Sona BLW Precision Forgings Ltd (Sona Comstar), a leading automotive technology provider, published its first quarter FY26 financial results, which showed a modestly testing quarter saddled by weakness in its electric vehicle (EV) business and increased costs, but supported by significant new order wins.
Profit and Revenue Fall, Margins Retract
For the period ended June 2025, Sona BLW’s consolidated net profit declined by 12% year-on-year to ₹125 crore, from ₹142 crore in Q1 FY25. Overall revenue from operations dipped by approximately 4% to ₹854 crore, on account largely of a decline in the battery electric vehicle (BEV) segment, which saw a steep 25% year-on-year decline to ₹202.5 crore. BEV business contributed 28% of quarterly revenues, down from a higher percentage last year.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 17.4% year-on-year to ₹205 crore. The EBITDA margin reduced by four percentage points to 24% due to negative operating leverage, a consequence of high fixed costs and depressed sales growth. Perpetual supply chain disruptions in rare earth magnets and increasing input costs were also quoted as factors denting profitability.
Sustained Order Book Growth, Roadmap to Recovery
In spite of near-term operational disappointments, Sona BLW closed Q1 with one of its highest order pipelines in history. The firm landed its largest order in two-and-a-half years from a North American OEM for differential assemblies, which added ₹1,550 crore to the order book. Another large deal was executed with a top Indian OEM for drive motors for electric three-wheelers, augmenting the future order book by ₹2,600 crore. As of June 2025, Sona BLW had a record total net order book of ₹26,200 crore, of which 75% is now associated with EV programs on 60 awarded projects and 32 customers.
Management Commentary and Outlook
Managing Director and Group Chief Executive Vivek Vikram Singh recognised the quarter’s challenges, describing them as transitory and assuring that a number of supply-side constraints have already begun to release. Singh cited the ramp-up of new EV programs and recent orders won as clear endorsement of the company’s worldwide competitiveness and innovation credentials.
Share Price and Analyst Opinion
Sona BLW shares closed the session lower by 1.25% on the NSE after its quarterly results announcement. Even after recent softness—demonstrated by a 35% fall in its share price over the past 12 months—analyst opinion has been mostly upbeat, with most retaining their ‘buy’ recommendation and a 22% average 12-month upside target.
Conclusion
Although Q1 FY26 was tainted by softer BEV demand and margin distress, Sona BLW’s strong order wins, diversified customers, and localisation and operational resilience focus portend a favourable long-term picture as vehicle electrification trends gain further momentum.
