Sona BLW Precision Forgings (SONACOMS) Q1 26/27 earnings summary

Executive summary

• Achieved 54% year-over-year revenue growth in Q1 FY27, reaching ₹13,104 million, with best-ever quarterly revenue, BEV revenue, and BEV revenue share.

• BEV revenue surged 107% YoY, now comprising 44% of automotive product revenue.

• Launched Sona Comstar 2.0, focusing on new product verticals including Robotics & Physical AI, Railway, and eastward expansion.

• Announced transformative joint ventures with DENSO for high voltage electric and hybrid powertrain systems across all vehicle categories.

• Consolidated net profit for Q1 FY27 stood at ₹1,805 million, up 45% YoY.

Financial highlights

• Revenue: ₹13,104 million, up 54% YoY; BEV revenue: ₹4,355 million, up 107% YoY, now 44% of automotive product sales.

• EBITDA: ₹3,026 million, up 49% YoY; margin at 23.1%, down 0.7% due to input cost inflation and product mix.

• PAT: ₹1,805 million, up 45% YoY; margin at 13.6%, also down 0.7%.

• Earnings per share (consolidated, basic and diluted) for Q1 FY27 was ₹2.90, up from ₹2.01 in Q1 FY26.

• Final dividend of ₹1.80 per share for FY26 approved at AGM.

Outlook and guidance

• Margin recovery expected from Q2 onwards as cost pass-throughs and mitigation measures take effect.

• Electrification and robotics businesses anticipated to ramp up faster than previous product cycles.

• JV with DENSO to initially focus on India, with global expansion planned in phase II.

• Company to sell its existing EV motors and controllers business to a new JV at an enterprise value of ₹17,500 million.

• Aspires to replicate 10x growth over the next decade, leveraging new product verticals and strategic partnerships.