Sona BLW Precision Forgings (SONACOMS) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-year revenue and profit, with Q2 FY26 revenue up 24% year-over-year to ₹11,435 million and H1 FY26 revenue up 10% to ₹19,944 million, driven by strong performance in railway, off-highway, and electric two-wheeler segments.

• BEV revenue declined 17% in Q2 and 21% in H1, but BEV share in automotive product revenue remained significant at 32% and 30% respectively.

• The first full quarter of railway revenue post-acquisition contributed to overall growth, with the railway segment contributing INR 13 billion in orders.

• Benefited from competitor insolvencies in Europe, leading to increased customer inquiries and potential new orders.

• Diversification across products, geographies, and customers supported resilience amid global disruptions and supply chain challenges.

Financial highlights

• Q2 FY26 EBITDA margin was 25.3%, down 2.3% year-over-year due to adverse operating leverage and product mix; PAT margin was 14.9%, down 0.6%.

• H1 FY26 EBITDA margin was 24.6%, down 3.2% year-over-year; PAT margin was 14.6%, down 1.1%.

• Consolidated profit before tax for H1 was ₹3,927.97 million, up from ₹3,806.53 million year-over-year.

• Free cash flow from operations in H1 FY26 was ₹1,427 million.

• Earnings per share (basic and diluted) for the half year were ₹4.78.

Outlook and guidance

• Net order book at end of Q2 FY26 stands at ₹236 billion, 70% from EV programs, with 62 EV programs awarded across 32 customers.

• New vehicle models and customers added, with significant lifetime value contracts starting production in Q2 FY27.

• Expect return ratios (ROE, ROCE) to improve as cash is invested in growth initiatives.

• Suspension system and robotics partnerships expected to contribute meaningfully over a 5–10 year horizon.

• Management expects continued integration of the newly acquired railway business to drive future growth.