Sona BLW Precision Forgings Limited (SONACOMS)
₹800.00 -0.12% last close, 16 Oct
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Sona BLW Precision Forgings Limited's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, Sona BLW's revenue was ₹1,258 Cr (+45.5% year on year, +4.8% on the previous quarter), and net profit ₹187 Cr (+14.2% year on year); the operating margin was 23.5%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹1,258 | +45.5% | +4.8% |
| Operating profit | ₹296 | +28.0% | +0.0% |
| Net profit | ₹187 | +14.2% | +24.7% |
| EPS (₹) | 3.09 | +17.0% | +27.2% |
| Operating margin | 23.5% | — | — |
SONACOMS delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 55.14% of the SONACOMS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 49.04%. Delivery was unusually high while the price barely moved (-0.12%). In SONACOMS futures, open interest fell 0.23% while the futures price fell 0.25%: long unwinding (longs closing out).
Delivery in the last 5 sessions: 64.4% · 46.8% · 55.0% · 42.0% · 55.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sona BLW Precision Forgings Limited (SONACOMS) has mutually terminated agreements for its captive solar power plant project in Chennai with Seeyel Renewables and CSE Development (India). The termination takes effect retrospectively from September 25, 2026, following a review of operating models, manufacturing footprint, and energy needs. The company confirmed there is no termination payment, compensation, damages, or default liability, resulting in zero financial or operational impact against its ₹4,450 Cr TTM revenue base.
- Mutually terminated Power Purchase and Share Subscription Agreements with Seeyel Renewables and CSE Development (India)
- Termination effective date finalized as September 25, 2026; accepted October 5, 2026
- Agreements initially executed on February 26, 2026 and March 26, 2026
- Nil termination fee, compensation, or penalty incurred by the company
Sona BLW Precision Forgings Limited has announced the results of its Postal Ballot concluded on October 3, 2026. Shareholders approved an ordinary resolution to approve and ratify material related party transactions with Sona Comstar eDrive Private Limited. The resolution passed with 94.49% of polled votes in favor (35,52,70,663 shares) and 5.51% against. Overall voting turnout represented 60.26% of total outstanding shares, led heavily by institutional participation.
- 94.49% of polled votes (35,52,70,663 shares) voted in favor of the ordinary resolution
- 5.51% of polled votes (2,07,13,235 shares) voted against the resolution
- Overall voter participation stood at 60.26% across 37,59,83,898 total votes polled
- Institutional shareholders participated heavily with 91.64% of their shares polled (37,20,88,264 votes)
Sona BLW Precision Forgings presented at the Jefferies India Forum, outlining its strategic vision to replicate its past 10x 10-year revenue growth over the next decade. The company highlighted annualized Q1 FY27 revenue of ₹5,241.6 crore (Q1 revenue ₹1,310.4 crore) compared to ₹4,475.2 crore in FY26, alongside an average EBITDA margin of 25.6% from FY22 to Q1 FY27 annualized. Strategic thrust areas include EV, intelligent connectivity, expansion into eastern markets, scaling the acquired Railway business, and entering robotics and physical AI. No new order wins or immediate financial commitments were disclosed.
- Annualized Q1 FY27 revenue stated at ₹5,241.6 crore based on Q1 FY27 revenue of ₹1,310.4 crore
- Targeting a 10x growth aspiration over the next decade, matching its FY15 to FY25 expansion from ₹345 crore to ₹3,555 crore
- Average EBITDA margin maintained at 25.6% across the FY22–Q1 FY27 annualized period with a 22.3% revenue CAGR
- Current capabilities encompass 470+ R&D employees, 5 R&D centres, 141 patents, and 12 manufacturing facilities
Sona BLW Precision Forgings Limited has announced the closure of its trading window starting Wednesday, September 16, 2026. The restriction applies to designated persons in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015. The trading window will remain closed until 48 hours after the declaration of financial results for the quarter ending September 30, 2026.
