Sona Comstar revenue jumps 35% to 15,464 million rupees in record quarter
Key Facts
Sona Comstar announced on October 26 its results for the second quarter of fiscal year 2026-2027, ended September 30, reporting revenue of 15,464 million rupees, up 35% year on year. The company said the quarter saw the highest quarterly revenue, earnings before interest, taxes, depreciation and amortization, and profit after tax in its history. Battery electric vehicle revenue rose 129% to 6,061 million rupees. This revenue represented 51% of automotive product revenue during the quarter, not the company's total revenue. The results put strong sales growth alongside a decline in operating profit margin compared with the corresponding period.
Earnings before interest, taxes, depreciation and amortization rose 23% to 3,562 million rupees, but its margin fell to 23.0% from 25.3% a year earlier. By contrast, profit after tax increased 29% to 2,234 million rupees, and net profit margin was 14.4%. The figures show revenue and profit growth diverging from the margin trend, as sales and absolute profit expanded while operating profit margin declined. The published figures did not give a specific reason for the contraction. Business expansion therefore remained clear in the results, while margins showed a weaker side of the year-on-year comparison.
For the first half of the fiscal year, revenue was 28,568 million rupees, up 43% year on year, while earnings before interest, taxes, depreciation and amortization reached 6,588 million rupees, a 34% increase. Battery electric vehicle revenue also reached 10,416 million rupees in the first half, up 119%, and accounted for 48% of automotive product revenue. Its share in the quarter thus rose to 51%, compared with 48% in the first half. The company also reported free cash flow from operations of 4,456 million rupees in the first half. Together, the indicators combine revenue growth, a larger contribution from electric vehicles and cash generation during the period.
In the year-earlier quarter, revenue grew 24% year on year, and battery electric vehicles accounted for 32% of revenue. The chief executive at the time said revenue growth was led by an increase in electric traction motor and railways business in India. The comparison shows the battery electric vehicle share rising from 32% in that quarter to 51% of automotive product revenue in the current quarter. The current presentation indicates that the percentage is measured against automotive product revenue, which differs from the wording used for the percentage in the previous period's statement. The chief executive described the performance of this business in the current quarter as "almost unbelievable," linking it to share gains with existing customers and new deals, particularly in the two-wheeler and three-wheeler segments.
On orders, the company added new business worth 36 billion rupees during the quarter, its highest quarterly order inflow to date. The number of programs awarded rose from 71 across 36 customers at the end of the first quarter to 75 across 37 customers at the end of the second quarter. The company defines net order book as the total revenue expected over the next ten years from awarded programs that have not begun production or have not reached full capacity. The estimate adjusts for the impact of programs expected to end or be reduced, and discounts for potential delays. Under this definition, the order book is an estimate of future revenue tied to specific programs, not revenue recognized in the quarter.
Additions to the order book included a 7,000 million rupee program for helical limited-slip differentials for electric passenger vehicles, with production expected to begin in the first half of fiscal year 2028-2029. A program for integrated motor controllers at an Indian two-wheeler manufacturer added 3,800 million rupees, with production due to start in the first half of fiscal year 2027-2028. The company also added additional traction motor volumes for two existing programs worth 12,500 million rupees, with production expected to begin in the second half of fiscal year 2026-2027. A rear radar sensor program for two-wheelers with a new customer added 1,000 million rupees to the order book, with production due to begin in the second half of fiscal year 2028-2029. The programs are scheduled to move into production across the coming and subsequent fiscal halves.
The company said it commercially launched three new products during the quarter, its highest number of launches in a single quarter. The products included a helical limited-slip differential for electric vehicles, air springs for passenger rail coaches and rear radar sensors for two-wheelers. The launches span products related to electric vehicles, railways and two-wheeler equipment. In another area of the company's business, its transmission unit won the 2026 Deming Prize for total quality management, awarded by the Japanese Union of Scientists and Engineers. The results announcement and investor call took place on October 26, and the company scheduled the call for 5 p.m. India time.