Synopsis:
Shares surged after strong quarterly results and optimistic brokerage views. Revenue and profit rose sharply, driven by traction motor and EV segments. Expanding customer base, new European contracts, and strong order book highlight solid growth prospects and diversification across vehicle categories.
The share of the automotive system manufacturer gained up to 4 percent from the day’s low in today’s trading session after the company reported robust Q2FY26 results and brokerage reaffirmed its Buy rating, reflecting confidence in the company’s growth outlook.
With a market capitalization of Rs 30,256.05 crore, the shares of Sona BLW Precision Forgings Ltd were trading at Rs 484.90 per share, increasing around 0.26 percent as compared to the previous closing price of Rs 483.65 apiece.
Q2FY26 Highlights
The shares of Sona BLW Precision Forgings Ltd have seen significant movement after announcing its financial performance in Q2FY26, in which revenue increased by 23 percent on a year-on-year basis from Rs 922 crore in Q2FY25 to Rs 1,138 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 33 percent from Rs 854 crore in Q1FY26 to Rs 1,138 crore in Q2FY26.
Moreover, net profit increased by 18 percent on a yearly basis from Rs 144 crore in Q2FY25 to Rs 170 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 39 percent from Rs 122 crore in Q1FY26 to Rs 170 crore in Q2FY26.
Sona BLW Precision Forgings reported robust Q2 FY26 results with 13% EBITDA growth and a strong 25.3% EBITDA margin. Maintaining a healthy 14.9% PAT margin. However, BEV revenue declined by 17%, though BEV products made up 32% of automotive product revenue, highlighting continued leadership in the electric vehicle segment.
The company achieved strong diversification and robust growth, with revenue rising 2.15x from ₹21,306 million in FY22 to ₹45,740 million annualized in Q2FY26. Customer concentration reduced as “Others” rose to 28%, reflecting a broader client base and balanced revenue mix across major customers, strengthening long-term business stability.
Sona BLW added two new vehicle models in its electric PV segment, securing one new European luxury OEM customer. The lifetime value from these new deals totals ₹8,200 million, with production slated to start in Q2 FY27. This strengthens Sona Comstar’s traction in EV components, especially in the high-value integrated motor controller space
Sona BLW’s net order book now stands at ₹236 billion, mostly driven by the EV segment, which forms 70% of the total. The company serves diverse customer needs across passenger vehicles, two-wheelers, CVs, off-highway vehicles, and railways. Strong order intake and customer diversity highlight Sona Comstar’s resilience and its solid positioning in both EV and non-EV markets.
Nomura, one of the well-known brokerages globally, maintained a ‘Buy’ recommendation on the auto stock with a target price of Rs 605 apiece, indicating a potential upside of 25 percent from Monday’s price of Rs 485.00 per share.
Nomura is citing strong execution despite industry headwinds. Q2 revenue exceeded expectations, driven by traction motor and railway segments. The brokerage sees a €300 million opportunity in Europe, with Sona likely capturing 15–20%. Diversified order wins and attractive valuations at 39x FY27 EPS support continued growth prospects.
Sona BLW Precision Forgings is engaged in designing, manufacturing, and supplying engineered automotive systems and components such as differential assemblies, gears, conventional and micro-hybrid motors, BSG systems, and EV Traction motors across all vehicle categories. The company develops mechanical and electrical hardware systems, components, as well as base and application software solutions.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Is Sona BLW set to accelerate growth with EU opportunities and strong Q2 performance? appeared first on Trade Brains.