 Cr
Investments	₹17.45 Cr
Cash	₹10.98 Cr
Other Bank Balances	₹11.11 Cr

Debt Position

One of the attractive features of SAN’s current balance sheet is its relatively low financial debt.

FY26 finance cost was only:

₹0.65 Cr

against revenue of ₹295.59 Cr.

The company therefore does not appear to have a significant conventional interest-bearing debt burden at the consolidated level.

However, MCA-related records show open charges of ₹177.5 Cr with State Bank of India, so investors should distinguish between registered security charges and actual outstanding borrowings. A charge can remain on the MCA record even when the underlying utilisation or balance differs.

This should be verified against the latest audited borrowing schedule before investment.

Working Capital

The major balance-sheet concern is receivables.

FY26:

Trade receivables = ₹147.64 Cr

against revenue:

₹295.59 Cr

Therefore, receivables represent approximately half of annual revenue.

This is significant.

The company did, however, improve its receivables turnover ratio from 169x to 177x according to the reported ratio table.

Inventory declined:

₹93.62 Cr → ₹73.82 Cr

This helped operating cash flow substantially.

Cash Flow Analysis

FY2026 operating cash flow:

₹28.45 Cr

FY2025:

-₹28.30 Cr

This represents a significant improvement.

The improvement was primarily driven by:

₹19.80 Cr reduction in inventory
Better working-capital movement
Improved cash conversion

However, the company spent approximately:

₹36.66 Cr on PPE

during FY2026.

Consequently:

Investing cash flow = -₹20.25 Cr

The capex indicates continued investment in manufacturing capacity and equipment.

Return Ratios

FY2026 reported:

ROE: 6.35%
ROCE: 6.48%
ROI: 5.21%
Net profit margin: 6.46%

FY2025:

ROE: 18.57%
ROCE: 18.91%
Net profit margin: 18.42%

The sharp fall in return ratios is a key monitorable.

However, FY2025 was boosted by the exceptional property-sale gain, so FY2025 ROE/ROCE should not be treated as a normalised recurring benchmark.

Dividend

SAN has historically paid dividends.

The FY2025 AGM notice proposed:

₹10/share dividend

for FY2024-25.

The FY2026 cash-flow statement shows:

₹4.45 Cr dividend paid

which is consistent with a ₹10/share dividend on approximately 44.5 lakh shares.

At an indicative ₹850 share price, the ₹10 dividend represents a historical yield of approximately:

1.18%

The yield is not the main investment thesis; capital appreciation and earnings growth are more important.

Shareholding

Current FY26 shareholding reported by unlisted-market sources is:

Shareholder	Holding
Milind S. Thakker	45.02%
Sonmil Engineering Pvt Ltd	34.43%
Importex International Pvt Ltd	9.33%
Anjana M. Thakker	6.71%
Others	4.51%

Promoter and promoter-related ownership is therefore highly concentrated.

This creates strong ownership alignment but also contributes to limited free float and low liquidity.

Management

Milind S. Thakker

Chairman

The company has reported more than three decades of management experience associated with the leadership.

Ramanathan Narayanan

Managing Director & CEO

He is reported to have more than 40 years of experience.

The current board also includes professional/independent directors including Jasjiv Sahney, Shiv Dayal and Yash Gupta according to available company records.

Subsidiaries

SAN Engineering has two principal subsidiaries:

SAN Motors Limited

CIN:

U34103KA1997PLC101338

SAN Motors is an automotive/auto-components subsidiary of SAN Engineering. Publicly available MCA information identifies it as an active subsidiary.

SAN Rolling Stock Services Limited

CIN:

U74999KA2017PLC102366

The company is part of the SAN group structure and focuses on rolling-stock-related activities.

The official SAN investor page provides separate financial statements for both subsidiaries.

Official subsidiary financial statements: SAN Investor – Subsidiary Financial Statements

Engineering & R&D

SAN states that it has:

40-member R&D/product-development team
200+ sales and service engineers
Qualified shop-floor engineers
Internal training programme
Continuous product development

This is important because the company’s competitive advantage is primarily engineering capability rather than scale manufacturing alone.

Competitive Advantages

1. Long Operating History

The business has been associated with locomotive manufacturing since 1969.

2. Engineering Capability

SAN designs and manufactures locomotives, transmissions, gearboxes and power packs.

3. Diversified Applications

Products are used in:

Railways
Steel
Cement
Sugar
Power
Ports
Industrial machinery
Defence-related applications

4. Technology Partnerships

The company’s locomotive ecosystem includes technology/components associated with global names such as Cummins, Caterpillar and Voith.