- Trading window closed from Wednesday, September 16, 2026
- Closure relates to financial results for the quarter ended September 30, 2026
- Trading window reopens 48 hours after declaration of Q2 financial results
Sona BLW Precision Forgings Limited has notified stock exchanges of an upcoming analyst and institutional investor group meeting. The company is scheduled to participate in the Jefferies 5th India Forum on September 17, 2026, at 9:00 AM IST in Gurugram. This is a standard institutional interaction and does not include any operational updates or financial announcements.
- Institutional meeting scheduled for September 17, 2026
- Meeting start time is set for 9:00 A.M. (IST)
- Forum: Jefferies 5th India Forum Group Investor Meeting in Gurugram
Sona BLW Precision Forgings has issued a postal ballot notice seeking shareholder approval for the slump sale of its 2W/3W Electric Vehicles business to subsidiary Sona Comstar eDrive for an aggregate consideration of INR 8,932 million (~₹893.2 crore). The consideration consists of INR 8,575 million in cash and the balance in equity shares. Global Tier-1 supplier DENSO will join as a joint venture partner, holding a 49% equity stake in Sona eDrive to collaborate on EV technology and market access. E-voting commences on September 4, 2026, and concludes on October 3, 2026.
- Total slump sale consideration fixed at INR 8,932 million (~₹893.2 crore) on a going concern basis.
- Cash payout to the company stands at INR 8,575 million (~₹857.5 crore), with the balance in equity.
- DENSO will acquire a 49% equity stake in Sona Comstar eDrive to partner in 2W/3W EV motors, inverters, and e-Axles.
- E-voting period scheduled from September 4, 2026 (9:00 AM IST) to October 3, 2026 (5:00 PM IST).
Sona BLW Precision Forgings has approved the allotment of 2,37,774 equity shares of face value Rs 10 each to eligible employees under its ESOP Plan 2023. Following this allotment, the company's paid-up share capital increases marginally from Rs 623.89 crore (62,38,90,650 shares) to Rs 624.13 crore (62,41,28,424 shares). The newly issued shares rank pari passu with existing equity shares, including dividend entitlement. The equity dilution from this allotment is negligible at approximately 0.038%.
- Allotment of 2,37,774 equity shares of face value Rs 10 each under ESOP Plan 2023
- Issued and paid-up capital increased from Rs 623.89 Cr to Rs 624.13 Cr
- Total outstanding equity shares increased from 62,38,90,650 to 62,41,28,424
- Newly allotted shares rank pari passu with existing shares in all respects
Sona BLW Precision Forgings Limited (SONACOMS) has allotted 3,37,775 equity shares to eligible employees who exercised their vested options under the ESOP Plan 2023. This allotment increases the total paid-up equity share capital from Rs 623.55 crore to Rs 623.89 crore. The resulting equity dilution is approximately 0.054%, which is negligible for existing shareholders. The new shares will rank equally with existing shares for all benefits, including dividends.
- Allotment of 3,37,775 equity shares of face value Rs 10 each to employees.
- Total issued and paid-up equity shares increased to 62,38,90,650 from 62,35,52,875.
- Paid-up equity capital increased by Rs 33,77,750 to a total of Rs 6,23,89,06,500.
- The dilution impact on the existing shareholding is approximately 0.054%.
Sona BLW Precision Forgings has received an order from the GST & Central Excise authority in Chennai for the recovery of Input Tax Credit (ITC) totaling ₹2.15 Cr. The order also includes a penalty of ₹21.05 lakh for alleged non-reversal of ITC on excess GST charged by suppliers between April 2022 and March 2024. The company intends to file an appeal against this order. Given the company's TTM PAT of ₹629 Cr, the total demand represents approximately 0.37% of annual profits, indicating no material financial impact.
