Sona BLW Precision Forgings (SONACOMS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹15,358.40 million and net profit ₹2,229.87 million; H1 revenue reached ₹28,370.41 million and net profit ₹4,015.01 million.

• Q2 EBITDA rose 23% to ₹3,562 million, while margin fell 2.3 percentage points to 23.0%; BEV revenue reached an all-time high and exceeded 50% of automotive revenue.

• Secured ₹36 billion of new business; the net order book closed at ₹251 billion, its second-highest level.

Financial highlights

• Q2 PAT increased 29% YoY to ₹2,234 million; PAT margin was 14.4%, down ~0.5 percentage points YoY.

• H1 FY27 revenue grew 43%, EBITDA 34% to ₹6,588 million and PAT 36% to ₹4,015 million; EBITDA margin was 23.1%.

• H1 operating cash flow was ₹5,935 million and free cash flow from operations ₹4,456 million; operating cash flow equaled 90% of EBITDA.

• Consolidated Q2 and H1 profit before tax was ₹2,959.64 million and ₹5,369.06 million, respectively.

Segment performance

• Q2 BEV revenue was ₹6,061 million, up 129% YoY; H1 BEV revenue was ₹10,416 million, up 119%. BEVs represented 51% of Q2 and 48% of H1 automotive product revenue.

• Traction motor demand reflected higher wallet share, existing OEM growth and three-wheeler traction; suspension motors were the fastest-growing business, reaching 7% of revenue.

• Differential gears and assemblies grew 37% YoY combined; all three major EV differential assembly customers increased Q2 volumes.

• Railway air springs began supply; HVAC first-batch deliveries and electric panel production started, with further ramp-up expected over coming quarters.

• EPIC portfolio comprised 75 programs across 37 customers at H1 end, including 44 in production and 31 yet to start production.