Sona BLW Precision Forgings (SONACOMS) Q4 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue, EBITDA, PAT, and BEV revenue and share in Q4 FY26, with robust recovery ahead of expectations.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with unmodified audit opinions issued.

• Acquisition of the Railway Business of Escorts Kubota Limited completed on June 1, 2025, for Rs. 16,426.32 million, reflected in FY26 results.

• BEV revenue share reached 39% in Q4 and 35% for FY26, with 67 EV programs across 35 customers.

• Board recommended a final dividend of Rs. 1.80 per equity share for FY26, in addition to an interim dividend of Rs. 1.60 per share already paid.

Financial highlights

• Q4 FY26 revenue grew 47% year-over-year to INR 1,272 crore (₹12,723 mn); BEV revenue up 22% to INR 359 crore (39% of automotive revenue).

• FY26 consolidated revenue was Rs. 44,494.60 million, up from Rs. 35,460.21 million year-over-year.

• Q4 EBITDA rose 32% to INR 311 crore; EBITDA margin at 24.4%, down 2.7% due to PLI income base effect and product mix.

• Q4 PAT increased 17% to INR 192 crore; PAT margin at 14.7%, down 4.1% due to lower EBITDA and finance income.

• FY26 adjusted PAT up 11% to INR 670 crore, excluding a one-time INR 30 crore labor code impact.

• Free cash flow from operations in FY26 was ₹2,900 mn.

• Ended FY26 with INR 1,269 crore in cash and investments.

Outlook and guidance

• Margin guidance revised to 23%-25% post-railway acquisition, down from previous 24%-26%.

• SONA BLW Mexico, a wholly owned subsidiary, is expected to start operations in FY27, with up to USD 6 million investment approved.

• Expect continued margin pressure from commodity inflation and product mix, with improvement as new CapEx generates revenue.

• Strong pipeline with 67 EV programs across 35 customers; 37 in production, 30 yet to enter production.

• Investment in captive solar power plant in Chennai through Seeyel Renewables Private Limited, with a 27.64% stake for INR 8.3 million.