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

Executive summary

• Achieved record quarterly revenue of INR 12,085 million and EBITDA of INR 3,046 million, marking the best quarter ever across all financial metrics.

• Business recovery exceeded expectations, with sharp growth following a challenging Q1.

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

• Diversification strategy accelerated, with non-automotive revenues rising to 31% in the first nine months.

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

Financial highlights

• Q3 FY26 revenue grew 39% year-on-year to INR 12,085 million; EBITDA up 30% to INR 3,046 million with a margin of 25.2%.

• Adjusted PAT for Q3 was INR 1,809 million, up 20% year-on-year, after excluding a one-time INR 301 million labor code impact.

• Nine-month FY26 revenue rose 19% to INR 32,029 million; EBITDA up 18% to INR 7,962 million; adjusted PAT up 9% to INR 4,780 million.

• BEV revenue for Q3 was INR 3,200 million (38% of automotive revenue), down 3% year-on-year; nine-month BEV revenue was INR 7,950 million (33% of automotive revenue), down 14% year-on-year.

• Net order book at Q3 end stands at ₹235 billion, with 71% from EVs, representing 6.8x FY25 revenue.

Outlook and guidance

• Management expects continued robust growth in traction motors and controllers, especially in three-wheelers and upcoming four-wheeler programs.

• Margin guidance remains at 24%-26% EBITDA, with prudent selection of high-value, high-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, with mass production of 60GHz in-cabin radar planned for H2CY26.

• Interim dividend of Rs. 1.60 per equity share declared for FY 2025-26, reflecting confidence in ongoing performance.