Sona BLW Precision Forgings (SONACOMS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was the weakest quarter since IPO, with revenue declining 5% year-over-year to ₹8,539.07 million, mainly due to a 25% drop in BEV sales and temporary adverse factors including supply chain disruptions and demand slowdown.

• EBITDA fell 19% year-over-year to ₹2,025 million, with margin contracting to 23.8% due to adverse operating leverage and product mix.

• Net order book reached ₹262 billion, with 75% from EV programs and 60 EV programs across 32 customers, including a record order from a North American OEM.

• Strategic expansion included a new JV in China with JNT, targeting the world's largest EV market, and the acquisition of the Railway Business of Escorts Kubota Limited for ₹16,382 million.

• Profit for the period was ₹1,217.09 million, with total comprehensive income at ₹1,346.06 million.

Financial highlights

• Revenue: ₹8,539.07 million, down 5% year-over-year; BEV revenue: ₹2,106 million, down 25% year-over-year, now 28% of automotive product revenue.

• EBITDA: ₹2,025 million, down 19% year-over-year; margin at 23.8%.

• PAT: ₹1,217.09 million, down 12% year-over-year; margin at 14.3%.

• Adjusted net profit after tax was impacted by ₹69 million in acquisition-related expenses.

• Earnings per share (basic and diluted) for the quarter were ₹2.01.

Outlook and guidance

• Most adverse factors are considered temporary, with BEV revenue share expected to improve in coming quarters.

• JV in China expected to generate revenue from H2 FY26, aiming to become a key driveline supplier.

• New EBITDA margin guidance is 23.5%-25% post-railway business integration, down from the previous 25%-27% range.

• Major order ramp-ups are expected in Q4 FY26, with significant new launches planned for FY26-FY28.

• Focus remains on electrification, global market expansion, and technology innovation.