Sona BLW Precision Forgings (SONACOMS) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 1,209 crore (₹12,085 million) and EBITDA of INR 305 crore (₹3,046 million), marking the best quarter ever across all financial metrics, with 39% YoY revenue growth in Q3 FY26.

• Adjusted PAT rose 20% YoY to INR 181 crore (₹1,809 million), after a one-time INR 30 crore (₹301 million) labor code impact.

• Business recovery was sharp, with strong growth in EV and non-automotive segments despite global volatility and supply chain challenges.

• Successfully pivoted geographic and product mix, with India now contributing 55% of revenue and Eastern markets accounting for 58% of total revenues.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and released.

Financial highlights

• Quarterly revenue grew 39% YoY to INR 1,209 crore (₹12,085 million); EBITDA up 30% to INR 305 crore (₹3,046 million); adjusted PAT up 20% to INR 181 crore (₹1,809 million), excluding a one-time INR 30 crore (₹301 million) labor code cost.

• EBITDA margin for the quarter was 25.2%, down from 27.0% YoY due to product mix changes.

• Nine-month revenue rose 19% to INR 3,203 crore (₹32,029 million); EBITDA up 8% to INR 796 crore (₹7,962 million); adjusted PAT up 9% to INR 478 crore.

• BEV revenue for the quarter was INR 320 crore (38% of automotive revenue), down 3% YoY due to North America EV market decline.

• Net order book at ₹235 billion, 71% from EV programs, 6.8x FY25 revenue.

Outlook and guidance

• Management expects continued strong order pipeline, with RFQs at a record high, especially from Europe.

• Margins are expected to remain in the 24%-26% range, with prudent selection of higher-margin opportunities.

• Focus on electrification, global market significance, diversification, and technology as strategic priorities.

• Continued investment in sensing, perception, and radar solutions to meet new Indian ADAS regulations.

• Interim dividend declared for FY 2025-26, reflecting confidence in ongoing performance.