5. Low Financial Leverage

FY26 finance costs were only ₹0.65 Cr.

6. Strong Liquidity

Current ratio was approximately 4.97x in FY26.

7. Promoter Ownership

Promoter/promoter-related ownership is highly concentrated.

Growth Drivers

Railway Infrastructure

Continued investment in railway infrastructure can create opportunities for specialised equipment and components.

Industrial Shunting

Steel plants, ports, manufacturing facilities and other industrial complexes require locomotives for internal movement.

Power Transmission

Gearboxes and transmission products can provide a diversified revenue stream.

Defence

Specialised transmission and gear products can potentially address defence applications.

Export Markets

Engineering products can be exported where SAN has suitable certifications and customer relationships.

After-Sales

Service and replacement parts can create recurring revenue from installed equipment.

Key Risks

1. FY26 Margin Compression

Revenue grew 11%, but EBITDA declined significantly.

This is currently the most important operating issue.

2. High Receivables

Trade receivables of ₹147.64 Cr against revenue of ₹295.59 Cr require monitoring.

3. Project/Tender Cyclicality

Large industrial and railway orders can be uneven, causing quarter-to-quarter volatility.

4. Customer Concentration

Specialised engineering companies can have substantial dependence on a limited number of customers.

5. Raw-Material Costs

Steel and other engineering materials influence margins.

6. Working-Capital Requirements

Large orders may require inventory and receivable funding before cash is collected.

7. Unlisted Liquidity

There is no continuous NSE/BSE price discovery.

8. Valuation Risk

At ₹850, the company is not trading at a deep discount based on FY26 earnings.

Current Unlisted Share Price

As of September 2026, different platforms show materially different indicative prices.

UnlistedZone

₹850/share

as of 10 September 2026.

Indicative market capitalisation:

₹378 Cr

44.50 lakh

Lot size:

50 shares

The platform explicitly states that its price is indicative and not a live exchange quote or offer to deal.

Current indicative reference: SAN Engineering – UnlistedZone

Neoma Capital

₹841.50/share

as of 10 September 2026.

The platform reports market capitalisation of approximately ₹374.47 Cr.

Current indicative reference: SAN Engineering – Neoma Capital

Because this is an unlisted security, these prices should be treated as indicative OTC references rather than exchange-traded market prices.

Current Valuation

At ₹850/share:

Shares outstanding:

44.50 lakh

Implied market capitalisation:

₹378.25 Cr

FY2026 EPS

₹44.80

Therefore:

P/E ≈ 19.0x

Book Value

Approximately:

₹680/share

Therefore:

P/B ≈ 1.25x

The reported third-party valuation data broadly supports a book value around ₹680/share and P/B around 1.25x.

Valuation Sensitivity

Using FY2026 EPS of ₹44.80:

P/E Multiple	Implied Value
10x	₹448
12x	₹538
14x	₹627
16x	₹717
18x	₹806
20x	₹896
22x	₹986
25x	₹1,120

At approximately ₹850, the market is effectively valuing the company around 19x FY26 earnings.

This means future earnings recovery is important.

Normalised Earnings Approach

FY2025 included a ₹25.05 Cr exceptional property-sale gain.

Therefore, FY2025 reported PAT of ₹49.86 Cr is not an appropriate standalone measure of recurring earnings.

FY2026 PAT of ₹19.93 Cr is therefore a more conservative current earnings base.

If FY27 earnings recover to:

₹25 Cr PAT

EPS would be approximately:

₹56/share

At 15x:

₹840/share

At 18x:

₹1,008/share

₹30 Cr PAT

EPS:

₹67.4/share

At 15x:

₹1,011/share

At 18x:

₹1,213/share

These are scenario calculations, not forecasts.

What Needs to Improve

For the valuation to become more compelling, investors should monitor whether SAN can achieve:

1. EBITDA margin recovery

From ~10–11% currently toward the mid-teens.

2. PAT recovery

From ₹19.9 Cr toward ₹25–30 Cr+.

3. Receivables control

₹147.6 Cr receivables need to remain under control as revenue grows.

4. Higher asset utilisation

FY26 PPE increased significantly to ₹74.88 Cr following ₹36.66 Cr of capex.

5. Stronger ROCE

FY26 ROCE of 6.48% is significantly below FY25’s reported 18.91%.

IPO / Listing Status

SAN Engineering is currently unlisted.

Available unlisted-market data indicates:

DRHP filed: No

There is no confirmed IPO date that should be assumed as a valuation catalyst.