- Demand for ITC reversal/recovery amounting to ₹2,15,03,832
- Penalty of ₹21,05,192 imposed under Section 73(9) of the CGST/TNGST Act
- Alleged violation period covers April 2022 to March 2024
- Total demand (excluding interest) is approximately 0.37% of TTM PAT of ₹629 Cr
Sona BLW Precision Forgings Limited has allotted 8,55,737 equity shares to eligible employees under its ESOP Plan 2023. This allotment follows the exercise of vested options by employees and increases the total paid-up equity share capital by approximately Rs 0.86 crore. The resulting equity dilution is negligible at approximately 0.14% of the total share capital. These new shares will rank pari passu with existing shares, including for dividend entitlements.
- Allotment of 8,55,737 equity shares of face value Rs 10 each to eligible employees.
- Total paid-up equity shares increased from 62,26,97,138 to 62,35,52,875.
- Issued and paid-up equity share capital rose from Rs 622.70 crore to Rs 623.55 crore.
- The dilution to existing shareholders is approximately 0.14% based on the pre-allotment share count.
Sona Comstar outlined its '2.0' growth strategy during the Q1 FY27 earnings call, focusing on Robotics, Physical AI, and a 'Look East' expansion. The company revealed that 35% of its current revenue comes from 19 products developed in-house over the last 7 years, contributing an annualized Rs 1,800 Cr. Management has invested Rs 2,750 Cr in acquisitions (Comstar, Novelic, Railway) which now account for 40% of total revenue. Integration of the Railway business continues with a Rs 110 Cr land purchase in Faridabad for capacity expansion.
- 35% of revenue is now derived from products that did not exist in the portfolio 7 years ago.
- Rs 2,750 Cr total investment in acquisitions over 7 years, now contributing 40% of total revenue.
- Annualized Q1 revenue from 19 in-house developed products reached Rs 1,800 Cr with Rs 230 Cr profit.
- Rs 110 Cr land purchase in Faridabad completed to expand Railway business capacity.
- BEV (Battery Electric Vehicle) share of automotive revenue stands at 32%.
Sona BLW Precision Forgings (SONACOMS) has released the audio/video recording of its investor call held on July 23, 2026. The call discussed the financial results for the quarter ended June 30, 2026 (Q1 FY27), which were approved by the board on the same day. This disclosure is a standard regulatory requirement following the announcement of quarterly earnings. Investors can access the recording on the company's website to hear management's commentary on the business outlook and operational performance.
- Earnings call conducted on July 23, 2026, following the Q1 FY27 board meeting.
- Recording pertains to the financial performance for the quarter ended June 30, 2026.
- Company maintains a TTM revenue of Rs 4,450 Cr and a market capitalization of Rs 43,891 Cr.
- Management previously indicated a 19% expected growth rate driven by the Railway Equipment Division acquisition.
Sona Comstar reported its highest-ever quarterly revenue of ₹1,310 cr, a 54% YoY increase, significantly outperforming previous quarters. Growth was primarily driven by the BEV segment, which saw revenue surge 107% YoY to reach a record 44% share of total revenue. The company secured three new orders totaling ₹940 cr, including a major ₹640 cr hybrid program for a North American OEM. Management also unveiled 'Sona Comstar 2.0', a strategic pivot into Robotics and Physical AI aiming for 10x revenue growth by FY35.
- Revenue grew 54% YoY to ₹1,310 cr, marking the company's highest-ever quarterly performance.
- BEV revenue share reached an all-time high of 44%, with the segment growing 107% YoY.
- Secured a ₹640 cr (₹6.4 billion) order for hybrid differential assemblies from a North American OEM, starting H2 FY29.
- EBITDA increased 49% YoY to ₹303 cr, maintaining a healthy margin of 23.1%.
- Announced entry into Robotics & Physical AI vertical to develop mission-critical components and full-stack robot platforms.
