Sona BLW Precision Forgings Limited (Sona Comstar) announced its Q3 FY26 results, marking its best quarter ever with revenues exceeding ₹1,200 crore and EBITDA surpassing ₹300 crore for the first time. The company reported a 39% year-on-year revenue growth to ₹1,209 crore and a 30% increase in EBITDA to ₹305 crore, with an EBITDA margin of 25.2%. Adjusted profit after tax (PAT) grew by 20% to ₹181 crore, excluding a one-time ₹30 crore impact from new labor codes. Despite challenges like China's restrictions on rare earth magnets and US tariff uncertainties, Sona Comstar demonstrated resilience. The company has shifted to alternative motor designs using light rare earth magnets and benefited from the extension of USMCA tariff relief for medium and heavy-duty vehicles. EV revenues saw a material increase, with BEV revenue share expanding to 38% of automotive revenue in Q3 FY26, despite a decline in the North American EV market. The company highlighted a robust order pipeline, nearly three times larger than the previous year, indicating strong future growth prospects. Sona Comstar has successfully pivoted its business at scale, with India's revenue mix doubling while North America's halved, without compromising growth or margins. The company also advanced its R&D efforts, adding Air Springs for railway coaches and an integrated Hydraulic Motor Controller for farm equipment to its product roadmap. The net order book stands at ₹235 billion, with 71% from the EV segment. Looking ahead, Sona Comstar is focused on its strategic priorities of electrification, diversification, and R&D. The company is actively exploring new opportunities in the ADAS market, offering integrated solutions for driver monitoring systems. Management expressed confidence in continued growth across its driveline, motor, and railway businesses, with a potential for further strategic acquisitions.