Investors should therefore evaluate SAN primarily on business fundamentals rather than buying solely on expectations of a future IPO.

Investment Framework

Business Quality

The company has a differentiated engineering franchise with:

Long operating history
Locomotive manufacturing
Transmission expertise
Gearbox manufacturing
Power-pack capabilities
Industrial applications
R&D capability
Service infrastructure

Balance Sheet

The balance sheet is relatively comfortable:

Current ratio ~4.97x
Low finance cost
₹28.45 Cr operating cash flow
₹303.95 Cr consolidated equity

Earnings

FY26 earnings were significantly below FY25, although FY25 contained an exceptional gain.

The key issue is therefore normalised profitability.

Valuation

At ₹841–850:

P/E ~18.8–19.0x FY26

P/B ~1.24–1.25x

This is not an obviously distressed valuation.

Overall Assessment

SAN Engineering is an interesting niche industrial-engineering business with exposure to railway equipment, industrial locomotives, gearboxes, power packs and mechanical transmissions.

Its strengths include:

Long engineering history
Specialised products
Diverse industrial applications
Strong technical capability
Low financial-cost burden
Healthy liquidity
Positive FY26 operating cash flow
High promoter ownership
Potential railway/industrial infrastructure tailwinds

However, FY26 highlighted important concerns:

EBITDA margin compressed
PAT fell substantially
ROE and ROCE declined
Receivables remain high
Significant capex was required
Unlisted liquidity remains limited

The ₹25.05 Cr exceptional property-sale gain in FY25 is particularly important. It means the FY25 ₹49.86 Cr PAT should not be used mechanically to calculate a normalised P/E.

At around ₹850, the company trades around 19x FY26 earnings and 1.25x book value.

The valuation becomes more interesting if SAN can demonstrate:

Revenue growth + margin recovery + higher ROCE + controlled receivables.

The next two or three years should therefore be evaluated on earnings quality rather than only revenue growth.

Key Numbers at a Glance

Metric	FY2026
Revenue	₹295.59 Cr
Total Income	₹298.82 Cr
EBITDA*	~₹33.19 Cr
PBT	₹26.73 Cr
PAT	₹19.93 Cr
EPS	₹44.80
Net Worth	~₹303.95 Cr
Total Assets	₹361.54 Cr
Trade Receivables	₹147.64 Cr
Inventory	₹73.82 Cr
Investments	₹17.45 Cr
Cash	₹10.98 Cr
Operating Cash Flow	₹28.45 Cr
Current Ratio	4.97x
ROE	6.35%
ROCE	6.48%
Indicative Price	~₹842–850
Market Cap	~₹374–378 Cr
FY26 P/E	~18.8–19.0x
P/B	~1.25x
IPO/DRHP	Not filed
Listing Status	Unlisted

*Approximate EBITDA based on reported PBT, finance costs and depreciation.

Important Links & Due-Diligence Sources

Company

SAN Engineering & Locomotive – Official Website

Use this for the company’s product portfolio, manufacturing capabilities, corporate information and contact details.

Annual Reports & Investor Information

SAN Engineering – Official Investor Page

The official investor page provides annual reports, subsidiary financial statements, annual returns and IEPF-related shareholder information.

FY2024–25 Annual Report

SAN Engineering FY2024–25 Annual Report

The FY25 annual report includes the audited standalone and consolidated financial statements and the dividend proposal of ₹10/share.

FY2026 Financial Reference

SAN Engineering FY2026 Financials – WWIPL

Useful for FY26 consolidated P&L, balance sheet, cash flow and ratio data.

Current Indicative Unlisted Price

SAN Engineering – UnlistedZone

The September 2026 reference is around ₹850/share and the platform explicitly labels the price as indicative.

Alternative Price Reference

SAN Engineering – Neoma Capital

The September 2026 reference is around ₹841.50/share.

Disclaimer

This report is prepared for research and informational purposes only and should not be considered investment advice, a recommendation to buy or sell securities, or a guarantee of future returns.

SAN Engineering is an unlisted security, and the prices quoted by intermediaries are indicative OTC references rather than continuous exchange-traded prices. Different intermediaries may quote materially different prices.

Financial figures should be independently verified against the latest audited company documents before executing any transaction. In particular, investors should verify the latest FY2026 annual report, shareholding, outstanding borrowings, receivables, related-party transactions, share-transfer documentation and current executable price.

For more such unlisted stocks visit https://unlistedcart.com/unlisted-shares/