Sona Comstar delivered a strong Q1 FY27 with revenue growing 54% YoY to Rs 1,310 crore, driven by a 107% surge in BEV revenue. The company secured three major orders totaling Rs 940 crore, representing approximately 21% of its TTM revenue. Management unveiled the 'Sona Comstar 2.0' strategy, targeting 10x revenue growth by FY35 and expanding into Robotics and Physical AI. While PAT grew 45% YoY to Rs 181 crore, EBITDA margins at 23.1% remain slightly below the TTM average of 24.3%.
- Revenue reached an all-time high of Rs 1,310 crore, up 54% YoY from Rs 853.9 crore in the previous year's quarter.
- BEV revenue share hit a record 44% of total automotive revenue, growing 107% YoY.
- Secured a major Rs 640 crore order for hybrid differential assemblies from a North American OEM, with production starting H2 FY29.
- Total new order wins for the quarter reached Rs 940 crore across EV, Hybrid, and ICE segments.
- EBITDA grew 49% YoY to Rs 303 crore, though margins compressed slightly to 23.1%.
Sona BLW reported a strong Q1 FY27 with standalone revenue of Rs 1,157.24 Cr, marking a 50.8% YoY growth compared to June 2025. Net profit for the quarter stood at Rs 220.11 Cr, nearly doubling from Rs 120.13 Cr in the year-ago period. The company announced a major strategic partnership with DENSO Corporation to form two Joint Ventures for EV traction motors and controllers. The existing EV motor business is being valued at an Enterprise Value of Rs 1,750 Cr for this transaction, representing a significant technological expansion into high-voltage systems.
- Standalone revenue grew 50.8% YoY to Rs 1,157.24 Cr in Q1 FY27.
- Net profit increased to Rs 220.11 Cr from Rs 120.13 Cr in Q1 FY26.
- Announced two JVs with DENSO: one for 4W/Large vehicles (49% Sona) and one for 2W/3W (51% Sona).
- DENSO to acquire 49% stake in Sona's EV motor subsidiary at an Enterprise Value of Rs 1,750 Cr.
- Shareholders approved a final dividend of Rs 1.80 per share for FY26.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 12% YoY to INR 35,545.35 million in FY 2024-25. Q2 FY26 revenue grew 24% YoY to INR 11,435 million. Battery Electric Vehicle (BEV) revenue declined 17% YoY in Q2 FY26, contributing 32% to automotive revenue. The newly integrated Railway business reported pro-forma revenue of approx. INR 9,500 million for FY 2023-24.
Geographic Revenue Split
Not disclosed in available documents, though management noted global industry challenges and infrastructure slowdown in India due to general elections.
Profitability Margins
Net Profit (PAT) margin was 16.9% in FY 2024-25, up from 16.3% in FY 2023-24. Q2 FY26 PAT margin was 14.9%, impacted by a 0.6% reduction due to lower EBITDA transmission. Standalone profit for FY 2024-25 was INR 5,796.88 million.
EBITDA Margin
Consolidated EBITDA margin was 27.4% in FY 2024-25, a decrease from 28.3% in FY 2023-24. Q2 FY26 EBITDA margin was 25.3%, down 2.3% YoY primarily due to product mix and operational leverage from the railway business integration.
Capital Expenditure
The company spent INR 198 crores on CAPEX in H1 FY26. Additionally, INR 110 crores was spent on land purchase in Faridabad for future expansion of the railway business. Total cash outflow for the Railway and NOVELIC acquisitions aggregated to nearly INR 1,700 crore.
Credit Rating & Borrowing
Interest Coverage Ratio was 27.5 in FY 2024-25. Net Debt to Equity was -0.48 (net cash position) following a QIP of INR 23,695 million. Finance costs for FY 2024-25 were INR 301.73 million, up from INR 257.98 million.
Operational Drivers
Raw Materials
Manufacturing expenses include sub-contracting costs, stores and spares, and power and fuel. Specific raw materials like steel or copper are not explicitly named with cost percentages, but production focuses on differential gears, differential assemblies, and traction motors.
