Sona BLW Precision Forgings Registers 24% Q2FY26 Revenue Growth; PAT Up 20% YoY

Gurugram, October 27, 2025 – Sona BLW Precision Forgings Ltd (NSE: SONACOMS | BSE: 543300), or Sona Comstar, recorded a 24% year-over-year growth in revenue from operations at ₹11,435 million in the quarter ended September 30, 2025 (Q2FY26), compared to ₹9,251 million in the same period last year. Net profit increased 20% to ₹1,728 million, and EBITDA expanded 13% to ₹2,891 million.

EBITDA margin was 25.3%, a decrease from 27.6% last year, primarily as a result of reduced battery electric vehicle (BEV) revenue and product mix shifts. The quarter also reflected the first full contribution of the newly acquired rail business, offsetting some of the BEV decline.

Half-Yearly Performance Overview

For the first half of FY26, Sona Comstar posted revenue of ₹19,944 million, an increase of 10% year-on-year. Net profit increased 4% to ₹2,975 million, while EBITDA decreased marginally by 3% to ₹4,916 million on account of margin compression. The BEV revenue of the company decreased by 21% to ₹4,752 million for the same period, even as profitability proved resilient on account of strong driveline and non-automotive segment growth.

Stock Performance

Shares of Sona BLW Precision closed at ₹484.20 on October 27, 2025, up ₹5.50 or 1.15% for the day. It opened at ₹478.70 and traded between a high of ₹487.00 and a low of ₹476.25 during the session. The company’s market capitalisation stood at ₹30,080 crore, with a price-to-earnings (P/E) ratio of 50.94 and a dividend yield of 0.66%. The stock’s 52-week high and low were ₹720.90 and ₹380.00, respectively, while the latest quarterly dividend amount was ₹0.80 per share.

Expanding Order Book and Market Diversification

The overall order book of the company was at ₹236 billion, which is 6.8 times its FY25 revenue. Almost 70% was contributed by EV programs. Sona Comstar acquired ₹10 billion of new lifetime orders in the quarter, including an order worth ₹6,400 million from an Asian maker of electric passenger vehicles, ₹1,800 million from a European luxury OEM, and ₹2,600 million from a North American off-highway vehicle manufacturer for its Mexico business.

Non-automotive business jumped to 28% of total revenue, from 9% in FY25, driven by the Railway and NOVELIC segments. By region, India accounted for 41% of revenue, followed by North America 30% and Europe 24%.

Innovation and Strategic Developments

Sona Comstar expanded its product innovation strategy by developing Rare Earth Free Motors (Ferrite Assisted Synchronous Reluctance Motors), which were designed and tested internally to increase efficiency and supply chain security. The company also further enhanced its role in radar sensors, motor controllers, and electronic driveline assemblies to leverage increasing demand for EV and autonomous solutions.

Financial Health and Outlook

Important financial metrics of September 2025 indicated sound performance, with Return on Capital Employed (ROCE) of 15.8% and Return on Equity (ROE) of 12.8%. The organization had a negative net debt-to-EBITDA of (0.99), indicating healthy management of cash flow. It reported ₹1,427 million of free cash flow in H1FY26 amidst heavy capital expenditure.

Management informed that although short-term margins can continue to be influenced by business mix and costs of expansion, medium-term growth prospects are robust with support from increasing EV take-off, diversification into other sectors apart from automotives, and international OEM collaborations.

Regarding Sona BLW Precision Forgings Ltd

Sona BLW Precision Forgings Ltd (Sona Comstar) is a world leader in automotive technology based in Gurugram, India. It designs and produces high-technology driveline and motor systems for passenger, commercial, and electric vehicles. Sona Comstar is listed on the NSE and BSE and has 12 plants and 5 R&D facilities in India, North America, Europe, China, and Mexico, catering to top global automobile and mobility companies.

REF: https://nsearchives.nseindia.com/corporate/SONACOMS_27102025163456_InvestorPresentation.pdf

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