Sona BLW Precision Forgings Ltd. (Sona Comstar), a key player in the global mobility technology sector, has announced its unaudited standalone and consolidated financial results for Q1 FY26, ending June 30, 2025. While the company faced a drop in revenue and profitability, it simultaneously achieved milestone order wins, expanded internationally, and enhanced its electric vehicle (EV) footprint, demonstrating its resilience and strategic focus.

Financial Performance Overview

During Q1 FY26, Sona Comstar posted revenue of Rs 8,509 million, a 5% decrease year-on-year (YoY). The company's EBITDA stood at Rs 2,025 million, marking a 19% YoY drop, while net profit (PAT) was Rs 1,247 million, which is 12% lower than Q1 FY25.

Despite the decline in profitability, the company maintained strong margins, with EBITDA at 23.8% and net profit margin at 14.3%, indicating operational efficiency in a challenging market environment.

BEV Segment and Electrification

A significant development is Sona Comstar’s focus on the Battery Electric Vehicle (BEV) segment. Revenue from BEVs was Rs 2,106 million, contributing 28% to the total revenue, although it witnessed a 25% YoY decline.

In Q1 FY26, the company added two new EV programs, taking the total awarded programs to 60 across 32 customers. Importantly, EV programs now contribute 75% of the total order book, underlining Sona Comstar’s strategic pivot towards electrification.

Record Order Book and New Wins

Sona Comstar reported an all-time high net order book of Rs 262 billion at the end of June 2025. One of the standout achievements was a major driveline order from a North American OEM, which is the largest order the company has received in the last 2.5 years.

This program involves the supply of differential assemblies with final drive gear for a new electric passenger vehicle platform. The order value stands at Rs 15.5 billion, and production is expected to start in Q3 FY28.

Additionally, the company secured an order from an Indian OEM to supply drive motors for electric three-wheelers, adding Rs 2.6 billion to the order book, with production expected to commence in Q4 FY26.

Expansion in China – Joint Venture with JNT

Another notable move was signing a binding term sheet with Jinnaite Machinery Co., Ltd (JNT) on July 20, 2025, to form a joint venture (JV) in China. This JV will manufacture and supply driveline systems and components to OEMs in China and globally.

Sona Comstar will invest $12 million, while JNT will contribute $8 million in assets and business. The JV is expected to start operations in H2 FY26, supporting the company’s expansion into Asia’s fast-growing EV market.

Acquisition of Escorts' Railway Equipment Division

On June 1, 2025, Sona Comstar completed the acquisition of the Railway Equipment Division from Escorts Kubota Limited. The business has now been fully integrated into Sona Comstar, and its financials are consolidated from the acquisition date.

This acquisition strengthens Sona Comstar’s position in the railway systems space, where it is already a leading supplier of safety systems, couplers, and suspension systems in India.

Management Commentary

Mr. Vivek Vikram Singh, Managing Director and Group CEO, acknowledged that Q1 FY26 was challenging due to multiple temporary factors, but highlighted the company’s ability to secure large strategic orders and make key international moves.

He added, “We ended the quarter with an all-time high order book. With these wins and our new JV in China, we are well positioned to enter the next growth phase.”

Strategic Takeaways

• Global EV Focus: Sona Comstar continues its strong push into the EV sector, both through domestic orders and international partnerships, particularly in North America and China.

• Diversification: With operations across India, USA, Mexico, Serbia, and now expanding into China, Sona Comstar’s geographic diversification mitigates market-specific risks.

• Product Innovation: Through its R&D centres and engineering capabilities, the company offers mission-critical systems and components tailored for electric and non-electric powertrain segments.

About the Company

Founded in 1995, Sona BLW Precision Forgings Ltd. is headquartered in Gurugram, India. It has a global presence with manufacturing and assembly units, engineering centres, and R&D facilities in India, China, the US, Mexico, and Serbia.

The company focuses on driveline systems, traction motors, radar sensors, precision forging, and software-based mobility solutions, catering to electric, hybrid, and internal combustion engine vehicles.

It is also a key supplier to the railway industry, offering couplers, safety systems, and suspension systems. Sona Comstar is publicly listed on both the BSE and NSE under the symbol SONACOMS.

Conclusion

While Q1 FY26 presented some short-term challenges in profitability and revenue, Sona Comstar’s strategic initiatives, new order wins, and global expansion plans demonstrate its long-term growth trajectory. The record Rs 262 billion order book, major EV-related orders, and a JV in China solidify the company's position as a future-ready mobility leader.

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