Capacity Expansion
Production capacity is being expanded for differential gears, differential assemblies, and traction motors. Land in Faridabad (INR 110 Cr) was purchased specifically for expanding the Railway business capacity.
Raw Material Costs
Manufacturing expenses increased in FY 2024-25, with depreciation rising 16% to INR 2,544 million due to new property, plant, and equipment additions for capacity expansion.
Manufacturing Efficiency
Inventory turnover ratio improved to 10.2 in FY 2024-25 from 9.5 in FY 2023-24. Working capital turnover was 5.0.
Logistics & Distribution
Selling and distribution expenses are included in 'Other expenses', which totaled INR 28,638.31 million (including manufacturing and admin) in FY 2024-25.
Strategic Growth
Expected Growth Rate
19%
Growth Strategy
Growth is driven by the acquisition of the Railway Equipment Division of Escorts Kubota (closed June 1, 2025), which offers a 19% historical revenue CAGR. The company is launching new products including HVAC systems, electrical control panels, and automatic plug doors for railways. Expansion is also supported by a QIP of INR 23,695 million for M&A and capacity ramp-up.
Products & Services
Differential gears, differential assemblies, traction motors, railway brakes, couplers, suspension systems, friction and rubber products, and HVAC systems.
Brand Portfolio
Sona Comstar, NOVELIC (acquired).
New Products/Services
New railway products include HVAC systems, electrical control panels, vacuum evacuation systems, and automatic plug doors. BEV share of automotive revenue is 32%.
Market Expansion
Expansion into the railway sector via acquisition and land purchase in Faridabad. Management aims to become a global mobility technology leader.
Market Share & Ranking
The company is amongst the leaders in railway brakes, couplers, and suspension systems in India.
Strategic Alliances
Acquisition of the Railway Equipment Division of Escorts Kubota Limited and the final tranche payment for the NOVELIC acquisition.
External Factors
Industry Trends
The industry is transitioning from ICE to electrified alternatives (BEV share at 32%). The railway sector is seeing growth through new product R&D and infrastructure spending.
Competitive Landscape
The company faces both domestic and international competition in the mobility and railway technology sectors.
Competitive Moat
Moat is built on technology leadership in precision forgings and traction motors, and a strong market position in railway components (brakes/couplers). The company received the 'Best Governed Company' award from ICSI, reinforcing its governance moat.
Macro Economic Sensitivity
The CV segment was impacted by a slowdown in infrastructure activities linked to India's general elections and government transition.
Consumer Behavior
Shift toward electric two-wheelers and three-wheelers continues despite the end of FAME-II subsidies.
Geopolitical Risks
Global industry challenges and macro stormy conditions were noted by management as significant headwinds in recent quarters.
Regulatory & Governance
Industry Regulations
Operations are affected by the discontinuation of the FAME-II subsidy and stringent environmental standards for ICE and EV products.
Environmental Compliance
The company is subject to stringent environmental and regulatory standards in the mobility industry; specific ESG costs are not disclosed.
Taxation Policy Impact
The effective tax rate for FY 2024-25 was approximately 24.8% (INR 1,986.47 million tax on INR 7,983.35 million PBT).
Legal Contingencies
The company states there are no material departures from applicable accounting standards. No specific pending court cases or values are disclosed in the provided text.
Risk Analysis
Key Uncertainties
The transition from ICE to BEV poses a risk to ICE-dependent lines. BEV revenue is sensitive to customer concentration (17% decline due to one model). Global macro volatility and regulatory changes are also key risks.
Third Party Dependencies
Significant reliance on sub-contracting for manufacturing, as noted in manufacturing expense disclosures.
Technology Obsolescence Risk
The ongoing transition to electrified alternatives poses a risk of obsolescence for ICE-dependent product lines.
Credit & Counterparty Risk
Receivables turnover was 5.2 in FY 2024-25, indicating stable credit quality.
