Sona Comstar Revenue Jumps 35% to 1,547 Crore Rupees in Record Quarter
Key Facts
Sona BLW Precision Forgings, known as Sona Comstar, reported record revenue of 1,547 crore rupees in the second quarter of fiscal 2027, ended September 30, 2026, up 35% year over year. Net profit was 223 crore rupees, up 29%, with a net margin of 14.4%. EBITDA came to 356 crore rupees, up 23%, with a margin of 23.0%. The company said in its statement that revenue, operating profit and net profit all reached record levels during the quarter. The results came as its electric vehicle-related business expanded, alongside growing orders in automotive, railways and robotics.
Operating profit growth did not keep pace with revenue growth in margin terms, as the EBITDA margin fell by about 2.3 percentage points year over year. The company attributed the decline to a change in product mix and higher input prices, partly offset by the positive effect of operating leverage. The CFO confirmed on the earnings call that a margin range of 23% to 25% remained appropriate. This means cost and product-mix pressures reduced operating profit as a share of sales, despite an increase in its absolute value. In the first half of fiscal 2027, the company reported revenue of 2,857 crore rupees, up 43%; operating profit of 659 crore, up 34%; and net profit of 403 crore, up 36%.
First-half growth was underpinned by operating activity that generated free cash flow from operations of 446 crore rupees, after capital expenditure of 148 crore. On the orders front, the net order book stood at 251 billion rupees at the end of the quarter, equivalent to 5.6 times fiscal 2026 revenue. The company added new orders worth 36 billion rupees during the period, while mature programs and production ramp-ups consumed 25 billion. The CEO said the company won new business worth 36 billion rupees, taking the order book to its second-highest level at a quarter-end in its history. This scale offers a broader view of the future business base, with program execution timing varying by sector and product.
Electric vehicle programs account for the largest share of the order book, at 152 billion rupees, compared with 77 billion for non-electric vehicle programs. The order book also includes railway programs worth 13 billion rupees and robotics and physical AI programs worth 9 billion. The number of awarded programs for Epic Mobility rose to 75 across 37 customers at the end of the second quarter, compared with 71 programs across 36 customers at the end of the first quarter. These figures show a widening base of customers and programs alongside the continued dominance of electric vehicles in orders. The order book is spread across several businesses, however, including conventional vehicles, railways and robotics, linking its growth to different production start dates.
The company commercially launched three new products during the quarter, its highest number in a single quarter, according to its statement. They included a limited-slip helical differential for electric vehicles, air springs for railway passenger coaches and rear radar sensors for two-wheelers. New programs added 7 billion rupees in limited-slip differential orders, 3.8 billion in motor controllers, 12.5 billion in traction motors and 1 billion rupee in rear radar sensors. Production for the traction motor program is expected to begin in the second half of fiscal 2027, and for the motor controller program in the first half of fiscal 2028. The rear radar sensor is due to enter production in the second half of fiscal 2028, and the limited-slip differential in the first half of fiscal 2029.
In trading on October 26, the company's shares closed on the Bombay Stock Exchange at 783.90 rupees, up 31.10 rupees, or 4.13%, during the session. The close followed the release of second-quarter results showing double-digit growth in revenue and net profit, alongside a decline in operating margin. The launch dates for new programs remain spread between the second half of fiscal 2027 and the first half of fiscal 2029, depending on the program. The order book shows that a large portion of the business is tied to electric vehicle programs, alongside non-electric vehicles, railways and robotics. The CEO said the company's medium-term ambition was to achieve 25% compound annual revenue growth, and that management was confident it could sustain that pace.